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A Study on Value Added Dairy Products and Availability of Milk, Meat and Egg at Consumers’ Level in Selected Areas of Bangladesh

M. T. Uddin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh- 2202

M. M. Islam
Farming System Research Division, Bangladesh Livestock Research Institute, Savar, Dhaka-1341

M. Nasrin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh- 2202

Abstract/ Executive Summary:

The goal of the study was to analyze the different actors involved in the dairy products value chain with their value addition activities and estimate the demand for livestock products by measuring the availability of milk, meat and egg at the individual level. With this goal, the study was conducted in four districts namely Sirajganj, Bogra, Rangpur and Narsingdi which were selected purposively for this study based on the concentration of dairy farming and the presence of dairy processing plants/companies. The simple random sampling technique was followed to select a total of 240 from six types of stakeholders/ actors i.e., input suppliers, dairy farmers, milk traders, processing plants/companies including their branches/agents, credit organizations and service providers, and consumers of livestock products. Data and information were analyzed by using descriptive statistics, mathematical techniques, enterprise analysis, SWOT analysis and value chain analysis followed by graphical presentation. Cost of milk per litre was highest in Narsingdi (Tk. 25.33) and lowest in Sirajganj (Tk. 19.66). Dairy farmers in Narshingdi derived highest net return per cow per day (Tk. 109.48). Investment in dairy farming was highly profitable since BCR per day per cow in all the districts were more than one. Collection point/processing plants added highest value (35.5%) to a product followed by farmers (25.2%), milk traders (28.3%) and retailers (11.0%). The availability of milk, meat and egg was higher in all the study areas than the national average. The impact of price and income on quantity demand was statistically significant for all the products. The demand for milk and egg was price elastic whereas demand for meat was price inelastic. On the other hand, the demand for livestock products was found as income inelastic. However, in spite of various problems and threats, there is a great export potential for value added dairy products along with satisfying the unmet consumer demand in the domestic market for such products.

Keywords: Value addition, Demand for livestock products, SWOT analysis, Price elasticity

Location: Belkuchi, Shahjadpur, Ullahpara and Sadar Upazila of Sirajgonj District; Gabtali, Nandigram, Sherpur and Sadar Upazila of Bogra District; Mithapukur, Pirganj and Sadar Upazila of Rangpur District; and Palash as well as Sadar Upazila of Narsingdi District, Bangladesh

Start Date:

End Date:

Program Area: Food Safety and Security

Commodity: Meat, Milk

Objectives:

The specific objectives were as follows: i) To identify the existing actors involved in the value chain of dairy products and analyze their activities; ii) To estimate the value addition at different levels of the value chain of dairy products; iii) To measure the gap between the actual availability and projected demand for milk, meat and egg at consumers’ level; and iv) To suggest policy options for necessary improvement.

Methodology:

This research was performed jointly by the Bangladesh Agricultural University (BAU) and Bangladesh Livestock Research Institute (BLRI). Different villages of Belkuchi, Shahjadpur, Ullahpara and Sadar Upazila of Sirajgonj District; Gabtali, Nandigram, Sherpur and Sadar Upazila of Bogra District; Mithapukur, Pirganj and Sadar Upazila of Rangpur District; and Palash as well as Sadar Upazila of Narsingdi District were selected purposively for this study based on the concentration of dairy farming and the presence of dairy processing plants/ companies. Simple random sampling and face-to-face interview method were used for a total sample of 240, covering 06 types of stakeholders/actors taking 40 input suppliers, 40 dairy farmers, 40 milk traders, 40 processing plants/companies (including their branches/agents/collection points), 40 credit organizations and service providers; and 40 consumers of livestock products. Primary data were collected from field surveys, focus group discussions (FGD) and key informant interviews (KII). Data and information were analyzed by using descriptive statistics (i.e., sum, average, percentages, ratios, standard deviations, standard errors, etc.), mathematical techniques, enterprise analysis, SWOT analysis and value chain analysis followed by the graphical presentation.

Source of Information: Bang. J. Livs. Res. Special Vol. 21-25, 2018: P. 45-55; ISSN 1022-3851

Article Link (Online Journal):

Funding Source:

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Total Budget (Tk.) :

Achievement/Findings:

The study analyzed the different actors involved in the chain of value-added dairy products with their value addition activities and estimated the demand for livestock products by measuring the availability of milk, meat and egg at the individual level. The activities of various actors involved in the milk value chain were identified and the chain of value-added dairy products was identified. It was revealed that collection point/ processing plants added the highest value to a product. However, as compared to national statistics, the gap between availability and requirement was very pronounced in the study areas because the majority of people do not have adequate buying ability. Availability of milk, meat and egg was higher in all the study areas than the national average. A significant impact of the product price and consumer income was found on the demand for milk, meat and egg in all the districts. Marketing of foreign dairy products in the domestic market, lack of grazing land, lack of quality control measures are the major threats towards developing dairy enterprises in the country. In spite of all these threats, there is a clear cut and tremendous opportunities for the improvement of dairying. It may be concluded that there is a great export potential for value-added dairy products, and satisfy the unmet consumer demand in the domestic market with such products which will lead in increase the overall income from the livestock sub-sector. Therefore, the formulation of a long-term plan is essential to increase the production of livestock and livestock products to fulfill the ever-increasing demand of the country.

Knowledge Management: Journal