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A backward dairy industry in pastoral Bangladesh makes no sense

Thursday, 18 December 2008


Enayet Rasul
EVEN in the mid nineties, the level of powdered milk import was a reasonable one. The expenditure on imports for powdered milk was about Taka 2.2 billion in 1996. Thus, the costs of imports on this score have increased five times in only twelve years indicating the fast climbing rate of import underlining insufficient local production of milk to meet its growing demand. But it is not only a matter of demand for a product fast outpacing the locally available means to supply the same.
The higher import points to gross neglect in building up a sector with which is vitally connected the nation's health, nutrition and other vital issues. Governments till the mid-nineties had policies going to systematically encourage local dairies. The interest started flagging after this period that has gradually turned Bangladesh into a paradise for overseas powdered milk suppliers. They have established a big and impressive network to market their milk in powder form in this country when there is every reason to think that consumers are in no way amply nourished by milk powder as they would be if they could drink locally produced liquid and wholesome milk.
But Bangladesh with its predominant number of rural people , its agrarian characteristics, plus the traditional pastoral experience of rearing cows, should normally have comparative advantages in producing ample milk and milk products. Unlike many other countries, the urban existence of Bangladeshis is still very limited. They live mainly in the countryside where they used to rear cows as a subsidiary occupation. There was a time when the greatest number of rural homesteads each had at least one cow for milking. Family members were the primary consumers and the surpluses were marketed. But gradually the greater preoccupation with farming for food grains, diversification into other professions, migration to cities, etc., have changed this almost instinctive cow rearing culture in the villages.
Besides, the inflow of easy money into rural areas is also helping this change. There is hardly any village in Bangladesh where one or some persons have not gone abroad with jobs. Remittance sent by these Bangladeshi workers of rural origin have boosted income of people in such areas.
Family members in many cases hardly engage in any productive activities as the remitted money gives them the means to enjoy a good standard of living without doing anything for a livelihood. Many of these people consider it a status symbol to buy attractive cans of imported powdered milk than be looked upon as unfashionable ones with cow sheds in their homes with tatty surroundings. All of these factors and more have made cow rearing for dairy products like a lost art in millions and millions of village homes. Thus, milk production has been badly trailing demand in both urban and rural areas.
If the dairy industry here develops fast and properly, then several useful ends can be served. First of all, it would mean import substitution and substantial saving of resources. The saved amount would help the balance of payments. The nutrition picture of the country could change positively with significantly increased consumption of fresh milk in liquid form. Mothers in Bangladesh recently passed their days in great mental discomfort after knowing that imported powdered milk in most cases which they have been feeding their babies, contain the deadly melamine. They could easily avoid such fears if locally produced milk could provide them with an instant alternative.
An improved and enlarged dairy industry will also create employment opportunities in various ways where it matters the greatest -- at grassroots level. From greater availability of cows, different sorts of industries will be facilitated. For example, more cow hides will be available for the tanneries and leather industries. The import of cows from India for sacrificial purposes will drastically decline or cease which also would help the country's balance of payments. The availability of locally produced meat would rise helping greater protein consumption by the population. No part of the cow is wasted. Even its horns and bones are used by cottage industries to make button, combs and related products. There can be also other spin-offs such as cow dung to be used as fuel or as raw material to increase production of bio-gas to help lighting, heating and cooking in the rural areas.
But for all of these activities to be boosted, the first step needs to be encouraging specially the rural people to rear cows. It appears that institutional credits specifically for the purpose is scanty or difficult to access. Government can adopt a policy in this regard and have it implemented very extensively and efficiently through the Krishi Bank and other mediums to provide credits to persons willing to rear cows in the rural areas on easy terms. This would surely be a big stimulus for cow rearing as rural people will be encouraged to go for a good source of earning on the side.
There are people in rural areas who are searching alternatives to farming for foodgrains and other crops. They are keen to explore other ways of making income as they find their present occupation not sufficiently remunerative. These people would very probably come forward to make good use of such loans to help themselves and in the process output of milk would rise substantially.
Government should also help out in the development and sustaining of a growing dairy industry through research activities and breeding of healthier species of cows. It is obvious that rural small producers of dairy products on their own will never have the resources to invest in such projects. But the government should have the resources to invest in such projects. Healthier species of cows can be bred in these projects and sold to privately operated diaries. Government should aim to run such projects with the aim of breaking even in the areas of cost or making only a small profit.
Side by side, the government conducted veterinary services throughout the country will have to be expanded and much revamped as supportive of the growing dairy enterprises. The state of veterinary services is very shocking. Inadequate veterinary services are one of the major obstacles for livestock development. The ratio of veterinary surgeons to farm animals was estimated at 1: 1.7 million in 1995, and according to a 2003 estimate only 5-10 per cent of farm animals receive routine vaccination. These conditions have hardly improved since then.