Ctg dairy farms facing closure due to high fodder prices
Sunday, 25 November 2007
Our Correspondent
CHITTAGONG, Nov 24: The fate of dairy industry in the port city is at stake due to high price of fodder and other causes, sources said.
Some 350 dairy farms in the city have already closed down as those were constantly incurring financial losses, while 45 more farms are dragging on with their existence. They are also on the verge of closure , concerned sources said.
Import of powdered milk is on the rise while development of the potential dairy industry is facing obstruction. Around 20 per cent of the country's export income is being spent in importing powdered milk.
According to sources in the Chittagong Dairy and Poultry Farm Owners Association (CDPFOA), they are being compelled to sell milk at a price below the cost of production. As a result, owners of a good number of dairy farms have closed their businesses to avoid further loss.
Government patronage in 1990s brought about a change in the dairy industry. A large number of dairy farms were set up across the country including the port city. The initiative helped to discourage import of powdered milk.
But the dairy industry was thrown into manifold crises in later years and high prices of dairy and cattle feed were responsible for such a situation.
It was learnt from some dairy farm owners that the price of cattle feed has increased alarmingly during the last one year.
As much as 70 per cent money is spent in cattle feed to produce dairy milk. Price of a 37-kg sack of rice bran is Tk 690, while it was Tk 360 only a year back. Similarly, price of other cattle feed also increased.
The CDPFOA source told the FE that government patronisation is a must for survival of the dairy farms. Necessary steps should be taken immediately so that the dairy farmers can get the cattle feed at fair prices.
CHITTAGONG, Nov 24: The fate of dairy industry in the port city is at stake due to high price of fodder and other causes, sources said.
Some 350 dairy farms in the city have already closed down as those were constantly incurring financial losses, while 45 more farms are dragging on with their existence. They are also on the verge of closure , concerned sources said.
Import of powdered milk is on the rise while development of the potential dairy industry is facing obstruction. Around 20 per cent of the country's export income is being spent in importing powdered milk.
According to sources in the Chittagong Dairy and Poultry Farm Owners Association (CDPFOA), they are being compelled to sell milk at a price below the cost of production. As a result, owners of a good number of dairy farms have closed their businesses to avoid further loss.
Government patronage in 1990s brought about a change in the dairy industry. A large number of dairy farms were set up across the country including the port city. The initiative helped to discourage import of powdered milk.
But the dairy industry was thrown into manifold crises in later years and high prices of dairy and cattle feed were responsible for such a situation.
It was learnt from some dairy farm owners that the price of cattle feed has increased alarmingly during the last one year.
As much as 70 per cent money is spent in cattle feed to produce dairy milk. Price of a 37-kg sack of rice bran is Tk 690, while it was Tk 360 only a year back. Similarly, price of other cattle feed also increased.
The CDPFOA source told the FE that government patronisation is a must for survival of the dairy farms. Necessary steps should be taken immediately so that the dairy farmers can get the cattle feed at fair prices.