Promoting local dairy industry

THE local dairy industry can provide multiple benefits. Development of the dairy sector on proper lines can lead to large saving of resources which presently get drained away from the country from the need to import powered milk. The figures do indicate the fast climbing rate of import in sharp contrast to insufficient local production to meet the demand. But Bangladesh with its predominant number of rural people in the country, its agrarian characteristics, plus the traditional experience of rearing cows, should normally have comparative advantages in producing ample milk and milk products. If the dairy industry here develops fast and properly, then several useful ends can be served. First of all, it would mean considerable import substitution and saving of resources. The nutrition picture of the country could change positively with significantly increased consumption of milk and milk products by the people. Presently, the consumption of milk and milk products in Bangladesh is very low compared to even that of the neighbouring countries. An improved and enlarged dairy industry will also create employment opportunities where it matters the greatest at grassroots level. Thus, there is every reason to vigorously promote the development of the local dairy industry.
The first step in this endeavour needs to be encouraging specially the rural people to rear cows. It appears that institutional credits specifically for the purpose is yet inadequate or difficult to access. Government can adopt a policy in this regard and have it implemented very extensively through the Krishi Bank (Agricultural 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. Many people finding little or no earning prospects from the traditional farming of cereals and other crops, are very keen to explore other ways of alternative income. They 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. The few modern and large scale dairy industries which are there in the private sector are facing difficulties and would not be so interested to sink funds into research activities. But the government should have the resources to invest in such projects of starting a breeding programme to fine-tune the bovine characteristics. Under such a programme, stronger and more productive cows can be reared and sold to the small scale dairy entrepreneurs in the rural areas. Government ideally should aim for such a project to be a break-even type or one making nominal profits. But there is a possibility that it could flourish automatically to become an attractive paying concern for the government. Side by side, the government- conducted veterinary services throughout the country will have to be expanded and improved as supportive of the growing dairy enterprises.
A report in this paper last Friday drew attention to the fact that government is heavily subsidizing the lone government-run dairy industry which has resulted in the few large scale privately-run dairy industries into feeling that they do not have a level playing field. They say that they would be motivated to increase production and opt for developmental activities if the government attempted to make the playing field even for them. Policy planners, therefore, should also examine these views of the private dairy industries and do something about the same if considered reasonable and feasible.