Denmark launches Tk 254m dairy project in Bangladesh

Danida Green Business Partnership (DGBP) under the Ministry of Foreign Affairs of Denmark has launched an innovative dairy project in Bangladesh.

Titled 'Green Dairy Partnership in Bangladesh,' the scheme is aimed at creating a sustainable and productive dairy value chain model in the country's southwestern part.

The launching ceremony of the project involving approximately Tk254 million (DKK 25.5 million) was held in Dhaka on Thursday, says a press release.

The project is pioneering a green, sustainable, and commercially viable dairy business, targeting a 30 per cent reduction in greenhouse gas emission and a 30 per cent increase in income for 10,000 farmer households with a scaling potential of 50,000.

Additionally, this five-year project has the ambition to ensure that 80 per cent of the targeted farmers are women.

Subsequently, the project will streamline milk collection and processing in the southwest Bangladesh alongside introducing more sustainably produced dairy products in the market.

The launching ceremony was attended by Sayeed Mahmood Belal Haider, secretary of the Ministry of Fisheries and Livestock; Dr Md Reajul Huq, director general of the Department of Livestock Services, and Ali Mushtaq Butt, Head of Trade and Danida Business, Royal Danish Embassy in Bangladesh along with representatives of the project partners.

Administered by Solidaridad Network Asia, the project features PRAN Dairy as the key commercial partner while partners Arla Foods Bangladesh, IDRN-Bangladesh Agricultural University, SEGES Innovation and The Danish Agriculture & Food Council will play key roles.

By adapting Danish expertise on sustainable dairy farming from Arla Foods and SEGES Innovation under the BIG FIVE concept, the project model aims to assist in PRAN Dairy's business through realising multiple ambitions.

The key levers of the BIG FIVE concept: feed efficiency, feed balance, animal robustness, manure handling and efficient use of land, is anticipated to affect 25 of the greenhouse gas emission reduction.

The additional 5.0 per cent is planned to be achieved through process optimisation: energy, food waste and packaging.

The project is also expected to deliver proof-points, managed by IDRN together with SEGES Innovation, to guide the green transformation of the dairy industry in Bangladesh.

Ahsan Khan Chowdhury, chairman & CEO, PRAN-RFL Group, said, "We are very pleased to be considered as one of the key players of the project. PRAN Dairy is collaborating closely with dairy farmers across different regions of Bangladesh to create a sustainable and productive dairy value chain."

"As part of the sustainable dairy project, we are providing training to dairy farmers to enhance productivity and working with them on feed efficiency, feed balance, animal robustness, manure handling, and efficient use of land," he added.

Irene Quist Mortensen, head of International Sustainability, Arla Foods, said, "Arla Foods is proud to have initiated this project, which we believe will aid to the agendas of the Bangladesh government regarding dairy sustainability and self-sufficiency, employment, equality, and reduction of CO2 emission. Our involvement in this project is also a part of our ambition to be a global lead on sustainable dairy."

Selim Reza Hasan, country manager, Solidaridad Network Asia, said, "Bangladesh is going through the double graduation process. It has achieved the status of lower-middle income country as well as entered the process of graduating from LDC to a middle income country status."

"The prosperity of Bangladesh demands safe and sustainable food. The 'Green Dairy Partnership project' is developing a business case for the farmers and the private sector for production and supply of quality milk, which would be carbon neutral," he added.