Machine, fund support: A fillip to small dairy farms
So far, 91 farms have signed contracts and commenced construction of their processing facilities. They have invested between Tk40 and Tk50 lakh
Bhandar Agro Farm in Bogura is poised for a modern makeover, with a Tk1.66 crore investment in a cutting-edge dairy plant equipped with an automated milk processing machine.
The farm's owner Touhid Parvej Biplop expects to double milk processing to 1,200 litres per day with the new factory.
The huge investment, however, is less of a burden for Touhid as his farm is in a contract with the government's Livestock and Dairy Development Project (LDDP), which will be covering 50% of his spending.
Touhid's farm is among 10 others across the country that are investing similar amounts in modernising their establishments under the project's "large-scale milk processing" category.
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All 10 entrepreneurs in contract under the category will be getting a maximum of Tk83 lakh. Each entrepreneur's total investment has no limit.
The process of getting project money is conditional. The farmer has to invest first. After the factory comes into production, the project will pay the agreed fixed amount once the machinery purchase bill is submitted.
Another company contracted for the large-scale category is Belal Dairy and Sweets, which through its own in Dhaka's Mirpur sells sweets and milk products. The company collects milk from its own farm.
Yusuf Shamim, proprietor of Belal Dairy, told The Business Standard that he had invested Tk1.66 crore for a modern factory with automated machinery, from which butter and cheese will be made as additional products and sweets will be made through automated machines.
"This sweet factory processes about 30,000 litres of milk on an average per month. After the commissioning of the modern factory, the milk processing volume will reach 50,000 litres," Yusuf Shamim said.
Md Golam Rabbani, the chief technical coordinator of the LDDP, told TBS that they are working on a supply chain development from production to consumer.
"A part of this is setting up joint venture processing factories for milk processing through projects with various entrepreneurs including farmers," he said. Making market linkages with milk and meat producers is a major objective of this project.
Small-scale processors
Under the LDDP, 232 "small-scale milk processing" plants will be installed on farms nationwide through the project. So far, 91 farms have signed contracts and commenced construction of their processing facilities. They have invested between Tk40 and Tk50 lakh.
Under this category, a maximum of Tk24.95 lakh will be provided under the LDDP for the entrepreneurs.
Md Asaduzzaman, senior manager of Naba Dairy and Cattle Farm in Rajshahi, said, "We are in the process of getting several types of machinery, including an automated machine to prepare pasteurised milk and another for curd sweets."
A letter from the project has permitted the farm to purchase the machines, he mentioned.
He emphasised that nationwide milk processing plants would liberate dairy farmers from dependence on specific groups for milk sales, ensuring a consistent and favourable milk pricing guarantee.
Learning modern farm management
Under the project, 5,500 Producer Groups (PGs) have been created across the country where among other activities farmers get training on modern farm management. Training is conducted on disease prevention, cost reduction and modern animal-raising methods.
Sadhana Ghosh, president of the Dairy PG in Pirijpur of Rajshahi's Godagari upazila, said the group provides farmers with medicines and vaccines free of charge.
The group organises farmers to increase their capacity, Ghosh said. Each farmer also deposits Tk200 in a bank account every month to this end.
Lovely Begum, a member of Dairy PG of Paba upazila of the same district, said a milk separator machine has been provided to her group from the project.
On days when no one can sell milk, the machine is used to separate the milk fat and prepare ghee (clarified butter), which is sold in the market at Tk1,400 per kg.
Besides, milk is being fed to students daily in 284 primary schools through this project, thus creating a consumer class, she added.
Nahid Rashid, secretary at the Ministry of Fisheries and Livestock, said, "Through the project, we are creating the habit of children to drink milk. This will increase the tendency of children to come to school and at the same time create a consumer class."
The LDDP is being implemented with a loan of $500 million from the World Bank. The project started in January 2019 and is expected to be implemented by June 2025.
