Interviewed By Akhlaqur Rahman Sachee, Team MBR

Mr. Fahad Ifaz boasts over 12 years of experience in South Asian economic development. Before founding iFarmer, he managed a USD 20 million agricultural development fund in Myanmar. Alongside iFarmer, Mr. Fahad currently holds positions at Alice Labs and Misfit Technologies. He earned a Bachelor of Business Administration (Economics and International Business) from North South University and a Master's degree in Agricultural Business and Management from the Asian Institute of Technology. Team MBR was fortunate enough to have a conversation with Mr. Fahad and receive his take on cattle fattening in Bangladesh.

Akhlaqur Rahman Sachee: The number of animals sacrificed on the last Eid al-Adha amounted to approximately 1.25 crore, and it is projected that the figure may go up to approximately 1.50 crore this year, which the country is capable of fulfilling despite the ban on imports of cattle from India. Would you kindly share with us the factors that have made this self-sufficiency a reality?

Fahad Ifaz: Bangladesh's self-sufficiency in cattle production likely stems from a confluence of factors. The factors include various government initiatives, a younger and potentially more educated generation entering the agricultural sector, and the increased availability of online resources and motivational contents for cattle rearing. Additionally, access to quality artificial insemination has improved breeding practices, while rising and stable market prices incentivize farmers. New fattening techniques, investments by large local conglomerates in cattle fattening, and the introduction of high-yielding fodder varieties have all contributed to a positive impact on the overall industry and increased farmers’ interest.

Akhlaqur Rahman Sachee: Cattle-fattening projects are often heard to be profitable, which has made them popular among the farmers involved in livestock rearing. Would you kindly share with us some statistics regarding the impact cattle fattening has created on the lives of marginalised farmers?

Fahad Ifaz: Smallholder cattle farmers earn at least 50%–60% profits annually from cattle rearing. Also, farmers can earn increasing returns to scale while incurring lower operating costs compared to other agricultural products. Though there are some risks involved, the rate of return compensates for the risks, and it is more lucrative than most other products. Through cattle rearing, one can achieve financial independence and create employment opportunities for others as well. In short, cattle fattening has the capacity to impact the lives of marginalised or smallholder farmers, and it has the potential to generate high profitability for them.

Akhlaqur Rahman Sachee: Pabna, Sirajganj, Kushtia, and some other districts are known to have a higher concentration of cattle-fattening farms. Would you kindly shed some light on the drivers that have made cattle fattening lucrative in these areas?

Fahad Ifaz: Availability of grazing lands, availability of water resources, favourable climates, etc., play significant roles in determining the success of cattle fattening projects. The aforementioned areas, including Pabna, Sirajganj, Kushtia, and so on, boast abundant pasture lands, locally known as ‘Bathan’, which provide ample grazing opportunities for cattle. Additionally, the fertile lands and favourable climates in these regions are conducive to livestock rearing and fattening. The availability of water resources further supports the growth of this industry, ensuring adequate hydration for the cattle. Hence, due to all the success factors present in these districts, a higher concentration of cattle-fattening farms has been found there.

Akhlaqur Rahman Sachee: Red Chittagong, Pabna, North Bengal Grey, and Munshiganj are some of the most popular indigenous breeds for meat production, though these breeds are far behind foreign breeds such as the American Brahman in terms of yield. What are the possible measures to reap better yields from cattle fattening, in your opinion?

Fahad Ifaz: It is a matter of concern that indigenous breeds lag behind in terms of yield in comparison to foreign breeds. Government-backed institutions, such as agricultural universities, can partner with international research wings. These partnerships can facilitate breeding programmes that select cattle with superior traits. Additionally, increased access to artificial insemination using high-yielding semen from either indigenous or suitable exotic breeds can further enhance livestock genetics. Research focused on optimising meat yield in local breeds, combined with the development of breed-specific feeding guidelines for farmers, can maximise production efficiency. 

Akhlaqur Rahman Sachee: Farmers have been found to use harmful steroids, hormones, vitamin additives, etc. to fatten cattle, and consumption of such cattle meat can cause cancer, kidney failure, and other health complications for consumers. Would you kindly explain the reasons behind farmers' motivation to engage in such harmful practices and how we can regulate cattle fattening?

Fahad Ifaz: The desire for quick profits motivates farmers to use steroids, hormones, and vitamin additives to make the cattle fattening process faster. Farmers often follow these ill practices, being influenced by their peers. Stricter monitoring of slaughterhouses is crucial to regulating such harmful practices and mitigating health risks associated with consuming the meat of the cattle fattened following such measures. However, long-term solutions lie in educating farmers. Raising awareness about the dangers of additives and promoting healthier fattening methods are essential. Addressing knowledge gaps and inadequate understanding of these medicines requires government interventions. Formulating policies and actively promoting responsible practices within the livestock industry can effectively be helpful to regulate cattle fattening and safeguard consumer health.

Akhlaqur Rahman Sachee: Though approximately 800,000 farmers are involved in cattle farming for dairy and meat production, this group of people lacks access to formal lending institutions. Why does this financing gap exist, and how can it be bridged, in your opinion?

Fahad Ifaz: This lack of access to formal lending institutions stems from two key challenges. Firstly, farmers typically lack the formal documentation and financial history required by traditional lenders. Secondly, the limited branch networks of many public and private financial institutions make it difficult for them to reach rural farmers directly.

These gaps restrict farmers to relying on microfinance or informal lenders, which often do not build up credit scores for them, hindering their access to formal financial products in the future. Solutions like iFarmer can bridge these gaps. iFarmer's performance-based scoring model evaluates farmers based on their transaction history and performance. These data can then be used to create credit profiles to assess creditworthiness, enabling them to access formal financing opportunities. Additionally, iFarmer can act as an information aggregator, connecting farmers with financial institutions and increasing loan accessibility. Furthermore, addressing the issue of collateral requirements in existing lending products could further remove limitations faced by farmers seeking formal loans.

Akhlaqur Rahman Sachee: Though Bangladesh has become self-sufficient in meat production over the years, the price of beef has only kept rising all these years. What are the factors that contributed to this rise in price, you think?

Fahad Ifaz: In Bangladesh, the rising cost of meat production, including feeds, fodders, and medicine costs, has significantly contributed to the increase in beef prices. Moreover, the lack of accessible low-interest financing options for farmers exacerbates the financial burden of production, limiting their ability to expand operations and invest in modernization. Additionally, the cultural tradition of selling cattle during Eid al-Adha, a significant religious festival, creates a surge in demand during this period, further driving up prices due to limited supply.

Akhlaqur Rahman Sachee: Having access to training and knowledge on the appropriate methodology for cattle fattening can help farmers reap higher profits. Would you kindly give us an overview of the government and private initiatives aimed at educating farmers about cattle fattening?

Fahad Ifaz: To improve profitability in cattle fattening, both government and private entities have undertaken educational initiatives for farmers. These include government projects like the Livestock and Dairy Development Project, which, under its Cattle Fattening Project, provides training programmes supervised by experts at the upazila level. The Department of Youth Development also arranges regular training sessions. Additionally, local and international NGOs, along with other relevant authorities, conduct regular workshops on best practices for cattle fattening. These combined efforts aim to equip farmers with the knowledge and skills needed to achieve higher profits.