The cultural identity of a nation is a lot expressed through its cuisine. Being a nation appreciated for its culinary arts and multi-cultural cuisines, red meat has managed to occupy a place on our plates, especially on days that are a bit more festive than others. Red meat is considered not only a festive delicacy but also a highly desirable food for us due to its mouth-watering taste, high protein content, and minerals. There is a growing demand for meat in Bangladesh due to changing dietary habits and rising incomes. The high price of red meat, high demand, and hurdles in the importation of cattle from India have made cattle farming and fattening a fast-growing agribusiness over the last decade. As a result, significant interest propelled in from farmers and investors in the cattle business.

Cattle fattening through prescribed methods is essential to fulfilling the demand for red meat in countries like Bangladesh due to limited grazing lands and dense populations. In addition, it can help smallholder farmers improve their livelihoods, as more yield means more money, along with providing food and nutrition security to the country. Cattle fattening, as the term suggests, is a practice of quickly adding pounds to the livestock by means of feeding them with calorie-dense and high protein-based diets, limiting the movement of livestock and preventing cattle from shrinking. In addition, cattle fattening practices require dedicated handling of the livestock with care and paying the most attention to prevent parasitic diseases. The fattening practices help meet rising demand by producing high-quality meat in large volumes for the market.

Economic Outlook on Cattle Fattening

Cattle farming, a significant component of the country's agro-economic landscape, has a considerable impact on fulfilling the country’s demand for red meat. According to Market Reports World, the global red meat market was valued at USD 458,818 million. Furthermore, the global red meat market is expected to expand at a compound annual growth rate of 6.4% and reach USD 665,788 million by 2028, pointing out significant future potential for the growth of cattle farming and the fattening industry.

A report published by the Department of Livestock Services (DLS) states the total cattle population to be 2.49 crore in FY2022-23, whereas it was 2.42 crore in FY2018-19, providing evidence that the cattle population has remained consistent over the years.

This consistency in the cattle population can be attributed to the government and the institutes that have been involved in the cattle sector extending their activities during the last decade. Many small farms across the country have also entered this business, and many institutional investors have grabbed the opportunity created by high demand and a shortage in supply due to India’s ban on cattle exports. Because of the favourable environment, lots of small farms have been established in the north-western regions of Bangladesh. Especially, cattle farming and fattening clusters have been formed in Kushtia, Sirajganj, Pabna, and Munshiganj. The DLS data also shows that total meat production in FY2022-23 was 87.10 lakh metric tonnes and the demand for meat was 76.08 lakh metric tonnes, leading to a production surplus of approximately 11 lakh metric tonnes. During Eid al-Adha, the demand for cattle spirals up, and the prices keep going up significantly compared to other times of the year. The demand for cattle during Eid al-Adha is now met exclusively by domestically bred cattle. Indeed, it is a fact that most prominent agricultural corporations and small to medium-sized farms in Bangladesh engage in cattle rearing with the specific aim of catering to the demands during Eid al-Adha. However, self-sufficiency in meat production should have pulled the price of meat down. In contrast, high prices for meat prevail in the market due to increased production costs and inefficiencies in the supply chain. On the bright side, if such a production surplus can be achieved in a persistent manner, it may in turn become a new item in Bangladesh's export basket in the near future. Livestock farming is creating 20% direct agricultural employment and 50% indirect agricultural employment. The DLS report also suggests that livestock farming contributes to 16.52% of agricultural gross domestic product.

Impact on Livelihood

Cattle fattening is a growing sector that delivers job and financial opportunities for the rural poor, particularly individuals who are landless, divorced women, and so on. Cattle fattening can provide a pathway to self-employment for individuals interested in agriculture and livestock production. It allows individuals to independently determine the size and extent of their cattle fattening activities according to their available resources, expertise, and market prospects. In the long run, successful individuals can vertically integrate their beef-fattening businesses by getting involved in breeding and meat processing.

In Bangladesh, mixed farming methods are mostly followed, such as complementary farming of crops and livestock, to ensure better utilisation of labour and capital. Cattle fattening provides an extra mile to the incomes of these rural households depending on agriculture for livelihood. Farmers and businesses strategically schedule cattle-fattening endeavours to take advantage of market conditions. Most ranchers who target Eid al-Adha execute 3 to 4 month fattening regimens to maximise profits. Naturally fattened cattle provide high-quality cuts or processed meat items with enhanced value. As a result, farmers or businesses generally demand higher prices in the market, enhancing their earning potential.

Through cattle fattening, women get the opportunity to generate income independently, which allows them to contribute to household finances and have greater financial autonomy. Along with providing job opportunities for local communities, cattle fattening improves skills like animal husbandry and financial management. Women involved in cattle fattening can develop and enhance these skills, which can empower them to take on leadership roles within their households and communities. It can challenge traditional gender roles and stereotypes, leading to greater respect and inclusion for women in society. As a result, women may experience greater recognition and respect from their peers and family members.

Cattle Fattening Process

Successful cattle fattening necessitates meticulous planning, management, and attention to satisfy the needs of the market and achieve financial goals. Initially, farmers choose youthful and robust cattle with favourable genetic potential for rapid growth. Cattle are fed a properly balanced diet to ensure healthy growth and fat deposition. This diet frequently consists of high-energy feedstuffs, including roughages (hay, silage, etc.), protein supplements (soybean meal, cottonseed meal, etc.), and cereals (corn, barley, wheat, etc.). During the fattening phase, cattle grow very quickly, putting on weight and fat tissue. Farmers keep track of each animal's progress by keeping it under close observation on a regular basis. They observe how fast the animals are growing and alter the diet when required. Cattle are generally raised until they achieve a specific weight and amount of fatness that is appropriate for slaughter. The duration of the fattening period may vary depending on factors such as the target weight, feed efficiency, and economic factors. Most farmers choose a short fattening period ranging from 3 to 5 months to take advantage of spiked demand during Eid. Others go for a yearlong fattening process.

Challenges

The biggest challenge in small-scale fattening is the high cost of the feeds, as the majority of the feed ingredients are imported. Two mostly used ingredients, maize and soybeans, are imported. On top of that, the prices of maize and soybean meal have increased in the global market, and the appreciation of the dollar against the taka has further contributed to the rising cost of animal feeds. Small-scale farmers are facing challenges in generating earnings like before from cattle farming. The regions of Rangpur, Gaibandha, Kurigram, Nilphamari, and Lalmonirhat produce a substantial quantity of maize. Noakhali and Lakshmipur, on the other hand, produce an abundance of soybeans. If the production of maize and soybeans in these areas can be increased, the country’s dependence on imports for raw materials for feeds can be decreased in the long run.

Fattening farms might struggle with illness due to inadequate sanitation and limited veterinary services. Bangladeshi cattle are also prone to diseases like foot-and-mouth, anthrax, and gastrointestinal illnesses. Investments in the construction of veterinary clinics, hospitals, and diagnostic labs across Bangladesh's rural and remote regions are necessary for improvements in veterinary care.

Traders and middlemen may control access to markets because they usually work in well-organised groups. This makes it harder for small farmers to sell their cattle directly to buyers. Cattle prices are often set by middlemen, who buy them from farms at low prices and sell them to traders or stores at higher rates. Farmers have little visibility into the pricing mechanisms and market dynamics. Small farmers may get less money for their animals when prices are manipulated, which lowers their profits and incomes. 

Another alarming aspect of cattle fattening is the use of steroids and harmful medicines to achieve faster fattening results. Although the Fisheries and Livestock Act 2010 outlawed the use of hazardous drugs and steroids, 63.7% of producers fatten their cattle with drugs while ignoring safe practices. For consumers, such meat may cause severe diseases like cancer and kidney failure. Even for farmers, taking the shortcut to make excessive profits can result in financial fiascos, as such artificial procedures shorten the life span of the animals. 

Weather conditions in Bangladesh, like high temperatures, humidity, and periodic floods, may impact cattle health and feed availability. The other challenges faced in cattle fattening in Bangladesh include insufficient training, limited access to finance facilities, price fluctuations across different marketplaces, and an unorganised marketing system. So, capacity-building programmes will ensure proper resource utilisation, market management, farm management, and financial management for cattle farmers. Moreover, Bangladesh Bank setting minimum credit targets for banks and non-bank financial institutions in the cattle farming sector will help to ensure easy credit access for small farmers. By implementing favourable policies, making strategic investments in infrastructure and technology, and conducting capacity-building efforts, the country may fully use the potential of the cattle-fattening industry to attain its development objectives.

Forward Outlook

Bangladesh is experiencing a rising market for premium beef products due to a shift in dietary trends and increased demand for animal protein. Cattle fattening offers prospects for enhancing value throughout the value chain, including feed production, animal healthcare services, transportation, and processing. Cattle farmers should opt for year-long fattening plans instead of seasonal fattening targeting Eid. As a result, it will lead to increased meat production. 

Self-sufficiency in meat production has opened opportunities to export beef products from Bangladesh, especially to countries with a large number of Bangladeshi expats and a growing demand for halal meat. It is advisable for Bangladesh to obtain certifications, which would enable the country to begin exporting meat and secure a portion of the rapidly expanding global halal food industry. Bengal Meat, a prominent meat processing firm, is already exporting 20% of its production.

Investing in meat processing can open new doors for Bangladesh. Globally, processed meats have gained popularity due to their convenience, longer shelf life, and ease of preparation. However, the processed meat industry is still dormant in Bangladesh. The trading of meat is still dominated by traditional butcher shops, which lack standardisation, product variation, and quality control. The processed meat market is expected to grow at a compound annual growth rate of 6.11% during 2024–2028, according to Statista. The growth of the processed meat industry, together with the inclusion of meat in the export basket, will gain the interest of local and foreign investors. Therefore, it can be expected that the cattle fattening sector may experience a huge inflow of investments if it can sustain the consistency it has demonstrated over the years.

The author is working as a credit analyst at IDLC Finance PLC. and can be reached at smuntasir@idlc.com.