The dairy industry has maintained a strong foothold as a promising sector in Bangladesh. Since the early stages, the industry has undergone massive development, as evident by its enormous market size at present, which is estimated at USD 2.47 billion by the Department of Livestock Services. Despite registering steady growth in the production of milk, the industry is still heavily reliant on importing milk to meet local demands.
In recent years, the industry has integrated modern technologies into dairy farming, with innovation now playing a key role in maximising milk production. Automation in dairy farming has enhanced the collection, processing, and production of milk, leading to economies of scale and minimising costs. Artificial insemination is helping to extract 225% more litres of milk from cow breeds in comparison with traditional farming. Additionally, leading industrial processors are diversifying their product offerings by offering variations of milk derivatives.
Though the industry has several hurdles to overcome, incorporating cutting-edge technologies with traditional practices will promote growth, increase production, and facilitate product diversity to meet changing consumer preferences. As the government aims to be self-sufficient in meeting domestic demand by the year 2030, encouraging innovation will be instrumental in reducing the import gap and boosting the dairy industry.
Md. Shah Jalal
Editor
IDLC Monthly Business Review