DAIRY IN BANGLADESH

DISCOVER. INVEST. PROFIT

Milk production is one of the most important economic activities in Bangladesh,
providing 3.6 million households with supplementary income. The dairy system in
Bangladesh is characterized by small-scale operations, coupled with crops and other
off-farm activities. Several government, NGO and private sector initiatives have made
progress in transforming dairy into a more value-driven and market-oriented sector.
The dairy market in Bangladesh is lucrative for investors given the countrys large
population, rising incomes and evolving diet.
Growth Drivers
One of the highest cattle density in the world: 145 large ruminants per square kilometres in 2010
Rising demand for milk-based food products in daily consumption and as beverages
Low cost of input (raw materials, human resources etc.)
Introduction of UHT milk, milk powder, yogurt, flavoured milk products and other popular product
varieties by dairy enterprises
Introduction of aseptic milk packaging leading to longer shelf life
DAIRY PRODUCTION
Milk production in Bangladesh annually grew by 6.2% between 2005 and 2012. This growth was largely
due tohigher milk production by an increasing number of cross-bred dairy cows, more institutional
investment in dairy, rising market demand for processed dairy products and the implementation of other
similar dairy development programmes.

Cow Buffalo Goat

LIVESTOCK TOTAL NUMBER

Livestock is a major component of

(MILLION)
IN 2011-12
23.2 1.4 25.1
agricultural economy of Bangladesh
SHARE OF
performing multifaceted functions such as
MILK YIELD BY
ensuring food security and source of
income, earning foreign revenue through
SPECIES (%) 92.5 5.6 25.1
IN 2007-08
export, supplying manure and fuel among
many others. YIELD
(KG/LACTATION)
IN 2007-08
Crossbred: 2016
Indigenous: 280 793 10.5

STEADY GROWTH DAIRY FARMERS ARE MOSTLY 90% OF THE MILK PRODUCED
IN MILK PRODUCTION IN BANGLADESH LANDLESS OR SMALLHOLDERS IS SOLD THROUGH INFORMAL
CHANNELS

4.00 4%
3.46 6% 10%
3.50
3.00
2.50
2.00
1.50
Million tonnes

90% 90%
1.00
0.50 Informal Formal
1-3 cows
channels channels
- 3-10 cows Public and
Milk sold directly
More than 10 cows to consumers in privateenterpr
2005 -06

2006 -07

2007 -08

2008 -09

2009 -10

2010 -11

2011 -12

rural areas or to ises, dairy

traders in local cooperatives
or rural markets
DAIRY SUPPLY CHAIN IN BANGLADESH
Formal and Informal Marketing Channels of Processing Milk
Both informal and formal milk-marketing channels coexist in Bangladesh. Smallholder milk producers supply all
the milk for the informal traditional market and three quarters of the milk for formal processing market.
Cooperatives and institutional dairy enterprises collect milk from smallholders through primary village
cooperatives and then process and distribute the milk to all major cities in the country. The cooperative model
has especially been successful in creating jobs, reducing collection and distribution costs and improving the
quality of milk.

INFORMAL/LOCAL MARKET FORMAL VALUE CHAIN

Sweet producers,
tea shops, Processing plants
restaurants

Traders and
Chilling plants
wholesalers

Collectors Inputs
Feed and medicine

Household Dairy Veterinary services

Producers
Artificial Insemination

Financial services

INVESTMENT INSIGHTS ON DAIRY MARKET IN BANGLADESH

Within the formal dairy sector in Bangladesh, over 90% of the milk is processed as pasteurized packaged milk
and only 10% is processed into cheese, butter, ghee and milk powder. Key leverage points for expanding the
dairy market are cattle feed production, improved breeds of high yielding cows, milk collection points, dairy cold
chain and product varieties.

Demand for Dairy Products in Bangladesh

Milk production in 2011-12 3.46 million tonnes

Demand (million tonnes) (As per WHO recommendation 250 ml a day per person) 12.8 million tonnes

Growth in demand for milk and dairy products 10% per year

Growth of local production 7-9% per year

Estimated market size in 2022 USD 63.6 billion

Dairy Product Categories Available in the Market

Pasteurized Milk | UHT Milk | Milk Powder | Flavoured Milk | Yoghurt | Butter | Cheese | Curd | Ghee
Pasteurized and Flavoured Milk MILK PROCESSING PLANT CAPACITY:
50,000-70,000 LITRES PER DAY
Number of dairy enterprises 15-20
Average milk collection per day 800-1,300 litres Preliminary and
per chilling station
Preoperative
Milk price at source (based on fat USD 0.55-0.65 per litre
content) USD Land
5.5-7.5
Average retail price during August USD 0.85 per litre Building
million
2013-July 2014
Vehicles
Plant and machineries
Flavoured milk varieties Chocolate, mango,
banana,and Misc. fixed assets
strawberry

Milk Pasteurization Process

Milk is heated to 72-75 degrees Celsius for 15-20 seconds for pasteurization. With appropriate cooling and chilled
distribution, it has a shelf life of 5 to 15 days. In Ultra High Temperature (UHT) treatment however, milk is heated to
135-137 degrees Celsius for only three seconds. A tetra pack of UHT milk lasts up to six months without refrigeration
and preservatives. UHT milk is fast gaining popularity among urban consumers in Bangladesh due to its longer shelf
life.
Cream
Cream Butter Butter Packaging Butter
Skimmed milk

churning and freezing

Homogenization Cream Whole

Milk
Packing milk
receipt,
filtration Storage Separation and Pasteurizat Skimmed milk Storage and Distributi Cream
Deodorization cold
and standardization ion
storage on
Skimmed
clarification milk
Whole milk Homogenization
Whole milk

Milk Powder
The formal milk processors source about 50% of their milk supplies from local farmers and the other 50% via
imports of dairy products mainly skimmed milk powder.

Number of local producers 3

Average retail price of locally USD 7.36 Shortage in milk supply is met by imported milk powder
produced milk powder during per kg
80,000
August 2013-July 2014
70,000
60,000
Average retail price of imported USD
50,000
Tonnes

milk powder during August 9.44-10

2013-July 2014 per kg 40,000
Import in 2013-14 53,539 30,000
tonnes 20,000
10,000
Local production of milk powder 7,000 0
in 2013-14 tonnes 2008 2009 2010 2011 2012

Milk Powder Processing

Manufacturing milk powder involves removal of water from milk while retaining its natural properties such as
flavour, solubility, colour and nutritional value.

Standardized Spray
Pre -heating Evaporation Packaging Storage Distribution
milk drying
100 litresof milk 12-12.5 kg of whole milk powder
Butter and Cheese
Number of local cheese enterprises 5-7 institutional producers among many unrecognised
producers
Local production of cheese in 2013 1,000 tonnes
Imported cheese in 2013 850-900 tonnes
Retail price of locally produced cheese USD 2.8-3 per 250 grams
(mozzarella)
Retail price of imported cheese (mozzarella) USD 3.5-4.5 per 250 grams
Number of butter producers 6-8 institutional producers among many unrecognised
producers
Local production of butter in 2012 1,820 tonnes
Imported butter in 2012 3,890 tonnes
Retail price of locally produced butter USD 8.5-9.5 per kg
Retail price of imported butter USD 12-15 per kg

Butter Processing
Butter is produced by churning milk cream. Demand for butter in preparing food is spreading in urban
households, hotels and restaurants in Bangladesh. It is usually sold in packages of 100-200 grams.

Butter milk Bulk distribution

Culture products
and inoculation
Milk
receipt, Churning Bulk Freezing, Consumer Chill
filtration Pasteurization Cooling Ageing and Thawing
packaging storage packaging storage
and working
clarification

23-25 litresof milk 1 kg of butter

Cheese Processing
Cheese in made by coagulating milk protein. Farmer cheese commonly known as Paneer is the most available
variant of cheese in Bangladesh. Only fresh cheese is produced in Bangladesh due to the lack of demand for
ripened cheese.

Culture products
Cheese milk

Cheese whey
and inoculation

Cutting
Milk receipt, Addition and Extraction
filtration and Pasteurization of starter Coagulation Salting Ripening Packaging Distribution
cooking of whey
clarification culture of curd
5-10 litresof milk 1 kg of cheese

Ghee and Curd

Ghee is a type of clarified butter. It is prepared by boiling butter and removing the residue. Ghee is used as a cooking or
frying medium, in preparing many kinds of table dishes, in confectionery and in traditional medicines. Eighty percent of
ghee is produced by unrecognised small producers. More than 24,000 tonnes of ghee was locally produced in Bangladesh
in 2013. It is sold at a retail price of USD 9-13.
Almost all the sweet shops in Bangladesh produce curd, a popular dessert item. Curd is available in two flavours sweet and
sour. Sweet curdcomprisesof all the milk ingredients in a concentrated form together with sugar and caramel. Sour curd is
obtained from milk by mixing edible acidic substances into the milk. Recently, few dairy enterprises have started
commercial production of curd in Bangladesh. Retail priceof curd ranges between USD 2 and 4 per kg.
Further Investment Opportunities
Despite one of the highest densities of livestock in the world, the productivity of cattle in Bangladesh is far below
the world average. The dairy sector offers many investment opportunities in increasing milk yield and preserving
dairy products.
Cattle feed Production
Quality fodder increases the yieldof and fat content in milk. To improve milk productivity of improved breeds
of cattle, it is important to feed them a balanced diet with sufficient nutrients.
In Bangladesh, rice straws and natural grass constitute traditional feeding of dairy cattle supplemented with a
little or no concentrates.
Commercial cattle feed produced from agro-industrial wastes and by-products, herbal feed additives,
concentrates and other nutrient supplements present potential investment opportunities.
Cold Chain
Milk is a highly perishable item. In a country like Bangladesh with high ambient temperature, pasteurized milk
can only be marketed with cold chain support. Lack of cold chain support limits the scope of marketing
pasteurized milk only to urban areas. Cold storages in Bangladesh are used mostly for storing potato and
haveinadequate space and facilities for milk preservation.
Dairy producers require pre-cooling facilities near dairy farms, and reefer trucks to transport dairy produce
from collection centres to the centrally located cold storages, to processing plants, and finally to retailers.
The Board of Investment (BOI) of Bangladesh has identified cold storage as a special opportunity for further
investment.
Artificial Insemination (AI)
Artificial insemination is a technique to bring about genetic improvement in farm animals.
Majority of the AIsare performed by the Department of Livestock Services of the Government of Bangladesh
and also by BRAC, a non-profit organization.
About 2.5 to 3 million cows are naturally bred which presents an untapped investment opportunity.
AI projects are generally implemented by trained AI workers who provide door-to-door services with supplied
semen.

Utilizing the knowledge and skills of

animal husbandry experts, quantity of milk can be significantly

increased from high yielding breeds of cattle.
A.Q.M. Shafiqur Rouf, Deputy General Manager, BRAC AI Enterprise

Business Incentives for Dairy investors

Dairy feed is exempted from VAT Added Tax (VAT)
Import of dairy equipment is exempted from VAT and customs duty
Provision for 100% foreign equity
Favourable loan facilities for entrepreneurs
In the national budget of FY 2013-2014, duty structures were changed to accommodate more investment in
local dairy production. Customs duty for powder milk import was increased from 5% to 10%. At the same time,
concessionary benefit was given by Statutory Regulatory Order (SRO) for insulated road milk tanker
(decreased from 5% to 2%), for animal feed (decreased from 5% to 0%), for raw milk preservatives (decreased
from 12% to 0%), and also for different spare parts required for AI; supplementary duty (SD) on skimmed milk
powder at the manufacturing stage has also been withdrawn.
In the national budget of FY 2014-2015, SD rate is reduced from 20% to 15% for butter and other fats and oils
derived from milk and dairyspreads, and duties and taxes on many raw materials, such as cow pregnancy test
kits, universal syringe for AI, NaCl solution special grade used in AI, are fully exempted.
Relevant Stakeholders
Stakeholders
Board of Investment Bangladesh (BOI)
Bangladesh Cold Storage Association (BCSA)
Bangladesh Krishi Bank (BKB)
Bangladesh Standards & Testing Institution
(BSTI)
Micro-credit providers for farmers
NGOs
Function
BOI encourages investment in the private sector, identifies
hindrance of investment and provides necessary facilities
and assistance in the establishment of industries.
BCSA is a non-profit national association, has about 160
regular members besides contract farmers, suppliers and
market players.
The state owned bank provides credit facilities to farmers
and agri-business owners.
BSTI formulates national standards of industrial, food and
chemical products, controls the quality of food products
and oversees accuracy of weights and measures.
The Microcredit Regulatory Authority (MRA) of the
Government of Bangladesh has approved licenses for 742
NGO-Micro Finance Institutes thatsupport rural farmers in
running their farms with loan amounts up to BDT 50,000.
There are NGO projects that aim to address the major
challenges to improving smallholders participation in the
value chain, including farmer mobilization and education,
access to markets and access to productivity-enhancing
inputs in the remote areas.

Social Impact
Milk is an important source of nutrition and provides numerous health benefits such as stronger bone and teeth,
reduction in high blood pressure and decreased risk of cardiovascular diseases among many others. Moreover,
thousands of households in rural Bangladesh depend on their small dairy farms in securing a source of income.
Dairy enterprises employ and source milk from a large pool of people thereby lifting them out of poverty.
Cooperative models of dairy enterprises have proven to be successful in giving rural farmers access to new
marketsand improving their social wellbeing.

For futher information, please visit www.boi.gov.bd

Further Investment Opportunities
Despite one of the highest densities of livestock in the world, the productivity of cattle in Bangladesh is far below
Relevant Stakeholders
Stakeholders Function
DAIRY IN BANGLADESH
the world average. The dairy sector offers many investment opportunities in increasing milk yield and preserving
Board of Investment Bangladesh (BOI) BOI encourages investment in the private sector, identifies
DISCOVER. INVEST. PROFIT
dairy products.
hindrance of investment and provides necessary facilities Milk production is one of the most important economic activities in Bangladesh,
Cattle feed Production and assistance in the establishment of industries. providing 3.6 million households with supplementary income. The dairy system in
Quality fodder increases the yieldof and fat content in milk. To improve milk productivity of improved breeds Bangladesh Cold Storage Association (BCSA) BCSA is a non-profit national association, has about 160 Bangladesh is characterized by small-scale operations, coupled with crops and other
of cattle, it is important to feed them a balanced diet with sufficient nutrients. regular members besides contract farmers, suppliers and off-farm activities. Several government, NGO and private sector initiatives have made
In Bangladesh, rice straws and natural grass constitute traditional feeding of dairy cattle supplemented with a market players. progress in transforming dairy into a more value-driven and market-oriented sector.
little or no concentrates. Bangladesh Krishi Bank (BKB) The state owned bank provides credit facilities to farmers The dairy market in Bangladesh is lucrative for investors given the countrys large
Commercial cattle feed produced from agro-industrial wastes and by-products, herbal feed additives, and agri-business owners. population, rising incomes and evolving diet.
concentrates and other nutrient supplements present potential investment opportunities. Bangladesh Standards & Testing Institution BSTI formulates national standards of industrial, food and Growth Drivers
Cold Chain (BSTI) chemical products, controls the quality of food products One of the highest cattle density in the world: 145 large ruminants per square kilometres in 2010
Milk is a highly perishable item. In a country like Bangladesh with high ambient temperature, pasteurized milk and oversees accuracy of weights and measures.
Rising demand for milk-based food products in daily consumption and as beverages
can only be marketed with cold chain support. Lack of cold chain support limits the scope of marketing Micro-credit providers for farmers The Microcredit Regulatory Authority (MRA) of the Low cost of input (raw materials, human resources etc.)
pasteurized milk only to urban areas. Cold storages in Bangladesh are used mostly for storing potato and Government of Bangladesh has approved licenses for 742
Introduction of UHT milk, milk powder, yogurt, flavoured milk products and other popular product
haveinadequate space and facilities for milk preservation. NGO-Micro Finance Institutes thatsupport rural farmers in
running their farms with loan amounts up to BDT 50,000. varieties by dairy enterprises
Dairy producers require pre-cooling facilities near dairy farms, and reefer trucks to transport dairy produce
Introduction of aseptic milk packaging leading to longer shelf life
from collection centres to the centrally located cold storages, to processing plants, and finally to retailers. NGOs There are NGO projects that aim to address the major
The Board of Investment (BOI) of Bangladesh has identified cold storage as a special opportunity for further challenges to improving smallholders participation in the DAIRY PRODUCTION
investment. value chain, including farmer mobilization and education,
Milk production in Bangladesh annually grew by 6.2% between 2005 and 2012. This growth was largely
access to markets and access to productivity-enhancing
Artificial Insemination (AI) due tohigher milk production by an increasing number of cross-bred dairy cows, more institutional
inputs in the remote areas.
investment in dairy, rising market demand for processed dairy products and the implementation of other
Artificial insemination is a technique to bring about genetic improvement in farm animals.
similar dairy development programmes.
Majority of the AIsare performed by the Department of Livestock Services of the Government of Bangladesh
and also by BRAC, a non-profit organization.
Cow Buffalo Goat
About 2.5 to 3 million cows are naturally bred which presents an untapped investment opportunity.
Social Impact LIVESTOCK TOTAL NUMBER
AI projects are generally implemented by trained AI workers who provide door-to-door services with supplied
semen. Milk is an important source of nutrition and provides numerous health benefits such as stronger bone and teeth, Livestock is a major component of
(MILLION)
IN 2011-12
23.2 1.4 25.1

reduction in high blood pressure and decreased risk of cardiovascular diseases among many others. Moreover, agricultural economy of Bangladesh
SHARE OF
Utilizing the knowledge and skills of thousands of households in rural Bangladesh depend on their small dairy farms in securing a source of income. performing multifaceted functions such as
MILK YIELD BY
animal husbandry experts, quantity of milk can be significantly Dairy enterprises employ and source milk from a large pool of people thereby lifting them out of poverty. ensuring food security and source of 92.5 5.6 25.1

SPECIES (%)
increased from high yielding breeds of cattle. Cooperative models of dairy enterprises have proven to be successful in giving rural farmers access to new income, earning foreign revenue through IN 2007-08
marketsand improving their social wellbeing. export, supplying manure and fuel among
A.Q.M. Shafiqur Rouf, Deputy General Manager, BRAC AI Enterprise many others. YIELD
(KG/LACTATION)
IN 2007-08
Crossbred: 2016
Indigenous: 280 793 10.5

Business Incentives for Dairy investors STEADY GROWTH DAIRY FARMERS ARE MOSTLY 90% OF THE MILK PRODUCED
IN MILK PRODUCTION IN BANGLADESH LANDLESS OR SMALLHOLDERS IS SOLD THROUGH INFORMAL
Dairy feed is exempted from VAT Added Tax (VAT) CHANNELS
Import of dairy equipment is exempted from VAT and customs duty
4.00 4%
Provision for 100% foreign equity 3.46 6% 10%
3.50
Favourable loan facilities for entrepreneurs
3.00
In the national budget of FY 2013-2014, duty structures were changed to accommodate more investment in
2.50
local dairy production. Customs duty for powder milk import was increased from 5% to 10%. At the same time,
concessionary benefit was given by Statutory Regulatory Order (SRO) for insulated road milk tanker 2.00
(decreased from 5% to 2%), for animal feed (decreased from 5% to 0%), for raw milk preservatives (decreased 1.50

Million tonnes
from 12% to 0%), and also for different spare parts required for AI; supplementary duty (SD) on skimmed milk 90% 90%
1.00
powder at the manufacturing stage has also been withdrawn.
0.50 Informal Formal
In the national budget of FY 2014-2015, SD rate is reduced from 20% to 15% for butter and other fats and oils 1-3 cows
channels channels
derived from milk and dairyspreads, and duties and taxes on many raw materials, such as cow pregnancy test - 3-10 cows Public and
Milk sold directly
kits, universal syringe for AI, NaCl solution special grade used in AI, are fully exempted. More than 10 cows to consumers in privateenterpr

2005 -06

2006 -07

2007 -08

2008 -09

2009 -10

2010 -11

2011 -12
rural areas or to ises, dairy
traders in local cooperatives
For futher information, please visit www.boi.gov.bd or rural markets

DAIRY SUPPLY CHAIN IN BANGLADESH Pasteurized and Flavoured Milk MILK PROCESSING PLANT CAPACITY: Butter and Cheese
50,000-70,000 LITRES PER DAY
Formal and Informal Marketing Channels of Processing Milk Number of local cheese enterprises 5-7 institutional producers among many unrecognised
Number of dairy enterprises 15-20 producers
Both informal and formal milk-marketing channels coexist in Bangladesh. Smallholder milk producers supply all
the milk for the informal traditional market and three quarters of the milk for formal processing market. Average milk collection per day 800-1,300 litres Preliminary and Local production of cheese in 2013 1,000 tonnes
per chilling station
Cooperatives and institutional dairy enterprises collect milk from smallholders through primary village Preoperative
Milk price at source (based on fat USD 0.55-0.65 per litre
Imported cheese in 2013 850-900 tonnes
cooperatives and then process and distribute the milk to all major cities in the country. The cooperative model USD Land
content) Retail price of locally produced cheese USD 2.8-3 per 250 grams
has especially been successful in creating jobs, reducing collection and distribution costs and improving the 5.5-7.5
quality of milk. Average retail price during August USD 0.85 per litre Building (mozzarella)
million
2013-July 2014
Vehicles Retail price of imported cheese (mozzarella) USD 3.5-4.5 per 250 grams
INFORMAL/LOCAL MARKET FORMAL VALUE CHAIN Plant and machineries Number of butter producers 6-8 institutional producers among many unrecognised
Flavoured milk varieties Chocolate, mango,
banana,and producers
Misc. fixed assets
strawberry Local production of butter in 2012 1,820 tonnes

Milk Pasteurization Process Imported butter in 2012 3,890 tonnes

Sweet producers,
tea shops, Processing plants Milk is heated to 72-75 degrees Celsius for 15-20 seconds for pasteurization. With appropriate cooling and chilled Retail price of locally produced butter USD 8.5-9.5 per kg
restaurants distribution, it has a shelf life of 5 to 15 days. In Ultra High Temperature (UHT) treatment however, milk is heated to
Retail price of imported butter USD 12-15 per kg
135-137 degrees Celsius for only three seconds. A tetra pack of UHT milk lasts up to six months without refrigeration
and preservatives. UHT milk is fast gaining popularity among urban consumers in Bangladesh due to its longer shelf
Traders and life. Butter Processing
Cream
Chilling plants
wholesalers Cream Butter Butter Packaging Butter Butter is produced by churning milk cream. Demand for butter in preparing food is spreading in urban
Skimmed milk

churning and freezing households, hotels and restaurants in Bangladesh. It is usually sold in packages of 100-200 grams.
Collectors Inputs Cream Whole
Milk Homogenization Butter milk Bulk distribution
Packing milk Culture products
receipt,
Feed and medicine filtration Storage Separation and Pasteurizat Skimmed milk Storage and Cream
and inoculation
Deodorization Distributi
standardization ion cold Milk
and storage on
Skimmed receipt, Churning Bulk Freezing, Consumer Chill
Veterinary services clarification milk filtration Pasteurization Cooling Ageing and Thawing
Homogenization
Household Dairy Whole milk Whole milk and working
packaging storage packaging storage
clarification
Producers
Artificial Insemination Milk Powder
23-25 litresof milk 1 kg of butter
The formal milk processors source about 50% of their milk supplies from local farmers and the other 50% via
Financial services imports of dairy products mainly skimmed milk powder. Cheese Processing
Cheese in made by coagulating milk protein. Farmer cheese commonly known as Paneer is the most available
INVESTMENT INSIGHTS ON DAIRY MARKET IN BANGLADESH Number of local producers 3 variant of cheese in Bangladesh. Only fresh cheese is produced in Bangladesh due to the lack of demand for
ripened cheese.
Within the formal dairy sector in Bangladesh, over 90% of the milk is processed as pasteurized packaged milk Average retail price of locally USD 7.36 Shortage in milk supply is met by imported milk powder
and only 10% is processed into cheese, butter, ghee and milk powder. Key leverage points for expanding the produced milk powder during per kg
80,000
dairy market are cattle feed production, improved breeds of high yielding cows, milk collection points, dairy cold August 2013-July 2014 Culture products
Cheese milk

70,000 Cheese whey

and inoculation
chain and product varieties.
60,000
Average retail price of imported USD Cutting
Demand for Dairy Products in Bangladesh 50,000 Milk receipt, Addition
Tonnes

milk powder during August 9.44-10 filtration and

and Extraction
Pasteurization of starter Coagulation Salting Ripening Packaging Distribution
2013-July 2014 per kg 40,000 clarification
cooking of whey
Milk production in 2011-12 3.46 million tonnes culture of curd
Import in 2013-14 53,539 30,000
5-10 litresof milk 1 kg of cheese
Demand (million tonnes) (As per WHO recommendation 250 ml a day per person) 12.8 million tonnes tonnes 20,000
10,000 Ghee and Curd
Growth in demand for milk and dairy products 10% per year Local production of milk powder 7,000 0
2008 2009 2010 2011 2012
Ghee is a type of clarified butter. It is prepared by boiling butter and removing the residue. Ghee is used as a cooking or
in 2013-14 tonnes
Growth of local production 7-9% per year frying medium, in preparing many kinds of table dishes, in confectionery and in traditional medicines. Eighty percent of
ghee is produced by unrecognised small producers. More than 24,000 tonnes of ghee was locally produced in Bangladesh
Estimated market size in 2022 USD 63.6 billion in 2013. It is sold at a retail price of USD 9-13.
Milk Powder Processing
Almost all the sweet shops in Bangladesh produce curd, a popular dessert item. Curd is available in two flavours sweet and
Manufacturing milk powder involves removal of water from milk while retaining its natural properties such as sour. Sweet curdcomprisesof all the milk ingredients in a concentrated form together with sugar and caramel. Sour curd is
flavour, solubility, colour and nutritional value. obtained from milk by mixing edible acidic substances into the milk. Recently, few dairy enterprises have started
Dairy Product Categories Available in the Market commercial production of curd in Bangladesh. Retail priceof curd ranges between USD 2 and 4 per kg.
Pasteurized Milk | UHT Milk | Milk Powder | Flavoured Milk | Yoghurt | Butter | Cheese | Curd | Ghee Standardized Spray
Pre -heating Evaporation Packaging Storage Distribution
milk drying
100 litresof milk 12-12.5 kg of whole milk powder