Abstract
This study examined the prevailing dairy value chain based on primary data collected from 70 small-scale milk producers of Mymensingh district of Bangladesh. The total cost and net return per month per cow were Tk. 4024.30 and Tk. 3165.70, respectively. The net value additions of Tk. 2091.42, Tk. 495.00, Tk. 655.00, Tk. 503.25, Tk. 309.70 were estimated for milk producers, collectors, Faria, Bepari and retailers respectively. Different actors spent highest marketing cost ranged from Tk.49 to Tk.80 for transportation compared to other marketing functions. Actors mostly dependent on the on-going market prices for setting price of milk in the value chain. A value chain map was developed showing the relationships and linkages among value chain actors of small-scale dairy. The study identified some critical factors for successful dairy marketing. The factors were understanding consumer behaviour, technology and transportation, improved business relationships, reduced transaction costs, and improved information flow, and organized market structure. Milk producer’s share in consumers’ price was highest for channel- I followed by channel- V. Expensive, inadequate, low quality feed, lack of grazing land, green grass, inadequate capital, knowledge about cost of production, weak extension services, high fees and unavailability of veterinary doctors, were some of the major problems of milk producers. Supply of adequate feed at subsidized price, ensuring easy access to institutional credit at a lower interest rate, adequate medicine and veterinary services, allocation of khas land for producing fodder/grass, were suggested to solve the problems.
 SAARC J. Agri., 17(2): 213-226 (2019)
Highlights
In all developed countries, dairy sector is receiving special attention from the government
Small scale dairy farmers sold 60% of their milk to collector and Faria and the remaining 40% sold to the consumers directly
Milk collector, Faria, and Bepari incurred the highest cost for transportation (47.62%, 55.17% and 50.40%) as a part of marketing cost
Summary
Dairy sector is receiving special attention from the government. It is because the milk and dairy products help building up vitally strong nations by developing brain and bone of its people. Dairy enterprise is considered as Treasure for the economy of Bangladesh, for rural areas (Kabir and Talukder, 1999). According to FAO (2011), the per capita average yearly milk consumption in Bangladesh is only 13 kg and it is the lowest in South Asia because of higher cost of production and lower yield compared to any other south Asian countries. FAO statistics further reveals that the per capita daily calorie intake through milk in Bangladesh is only 24 Kcal, while in Sri Lanka it is 57, in Nepal it is 82, 104 in India, and 265 in Pakistan (FAO, 2011)
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