“Dairy Industry in Bangladesh: Problems and Prospects”
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Abstract
Although, dairying is the most ancient occupation established in the rural setting of
Bangladesh, its development is unsatisfactory due to several problems. The main
problems concern breeding, feeding, management, diseases and marketing. The dairy
sector has also not received adequate attention in respect of information and research
with present policies and issues. National milk production can only meet 13% of the
current milk consumption. The demand for milk is growing at a faster rate than supply
because of the rapid increase in population, creating a widening imbalance between
demand and supply. There is a need to have knowledge of the existing demand, its
growth over time, and the existing supply possibilities. There are also many types of
information needed for proper functioning of markets. In the light of such knowledge
it would be necessary to take policy measures for providing strong institutional
support to increase domestic production and reduce the imbalance between supply
and demand. To address the industry’s problems effectively, sources of market
failures and of government policies in contributing to its poor performance are
discussed in this paper.