Even in the mid nineties, the importing of milk powder was a reasonable one. The expenditure on imports for milk powder was about Taka 2.2 billion in 1996. But recent estimates suggest that imports of milk powder have increased five times in only twelve years indicating the fast climbing rate of import underlining insufficient local production of milk to meet its growing demand. But it is not only a matter of demand for a product fast outpacing the locally available means to supply the same.
The higher import points to neglect in building up a sector with which is vitally connected the nation’s health, nutrition and other vital issues. It appears that Bangladesh has become a lucrative market for foreign milk powder exporters. They have established a big and impressive network to market their milk in powder form in this country when there is every reason to think that consumers are in no way amply nourished by milk powder as they would be if they could drink locally produced liquid and wholesome milk.
But Bangladesh with its predominant number of rural people , its agrarian characteristics, plus the traditional pastoral experience of rearing cows, should normally have comparative advantages in producing ample milk and milk products. It is not that the local dairy industry is not growing. It has been also growing but its output remaining well below the total effective demand which is making it possible for foreign companies to briskly increase their business in this country. Thus, planned efforts are necessary to develop the local dairy sector.
If the dairy industry here develops fast and properly, then several useful ends can be served. First of all, it would mean import substitution and substantial saving of resources. The saved amount would help the balance of payments. The nutrition picture of the country could change positively with significantly increased consumption of fresher milk in liquid form. Mothers in Bangladesh -sometime ago- passed their days in great mental discomfort after knowing that imported milk powders in some cases which they have been feeding their babies, contain the deadly melamine. They could easily avoid such fears if locally produced milk could provide them with an instant alternative.
An improved and enlarged dairy industry will also create employment opportunities in various ways where it matters the greatest— at grassroots level. From greater availability of cows, different sorts of industries will be facilitated. For example, more cow hides will be available for the tanneries and leather industries. The import of cows from India for sacrificial purposes will drastically decline or cease which also would help the country’s balance of payments. The availability of locally produced meat would rise helping greater protein consumption by the population. No part of the cow is wasted. Even its horns and bones are used by cottage industries to make button, combs and related products. There can be also other spin-offs such as cow dung to be used as fuel or as raw material to increase production of bio-gas to help lighting, heating and cooking in the rural areas. Production and consumption of ghee, butter, cud and sweetmeats can also increase with greater and cheaper availability of locally produced cow milk.
But for all of these activities to be boosted, the first step needs to be encouraging specially the rural people to rear cows. It appears that institutional credits specifically for the purpose is scanty or difficult to access. Government can adopt a policy in this regard and have it implemented very extensively and efficiently through the Krishi Bank and other mediums to provide credits to persons willing to rear cows in the rural areas on easy terms. This would surely be a big stimulus for cow rearing as rural people will be encouraged to go for a good source of earning on the side.
Government should also help out in the development and sustaining of a growing dairy industry through research activities and breeding of healthier species of cows. It is obvious that rural small producers of dairy products on their own will never have the resources to invest in such projects. But the government should have the resources to invest in such projects. Healthier species of cows can be bred in these projects and sold to privately operated diaries. Government should aim to run such projects with the aim of breaking even in the areas of cost or making only a small profit.
Side by side, the government conducted veterinary services throughout the country will have to be expanded and much revamped as supportive of the growing dairy enterprises. The overall state of veterinary services is not up to the mark. Inadequate veterinary services is one of the major obstacles for livestock development. The ratio of veterinary surgeons to farm animals was estimated at 1: 1.7 million in 1995, and according to a 2003 estimate only 5-10 percent of farm animals receive routine vaccination. These conditions have not improved much since then.
