In the heart of Bangladesh’s rural landscape, a rapid transformation is taking place. The Feed the Future Bangladesh Livestock and Nutrition Activity, funded by USAID and implemented by ACDI/VOCA, is partnering with one of the largest milk processors in Bangladesh, PRAN Dairy, to expand its village milk collection centers (VMCCs) and enhance local livelihoods through the growth of the dairy sector.

Devoted farmers like Konika Ghosh (pictured above) and her neighbors, Rupa-Rani and Aloka Ghosh, of Sreerampur, Jashore, are now stepping into the formal milk market through VMCCs thanks to better facilitation. These new VMCCs have shifted the paradigm for dairy farmers and their communities. Milk procurement by PRAN Dairy from rural farmers in the Feed the Future zone has increased. With support from the activity, this dairy industry giant has disseminated better farm management practices and helped farmers attain fair payment and increased access to finance. Ultimately, the same farmers have observed healthier nutritional intake due to these interventions, achieving the goal of the activity.

PRAN Dairy brings their business to southwestern Bangladesh

PRAN Dairy has distinguished itself from many other competitors by taking their business to areas in the south of Bangladesh, where there is typically lower milk procurement but great market potential. By teaming up with the activity, PRAN Dairy entered areas where milk production was low and fostered advanced farming and livestock-rearing practices among farmers. These farmers are now able to better supply milk to PRAN Dairy.

A VMCC, as the name suggests, is the primary point for selling milk for rural dairy farmers. Farmers deposit the raw milk at these points within their own villages, where it is immediately chilled to preserve freshness before transportation to a “mother plant” that checks the quality of milk from 15 to 20 VMCCs once more. Mother plants from across the country then send the milk to PRAN Dairy’s production plant in Narsingdi for pasteurization, processing and packaging.

Female farmers start selling milk in their own villages

Previously, most of these dairy farmers would sell their milk directly to the closest local bazar or an exploitative middleman collector and be bound to whatever prices the shop owner or collector was willing to pay. There would also be little opportunity for quality checking within this system. Female farmers, who make up most of the livestock-rearing population, would be at the mercy of their male relatives to carry out the transactions. Transporting liters of milk far distances away is a task that is often delegated to the men of the household. As such, women found great convenience in the collection centers being located within their villages.

“I would have to wait for my brother-in-law to be free to take the milk to the market. Now I carry the milk myself and walk to my PRAN Dairy VMCC every morning and evening,” said Konika Ghosh, a female dairy farmer in Sreerampur.

Updating and expanding VMCCs in the region

PRAN Dairy not only improved its existing 14 centers in the region, but also built another 14 centers. Previously, milk collection among one mother plant would total about 7,000 liters of milk a day. After the activity’s intervention, milk production tripled to 20,000 to 22,000 liters a day. This success led to PRAN Dairy investing in establishing two more VMCCs autonomously, outside of the partnership.

Below are some of the other interventions PRAN Dairy took to improve milk quality and production in the region:

1. Better farm management practices

Not only has milk quantity improved, but also milk quality. PRAN Dairy uses a machine known as a lacto-scanner to identify fat and water content in milk. Payment is proportional to a higher fat content level. This ensures quality for the company and serves as motivation for farmers to take the best care of their animals. To help farmers achieve maximum productivity, PRAN Dairy designed training modules on farm management, cattle and human nutrition, hygienic milk collection and women’s empowerment and youth inclusion.

The modules were designed by third-party expert consultants who gave primary training to 20 of PRAN Dairy’s staff. These 20 staff members were then responsible for cascading this information to 1,800 farmers, of whom 15% were women and 50% were youth, through 104 various campaigns and programs. These training courses are conducted once a month in an area to disseminate knowledge on better farming practices and raise awareness of many issues.

Rupa-Rani, a female dairy farmer and neighbor of Konika Ghosh, was hesitant to change her habits, as per PRAN Dairy’s advice, like feeding the cows water and feed separately rather than mixed as she had seen her parents do. “But the lacto-scanner shows the water content is lower now, so it’s a habit I am happy to continue,” she said.

2. Awareness campaigns

Some of the most important messages of the more than 500 campaigns led by PRAN Dairy included separating feed and water; allowing livestock access to free water 24/7; maintaining healthy diets (including vitamins and supplements); providing the correct ratios of fresh grass, silage, and hay; maintaining hygienic sheds; managing disease; and ensuring families themselves consumed an adequate amount of milk for proper nutrition. PRAN Dairy informed households of the benefits of milk consumption, reducing misconceptions and promoting three of its new, diversified dairy products.

Campaigns like the one promoting feeding cows for about 40 minutes before milking them, so that they remain standing and their udders do not encounter contaminants in the dirt (a common cause of mastitis), continue monthly. Thanks to these campaigns, Konika doubled milk production from her two cows from 10 to 20 liters per day, with improved raw milk quality, too.

3. Health campaigns and vaccinations

PRAN Dairy has also extended treatments and vaccinations for dairy cows, organizing 31 health campaigns and mobile veterinary clinics, where farmers can bring their livestock for diagnosis or treatment, including small surgeries. These services are provided free of cost to PRAN Dairy farmers.

Vaccines are also provided free of cost. Rupa-Rani said that after participating in the health campaigns and availing the services, she is more diligent in keeping deworming and vaccination records on a vaccination card, which PRAN Dairy provided. Each VMCC also has contact information for a vetted artificial insemination technician, who is available to farmers.

4. Fair payment and access to finance

When Rupa-Rani and Konika’s neighbor, Aloka Ghosh, used to sell milk to a middleman collector, payment would be inconsistent and low. “Now I get a message every Monday on my phone that I have received money in my bank account,” Aloka said.

PRAN Dairy uses software called Digimo that correlates information from the lacto-scanner at the VMCC with fair payment. The breakdown is sent on paper to the farmer, and the amount is transferred to the registered account weekly. Many of the farmers, especially women, lacked bank accounts prior to this. PRAN Dairy’s team assisted them with opening accounts. The company also connected them with banks for loans, which are disbursed to female farmers at a rate of 2% interest. Microcredit often requires a recommendation, which VMCC staff gladly provide to farmers, allowing them to buy higher yielding cattle and grow their farms. PRAN Dairy also dispenses feed to the farmers on credit.

Future growth for Bangladesh’s dairy sector

PRAN Dairy is an example of how the private sector, by providing resources, financial support and efficient supply chain management, can improve the livelihoods of dairy farmers and strengthen the formal dairy sector in Bangladesh. This partnership between the private sector and development organizations shows the potential for sustainable and inclusive economic growth and better household nutrition.

The national milk procurement by PRAN Dairy from rural farmers in the Feed the Future zone has increased by 214%. Better farm management practices have resulted in higher-yielding cattle, with a 10% to 15% increase in fat content of milk. Fair payment and increased access to finance have been secured and a healthier nutritional intake by the same farmers has been observed.

Aloka Ghosh delightfully shared her concluding sentiments on the VMCC revolution: “Definitely, I’ll keep supplying to PRAN Dairy, and, hopefully, I can grow my farm to 15 or 20 dairy cows in the future,” she said.