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THURSDAY, JULY 24, 2025
Can Bangladesh modernise poultry processing?

Thoughts

Naziba Ali
19 July, 2025, 07:10 pm
Last modified: 20 July, 2025, 03:33 pm

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Can Bangladesh modernise poultry processing?

A shift toward safe, halal-certified and hygienic meat could unlock both domestic trust and international markets for the informal poultry processing industry

Naziba Ali
19 July, 2025, 07:10 pm
Last modified: 20 July, 2025, 03:33 pm
Many modern poultry facilities still rely on manual labour for parts of the process, like slaughtering and evisceration. Photo: Rajib Dhar
Many modern poultry facilities still rely on manual labour for parts of the process, like slaughtering and evisceration. Photo: Rajib Dhar

Bangladesh's poultry industry has been on a steady growth streak, expanding at a rate of 8-10% each year. 

At present, the country churns out a whopping 8.7 million tons of meat annually—and poultry makes up the lion's share of that, according to the Department of Livestock Services. To put it in numbers, from 2016 to 2022, the daily per capita poultry consumption jumped from 17.3 grams to 26.2 grams.

As urbanisation accelerates and the middle class expands, the demand for poultry—particularly ready-to-cook and hygienic products—is expected to grow.

But this growing appetite comes with a catch. Worrying reports of antibiotic-resistant bacteria in poultry and equipment at wet markets have sparked major food safety concerns. While the government did introduce the Animal Slaughter Act back in 2011 to bring the practices under a regulatory framework, enforcement is still a work in progress. As such, only about 10% of poultry is currently processed in formal facilities.

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What poultry processing looks like today

Even though poultry production has surged, the country's meat processing infrastructure is still catching up. Back in 2020, only 2-3% of the 525 million broilers consumed annually were processed in formal facilities. That said, the tide is slowly turning. More companies are entering the space, and we are seeing a rise in processed chicken meat. 

Modern processing facilities—usually run by large poultry integrators—can handle anywhere from 2,000 to 10,000 birds a day. These facilities are mainly located in Dhaka and Chattogram. In processing, some companies do everything from slaughtering to packaging, while others outsource the early stages and only focus on value-added products. 

While automation is slowly making its way in, many of these facilities still rely on manual labour for parts of the process, like slaughtering and evisceration. Tasks like defeathering and freezing are more commonly automated.

But outside the major urban centres, things look very different. Most poultry is still processed manually in wet markets, often without basic necessities like clean water, proper lighting, or ventilation. 

The result? Unsanitary processing conditions that allow harmful bacteria to flourish. Birds are often butchered in the open, and the meat typically makes it to consumers without any sort of quality checks or veterinary inspections.

What is fueling the industry's future?

Despite the challenges, the potential for Bangladesh's poultry processing sector is huge. With changing food habits, a rising middle class, and a growing interest in halal-certified meat (from both Muslim and non-Muslim consumers), there is plenty of room for growth. 

A 2022 study found that nearly all Bangladeshi consumers—an astounding 99.7%—were open to buying safe broiler meat if it were accessible. What's more, 98.6% were willing to pay extra, averaging an additional Tk39.8 per kilogram for safe meat. This surge in demand for safer, ethically produced meat is not just a local trend—it reflects a broader global shift in consumer consciousness. Within this changing landscape, halal meat stands out as particularly relevant, encompassing essential principles such as safety, cleanliness, and ethical sourcing. 

The global halal food market is expected to soar to an impressive $5.8 trillion by 2032, growing at a robust rate of 10% annually from 2023 to 2032. Considering the vast scale of this market, even capturing a small share could provide a substantial boost to Bangladesh's export earnings. As of FY22, Bangladesh exported halal meat worth $0.64 million to countries like the UAE, Qatar, Kuwait, and the USA. 

Recently, the government has been exploring ways to attract more foreign investment in this area. Discussions are currently underway with the UAE to establish a halal meat processing facility in a special industrial zone.

While the outlook is promising, the industry still faces a fair number of hurdles—something that was reflected during a recent PoultryTechBangladesh event.

Wet market culture runs deep

For many Bangladeshis, meat isn't 'fresh' unless the animal is slaughtered right in front of them. This cultural preference for live bird markets, common in both cities and villages, has made it tough for packaged, processed meat to win trust.

On top of that, poultry prices are usually benchmarked against wet market rates. Formal processors, who incur extra costs for things like packaging and cold storage, find it difficult to compete with the lower prices at traditional markets.

Cold chain gaps

Without proper cold storage and transport systems, a lot of meat goes bad before it reaches consumers. In fact, poor cold chain infrastructure contributes to $2.4 billion in agricultural losses every year. Building out this infrastructure also comes with its challenges, thanks to high import duties on equipment and a tangled web of regulations.

Financing is a pain point

Getting loans is another major hurdle. Traditional banks tend to see poultry processors—especially small and mid-sized ones—as risky investments. Plus, some companies are treated as large corporations, which leads to higher interest rates and stricter loan terms, even though they are operating more like small farms.

Policy gaps and missed incentives

The government has introduced a 10-year tax holiday for food processing in sectors like fruits, vegetables, and dairy, but poultry has yet to be included. Additionally, even with the global growth of halal products, Bangladesh has not yet established specific Harmonised System (HS) codes to assist exporters in accessing this expanding market.

Road to a brighter future

If Bangladesh wants to truly capitalise on the poultry processing opportunity, a few key steps can be taken.

Clear standards: The Animal Slaughter Act needs sharper definitions, especially around water use, cooling systems, and hygiene standards in processing units.

Public awareness: Consumers need to be made aware of the benefits of processed meat, both in terms of safety and convenience. Campaigns to raise awareness among the public could help shift preferences away from wet markets.

Infrastructure investment: Improving transportation and storage is critical, and public-private partnerships could play a big role in developing a strong cold chain infrastructure.

Financial support: Banks and financial institutions should consider offering low-interest loans, especially to SMEs, through leveraging the existing refinance schemes.

Stronger regulation: Agencies like the Bangladesh Food Safety Authority (BFSA) and Bangladesh Standards and Testing Institution (BSTI) need to be more proactive about monitoring meat safety and certifying facilities.


Sketch: TBS
Sketch: TBS

Naziba Ali is a Business Analyst at LightCastle Partners. Email: naziba.ali@lightcastlepartners.com


Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
 

 

poultry / modernise

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