‘PRAN Dairy is driving Bangladesh toward milk sufficiency and rural prosperity’

The dairy sector in Bangladesh has transformed rapidly over the past decade. What was once informal and largely subsistence-driven is now evolving into a structured, enterprise-oriented industry. Today, Bangladesh produces around 13–15 million tons of milk annually, yet per capita consumption remains at only 165 ml per day—far below the 250 ml (WHO recommended) level. This gap speaks volumes: while milk is available, access, quality, and consumption are still limited.

Adding to the challenge, only about 9% of milk is channeled through formal processors, with the rest sold traditionally. This not only exposes consumers to risks but also points to the immense potential for organised growth in this sector. Despite steady progress, Bangladesh continues to import large volumes of milk powder. Yet I firmly believe that with the right efforts, our country can move towards milk sufficiency, supported by local production and value-added dairy products.

When PRAN entered the dairy industry in 2003, we had a clear vision: to help transform Bangladesh from a milk-deficit country into a milk-sufficient one. For us, it was never just about business. It was about strengthening the rural economy through cow farming, creating self-employment opportunities, especially for women, and addressing nutritional deficiencies across the country through affordable and accessible milk.

To put this vision into action, we introduced the Dairy Hub model in 2010, which has become the cornerstone of our journey. Today, we are directly connected with more than 16,000 farmers through seven hubs and 120 Village Milk Collection Centres. This is not just about milk collection—it is about creating a pathway for farmers to become small-scale entrepreneurs. By providing training, veterinary services, and most importantly, fair pricing, we have helped build avenues for self-employment and economic progress within rural families. Many young entrepreneurs are now taking up cattle rearing, breeding, milking, and even cow fattening, supported by collaborations with local industries and both local and international NGOs. This has created a model of sustainable livelihood that is changing lives.

Over the years, our product portfolio has grown to include UHT milk, pasteurized milk, yogurt, cheese, ghee, powdered milk, and more. By working directly with farmers, we have improved quality, reduced poverty, and built sustainable rural enterprises. At the same time, we have also invested in trainings such as artificial insemination, cow rearing techniques, and milk yield improvement to strengthen the foundation of this industry.

The sector today looks vastly different compared to a decade ago. Packaged milk, once seen as a niche product, has become a mainstream choice. Consumers increasingly prefer safe and hygienic options over loose milk from the open market. Urbanisation and changing lifestyles have also fueled demand for convenient solutions like UHT milk. Where Bangladesh once relied heavily on imports, that dependency is gradually reducing, thanks to stronger local production and processing. Value-added products such as yogurt, cheese, butter, and flavored milk are growing at an annual rate of nearly 25%, reflecting how quickly consumer tastes are shifting.

Still, we face major challenges. Low-yield cows remain a concern. While productivity has improved—average yield per cow has increased to 6 litres a day, up from just 2 litres a decade ago—it is still far behind developed countries like Netherlands, Israel, Denmark, and USA, where yields range from 40 to 60 litres daily. Rising feed costs also pose a challenge, making dairy farming less profitable. Another deep-rooted issue is the culture of middlemen. Around 91% of milk is still sold informally, but this is slowly changing as processors like us build direct links with farmers and explore future initiatives of self-farming.

Another challenge lies in seasonal fluctuations. Farmers often struggle with the "flush and lean" cycle of milk supply. Through PRAN Dairy, farmers enjoy the assurance of selling their milk throughout the year, which ensures stability and trust. Distribution also remains a bottleneck. Powdered milk is easy to store, but liquid milk is perishable. Without a robust cold-chain network, it is difficult to reach every corner of the country. Many rural shops still lack refrigeration or even reliable electricity. UHT technology offers a solution, as it allows milk to stay safe for six months at room temperature. However, the global-standard packaging required for UHT milk adds to costs. 

Earning consumer trust has also been a long journey. Some consumers initially placed greater trust in imported milk. My response has always been: trust is earned through consistency. Today, PRAN Dairy is the market leader in UHT milk segment, with annual consumption growing at more than 10%. This steady growth reflects the confidence we have built among consumers.

Health and safety remain top priorities for us. Unlike loose milk, which often carries hygiene risks, our processed milk is handled under strict compliance with international standards. PRAN Dairy is HACCP certified, and our processing system is entirely contact-free. Every batch of milk is tested at four different stages—from collection to packaging. Any adulterated milk is instantly rejected, ensuring that what reaches our consumers is pure, safe, and nutritious.

Looking forward, I believe Bangladesh can achieve milk sufficiency. But it requires collective effort. We need model farms that showcase modern practices, collateral-free seed capital from banks so small farmers can expand livestock, and stronger cold-chain networks for better distribution. There is also a need for a single specialized regulatory body, staffed with people who truly understand the industry, to ensure effective oversight.

Equally important is our ability to create new occasions and habits for milk consumption through derivatives like yogurt, flavored milk, and cheese. By doing so, we not only expand demand but also strengthen national nutrition.

The impact of this sector goes far beyond milk. We are creating rural employment, driving female participation, building gender balance with dignity, and supporting nutritional needs of the nation—all of which are directly linked to the Sustainable Development Goals on nutrition and gender equity.

Bangladesh's dairy sector has already made impressive strides. With the right support, collaboration, and policy measures, I am confident it will become one of the key drivers of rural empowerment, women's employment, and economic growth, while ensuring a healthy and brighter future for our people through milk.