12
2007
Grameen Danone
1,000
CLDDP
13
1974
Savar Dairy
3,000
Own Farm
Army
Self Consumption
Own Farm
Total
384,000
284,500
14
Source: Draft Terminal Report. Grameen Bank/UNDP/FAO Community Livestock and Dairy Development Project (BGD/98/009), 2007. The formal sector has 89 collection points with cooling facilities scattered around the country. Tankers with a capacity of 7,000-10,000 liters are used to transport milk from the chilling plants to the processing plants. Each tanker can service 2-3 chilling facilities. Due to the use of outmoded tankers and poor strategies for collecting and transporting milk, the process is expensive and results in huge waste. 384,000 Litres, the total milk collected by processors per day, forms 10% (source: CARE Bangladesh) of the total milk produced in Bangladesh. Therefore, there still exists a vast scope for more processors to enter the market. 384,000 Litres X 97 3 = 1, 24, 16,000 Litres
Dairy processing market still has a vast capacity of 1, 24, 16,000 Litres that can be exploited by existing and many newcomer processors into the market. The returns from processing and retailing 1 kg of 4.5 percent fat milk in the formal sector are about 13 percent higher than in the informal sector. However, based on the trend of dairy processors in the market since the birth of Bangladesh, the scope of dairy and the immense profitability that gives a global average of 8 percent remains unrevealed to or ignored by potential investors.