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Low Growth of Dairy Co-operative Societies in

Bangladesh: Causes and Remedies

Abstract: This study is designed mainly to evaluate the growth of dairy co-operatives

and its milk production in Bangladesh A brief picture on milk production, quantity of imported powder milk, nutritional demand of milk in Bangladesh etc. are outlined.

Major causes of low growth of dairy co-operatives, important suggestions for growthand development of DCS provided by both executives of Bangladesh Milk Producers' Cooperative Union Limited (BMPCUL-Milk Vita) and management of primary milk

producers' co-operative societies have also been included in this study. Beside these a

good number of relevant literatures on different aspects of management and economicanalyses relating to dairy sector have been reviewed and some recommendations for

overcoming the current problems and for high growth of Dairy Co-operative Societies(DCS) have been discussed. The paper concludes that if the policy makers of the Govt.take corrective measures for developing the dairy sector of the economy by following the recommendations outlined in the study the deficits of dairy products must be

removed even the country will export dairy products and earns huge amount of foreign currency every year.

I. Introduction: Bangladesh is over populated as well as agro based country. Itsmajority people are engaged in agricultural activities. As such agriculture is the mainstay of Bangladesh economy. About 21.91 percent of the Gross Domestic Product(GDP) comes from agriculture and agro related industries (Govt. Economic Review,June 2006). More than 90 percent of the total population lives in the villages (Govt.

Economic Review, The Second Five-Year Plan-1974) and More than 75 percent of thetotal population of Bangladesh directly depends on agriculture (Hossain, M. 1987).Most of the people here posses cows for draught purposes. The Dairy sector of thecountry is one of the principal agricultural industries. At present there are some dairyorganizations in Bangladesh which process milk through dairy firms or from thefarmer through village level cooperatives or from the dairy farmers directly. Suchtypes of organizations are Bangladesh Milk Producers' Co-operative Union Limited(BMPCUL) i. e., Milk Vita, Arong, Amomilk, Shelaidah Dairy, Bikrampur Dairy,Savar Dairy, Aftab Dairy, Safa Dairy, Tulip Dairy etc. Among these organizations themarket share of Milk Vita is the highest and it supplies about 63.15 percent of the total

demand of processed milk in the country. In deed, Milk Vita is one of the largestnational level co-operative organizations in Bangladesh. It is mentioned here thatBangladesh has a great deal of land and favorable climatic conditions which help to

build-up the dairy organizations as a result of good cultivating livestock or cattle. Inspite of these favorable conditions the government of Bangladesh has to import a largequantity of dairy products every year spending huge amount of foreign currency. Inthe year 2008-09, the value of imported powder milk in Bangladesh was Tk.347.21cores approximately (Project Concept Paper, Milk Vita -2006)



Whereas our neighboring country India does not import dairy products but exports inspite of the almost same natural, economic, climatic and social conditions particularlyin the west Bengal of India. These facts clearly emphasize the importance of dairysector in the economy of the country. The operation areas of BMPCUL operation inthe rural sector are spread over to 12 Milk-shed areas covering about 20 districts with48 police stations and 1005 villages. Through its activities for the last 3 decades,BMPCUL has made a significant impact on the national economy & especially in themilk production sector benefiting the farmers. 80,000 poor, landless and marginalmilk producing farmers who were earlier exploited by the traditional middlemen(ghoses), but at present receiving fair price through sale of milk in a guaranteedmarket. 4, 00,000 farmers' family members who are directly dependent on the incomeof the co-operative members for their livelihood (Project Concept Paper, milk Vita-2006). Although the present production capacity as well as the over all activities of milk vita is growing up gradually. But its growth level is very low. In this study anattempt has been made to find out the causes of such low growth and the remedies toovercome these problems simultaneously. Here some picture about milk production,imported powder milk and demand of milk production in the country are given below:

Table 1: Milk production in the Country (Million Metric Tons)

product 2000- Yearly2001 Increment

2001-2002 2002-2003 2003-2004

2004-2005

2005-2006 2006-2007

2007-2008

Milk 1.62 1.89 1.65 1.68 1.71 1.76 1.79 1.82 1.86

Source: Current Records of Milk Vita

Table 2: Import of Powder Milk in the Country

SI NO Years Metric Tons Million US$ US$=Tk. Total Cost (Crore Tk.)

1. 1995-1996 55.000.00 130.00 38.15 503.582. 1996-1997 45,000.00 89.42 39.14 349.993. 1997-1998 35.000.00 75.00 40.00 300.004. 1998-1999 25,000.00 62.00 40.20 249.245. 1999-2000 21,000.00 49.00 40.84 200.116. 2000-2001 14,000.00 53.00 42.70 226.317. 2001-2002 13,000.00 45.00 45.46 204.47

8. 2002-2003 15,000.00 56.00 48.06 269.149. 2003-2004 16,000.00 60.00 50.31 301.8610. 2004-2005 19,000.00 62.00 53.96 334.5511. 2005-2006 20,000.00 59.00 57.43 338.8412. 2006-2007 18,600.00 61.00 57.90 353.1913. 2007-2008 16,250.00 57.00 59.85 341.1514. 2008-2009 16,003.00 56.00 60.25 347.21

* Approximate.Source: Current Records of Milk Vita, Directorate of livestock services, Bangladesh and

Bangladesh Bank



Table 3: Imported Vs Domestic Milk Use in the Country

Domestic

Product Production(Million Tons)

Imported Milk Total Milk Use

Converted (million Tons)Equivalent(Million Tons)

Total

Deficit%

Liquid Milk 1.79 0.16 1.95 8.33%

Source: Current Records of Milk Vita

Table 4: Nutritional Demand of Milk in the Country

Use Total Demand

ProductUse

DomesticProduction

Import TotalUse

NutritionalDemand/Person

NutritionalDemand for 140.00 Million

TotalDeficit

TotalDeficit %

Product

Milk

Mil. Ton

1.79

Mil.

Ton

0.16

Mil.

Ton

1.95

Gram

240

Mil. Ton

12.26

Mil.

Ton

10.31

%

84.09%Source: Current Records of Milk Vita

From the study it is believed that a sound management practice and effectiveness indairy sector may ensure the growth of dairy organizations that will make-up thedeficits of dairy products as well as save foreign currencies of Bangladesh.

II. OBJECTIVES OF THE STUDY: The main objective of the study is to evaluatethe growth of dairy co-operatives and its milk production in Bangladesh. The specificobjectives are as follows:

i) To review the major literature in relation to problems of dairy co-operatives inBangladesh;

ii) To outline an overview on present picture of dairy co-operatives as well as milk production in Bangladesh;

iii) To find the causes of low growth of dairy co-operatives in Bangladesh; and

iv) To outline some remedies or suggestions to BMPCUL for high growth of dairy

co-operatives as well as dairy sector in Bangladesh.



III. Methodology of the Study: This study is based mainly on primary data andinformation. The study was conducted on 15 primary dairy co-operative societies assamples operating under Bangladesh Milk Producers' Co-operative Union Limited(Milk Vita). In this study the societies were selected by using random samplingtechniques. Again a total number of 125 respondents engaged in Milk Vita (20executives from milk union, 45 managers and assistant managers including chairman,and 60 general members from PDUSS) were selected basing on the random samplingtechniques from the selected areas for the present study. In this regard, a speciallydesigned questionnaire was prepared and selected respondents were interviewed bymaintaining interview schedule. Besides these, some academicians and experts indairy sector have also been consulted. Different relevant research works andmanagement literature on dairy organizations have also been sought as the sourcesof secondary information.

IV. Review of Literature: A summary of major researches and studies in relation tothe dairy co-operatives in Bangladesh are enumerated as follows:

1. Obaidullah (1971) had made a study on Comilla co-operative creamery plant witha view to helping the farmers in marketing their milk and cream, making proper use of the milk resources of rural areas by producing butter, cheese, pasteurized milk etc.,making quality products available at a reasonable price, earning profit for the CentralAssociation. He made an attempt to find out whether the creamery really fulfilled itsobjectives. He found that almost all the objectives of the creamery except earning of

profit for the central association were fulfilled. He also found that the market share of

Comilla dairy products was estimated to be nearly 100 percent, which means thatavailability of quality milk products of the Comilla dairy plant was reasonablyassured. Creamery products, particularly butter and cheese, became popular in bighotels and big towns in the then East Pakistan (Presently Bangladesh). Arrangementshave also been made to send them to West Pakistan.

He noted that due to non-availability of sufficient raw materials the creamery couldnot utilize its productive capacity to a reasonable extent. He identified the reasons

behind it, lower sale plus equally lower utilization of the plants productive capacitywith higher cost of production for which the unit incurred loss. The study suggested

that installation of the deep freeze plant would make it possible for the creamery tomaintain regularity in the supply of its products round the year. It may be mentionedhere that at present the creamery plant is a unit of CICS with loosing concern due tocorruption of farmers, import of butter from foreign country, lack of sufficient grassyland etc.

2. Chowdhury (1992) undertook a study on Primary Milk Producers' Co-operatives inBaghabari Milk-shed Area (BMSA) under Pabna and Sirajgonj districts. It wasconducted with a view to evaluating the performance of dairy co-operatives in thestudy areas. The study found that the average family size of societies' member was

7.58, which varied from 7 persons in case of landless farmers to 11.43 persons in caseof large farmers. The findings of the study revealed that the level of education was positively related with the land holding farm size groups. The study revealed that milk production was the main source of income both for landless and small farms. The



researcher also found that among the executive members, more than 18% wereilliterate and the remaining almost 78% were literate and their level of educationvaried from primary to graduate and above. The researcher also found that theultimate beneficiaries of co-operative milk production were the landless and smallfarmers in the study area.

The study identified some problems faced by the managers and the members of thesocieties: lack of credit facilities, lack of cattle feeds, lack of training facilities, low

price of milk, insufficient treatment and medicine facilities, irregular attendance of members in the meetings, lack of transportation and communication system etc. Theauthor suggested that credit facilities to the farmer members should be provided under strong supervision by the central society of the BMPCUL, that the government musttake necessary steps to lease the Bathan land only to the milk producers' co-operativesocieties and that the authority of the society should arrange veterinary and animalhusbandry education program for the members of the societies.

3. A case study on Milk Vita - The National Dairy Co-operative of Bangladesh bySaha (2001), reported that over 60,000 poor, landless and marginal milk producingfarmers who were earlier exploited by the traditional middlemen, but at presentreceiving fair price through sale of milk in a guaranteed market under the fold of 518

primary milk producers' co-operative societies, delivered milk to this organization.Thus, around 400,000 farmer family members were being benefited by thisorganization. The study revealed that the activities of Milk Vita have created about4000 job opportunities in the rural areas with 750 plants and the milk production in

the milk-shed areas was increasing every year. The study further revealed that themilk vita has emerged as a net profit earning organization after 18 years of itsoperation due to the reshuffle of the top management level of the organization in1991. From the financial year 1991-92, the net profit of the organization has beengradually increasing every year. In this study, some major problems such as lack of anappropriate dairy policy, shortages of quality cattle feed with reasonable price, lack of adequate supports from the government, national and international donor agenciestowards undertaking a dairy development program for increasing overall milk

production, absence of adequate training facilities and support to adopt newtechnology for milk production, lack of appropriate and up-dated co-operatives rules

and regulations, illegal political pressure by the power-group in major issues for vested interests etc. were identified. The study recommended to form an appropriatedairy policy for the country, acquisition of Bathan land for the farmers of PDUSSwithin the shortest possible time, all sorts of political pressure by the power-groupshould be lawfully avoided; and amendment of the co-operative Acts, Rules and Bye-laws.



4. Amin, MR. (2004) has made a study on dairy co-operatives in Bangladesh for analyzing the historical development of dairy co-operatives in Bangladesh. In hisstudy he also shown some dairy organization those are not based on principles of co-operatives and they do not collect milk from the farmers through village level co-operatives. The study explained that it is to be possible to collect milk by primaryvillage co-operatives, the members of co-operatives will be benefited by selling their milk with a fair price in a stable market. The study concludes that if the governmentmakes a proper policy regarding milk products in Bangladesh i.e., import of milk

products can be turned off gradually through proper patronization of dairy co-operatives, it would be possible to cover the requirement of milk products in thecountry without any import of dairy products. And the country can save huge amountof foreign currency. The study revealed some major recommendations such as i) TheGovt. should take immediate action for formation of an institution like National DairyDevelopment Board (NDDB). ii) The Govt. should provide sufficient grazing land torear dairy cattle for every primary society to the development of dairy sector, iii) Thehonest, dutiful and dedicated local leaders should be identified to form a society, iv)People of the rural area should be stimulated with financial support by the Govt. toform more and more primary societies.

5. Amin, M.R. (2006) was also undertook another study on Management of Dairy Co-operatives in Bangladesh and India with a view to comparing the differentmanagement aspects of dairy co-operatives in Bangladesh and India and to identifyingthe major problems and causes behind low growth and high growth of dairy co-operatives in Bangladesh and West Bengal of India respectively. The major findings

of this study were: i) There is only one milk producers' cooperative union limited(Milk Vita) at national level in Bangladesh. Whereas in West Bengal State of India,there are 14 milk producers' co-operative unions limited operating under West BengalCo-operative Milk Producers' Federation Limited (WBCMPFL) ii) In India, the DairyCo-operative Societies (DCS) are managed by four-tier management system. On theother hand, in Bangladesh, the DCS are managed by three-tier management system iii)The total number of primary milk producers' co-operative societies were much morein West Bengal (2400, appx.) than that of Bangladesh (748, appx.) iv) The cost of per liter liquid milk was much less in India (Rs.7.17 equivalent to Tk 10.04) thanBangladesh (Tk. 13.15) v) The secretaries of Prathomic Dugdu Utpadonkari

Samabaya Samity (PDUSS) in India were more trained on co-operative management(93.3 %) than Bangladesh (46.7 %) for the same, vi) Both the executives andemployees of PDUSS in India were significantly more satisfied with their work thanthat of Bangladesh.

The study also found that the major causes of low growth of dairy co-operatives inBangladesh were: lack of sound management practices in the milk union, lack of appropriate training for the milk producing farmers, corruption of members inManaging Committee, lack of adequate veterinary physicians, lack of moderntechnological knowledge for cattle rearing to the farmer members, lack of sufficient

grazing land as well as Bathan land for rearing the cattle smoothly, lack of sufficientfinancial assistance from milk co-operative union or from Govt. to the farmers, lack of honest leadership etc. On the other hand, the major causes of high growth of dairy co-operatives in India were: commitment of staff/and executives of the milk



co-operatives, usages dairy industry as a weapon of economic development, existenceof a large and more systematic milk market, the employees & members of PDUSS aremore trained, honesty and discipline of the members to each other of the societies,high level of dutifulness and responsibilities among MC members and employees of PDUSS, proper control ensured by National Dairy Development Board (NDDB),continuous improvement of the quality of milk due to proper control etc. Herecommended the following for the development of dairy sector in Bangladesh: theGovt. should take immediate steps for formation of an institution like National DairyDevelopment Board (NDDB) as authorized body of dairy development, enhancingadequate financial support by the Govt. to form more milk unions as well as DCS likeAnand Milk Union Limited (AMUL) of India, taking necessary steps for banning the

political biasness, nepotism and corruption of the authority of milk co-operative unionand PDUSS, formulation of an appropriate import policy by the top-level authority for dairy products so that import of milk can be reduced gradually, more training

programs should be arranged for the members and employees of PDUSS regardingcattle development and Co-operative Management etc.

V. Findings and Analysis:

Causes of low Growth of Dairy Co-operatives in Bangladesh

There are so many causes behind low growth of dairy co-operative societies inBangladesh. Here some causes are presented as perceived by two categories of respondents (executives of milk union and managerial personnel of PDUSS).



Table-5: Important Causes of Low Growth of Dairy Co-operatives in Bangladesh

as Perceived by the Executives of Milk Co -operative Union (N=20)

Perceived Causes (%)

Lack of a complete national milk policy Lack of national initiative for the

development of DCS In equilibrium system of tax regarding milk products

Lack of proper patronization with adequate financial support by the govt. Lack

of awareness of primary milk producing farmers Low production of milk

products Lack of proper marketing policies for milk products Lack of sufficient

grazing as well as Bathan land for the members of PDUSS Poor number of

improved breed of cows for high yielding milk Higher cost of milk production

People of Bangladesh are not more habituated to drink milk.Lack of appropriate import policy for milk products

Lack of proper development of the cattle (Continued)

Lack of modern technological knowledge & technical tools for cattle

rearing of the farmers

Lack of adequate veterinary physicians

Lack of appropriate training for the milk producing farmers

Mismanagement of higher level authority regarding milk policy making

Lack of sufficient improved cattle feed.Lack of appropriate policy for investment.

Lack of proper coordination between govt. policy & inter departmental

policy of milk union

Lack of long-term and strong plan for reducing the requirement of

milk products (continued)

40.0

30.0

30.0

45.0

25.0

20.0

35.0

45.030.0

20.0

35.0

35.0

25.0

20.0

35.040.0

34.0

25.0

20.0

25.0



Lack of executing the total commitment by the employees of milk union

Lack of sound management practices in the MC of milk union

Insufficient publicity regarding the quality of products of milk union.

Recruitment of excess manpower over requisition

Corruption of MC of milk union

Lack of sufficient modem machineries or tools for processing the

milk & milk products.

lack of sufficient balanced feed for milking cows

Lack of sufficient market for milk products in the whole country

Lack of diversification of products

Lack of sufficient quality of milk products

Financial indiscipline in terms of importing the machineries & tools of

milk union.

Lack of sufficient milk production in time

Weakness of the activities of society Division of milk union

Lack of strength marketing network, proper supervision and control

of marketing department.

Nepotism of authority in appointing the distributors for the products.

20.0

50.0

25.0

30.0

40.0

35.0

30.0

30.0

30.0

30.0

25.0

15.0

20.0

20.0

20.0

In table-51, it is observed that 50% of the executives of milk union identified the lack of sound management practices in the MC members of milk union as the main cause

behind low growth of DCS in Bangladesh. Other major causes are: lack of proper patronization with adequate financial support by the government (45%), lack of sufficient grazing land as well as Bathan land for the members of PDUSS (45%), lack of a complete national milk policy, lack of appropriate training for the milk producingfarmers, corruption of MC of milk union (40% each), mismanagement in higher levelauthority regarding formulation of milk policy, lack of sufficient modern machineriesor tools for processing the milk & milk products, lack of adequate veterinary

physicians (35% each). It is also observed that 30% of executives stressed on lack of national initiative for the development of DCS, in equilibrium system of tax regardingmilk products, poor number of improved breed of cows, lack of long term and strong

plan for reducing the requirement of milk products, recruitment of excess manpower over requisition, lack of sufficient balanced feed for milking cows, lack of sufficientmarket for milk products in the whole country, lack of diversification of products andinsufficient quality of milk products as the causes of low growth of dairy co-operatives in Bangladesh.



Table 6 : Important Causes of Low Growth of Dairy Co-Operatives in

Bangladesh as Perceived by the Managerial Personal of PDUSS (N=45)

Perceived CausesPerceived Causes (%)

Lack of modern technological knowledge to the farmers for cattle rearingLack of sufficient financial assistance from milk union or government

to the milk producing farmersPoor number of improved breed of cows for high yielding milk Lack of sufficient grazing land for rearing the cattle smoothlyLack of honest and experienced leadership

Lack of improved feed for milking cowsLack of sufficient and jkproper treatment of cowsLack of sufficient & proper training for milk producing farmersLow production of milePractice of unfair and undue political influences by the authority

of milk unionOther causes for low growht of DCS are : lack of sufficient educationalqualification of MC members, inappropriate semen for cross-breeding etc.

84..4

66.7

75.6

75.6

40.0

51.1

44.475.6

28.9

22.2

11.1

The table above indicates that the major causes of low growth of DCS in Bangladeshas perceived by the managerial personnel of PDUSS are: lack of modern technologicalknowledge for cattle rearing (84.4%), poor number of improved breed of cows for high yielding milk (75.6%), lack of sufficient and proper training for milk producingfarmers (75.6%), lack of sufficient grazing land for rearing the cattle smoothly(75.6%), lack of sufficient financial assistance from milk co-operative union or government to the farmers (66.7%), lack of improved feed for milking cows (51.1%),lack of sufficient and proper treatment of cows (44.4%). lack of honest andexperienced leadership (40.0%) and low production of milk (28.9%). It is also

observed that 75.6% of managerial personnel stressed on lack of sufficient and proper training for milk producing farmers, poor number of improved breed of cows and lack of sufficient grazing land for cattle rearing as the causes of low growth of DCS.

Suggestions as Provided by the Employees of Dairy Co-operatives in Bangladesh

Some open ended questions were asked to provide five important suggestions fromeach issue for the growth and development of dairy sector as well as dairy co-operatives in Bangladesh from two categories of respondents (i.e., executives of milk union and managerial personnel of PDUSS). In this regard, many kinds of suggestions

have been provided by the respondents, which are presented below:



Suggestions Provided by the Top Level Management (Executives of Milk CooperativeUnion in Bangladesh:

Table 7: Important Suggestions for the Growth and Development of DCS Under Milk

Cooperative Union in Bangladesh as Perceived by the Executives of Milk Union (N=20)

Perceived Suggestions Percentage

(%)

Recruitment of professionally skilled personnel in different sections

Reducing & controlling the excess expenditure of Milk Union

Formulation of a sound marketing policy for the products of Milk Vita

Direct involvement and patronization of the government with adequate

financial assistance

Ensuring the qualified, experienced and honest leadership

Executing the co-operative acts and rules properly in the respective area

Spreading the activities of milk vita in the prospective milk shed areas in

all over the country

Completion the functions of management in due time

Maintaining proper coordination among all the departments of milk union.

Formulating a long-term development plan for achieving self-sufficiency.

Performing the activities of milk union like AMUL pattern of India

Ensuring the fair price of milk for the members of PDUS S (continued)

Providing sufficient loan facilities without interest for the members of

PDUSS to purchase cows

Setting up a plant for producing improve & pure cattle feed and distribute it

with fair price among the members of the societies (continued)

Ensuring properly the quality of milk products

Ensuring a strong administrative management structure & removing the

corruption of authority.

Maintaining a harmonious relationship between the authority of PDUSS &

Milk UnionProviding sufficient modern improved machineries for processing of

milk products

45.0

45.0

40.0

30.0

45.0

40.0

65.0

50.0

45.0

40.0

55.0

25.0

30.0

30.0

25.0

25.0

0

35.0




(%)

Increasing the number of improved breed of cows for high yielding milk

Providing modern technical knowledge for cow rearing to the farmers of

PDUSS by milk union

Stopping the recruitment of excess & unskilled manpower

Taking decision smoothly & implementing rapidly

Collecting sufficient amount of milk and diversification of products

Recruitment of CA and MBA degree holder in the top level executive in

respective areas

Keeping the Milk Union quiet and free from political influence

Providing more financial assistance by the govt. to the milk union

Proper coordination with share holders

Introducing the proper accountable system for top level officials

0

20.0

35.0

15.0

20.0

20.0

25.0

25.0

It is seen from the above table that the major suggestions regarding the growth anddevelopment of DCS in Bangladesh as perceived by the executives of milk union are.spreading the activities of milk vita in the prospective milk shed areas of wholecountry (65.0%). performing the activities of milk union like AMUL pattern of India(55.0%), completion the functions of management in due time (50.0%), recruitment of

professionally skilled personnel in different sections, reducing & controlling theexcess expenditure of milk union, ensuring the qualified, experienced and honestleadership, maintaining proper coordination among all the departments of milk union(45.0% each), formulation of a sound marketing policy for the products of Milk Vita,executing the co-operative acts and rules properly in the respective areas, formulatinga long-term development plan for achieving self-sufficiency, keeping the milk unionquiet and free from political influence (40.0% each), maintaining a harmoniousrelationship between the authority of PDUSS & milk union (35.0%) and increasingthe number of improve breed of cows for high yielding milk (35.0%). It is alsoobserved that majority of the executives (65.0%) emphasized on spreading the

activities of milk vita in the prospective milk shed areas in all over the country.

Suggestions Provided by the Lower Level Management (Chairman & Managers of Primary Milk Producers' Co-operative Societies in Bangladesh)



Table 8: Important Suggestions for the Growth and Development of DCS in

Bangladesh as Provided by the Managerial Personnel of PDUSS (N-45)


(%)

Providing improved breed of cows & reducing indigenous cows

from the societies

Providing honorarium for the MC members of PDUSS including chairman

Providing sufficient cow loan facilities without or low interest rate

with easy installment

Providing fair price of milk for the members of PDUSS by milk union

Providing sufficient grazing or Bathan land by the Govt. for proper cattle rearing

Supplying sufficient balanced cattle feed with fair price from milk union

Enhancing improved medical services & free medicine for cattle rearing

Providing practical knowledge of cow rearing system to the members of PDUSS

Providing improved AI system or semen for the cows

Ensuring improved and powerful vaccine in due time for Anthrex diseases

Building up a primary health care centre within 2—3 villages in milk shed areas

Providing modern transport services or technological tools for carrying milk

Enhancing free and proper treatment for the cattle to the poor farmers

Conducting different meetings of the societies regularly in proper time

Arranging sufficient & proper training programs for the members, managers &

chairman of PDUSS on cattle rearing, treatment of cattle and co-operative mgt.

Increasing salary & providing gratuity facilities for the employees of the societies

Maintaining free & fair election procedure to select honest and qualified

members in MC

Protecting the corruption of Upazilas' and Districts' co-operative officer in

auditing of the societies (continued)

Enhancing financial support or donation of the govt. to the societies.

Supplying sufficient tools (crast machine, fat tester etc.) for measuring fat

percentage & milking the cows

Ensuring sufficient educational qualification for MC members of the societiesActivities of co-operatives should be carried out by maintaining its rules and

by laws strictly

Formation of a powerful election commission to conduct free and faire election

for the MC of Milk union

Increasing both the quality and quantity of milk.

31.3

24.4

40.0

24.4

28.9

51.1

17.8

24.4

20.0

20.0

17.8

6.7

18.8

6.7

26.7

33.3

6.7

8.9

11.1

4.4

6.7

8.9



Suggestions Provided by the Milk Producing Farmers (Members of the

Primary Milk Producers' Co-operative Societies in Bangladesh)

Table 9: Important Suggestions for the Growth and Development of DCS in

Bangladesh as Provided by the Milk Producing Farmer Members of

PDUSS(N=60)


(%)

Enhancing the price of milk

Supplying sufficient balanced cattle feed by the society

Providing adequate cow loan facilities by the milk union on easy installment

Providing sufficient treatment of cattle at chief rate by the milk union

Supplying sufficient cattle medicine with fair price or free of cost

Increasing the quality of medical service for the cattle

Providing permanent Barman land by the Govt. for cattle rearing

Providing honorarium for MC members of PDUSS

Other suggestions, increasing the number of members, enhancing the

training programs for members, reducing the number of indigenous cows etc.

76.7

53.3

71.7

55.0

33.3

36.4

46.7

68.33

30.0

It may be seen from the table above that the major suggestions for the development of

DCS in Bangladesh as provided by the milk producing farmer members of PDUSSare: enhancing the price of milk (76.7%), providing adequate cow loan facilities bythe milk union on easy installment (71.7%), providing honorariums for MC membersof PDUSS (68.33%), providing sufficient treatment at chief rate by milk union for thecattle (55.0%), supplying sufficient balanced cattle feed by the society (53.3%),

providing permanent Bathan land by the Govt. for cattle rearing (46.7%) andincreasing the quality of medical service for the cattle (36.4%). It may also be seenthat the highest percentage among the members of PDUSS (78.3%) emphasized onenhancing the price of milk at top priority. On the other hand, majority of members(71.7%) stressed on providing adequate cow loan facilities by the milk union on easy

installment.



VI. Conclusions and Recommendations: Co-operative is self-help and self-reliantorganization in nature as well as it is an economic organization. The study shows thatthere is only one apex dairy co-operative organization exists in Bangladesh named"Bangladesh Milk Producing Co-operative Union Limited (BMPCUL). At present itsoverall position is progressive. Although it has been contributing to the economicdevelopment of our country from very beginning, but with a poor growth. From theanalysis of the study it may be concluded that if the respective policy makers of theGovt. take corrective measures for developing the dairy sector of the economy andmaking proper patronization of BMPCUL the deficits of dairy products must beremoved even the country will exports dairy products and earns huge amount of foreign currency every year.

With this view in mind, the following recommendations are given below for makingthe dairy co-operative development to a success.

1. Appropriate measures should therefore be taken by the respective authority of Govt. to expand the co-operative activities of Milk vita in the prospective milk shed areas in all over the country.

2. The Govt. should formulate a milk policy immediately and use of dairy industryas a weapon of economic development.

3. Under the leadership of Milk Vita, special dairy development efforts are to beinitiated with short and long run dairy development, along with qualified,

experienced and honest leader.

4. Milk Vita should now go for the advertisement strategies in different media, soit's have to needed essentially and immediately open their own Web Pages in theinternet for worldwide presenting its products and services.

5. The involvement and patronization of Govt. with adequate financial assistanceshould be increased.

6. Sufficient balanced cattle feed with fair price should be supplied from milk co-

operative union.

7. Adequate cow loan facilities should be provided to the farmer members by themilk co-operative union on easy installment.



References:

Amin, M. R., (2004), Dairy Co-operatives in Bangladesh: A Historical Overview,Journal of Co-operative Sector, Bangladesh, Co-operative Department,Civic Sector, Agargaon, Dhaka, Bangladesh.

Amin, M.R. (2006), Management of Dairy Co-operatives in Bangladesh andIndia: A Comparative Study, Ph, D. Thesis, Department of Management, IslamicUniversity, Bangladesh. Chowdhury, S. K. (1992),'A Study of Selected Primary Milk Producers' Co-operatives in

Baghabari Milk-shed Area (BMSA) Under Pabna and Sirajgonj districts. M.S. Thesis,Department of Co-operation and Marketing, BAU, Mymonsingh, Bangladesh.Government of the People's Republic of Bangladesh, Economic Review, June 2006.

Planning Commission, Finance Division, Ministry of Finance, Dhaka P.51Government of the People's Republic of Bangladesh, Economic Review, The Second

Five-Year Plan, (1974) Planning Commission, Finance Division, Ministry of Finance,Dhaka,P. 1.1, Hossain, M. M. (1987), Co-operatives and Their Managerial Efficiencyin Bangladesh

(A Study of the Agricultural Co-operatives with special reference to Comilla Sadar

Upazila, Comilla). Ph.D. Thesis, Department of Management, Dhaka University,Dhaka. Obaidullah. A. K. M. ( 1971). Comilla Co-operative Creamery Plant. PakistanAcademy

for Rural Development (PARD), East Pakistan (Present Bangladesh), Comilla, P. 1-5Project Concept Paper, Bangladesh Milk Producers' Co-operative Union Limited,(Milk Vita), Dugdho Bhabon. Tejgaon, Dhaka. Sana, C. G. (2001). A Case Study:Milk Vita-The National Dairy Co-operative of Bangladesh, Pape Presented at aworkshop on Policies and Institutions for Poultry and Dairy Development inBangladesh. Dhaka.

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