Agriculture still dominates the Bangladesh economy
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
Agriculture still dominates the Bangladesh economy. Eighty percent of the 140.0 million inhabitants of Bangladesh depend on agriculture. The area of this country is 1, 47,570 sq. km. As developing country poverty, unemployment and malnutrition are the major problems of Bangladesh. Forty four percent of this country’s populations live below the absolute poverty line and the number of landless poor people has been increasing by 3.7 percent per annum (BBS, 2004). According to the government estimation, the total number of educated but unemployed people in the country is about 2.2 million. So the importance of agriculture in Bangladesh can never be overemphasized.
Livestock is one of the most important sub-sectors of agriculture in Bangladesh. The rural people have been keeping indigenous domestic animals and chicken for centuries under semi-natural conditions mainly for their domestic consumption with very little commercial motives. At present, a large number of livestock and poultry farms have been established on commercial basis in and around the cities and towns and are operating under intensive management.
1.2 BACKROUND OF THE STUDY
1.2.1 Contribution of Livestock as Food
The foods of animal origins are richer than the foods of plant origin. Food of animal origins provides higher proteins, vitamins and minerals than that of food of plant origin. Meat is the most important food of animal origin. It includes beef, goat meat, poultry meat, etc. Among these poultry meat is the most desirable source of animal protein and highly accepted by most of the people of Bangladesh. Poultry meat can efficiently and rapidly fill in the shortage of body requirement. The context of different nutrients in chicken meat and other animals is presented in the table 1.1
Table 1.1 Nutrient contents of chicken meat and other animal (per 100 gm.)
| Nutrients | Chicken meat | Beef | Egg | Milk |
| Water {gm) | 73.30 | 66.60 | 74.60 | 87.70 |
| Food energy (K.cal.) | 117.00 | 197.00 | 158.00 | 64.00 |
| Protein (gm) | 23.40 | 20.20 | 12.10 | 3.30 |
| Ash (gm) | 1. 00 | 0.90 | 11.90 | 0.70 |
| Fat (gm) | 1.90 | 12.30 | 11.90 | 3.60 |
| Saturated Fatty acid (gm) | – | 4.70 | 3.30 | 2.05 |
| Unsaturated fatty acid (gm) | – | 5.75 | 6.63 | 1.25 |
| Cholesterol (mg) | 60.00 | 70.00 | 550.00 | 11.00 |
Chicken meat contains large amount of high quality and easily digestible vitamins and minerals. Vitamins and mineral content of chicken meat and other products are shown in table 1.2
Table 1.2: Vitamin and mineral content of chicken meat and other products (per 100 gm. Of edible portion)
| Nutrients | Chicken meat | Beef good grade | Egg | Milk |
| Calcium (mg) | 11.00 | 10.00 | 54.00 | 118.00 |
| Phosphorus (mg) | 265.00 | 152.00 | 205.00 | 93.00 |
| Iron (mg) | 1.03 | 2.50 | 2.30 | Traces |
| Sodium (mg) | 64.00 | 63.00 | 122.00 | 50.00 |
| Potassium (mg) | 41.00 | 333.00 | 129.00 | 144.00 |
| Magnesium (mg) | 19.00 | 18,00 | 11.00 | 13,00 |
| Vitamin-A(IU) | 60.00 | 60.00 | 118.00 | 140.00 |
| Thiamin (mg) | 0.04 | 0.07 | 0.11 | 0.03 |
| Riboflavin (mg) | 0.10 | 0.15 | 0.31 | 0.17 |
| Niacin (mg) | 11.60 | 4.00 | 0.31 | 0.10 |
| Vitamin-C (mg) | – | – | – | 1.00 |
1.2.2 Contribution of Livestock Other Than Food
Livestock resources necessarily encompass animal health care and welfare, quality production factors, and effective rearing to keep pace with expansion of entrepreneurship related to concerned industries. It plays an important role in the agricultural production sphere. Statistics show that about 6.5% of national GDP is covered by the livestock sector, and its annual rate of productivity is 9%. About 20% of the populations of Bangladesh earn their livelihood through work associated with raising cattle and poultry. Draught power for tilling the land, the use of cow dung as manure and fuel, and animal power for transportation make up about 15% of the GDP. Hides and skins are other non-edible valuable animal products. The production of hides and skins in Bangladesh is quite high. The domestic use of hides and skins, for leather production is low in the country. About 81% of the total production is exported in the form of ‘wet blue’ leather and leather products. There are several hundred tanning and finishing industries in the country. Several thousand people are engaged full time in this industry. Notable leather-made commodities are shoes, suitcase, bags, tents; etc. Cow dung is an important source of natural manure and fuel. About 80 million m tons of cow dung is produced annually. Cow dung is also used to produce biogas. Moreover the bones, horns, and hooves from ruminants have great economic value.
1.2.3 History of Livestock Rearing in Bangladesh
The indigenous breed of cattle is common in Bangladesh. In pre-independent India, Lord Linlithgow brought some Hariana cattle for the improvement of the indigenous cattle. After the partition of India in 1947 several breeds of cattle such as Sindhi, Shahiwal, Tharparkar, etc were brought to this region. In 1958 the artificial insemination programme started to improve local breeds. From 1969 to 1982, German specialists worked in the Savar Dairy Farm to evolve suitable breeds for draught and milk purposes. In 1974 the Australian Government donated milch cows and breeding bulls of the Holstein-Friesian variety to Bangladesh. In addition, frozen semen of Bos taurus was imported from Germany, America, France, Australia, and Japan for use and improvement of local cattle. In joint collaboration with JICA (Japan International Cooperation Agency) embryo transplants were successfully conducted by the scientists of both countries. Despite these efforts to improve the cattle wealth of the country, the success was not very encouraging.
Many commercial poultry breeds have successfully been established in recent years in Bangladesh and are being profitably utilized by different entrepreneurs. Because of the extension programmes undertaken by the government and poultry entrepreneurs, the numbers of poultry farms in the country are increasing steadily. During 1997-98 total duck farms in the public and private sectors, there are a few military farms, which cater partially to the needs of armed forces personnel.
The Government of Bangladesh has given top priority to livestock development in recent years to meet the growing demand for milk, meat and egg production, and to create employment and generate income for the rural poor. To effectively organize the functional aspects of the activities of the government, technical personnel are educated and trained in various academic institutions like the BAU and the Veterinary College. The BLRI located at Savar, Dhaka, also conducts research activities for the development and improvement of the livestock sector.
1.2.4 Livestock and Bangladesh Krishi Bank
Livestock is sub sector of agricultural sector. Specialized bank, Bangladesh Krishi Bank and Nationalized Commercial Banks provide credit in the agricultural sector. But the Bangladesh Krishi Bank is the major provider of the agricultural credit. BKB is also the major provider livestock credit as the livestock is the sub sector of the agricultural sector. BKB provides loan for Bullock, Milch Cow, Goatery, Beef fattening and other draft animals. In Poultry farming BKB Provides loan for Poultry broiler farm, Poultry layer farm, Poultry (broiler/layer) hatchery and Poultry farm related/dependent project. In Dairy farming BKB provides loan for Milk production, Milk collection, milk processing (ghee, butter, and pasteurized milk etc production) and marketing.
1.3 OBJECTIVES OT THE STUDY
The proposed project will aim at the following objectives:
1. To familiarize with the prospect of livestock for investment by banks in Bangladesh.
2. To know the policy and its implications by government in the livestock sector of Bangladesh.
3. To find out the investment details in the livestock sector by Bangladesh Krishi Bank.
1.4 METHODOLOGY
This research is basically descriptive in nature. Keeping the back ground, rationale and objectives in mind, related available information have been collected for thorough analysis from Bangladesh Agricultural University (BAU), Department of Livestock Services (DLS), Ministry of Fisheries and Livestock, Bureau of Statistics, Economic review of Bangladesh and also from other relevant sources such as various books, publications & compilations.
The research has done on the basis of secondary data which are applied in the research project.
The loan disbursement data in the livestock sector was collected from Bangladesh Krishi Bank.
Collected data have been furnished in Microsoft Excel and then analyzed for trend, forecast, and relevant graphs by using Ms- Excel software.
Finally, Interpretation of results and recommendation and conclusion has been done.
1.5 RATIONALE OF THE STUDY
Bangladesh is a densely populated country. Malnutrition and hunger are serious problems in this country. Fifty percent of the newborn are low birth weight and more than 90 percent of the children (aged <5 years) suffer from mild to severe forms of malnutrition. Egg, meat and milk, the three important protein foods originate from the poultry and livestock sector. On an average every person should consume at least 100 eggs, 43.5 kg. Of meat and 90 liter of milk per annum to prevent malnutrition. Therefore, it is essentially needed to increase the production of poultry and livestock products.
Livestock and Poultry farming has a great potential for providing additional income to male and female of rural and urban areas through creation of employment opportunities. Broiler, however, has a shorter life cycle and its production requires less capital compared to other meat-producing animals. Since the majority of the people irrespective of caste or religion prefer chicken, its demand is very high. As a result, the price of those products has gone up. Having received the signal of higher price and demand in home market, recently a tendency to establish small-scale commercial farm is observed among some people both in rural and urban areas. Poultry is no more a backyard farming now. It is shaping up as an industry. So an efficient production system is required for supporting commercial broiler farming in the country.
Although is difficult to set up commercial dairy, sheep and goat farm for want of capital, inadequate lands for producing fodder, technological problems and so on, but it is very much essential to develop their farming to meet up the demand of milk and meat.. The merits of poultry rearing are noted below:
I. People are accustomed to raise a small number of cattle, buffalo, sheep, sheep and poultry in their houses.
II. Sheep, goat and poultry rising is one of the best ways for earning within the shortest possible time.
III. Unemployed young men, women and widows can look after those very easily.
IV. Livestock farming can be started with small capital.
V. Indigenous animals and poultry can be adaptable very easily in all climatic conditions.
VI. Small area of land is required for raising chicken. Hence it would be one of the profitable businesses as for small farmers and landless laborers.
VII. All by products such as bone meal, wheat and rice bran can be efficiently be used by raising poultry.
Livestock is a part of subsistence agriculture farming system in Bangladesh and an important component of farming system and plays a significant role in rural economy. Commercial livestock and poultry farming create various job opportunities for unemployed people through the establishment of agro-based industries. With this backdrop, the present study is an attempt to find out the existing picture of livestock and poultry production in Bangladesh. This research will focus on justifying the soundness of the investment by Bangladesh Krishi Bank in the livestock sector of Bangladesh.
1.6 SCOPE AND LIMITATIONS
1.6.1 Scope
More than eighty percent of the 140.0 million population of Bangladesh depend on agriculture. The economy of Bangladesh is mainly based on Agriculture. Livestock and poultry play an important role in the agricultural economy. In order to enhance livestock and poultry production in Bangladesh, supply of livestock and agriculture credit through different credit institutions have increased substantially in recent years. Bangladesh Krishi Bank is the largest amount of credit provider in this area. With the Bangladesh Krishi Bank, Nationalized Commercial Banks (NCBs) and Bangladesh Rural Development Board (BRDB) have provided loan in this area. Most recently Private Commercial Banks are also thinking and starting to provide loan in this area. On the other hand livestock sector is growing sector in Bangladesh. Livestock and Poultry rearing is now limited only to the small-scale farming. Many agro-based industries are growing up by livestock and poultry for the production of milk, meat, egg etc. So the scope of study in this area is increasing day by day.
1.6.2 Limitations
Here most of the analysis has been done on the basis of secondary data. As livestock credit in Bangladesh provided by Bangladesh Krishi Bank, Nationalized Commercial Banks (NCBs) and Bangladesh Rural Development Board, their traditional record keeping is tough to collect secondary data. Time and resource are other constraints for which extensive study can not be carried out. Despite having al these limitations have tried my best to make a clear view of the facts with the available information.
CHAPTER 2
LITERATURE REVIEW
Agriculture is a broad sector of Bangladesh and many studies related agricultural development of Bangladesh by the enforcement of financial institutions has been found. But the livestock is a specific growing sector of Bangladesh and Bangladesh Krishi Bank is a specialized bank which contributed in this sector from long time. Many studies of agricultural development of Bangladesh and Bangladesh Krishi Bank are also found. But I am not yet found any study of livestock development by Bangladesh Krishi Bank. As I am a graduate of B.Sc. (A.H) Hon’s, Faculty of Animal Husbandry, Bangladesh Agricultural University and present student of MBA (Evening) Program, Department of Banking, Dhaka University, I think that I can study in this area.
I have been found related study of mine which was by W.M.H. JAIM and M.L. RAHMAN “DISBURSEMENT AND RECOVERY OF AGRICULTURAL CREDIT–A MACRO LEVEL ANALYSIS.” The article was published in 1983 in the Bank Parikrama, a quarterly publication of BIBM, Dhaka. Their study area was whole agriculture of Bangladesh and contributing financial institutions such as BKB, NCBs, BRDB and BSBL. That time they showed their study how credit was disbursed by banks in the agriculture of banks, recovery and factors responsible for failure of recovery.
For the development of livestock in the rural area many NGOs are working in Bangladesh. I have been also found a study “LIVESTOCK DEVELOPMENT THROUGH NGOs IN BANGLADESH: A STUDY OD BRAC.” BRAC works for this purpose under its Rural Development Program (RDP) by a branch network of 330 area offices and 300 sub-area offices. It is supporting in livestock development program by giving micro-credit in poultry rearing, sheep and goat rearing and cow rearing. They also established a bull station for the purpose of development of animal breeds by giving artificial insemination.
In study tried to show the contributions of livestock in Bangladesh and how Bangladesh krishi Bank contributes for the development of livestock in Bangladesh. This is a micro-level analysis. Regarding this I found that the disbursement of loan in livestock sector by Bangladesh Krishi Bank is increasing every year but the recovery of loan is poor. For this reason amount of outstanding and overdue of loan is increasing day by day.
CHAPTER 3
CONCEPTUAL ANALYSIS AND COMPANY INFORMATION
3.1 DIFFERENT TERMS REGARDING LIVESTOCK AND CONCEPTUAL FRAMEWORK OF LIVESTOCK
3.1.1 Different Terms Regarding Livestock
Livestock: Animals that are especially kept on a firm for economic benefits. In Bangladesh these are generally Poultry, Cattle, Buffalo, Goat and Sheep.
Poultry: Domesticated birds which are rendered by the people for the purpose of getting economic benefit from them.
Cow: Adult female cattle which has calved at least one calf or after calving, or when more than thirty months old, a female dairy animal is known as a cow.
Beef: Meat of adult cattle is called beef.
Veal: Meat of calf from birth to three months of age.
Herd: A group of large animal is called herd.
Flock: A group of small animal is called flock.
Feed: It is the materials which after ingestion by the animals, capable of being digested, absorbed and utilized.
Artificial Insemination (A.I.): The technique of placing semen from the male in the reproductive tract of female by means other than natural service is called Artificial Insemination.
Lactation Period: Length of time of cow producing milk is called lactation period. The period of continuous milk production time of cow from calving to dry is the lactation period.
Genes: The basic unit of heredity that occur in pairs and have their effect in pairs in the individuals, but which is transmitted singly (one or the other gene at random of each pair) from each parent to offspring.
Chromosome: Chromosomes are long DNA molecules on which genes (the basic genetic codes) are located.
Breeds: Either a sub specific group of domestic livestock with definable and indefinable external characteristics that enable it to be separated by visual appraisal from other similarly defined groups within the same species or a group for which geographical and/or cultural separation from phenotypically similar groups has led to acceptance of its separate identity.
3.1.2 Distribution and Production of Livestock in Bangladesh
According to the last statistics of Livestock and Poultry population for the year 1993-94, the number was 3 crore 52 lac and 12 crore 28 lac respectively. In 2006-07 the population of Livestock and Poultry raised to 4 crore 75 lac and 24 crore 60 lac respectively.
Table 3.1 Livestock & Poultry population in Bangladesh
| Number (in million) | ||||||||
| Livestock/ Poultry | 1993-94 | 2000-01 | 01-02 | 02-03 | 03-04 | 04-05 | 05-06 | 06-07
March/07 |
| Cattle | 21.88 | 22.39 | 22.46 | 22.58 | 22.60 | 22.67 | 22.80 | 22.87 |
| Buffalo | 0.68 | 0.92 | 0.97 | 1.01 | 1.06 | 1.11 | 1.16 | 1.21 |
| Goat | 12.45 | 16.27 | 16.96 | 17.69 | 18.41 | 19.16 | 19.94 | 20.75 |
| Sheep | 1.51 | 2.11 | 2.20 | 2.29 | 2.38 | 2.47 | 2.57 | 2.68 |
| Total Livestock | 35.52 | 40.69 | 41.59 | 42.52 | 43.45 | 44.41 | 46.47 | 47.51 |
| Chicken | 97.04 | 142.68 | 152.24 | 162.44 | 172.63 | 183.45 | 194.82 | 206.89 |
| Duck | 25.76 | 33.83 | 34.67 | 35.54 | 36.40 | 37.28 | 38.17 | 39.08 |
| Total Poultry | 122.80 | 176.51 | 186.91 | 197.98 | 209.03 | 220.73 | 232.99 | 245.97 |
The density of Livestock and Poultry population per unit of land is high in Bangladesh, compared to other countries of the world. From the year 1998-99, the production of milk, meat (beef, mutton and chicken) and egg were increasing on a regular basis with a lower increasing rate which has reached to a higher rate in the year 2005-06. Table -3 shows the production of livestock products for the last 9 years in our country.
Table 3.2 Production of Milk, Meat & Egg.
| Production | |||||||||||
| Product | Unit | 93-94 | 98-99 | 99-00 | 2000-01 | 01-02 | 02-03 | 03-04 | 04-05 | 05-06 | 06-07
March/07 |
| Milk | Million Ton | 1.39 | 1.66 | 1.70 | 1.74 | 1.78 | 1.82 | 1.99 | 2.14 | 2.27 | 1.635 |
| Meat | Million Ton | 0.49 | 0.66 | 0.70 | 0.75 | 0.78 | 0.83 | 0.91 | 1.06 | 1.13 | 0.7675 |
| Eggs | Million
Ton |
2404 | 3512 | 3793 | 4097 | 4424 | 4777 | 4780 | 5623 | 5422 | 3813 |
In order to continue the previous success it has taken initiative to strengthen the dairy sector. Taka ten crore has already been distributed to 15 thousand registered private dairy farms as incentive. In addition to that, training program has been organized to reduce the feeds and forage scarcity through Animal Nutrition & Technology Transfer Project
The per capita consumption of milk, meat and egg has been increased significantly due to augmented production. During the year 2000-01, the per capita availability of milk, meat and eggs were 36 ml/day, 15 g/day and 31 number/year respectively, which has been increased to 45 ml/day, 22 g/ day and 39-number/ year in 2005-2006.
3.1.3 Economic Contribution of Livestock
The economy of Bangladesh is mainly based on Agriculture. Livestock plays a crucial role in the agricultural economy. About 36 percent of the total animal protein comes from the livestock products in our every day life. It also helps to earn foreign exchange by exporting hides & skins every year. In addition to mechanical cultivation still being cultivating by bovine animal. Countries 25 percent peoples are directly engaged in livestock sector, and 50 percent peoples are partly associated in livestock production. Last year, the contribution of livestock sub-sector to the GDP was 2.95 percent, which was estimated about 17.32 percent GDP to agriculture. Last year, the growth of livestock in GDP was 7.23 percent.
Table 3.3 Contribution of Livestock & Poultry on National Economy
| Growth of Livestock in National Economy | 7.23% |
| Contribution of livestock sector in National Economy | 2.95% |
| Role of livestiock in Agricultural production | 17.32% |
| Cultivation of Land | 75% |
| Self Employment | 25% |
| Production of Livestiock Products (crore) | 15000 (Approx) |
| Foreign exchange earning (only from hides & skins) 2003-04 | 4.31% |
| Rural Transport | 50% |
| Production of Organic Fertilizer | 80 m.m.t |
| Fuel Supply | 25% |
Source: DLS
3.2 DESCRIPTION OF BANGLADESH KRISHI BANK
3.2.1 Overview of the Bank
Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President’s Order No 27 of 1973). BKB is Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh.
The primary objective of BKB is to provide credit facilities to the farmers for the development of agriculture and entrepreneurs engaged in development of agro-based and cottage industries.
The Bank is guided in accordance with the policies and principles of the Government of the Peoples Republic of Bangladesh. BKB has an authorized capital of Tk. 10,000 Million (Taka Ten thousand Million) only and paid up capital of Tk. 5000 Million (Taka Four thousand Million) only which is fully paid by the government. The Bank started commercial functioning since 1977 to generate more loanable fund from the idle rural and urban savings and invest them for the betterment of our economy.
In the Head Office the Bank has 4 Divisions headed by General Managers and 28 Departments including Local Principal Office and Training Institute headed by Deputy General Managers. The existing strength of Bank’s manpower is 9526 against the approved strength of 11968 as on 31 March, 2008.
The Bank has a Board of Directors comprising of 11 members. The Board is headed by a Chairman. The Directors represent both public and private sectors and are appointed by the government. The Managing Director is the Chief Executive of the Bank. He is appointed by the government.
The Bank has two posts of Deputy Managing Directors and are appointed by the Government.
The Bank has 12 posts of General Manager. They are also appointed by the Government.
In the Head Office there are 4 Divisions each headed by a General Manager? The divisions are:
· Administration Division
· Planning & Operation Division
· Accounts Division and
· Loan Recovery Division
Under the control and supervision of the above four divisions 28 departments are working in the head office headed by Deputy General Managers.
3.2.2 Organogram of Bangladesh Krishi Bank
3.2.3 Branches
The Bank operates its function through its 951 branches (except Rajshahi Division) of which 821 are rural and 130 are urban. It has 15 foreign exchange (Authorized dealer) branches. In the field level the Bank has 8 Divisional, 21 Chief Regional and 30 Regional offices for close supervision of the branch activities. For smooth operation, s a part of internal control and compliance system, the bank has also 56 field level audit offices of which 5 at Divisional and 51 at Regional levels.
CHAPTER 4
PROSPECT OF LIVESTOCK AND GOVERNMENT POLICY
4.1 PROSPECT OF LIVESTOCK IN BANGLADESH
4.1.1 Environment
The environment of Bangladesh is suitable for livestock rearing. Because, the temperature of Bangladesh is not neither so hot nor so cold. Although we have no parent stock of poultry and we have no high yielding breeds and variety of cattle, sheep and goat variety but the exotic parent stock, breeds and variety give a good production.
4.1.2 Land
For the farming the poultry, cattle, sheep and goat 65-70% cost are incurred for their feeding. Our land is suitable for the production of feed. We have many char land which could be use for purpose of feed production and grazing animals.
4.1.3 Labor
Bangladesh is densely populated country in the world. Many people are seeking work to livelihood. We can easily engage them in agro-based industries.
4.1.4 Availability of Breeds
The breeds of livestock and poultry available in Bangladesh are as follows: Cattle: (i) local breed of cattle- non-descript indigenous type, Red Chittagong Goyal, Pabna Cow; (ii) Exotic: Hariana, Sindhi, Shahiwal, Jersey, and Holstien-Friesian; (iii) Hybrid: Bos indicus×Bos taurus. Buffalo: (i) River type, (ii) Swamp type, (iii) River Swamp type. Goat: (i) Black Bengal, (ii) Jamuna Pari, (iii) Crossbred- Black Bengal×Jamuna Pari. Sheep: non-descript indigenous type. Poultry: (i) non-descript indigenous type – Asseel, Chittagong Fowl, and Naked Neck; (ii) Exotic: White Leghorn, Rhode Island Red, Fayomi, Australop, several commercial broiler and layer breeds; (iii) Crossbreed: Indigenous×Exotic. Duck: (i) Local: non-descript indigenous type, Sylhet Mete, Nageswari, Moscovy, Goose; (ii) Exotic: Khaki Cambell, Indian Runner, Jinding, Cherry Valley; (iii) Crossbreed: Indigenous×Exotic. Pig: non-descript indigenous type. We can use them for the production of livestock.
4.1.5 Demand of Livestock Products
Livestock products such as milk, meat, egg are great source of protein. Animal protein is much richer than plant protein. The people of Bangladesh suffer from malnutrition. Because the present production level of livestock and poultry can not meet the demand of our needs. So livestock products are very demandable in our country.
4.1.6 Utilization of Livestock By-products
Livestock by-products are utilized for various purposes. Meat meal, bone meal etc. non-edible by-products are used for poultry and fish meal production. Cowdung is an important source of natural manure and fuel. About 80 million m tons of cowdung is produced annually. Cowdung is also used to produce biogas.
4.1.7 Marketing Facility
There is a good marketing environment in Bangladesh for marketing of livestock products and by-products.
4.1.8 Exporting
Hides and skins are other non-edible valuable animal products. The production of hides and skins in Bangladesh is quite high. The domestic use of hides and skins, for leather production is low in the country. About 81% of the total production is exported in the form of ‘wet blue’ leather and leather products. By processing different livestock products we can also earn foreign currency.
4.1.8 Profitability
Livestock business is profitable business in Bangladesh. Most of the livestock based agro industries are in the rural area where production cost of is less and their profitability is high.
4.2 GOVERNMENT POLICY
NATIONAL LIVESTOCK DEVELOPMENT POLICY
4.2.1 Introduction
Livestock plays an important role in the national economy of Bangladesh with a direct contribution of around 3 % percent to the agricultural GDP and providing 15 percent of total employment in the economy. The livestock sub-sector that includes poultry offers important employment and livelihood opportunities particularly for the rural poor, including the functionally landless, many of whom regard livestock as a main livelihood option. About 75 percent people rely on livestock to some extent for their livelihood, which clearly indicates that the poverty reduction potential of the livestock sub-sector is high. According to Bangladesh Economic Review, (2006), the growth rate in GDP in 2004-05 for livestock was the highest of any sub-sector at 7.23%, compared to 0.15% for crops, and 3.65% for fisheries sub-sector. These changes have been prompted by a rapid growth in demand for livestock products due to increase in income, rising population, and urban growth.
It is an established fact that high quality animal protein in the form of milk, meat and eggs is extremely important for the proper physical and mental growth of human being. In Bangladesh, around 8% of total protein for human consumption comes from livestock. Hides and skin of cattle, buffaloes, goats and sheep are valuable export items, ranked third in earnings after RMG and shrimp. Surprisingly, Bangladesh has one of the highest cattle densities: 145 large ruminants/km2 compared with 90 for India, 30 for Ethiopia, and 20 for Brazil. But most of them trace their origin to a poor genetic base. The average weight of local cattle ranges from 125 to 150 kg for cows and from 200 to 250 kg for bulls that falls 25-35% short of the average weight of all-purpose cattle in India. Milk yields are extremely low: 200-250 litre during a 10-month lactation period in contrast to 800 litre for Pakistan, 500 litre for India, and 700 litre for all Asia. Despite highest cattle densities in Bangladesh, the current production of milk, meat and eggs are inadequate to meet the current requirement and the deficits are 85.9, 77.4 and 73.1% respectively. If 5% GDP growth rate is considered then the current production of these commodities need to be increase 2.5 to 3.0 times by the year 2020 to feed the growing population in the country. This illustrates how urgent is the need to increase the production of milk, meat and eggs. The PRSP stresses the importance of the livestock sub-sector in sustaining the acceleration of poverty reduction in the country. The dynamic potential of this emerging sub-sector thus requires critical policy attention.
In the past, due importance was not given to the development of the livestock sub-sector despite its significant contribution to the national economy. In the Financial Year 2006-07 the livestock sub-sector received only about 1.0 percent of the total budget allocation, or only about 3.5 percent of the agricultural sector budget. Though production of animal protein has maintained an upward trend, per capita availability of animal protein presently stands at around 21 gm meat/day, 43 ml milk/day and 41 eggs/year vis-à-vis the recommended intakes of 120 gm meat/day, 250 ml milk/day and 104 eggs/year. Shortage of quality inputs, inadequate services and physical infrastructure, institutional weaknesses in terms of weak regulatory framework and enforcement, limited skilled manpower and resources, and inadequate research and technological advancement are all continuing to act as constraints to livestock development.
The growth opportunities in the livestock sub-sector vary significantly among the species. Qualitative rather than quantitative development of large ruminants (cattle and buffalo), a parallel increase of the productivity and population size of the small ruminants (goat and sheep), and poultry keeping emerges as promising to offer substantial growth potentials with a positive impact on nutrition, employment and poverty alleviation. Research and technological development merit priority to counteract allied problems in the fields of feed, breed and disease and meet the challenge of the country’s livestock sector in the 21st century .
National Livestock Development Policy has been prepared to address the key challenges and opportunity for a comprehensive sustainable development of the Livestock sub-sector through creating an enabling policy framework.
4.2.2 Objectives of the National Livestock Development Policy
The general objective of the National Livestock Development Policy:
To provide the enabling environment, opening up opportunities, and reducing risks and vulnerability for harnessing the full potential of livestock sub-sector to accelerate economic growth for reduction of rural poverty in which the private sector will remain the main actor, while the public sector will play facilitating and supportive role.
The specific objectives of the National Livestock Development Policy:
1. To promote sustainable improvements in productivity of milk, meat and egg production including processing and value addition;
2. To promote sustained improvements in income, nutrition, and employment for the landless, small and marginal farmers; and
3. To facilitate increased private sector participation and investments in livestock production, livestock services, market development and export of livestock products and by-products.
4.2.3 Legal Status of the National Livestock Development Policy
All the government and autonomous organizations, multi-national institutions, NGOs, CBOs and persons who are working within the geographical territory of Bangladesh for the management, development and conservation of Livestock resources, import-export or other business related to the livestock sub-sector will be under the perview of National livestock Development Policy.
4.2.4 Scope of the National Livestock Development Policy
The following ten critical areas have been identified for formulating the National livestock Development policy:
i. Dairy Development and Meat Production:
ii. Poultry Development;
iii. Veterinary Services and Animal Health;
iv. Feeds and Fodder Management;
v. Breeds Development;
vi. Hides and Skins;
vii. Marketing of Livestock Products;
viii. International Trade Management
ix. Access to Credit and Insurance; and
x. Institutional Development for Research and Extension
The key policy issues for each of these critical areas are outlined in the following section:
4.2.4.1 Dairy Development and Meat Production
Dairy Development
The opportunity for development of large-scale dairy is limited in Bangladesh due to scarcity of land. However, the potential for development of smallholder dairy is high. Over the last few years, small-scale dairy farming has increased significantly with the support of credit, feed, veterinary services and provision of self-insurance systems.
Small-scale dairy farming provides employment for the poorer segments of the population. The availability of this form of traditional self-employment to rural dwellers, particularly women, is important where there is scarcity of alternative income generating opportunities. Smallholder dairy thus widens the scope for the poor with limited access to land to enhance their income. Dairy animals can play a crucial role in household food security, through improved income and nutrition of the low-income groups.
Daily farming in Bangladesh is affected by myriads of constraints such as: (i) limited knowledge and technical skills of smallholder dairy farmers; (ii) scarcity of feeds and fodder; (iii) poor quality of feeds; (iv) frequent occurrence of diseases; (v) limited coverage of veterinary services including poor diagnostic facilities; (vi) lack of credit support; (vii) limited milk collection and processing facilities and low prices at collection points; (viii) lack of insurance coverage; (ix) absence of market information; (x) lack of appropriate breeds; and (xi) absence of a regulatory body.
Policy framework for dairy development is:
1. Cooperative dairy development (Milk Vita model) would be expanded in potential areas of the country;
2. Successful pro-poor models for community-based smallholder dairy development including appropriate contact farming schemes would be replicated;
3. Smallholder dairy farming, integrated with crop and fish culture would be promoted;
4. Supply chain based production, processing and marketing of milk and milk products would be promoted;
5. A National Dairy Development Board would be established as a regulatory body to promote dairy development;
6. “National Dairy Research Institute” would be established to carry out research in various aspects of dairying.
Meat Production
Around 3.5 million cattle are slaughtered annually in the country of which 40 percent are imported through cross-border trade. Around 15 million goats are slaughtered annually mostly of local origin. Of the total slaughter of cattle and goats, around 40 percent is performed during Eid-ul-Azha.
Increased demand for quality meat, beef production has become an important income generating activity for small fanners, and a potentially important tool for reducing poverty. Beef production is considered to have high income generating potential, but faces constraints such as lack of appropriate breeds, knowledge gaps of farmers, lack of proper veterinary services and quality feeds.
Most meat is handled under unsatisfactory sanitary conditions in both rural and urban areas. Enforcement of legislation relating to slaughtering or meat inspection is weak. There is generally poor pre-slaughter conditions, sanitation, removal of waste materials, and disposal of offal.
The Black Bengal goat is a highly prolific native breed that can be easily raised on low quality feed and with little investments. Rearing of Black Bengal goat is an appropriate option for many subsistence farmers. Its demand is growing in both domestic meat markets and internationally for its skins and high quality leather goods.
Policy framework for meat production:
1. Animal Slaughter Act and Animal Feed Act would be approved and enforced in order to promote hygienic production of quality meat;
2. Butchers would be trained on scientific methods of slaughtering, meat processing and preservation techniques;
3. Development of beef breeds for increased productivity at farm level;
4. Development of backward and forward linkage system to help improvement of existing cattle fattening system into private enterprises;
5. Private sector would be encouraged to establish mechanized slaughter houses with Static Flaying Frame around big cities; and Local Government would be encouraged to establish slaughter slabs in municipality and Upazila headquarters;
6. Production of Black Bengal Goats would be promoted by ensuring disease prevention, availability of quality bucks and semen for artificial insemination, and knowledge transfer through special projects;
7. Buffalo and sheep farming would be developed in selected high potential areas through special projects.
4.2.4.2 Poultry Development
The backyard poultry units require minimum inputs and are often part of integrated crop- aquaculture-livestock farming systems. Their level of production is relatively low but profitability can be high due to low inputs costs and recycling of on-farm by-products. Commercial production systems use birds of improved genetic stock and reared under semi- intensive or intensive management. There are currently estimated around 100,000 commercial poultry farms in Bangladesh, supported by 08 Grand Parent Farms and 130 Parent Stock Farms.
While the growth of the poultry industry has contributed to economic growth and income of commercial farmers, indiscriminate and unplanned growth of breeder farms and commercial poultry farms, particularly in and around cities and towns is creating environmental hazards.
There are at present no guidelines for environmental protection and bio-security when establishing poultry farms. The use of antibiotics in feeds is thought to be common and a cause of public health concern.
The constraints facing the sector in general include: (i) lack of infrastructure beyond the Upazila Head Quarters for providing services to poultry farmers; (ii) shortage of skilled manpower; (iii) shortage of quality chicks and breeding materials; (iv) shortage of poultry , feed/feed ingredients and high prices; (v) poor quality of inputs; (vi) lack of quality control facilities for medicine, vaccines and biological products, feed and feed ingredients, chicks, eggs and birds; (vii) drug and vaccine residues in poultry meat; (viii) shortage of vaccines; (ix) lack of organized marketing systems; (x) poor provision of veterinary services; and (xi) insufficient credit and capital especially for the poor. The possible threat of Avian Influenza exacerbates some of these concerns and shortcomings and would require additional measures to be taken.
Policy framework or Poultry Development:
1. Successful pro-poor models would be replicated for semi-scavenging poultry development;
2. Formation of poultry smallholder groups, CBOs, and producers associations would be facilitated;
3. Quality control of poultry feeds and feed ingredients would be ensured through establishment of a legal body and enforcement of regulations;
4. Production and consumption of safe meat, milk and eggs would be ensured;
5. Organic meat, milk and eggs production would be promoted;
6. Criteria and guidelines would be established to ensure supply of quality day-old chicks;
7. Specific guidelines would be developed and enforced for establishing environment-friendly commercial poultry farms. Small commercial farms would be converted into profit oriented large farms following cooperative system;
8. Poultry farms of the DLS would be utilized as breeding and multiplication farms / centres for smallholder training, technology testing and demonstration etc;
9. Smallholder production and marketing of ducks and minor poultry species (e.g. Quail, Goose, Pigeon, Guinea fowl) in selected areas would be promoted;
10. Government has already declared BLRI as National Reference Laboratory for detection of Avian Influenza virus and other emerging diseases . It would be strengthened at International standard;
11. National Avian Flu Preparedness Plan would be implemented;
12. All Commercial Poultry farms will be registered with DLS;
13. Bio safety protocol developed by the should be followed by the concern stakeholders.
4.2.4.3 Veterinary Services and Animal Health
Inadequate veterinary services are one of the major obstacles for livestock development in Bangladesh. The ratio of Veterinary Surgeons to farm animals and birds was estimated at I: 1.7 million and only 15-20 percent of farm animals receive routine vaccination. Private sector investment in the animal health sector remains low and is expanding gradully.
The quality and quantity of vaccines produced and delivered by the DLS are inadequate. The use of subsidies in vaccine production in present form is a possible deterrent to private investors. There is no independent authority to check the quality of domestically produced or imported vaccines. Vaccination is done in a haphazard manner without any strategic plan for controlling the targeted diseases. There are no provisions for movement control and quarantine during disease outbreak or epidemics.
No registration is required for feed additives such as toxins binder, antibiotics, and vitamin- mineral premixes, animal protein, many of which are potentially detrimental to human health. Most of the drugs traders and shop keepers have no formal training on drug handling, transportation, storing and dispensing, and readily sell drugs such as antibiotics, hormones, and sedatives across the counter without prescription.
Disease diagnostic facilities are limited. The DVH, Regional FDIL, and the CDIL of DLS are responsible for providing diagnostic services. However, due to shortage of skilled manpower and non-availability of funds they cannot provide the intended services. There is no provision for residue analysis of drugs, heavy metals, hormones, pesticides and toxins in foods of animal origin. There are only few local veterinarians trained in clinical pathology to diagnose diseases properly.
The disease surveillance system is almost non-existent. ‘The Veterinary Public Health Unit in the DLS has the mandate to perform diagnosis, surveillance and control of zoonotic diseases, ensure food safety of animal origin, and liaison with the Health Department. The Unit is however, suffering from serious shortages of human capital, funding and laboratory facilities. It has no legal framework to implement its mandate. Coordination between animal and human health bodies is virtually non-existent.
Veterinary research is similarly constrained due to shortages of staff and funds. Very limited fund is available for veterinary research. There are important areas of public goods services like veterinary epidemiology, veterinary public health, food safety and diagnostic techniques within which research needs to be expanded urgently.
The Animal Quarantine Act enacted (Act no-VI of 2005) by the Parliament, but quarantine stations, manpower and funds to enforce the Act are not in place yet. Laws and Regulations are essential for high quality service delivery and quality assurance of products for trade. Some laws and regulations are in place but overall regulatory framework and implementation remain very weak.
Policy framework for Veterinary Services and Animal Health:
1. Soft loans would be provided to accelerate the development of private veterinary services;
2. Community-based veterinary service would be developed through special projects;
3. Mobile veterinary services will be provided by DLS;
4. An autonomous Quality Control Agency would be established to ensure quality of veterinary drugs, vaccines, feeds, feed ingredients and breeding tools and materials;
5. A licensing system for veterinary pharmacists and a quality monitoring system of veterinary services would be introduced;
6. Veterinary research would be strengthened in critical areas, particularly those related to provision of public goods and services;
7. Veterinary public health services would be strengthened and closer linkages with the Department of Health would be established;
8. Capacities of disease investigation network of DLS would be strengthened for disease surveillance, quarantine services and emergency planning to manage major disease outbreaks including Avian Influenza and other emerging diseases;
9. Specific strategy would be developed for controlling economically important trans-boundary animal diseases;
10. Veterinary Council would be strengthened to help ensure quality veterinary services;
11. “National Livestock Health Disaster Committee” would be formed including all trade organizations to combat crises related to animal and human health;
12. A separate “Veterinary Cell” would be established in Department of Drug Administration for facilitating decision making on veterinary drug registration and approval in Bangladesh. Animal Health Companies Association and related trade association would be included in the committee to represent the private sector.
13. Promote and encourage private sector to set-up compliant veterinary diagnostic center, clinics and hospitals to cater the needs of the farmers and other beneficiaries.
4.2.4.4 Feeds and Fodder Management
The acute shortage of feeds and fodder is one of the single most important obstacles to livestock development in Bangladesh. The main constraints for feeds and feed management include: (i) shortage of feeds and fodder; (ii) scarcity of land for fodder production; (iii) seasonal fluctuations in supply of feeds and fodder; (iv) low quality feed; (v) high feed prices; and (vi) poor husbandry practices.
Feed resources for large livestock are primarily derived from crop residues and cereal by- products as well as grasses, tree leaves and aquatic plants. Very little grain is available for animals. Feed concentrates contribute only a small portion of the feed. Feed resources for scavenging rural poultry comprise scattered grains from threshing floors, left over grains, pulses, broken rice, kitchen wastes, green grasses, insects, worms, left over boiled rice, etc. Because of increasing demand for human food land is intensively used for cereal production. Neither sufficient grazing land, nor spare land is available for growing fodder. This has resulted in shortages of quality forage for ruminant livestock, causing stunted growth, reproduction problems, reduced lactation, working inability, lower growth rates, and reduced productivity.
Most of the dairy and poultry farmers are facing the problem of adulterated and inferior quality of commercial feeds and feed ingredients. Feed labeling and control is inadequate. Most feed millers do not disclose the necessary information on the packaging with regards to feed composition, ingredients, date of manufacturing, date of expiry, storage guidelines, energy levels, and protein and vitamin contents. Feed millers are widely suspected of minimizing feed production costs either by use of inferior quality ingredients and/or inclusion of lower proportions of high value ingredients. Poor packaging materials contribute to reduced quality and shelf life.
Policy framework for Feeds and Animal Management:
1. Feed and fodder development strategy would be developed for community- based fodder cultivation along roads and highways, rivers and embankments, in Khas lands, and in combinations with crops;
2. Necessary support would be provided to the private sector for utilization and promotion of crop residues, agro-industrial by-products and unconventional feed resources as animal feed;
3. An Animal Feed Act would be approved and implemented to ensure