Bangladesh's Dairy Industry Overview

Bangladesh is witnessing remarkable growth in its dairy industry, significantly influencing both domestic and international markets. The sector is supported by approximately 24.5 million dairy cattle, underscoring its substantial role in the global dairy landscape. Contributing about 2.73% to the national GDP and 17.15% to the agricultural GDP, the industry supports nearly 9.4 million people directly and indirectly. In 2024, Bangladesh produced around 10.79 million tonnes of milk, ranking fifth in Asia and 19th globally.

Milk Production and Processing

The country produces approximately 9.4 million metric tons of milk annually, with about 1.5 million metric tons processed into various dairy products such as pasteurized milk, yogurt, cheese, and milk powder. This highlights Bangladesh's processing capabilities and its ability to cater to diverse consumer demands.

Dairy Product Production

Bangladesh's production of dairy products includes approximately 15,000 metric tons of cheese, 20,000 metric tons of milk powder, and an estimated 5,000 metric tons of whey per year. These figures highlight the country's growing capacity in dairy product manufacturing.

Key Dairy Enterprises

Prominent dairy plants in Bangladesh include Milk Vita, Arong Dairy, Pran Dairy, Igloo Dairy, and Farm Fresh Dairy. Notable dairy farms consist of Aftab Dairy Farm, Molla Dairy Farm, Mehmood Dairy Farm, Raihan Dairy Farm, and Rahman Dairy Farm, all contributing to the industry's robust growth.

Trade Dynamics

Bangladesh's export of dairy products is on the rise, with annual exports reaching approximately 50,000 metric tons, primarily consisting of condensed milk and cream. These products cater to neighboring countries and regions with high demand. To satisfy domestic consumption, Bangladesh imports around 100,000 metric tons of dairy products annually, focusing on milk powder, whey, and cheese, mainly sourced from Australia, New Zealand, and the European Union.

Significant Dairy Market Events

Recent developments in Bangladesh's dairy market underscore its dynamic nature. In 2022, a new Milk Vita processing plant was inaugurated, featuring advanced technology to enhance milk processing efficiency. In 2023, a government initiative was launched to support small-scale dairy farmers with subsidies and technological aid. Pran Dairy introduced a new organic product line, gaining traction among health-conscious consumers. Increased collaboration with international dairy research institutes aims to enhance dairy farming practices and milk yield. Anchor's re-entry into the Bangladesh market with the launch of Anchor Pushti Dudh, in partnership with Transcom Limited, signifies positive growth prospects.

Bangladesh Dairy Development Board

The Bangladesh Dairy Development Board, established as of September 1, 2025, under the "Bangladesh Dairy Development Board Act, 2023", aims to boost milk and dairy product production, establish quality standards, and improve market management. The board's initiatives include the 'Pushti Kothha' project to promote safe milk production and consumption, aiming to reduce greenhouse gas emissions and improve farmer incomes.

Educational and Research Centers

The dairy farm at Bangladesh Agricultural University in Mymensingh has become a key center for education and research, developing into a significant hub for educational and research activities in livestock management.

International Trade Agreements

Bangladesh has signed a trade agreement with the United States, allowing significant access for American dairy and agricultural biotechnology products. This agreement includes recognizing the US dairy-safety system as equivalent to Bangladesh's standards, facilitating the import of American dairy products.

Highly Protected Dairy Market

Bangladesh maintains high import protection for dairy products, often exceeding 50-60% for milk powders. The country uses imports to stabilize domestic supply rather than as a permanent sourcing strategy. The domestic milk market is expected to grow at a compound annual growth rate of more than 9% until 2029, reaching an estimated market size of $8.43 billion. Bangladesh is a target for New Zealand's trade strategy due to US tariff reductions. The country accounted for a lucrative export market worth $483.87 million for New Zealand, primarily driven by whole milk powder and related products. Fonterra sees Bangladesh as a region with an established base of dairy trade, which could be significantly boosted by the removal of tariffs.

Market Pricing and Collection

Bangladesh’s state-owned dairy cooperative Milk Vita raised its retail price for processed milk to Tk 110 per litre on August 1. Producers in dairy centres including Pabna and Sirajganj welcomed the higher rates but called for government action on cattle-feed prices. Despite the price changes and production costs, Milk Vita’s nationwide daily milk collection remains between 100,000 and 125,000 litres, while daily consumer demand is between 80,000 and 85,000 litres.

Modified: 2026/08/24