City Bank's New Initiative to Boost Dairy Financing in Bangladesh
City Bank PLC, in partnership with Milk Vita and Agroshift, has embarked on a significant initiative to improve financial access for dairy and cattle farmers in Bangladesh. The three entities signed a tripartite memorandum of understanding (MoU) to establish a 'Digital Dairy Financing Initiative.' This program is designed to leverage technology to integrate more farmers into the formal banking sector.
Milk Vita, as Bangladesh's largest dairy cooperative, provides access to a network of over 3,300 cooperative societies, 61 chilling centers, and more than 300,000 dairy farmers across 57 districts. Agroshift contributes as the technology partner, facilitating digital onboarding, eKYC, and operational monitoring through a digitized platform.
City Bank will implement financing solutions tailored to the specific needs of dairy and cattle farmers. This initiative is intended to create productive investments and enhance financial inclusion, thereby supporting broader goals of rural development and economic growth in Bangladesh.
The signing ceremony took place at City Bank Centre in Gulshan, Dhaka, attended by notable figures such as SM Ameer Hamza Shatil, chairman of Milk Vita, and Mashrur Arefin, managing director and CEO of City Bank.
The partnership addresses a critical issue in Bangladesh’s dairy sector: limited access to formal financing despite the sector's significant economic contribution. Bangladesh's dairy sector includes about 1.2 million farms, directly and indirectly supporting nearly 9.4 million people. The sector contributes approximately 2.73% to the national GDP and 17.15% to the agricultural GDP.
In 2024, Bangladesh produced around 10.79 million tonnes of milk, ranking fifth in Asia and 19th globally. 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.
The collaboration between City Bank, Milk Vita, and Agroshift is seen as a transformative model for agricultural financing, with the potential to unlock sustainable growth opportunities across the dairy value chain.
