A toast to milk

Bangladesh's milk production has witnessed remarkable success over the years and the market for various dairy products is also expanding rapidly, meeting a significant portion of the protein needs of the country. 

Alongside the creation of a large dairy market, the market for various dairy products such as ice cream, chocolates, biscuits, cheese, and paneer is also growing in tandem.

In the 1970s, Bangladesh's annual milk production was only 4.27 lakh tonnes. According to the Department of Livestock Services, milk production in Bangladesh was approximately 50.7 lakh tonnes in fiscal year 2012-13. In the following three fiscal years, it increased to over 72 lakh tonnes. However, in fiscal year 2016-17, production increased by 20 lakh tonnes in a single leap, reaching 92 lakh tonnes. Milk production in the most recent fiscal year 2022-23 was over 1.40 crore tonnes.

According to the World Health Organization (WHO) standards, a person needs to drink 250 millilitres of milk daily. The per capita daily milk production in Bangladesh is 221 millilitres, according to the latest data from the Department of Livestock Services.

The department's Director General Md Emdadul Haque Talukder told TBS that if this trend in milk production continues, the per capita milk demand will be met within two to three years.

There are now more than 20 lakh dairy farms in the country and 65,554 of them are registered with the government. Milk Vita, Aarong, Pran, Aftab, Bengal, Sadiq Agro, and Abdul Momen are the leading milk producers.

At present, about 89% of the total demand for milk is met from local sources, according to data from the Department of Livestock Services.

Stakeholders say milk production has risen in recent times due to the spread of information technology, employment generating scope for young people, and expatriates' investment in the sector.

Milk producers say the highest amount of milk is used in making sweetmeats all over the country now — a business that has exceeded Tk20,000 crore annually.  

Since 2007, milk processing has increased from 3.84 lakh litres to 7.5 lakh litres now, according to government data. At present, 2.58% of the total milk production is processed by companies.

In addition to sweets, other confectionery items like cheese, biscuits, chocolates, and ready-made dairy products also boast a significant market value.

Milk Vita collects 2.3 lakh litres of milk from farmers daily. Out of this, 1.3 lakh litres are used to produce powdered milk. Of the remaining 1 lakh litres, 60,000-70,000 litres are processed into pasteurised liquid milk. The remaining milk is used to produce a variety of products.

Milk Vita Chairman Sheikh Nadir Hossain told TBS the firm, which used to produce only three to four dairy products, now produces 22 products.

These include ice cream, chocolate bars, cakes, yoghurt, etc., he said. "We are having to focus on this due to the increasing demand for dairy products."

Bangladesh's sweetmeat industry has also been flourishing for the last several years. In recent years, the demand for sweets has surged, becoming an essential element of every celebration. Now, there are many branded sweet shops, such as Premium Sweets, Mithai, Rosh Sweets, Banaphul Sweets, Fulkoli Sweets, Bikrampur Mistanno Vandar, Vaggokul Mistanno Vandar, Well Food, etc. By focusing on branding, these brands are gradually overshadowing traditional sweet businesses.

In 2015, Pran Group opened around 40 sweet shops in Dhaka. Mithai, one of Pran's brands, makes various types of popular sweets in the country by its artisans.

Kamruzzaman Kamal, director (marketing) of Pran–RFL Group, said their sweet business has thrived due to their commitment to using the highest quality ingredients and maintaining the strictest hygiene standards.

"Everyone makes sweets with milk. But when it comes to consumers, they want to ensure the milk is safely sourced. So, when sweets are made by a corporate organisation, people feel confident to consume that," he said.

Other than sweets, curd also has a large market in the country. According to Bogura's traders, each year, they sell curd worth more than Tk1,000 crore.

Milk-based ice cream market is growing

In 2020, the ice cream market in Bangladesh was valued at Tk730 crore. In 2021, the ice cream market expanded by 93% compared to the previous year, reaching Tk1,410 crore.

If the current trend continues, the market for the industry could reach Tk2,600 crore by 2025. The investment amount could be around Tk4,000 crore.

Company officials say milk accounts for approximately 90% of the ingredients used in ice cream production.

There are numerous ice cream manufacturing companies, both large and small, throughout the country. Ice cream is being produced not only in major towns but also in rural and remote areas. Major ice cream manufacturing and marketing brands in the country include Igloo, Polar, Lovello, Kwality, Za 'n Zee, and Savoy. There are also several popular brands on a regional basis. For instance, Panda in Chittagong, Pipasa Ice Cream in Magura, and Milkki in Khulna, among others.

According to a survey by LankaBangla Group, there is an annual demand for ice cream in the country of 6 crore litres. Among these, Abdul Monem Limited's brand Igloo holds the top spot by producing 38% of the ice cream. Dhaka Ice Cream Industries' Polar is in second place with 28% of ice cream production. Lavello follows in third place, producing 15% of the total demand. Kwality is in fourth place with 9% of the market. The remaining 10% is supplied by other companies, including Za 'n Zee and Savoy.

Ice cream parlours springing up

Ice cream parlours are popping up in various areas of the capital for ice cream lovers. Along with ice cream, there are various types of drinks including coffee and juice.

A parlour of the world-renowned brand New Zealand Natural has been established in Dhaka's Banani.Ice cream from the renowned Swiss brand Mövenpick is now available at several parlours in Dhaka's Dhanmondi and Gulshan.

Club Gelato, another parlour, is located in the capital's Banani, Gulshan, and Dhanmondi.

A parlour named Me Amore, meaning "My Love", sells ice cream from various international brands at Gulshan and Dhanmondi. In addition, several ice cream parlours, including Anderson Ice Cream, Club Lavello, and Café and Creamery have sprung up in the city.

In addition to ice cream, the market for dairy-based chocolates in Bangladesh has reached approximately Tk500 crore, cheese spreads around Tk40 crore, and cheese around Tk17 crore, according to industry insiders.

Mohammad Anisur Rahman, director of Aarong Dairy, a corporate milk producer in the country, believes that the increase in milk production has led to an increase in dairy products. Aarong itself produces 20 types of dairy products, he added.