Brahman cattle can ensure ‘protein for everyone’ and ‘wealth creation for farmers’
Beef can be made affordable without importing, says Dr FH Ansarey, managing director of ACI Agribusinesses in an interview with The Business Standard
Bangladesh's tremendous achievements in food production seem to be in question nowadays due to the sharp surge in protein prices, especially that of beef, as income disparity is not allowing enough consumption for the masses.
Establishing a modern agricultural value chain locally on a priority basis can solve the problem in a few years, instead of importing beef, said Dr FH Ansarey, managing director of ACI Agribusinesses.
"Instead of increasing import dependency for beef, we can learn how the other countries produce beef in a cost-effective way," he told TBS in a recent interview.
ACI Agribusinesses has been in a combined mission of "protein for everyone," and "wealth creation for farmers," he said, adding that both can be achieved nationally by introducing the Brahman cattle breed in the country.
"Our traditional cows and bulls take 11kg of feed to gain 1kg weight and they grow at a much slower rate. On the other hand, with a much faster growth rate, a Brahman cattle needs only 7kg feed to gain 1kg wait," he explained.
According to Dr Ansarey, a decade ago, a government initiative to introduce the commercially successful breed was approved, but Brahman cattle breeding has yet to be allowed into the country.
The farming revolution in Bangladesh over the past two decades, be it crops, dairy, poultry or aquaculture could have made Bangladesh a country of surplus unless it had a huge population of 17-18 crore, Ansarey believes.
Consumption of protein, which is most important for building the body, seems to be high if one looks at the overall national picture. But a deeper look into the income slabs suggests low-income families are consuming much less protein than they need for a healthy life.
"I believe Prime Minister Sheikh Hasina will take a bold step to allow breeding [Brahman cattle] for making beef affordable, as we are capable of replicating the poultry revolution."
Brahman is a calm, friendly breed that is resistant to some diseases and a rural woman can raise such a cow by keeping it in her living room at night, he said, adding "Bangladesh awaits a beef production revolution if the breed can be made popular among farmers."
In 2012-13, according to him, bird flu was devastating poultry farmers and a special permission by the prime minister allowed vaccination to save the sector, defying some debates then.
Weekly poultry population now has grown to 23 million — making chicken available for all families — from 4 million 11-12 years ago, he said.
The need for modern agriculture
A rural woman, FH Ansarey said, for instance, raises a traditional cow at home, feeding it the remainder of human meals and some grass or hay available for free nearby. That cow produces 2 litres of milk a day.
On the other hand, a modern farmer in the same village raises some seven to 20 healthy, superior breed cows with proper food and treatment and each cow gives 20-25-litres of milk per day.
"Of course you have to spend more to buy a calf of superior breed, quality food for its nutrition, medicine for its health. But the outcome is much higher for the modern farmer and more importantly, it helps increase national production in a cost-effective way," he added.
In Bangladesh, a farmer's cost per kg of beef from traditional cows surged to Tk650-700 now and farmers are surviving by not buying specialised cattle feed, instead depending on whatever free is available around.
"A widespread Brahman breed farming could drag down the cost of per kg beef to Tk450-500, even after all the costs for buying expensive calves, feeds, and medicines."
Food conversion ratio is what modern livestock farming counts on. It means how much feed is needed to grow cattle, poultry or aqua by 1kg in weight.
"FCR research is there, we communicate with the farmers alongside providing them with everything they need to thrive by feeding the nation in a cost effective way."
The need for a superior agricultural value chain
In agriculture, every stage needs superior inputs and scientific processes and ACI is the largest agricultural value chain partner in the country.
From seeds to feed, fertiliser, medicines and vaccines, to harvesting equipment or even for marketing of the produce — ACI as a conglomerate has built the deepest ties with farmers, be it for crops or livestock that include cattle, poultry, aqua, and some pet animals.
Replying to a question on why ACI leads the market in most of the segments, Dr Ansarey said a strong research for innovative product introduction, best quality at fair prices and continuous communication with the farmers for their awareness and knowledge development together have been the keys to their leadership in the market.
For instance, ACI Godrej Agrovet, a joint venture between ACI and India's Godrej, is the largest producer of cattle and fish feed in Bangladesh, while in the poultry feed market, it is in the top five to six.
Against the country's 11-12% annual growth for the last one decade ACI Godrej Agrovet's sales have been growing at 22% a year for the last five-six years, as farmers have been found the ACI feeds safer and better for their businesses.
"If a cow is fed our feed, FCR [feed conversion ratio] improves significantly by 20-50% and it produces six-seven litres of milk a day, up from five litres when it was being fed other feeds," FH Ansarey added. The story is similar for fish and poultry feed.
"We have two distinct strengths: strict quality standards and research on using alternative affordable raw materials," he said.
ACI Animal Genetics, a company that started only four years ago for cattle breed development through artificial insemination, has already emerged to be the third-largest in the country, following the government and Brac. This year it is expected to overtake Brac by providing higher value to the farmers.
"The semen collected from our Rajendrapur, Gazipur breeding station's healthy bulls has proved an enormous conception rate of more than 70%, which is around 50% for our competitors," he said adding that the company is going to build new bull stations for the fast-growing demand for healthy calves of a pure breed.
Now a six-month-old traditional calf is being sold at around Tk40,000 which is over Tk1.25 lakh for the pure breed ones being sold by farmers taken from ACI's artificial insemination services. The buyer of the calf also stays ahead in terms of productivity and profitability.
Sustainable business a must
Many farmers incur losses in business and that mostly happens when they lack awareness, technical knowhow and the best practices, observed Dr Ansarey.
For instance, a fruit plant, if grown with some jute sack on the surrounding soil, gets better moisture on hot dry days; its yield increases if compared to that of the similar plants without the sack surrounding where watering ends up to be less effective due to faster evaporation.
Or, if a farmer, overwhelmed by the benefit of cattle feeding, provides excessive rapid growing grass with nitrate, the cow might die due to poisoning.
"Farmers' need training about the right scientific practices at their work. They also need reliable and affordable products, equipment and services to maximise outcomes and grow financially."
As the farmers get their fair share of profitability, they prefer ACI products, Ansarey added. Thanks to the sheer base of loyal farming customers, ACI Godrej Agrovet registered a massive Tk2,800 crore turnover last year by growing more than one-fourth year on year.
The company served all relevant parties best, also generated a decent return for investors as they got Tk50-60 crore dividends annually for the last couple of years.
"Over 40% people are farming in Bangladesh and their wealth creation is crucial for the economy," FH Ansarey said, adding that a complete modern agriculture value chain would help realise the dream.
"Both the hardworking farmers and their partner companies like ours need financial sustainability to continue investments for further growth and improvement," he added.
Qualitative and quantitative losses during harvesting, processing, transportation, retailing, cooking and also during consumption — should be revisited for sustainability.