1. A
Global Country Study Report
On
“A STEEPLED Analysis of Dairy Industry of Bangladesh for Business Opportunities for
Gujarat/India”
Under the Guidance of :-
Prof. (Dr.) Mamta Bharmabhatt
(Associate Professor MBA-SJPI)
Prepared By:-
Student Of MBA Sem.-III
Group No: - 4
Submitted to :-
Institute Code-769
SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT & COMPUTER APPLICATIONS
Offered By :-
Gujarat Technological University-Ahmadabad

2. OVER VIEW OF BANGLADESH

3. Position of Bangladesh

4. Demographic profile
Population
Total Area
Growth Rate
Life Expectancy
Fertility rate
GDP per capita
GDP Growth Rate
HDI (2013)
Currency
Import
Export
154.7 million(2012)
147,570 km^2
1.59%
70.36 years
2.6 children born/woman
US $1,044
6.5%
0.515
Taka
$29.27 billion (2013)
$30.25 billion (2013)

5. Basic Information of
Bangladesh
• Emerged as independent and sovereign country
in 1971.
• Official Name : The People’s Republic of
Bangladesh.
• State language : Bangla, over 98% of the people
speak in Bangla, however, English is widely spoken.
• Nationality: Bangladeshi

6. Nature of government
 Bangladesh has a Unitary form of
government:
 President is the Head of the state .
 Prime Minister is the Head of the
Government.

7. National symbols
Bangladesh Anthem Amar Shonar Bangla
Animal Royal Bengal Tiger
Bird Oriental Magpie Robin
Fish Hilsa
Flower White Water Lily
Fruit Jackfruit
Sport Kabbadi
Calendar Bengali calendar

8. Goals for this discussion
■Provide an overview of project objectives/approach
■Review the expected evolution of the global dairy
industry and the implications for Bangladesh dairy
■Discuss strategic options for the Bangladesh
■ Recommendations for developing the appropriate
option

9. Why Dairy?..In Bangladesh
Gender Rationale
• Women’s current role and relative ability to
engage – low barriers to entry.
• Proximity to HH and relatively low labor
requirements .
• Potential to build on cultural legacy that
valued women’s engagement in dairy as an
economic activity – combating current
norms and trend toward male dominance as
dairy sector matures.
Economic Rationale
• Growing demand in urban markets for
fresh milk.
• Growing investment in infrastructure
and processing capacity across private
sector.
• poor households already involved in
dairy.
• Potential for doubling income for
impact groups.
Other Factors
* Nutritional value * Supportive enabling environment * Potential for Scale

11. Project Context
 Bangladesh has 3rd highest cattle population in Asia
 Demand for milk is much greater than supply, therefore the
opportunity does exist
 5 competing private sector processors. However with a population of
147 million, the competition pressure is not that strong either.
 All processors with short-term thinking and not seriously investing in
the sector to improve production
 All processors have chilling plants that are under-utilized
 Low transparency in milk buying process, particularly fat content
measurement Project Context
 Poor milk production Feed / fodder, Animal Breed and Animal Health
are the key reasons
 Informal milk collectors act as middlemen and aggregators
 Char households and frequent floods present an additional challenge

14. Main Factor At STEEPLED Analysis
Political
 Taxation policy
 Trade reg ulations
 Government stability
 Unemployment policy
 Goverrnment legislation
 Government policies
 Government stance on competition
 Relevant laws
 International relations
Social- Culturel
 Age distribution
 Education level
 Income level
 Population growth
 Life expectancies
Economic
 The general economic situation in the world
 International economic organizations
 Business cycles
 Inflation and exchanges rates
 Economic growth and changes in GNP and GDP
 Interest rates
 Tax rates
 Resources of money and credit, insecurity status
 The existence of labor force
 Energy existence and cost
 Unemployment levels
Technological
 Technological changes
 Innovations
 Speed of technonogical changes
 Research and development expenditures
 Improved communication and knowledge transfer

15. SOCIAL - CULTURAL FACTORS :
The macro social-cultural environment analysis will
identify trends in societies beliefs, behaviors, values
and norms. Such as the number of workers, attitudes
towards global warming, make up of the family
structure. Some of the social – cultural factors are as
follows :
 Age distribution
 Education level
 Income level
 Population growth
 Life expectancies
 Religion

16. TECHNOLOGICAL FACTORS :
The macro technological environment analysis will
identify changes in the application of technology. A
current example is a shift towards online transactions
and in some areas a shift away from online
transactions. There are some technological factors
that affect macro environment analysis are as follows
:
 Technological changes
 Innovations
 New or improved channels
 Speed of technonogical changes
 Research and development expenditures
 Improved communication and knowledge transfer
etc.

17. ECONOMIC FACTORS :
The macro economic environment analysis will identify trends such as
changes in personal disposable income, interest rates, inflation and
unemployment rates. Typically we encounter the economic factors are as
follows :
 The general economic situation in the world
 International economic organizations
 Business cycles
 Inflation and exchanges rates
 Economic growth and changes in GNP andGDP
 Interest rates
 Tax rates
 Resources of money and credit, insecurity status
 The existence of labor force
 Energy existence and cost
 Unemployment levels

18. ENVIRONMENTAL FACTORS
 Ecological
 Climate
 Natural resources
 Telecommunications
 Environmental regulations
 Values in the Society

19. POLITICAL FACTORS :
The macro environment analysis will identify changes in the
position politicians take on issues. A current example is a
shift towards greener policies in the developed world. Some
of political factors are as follows :
 Taxation policy
 Trade regulations
 Government stability
 Unemployment policy
 Goverrnment legislation
 Government policies
 Government stance on competition
 Relevant laws
 International relations

20. LEGAL ENVIRONMENT
 Current legislation in the home market
 Future legislation
 International legislation
 Regulatory bodies and processes
 Environmental regulations

21. Over View Of Dairy – West Bengal
 The Directorate of Dairy Development, Govt. West Bengal deals
with the collect of raw/chilled
 milk from the Co-operative Milk Unions in West Bengal, process
the milk in its dairy plants sells,
 pasteurize and homogenized milk and other milk products
through its own network of booth,
 Serves, agents and distributors. With the implementation of
Operation Flood Programmed in West
 Bengal in the mid-1970s, the extension, procurement and other
farmers related activities on dairy
 development have been taken by the Cooperative Sector i.e.
West Bengal Co-operative Milk
 Producers' Federation Ltd which establish in 1983 under
Government of West Bengal following
 a three-tie structure of Anand pattern of milk cooperatives..

23. Indian Dairy Industry
 World largest milk producing nation.
 contributes about 15 % to the total milk production
of the world
 Indian dairy industry stands at a size of US$ 70 billion.
 Gross output of 103 million tons of milk in 2009.
(Growing 5 % per annum)
 57 millions of cattle population and 39 millions of
buffaloes. (1997)
 More than 10 million dairy farmers belong to 96,000
local dairy cooperatives, who sell their products to one
of 170 milk producers’ cooperative unions who in turn
are supported by 15 state cooperative milk marketing
federations.

24.  Indian Dairy Industry has achieved this strength of a
producer-owned and professionally-managed
cooperative system, despite the facts that a majority
of dairy farmers are illiterate and run small,
marginal operations and for many farmers, selling
milk is their sole source of income.
 In India dairy industry has been practiced as a rural
cottage industry over the years. Semi commercial
dairy industry stated with establishment of military
dairy farmers and co-operative milk unions in 19th
century.
 The growth of Indian dairy Industry during last three
decades has been impressive, at more than 5% per
annum; and in late 1990-2001 the country has
emerged as the largest producer of milk.

25. Management Strategies
Management of Indian dairy industry is done by 2
different parties.
Private dairy management
Cooperative management –MACS, State

26. National Policies regard with
dairy industry
 India’s national policies with regards to economy,
Agriculture, rural development and dairy and milk
industry are the major secrets for their successfulness
in dairy industry.
 In India people who are involving with policy making
are well educated people and they have both
theoretical and practical knowledge about the dairy
industry.
 When making the policies regard with dairy industry
they have taken most suitable decisions before 2, 3
decades.
 These policies are clearly defined and they were
prepared as suitable for forecasted future needs.

27.  Therefore these policies do not change with time
to time when governments change.
 Basic thing is politicians could not change them
according to their political agendas.
 They have linkages among different policies such
as economy, Agriculture, rural development and
dairy and milk industry policies. Also they make
policies as cooperatively each other.
 Their policies are well focused on long term goals.
 They define most suitable strategies for
achievement of them.

28. POLICIES
•IDDP- Intensive Dairy Development Programme
 Development of milk cattle.
 Increase milk production by providing technical input services.
 Procurement, processing and marketing in cost effective manner.
 generate additional employment opportunities.
 To increase the social nutritional and economic status of residents of comparatively
more disadvantaged area.
•Assistance to co-operative scheme (ACPS)
Revive the sick dairy co-operatives.
•National Programme for cattle and buffalo breeding (NPCBB)
Genetic up gradation by organized breeding through Artificial Insemination or
natural service of a high quality bull.
•Dairy venture capital fund scheme: (DVCFS)
Aim to promote ventures in the dairy sector.
•National dairy plan: (NDP)
To increase the milk production to about 6 mt annually by 2021-22.

30. SWOT ANALYSIS OF Dairy: West
Bengal
 Strength
 There is a ―readymade‖ market for this product.
 Relatively low labor costs
 Ample available work force.
 Well-situated industrial estate with all major facilities available.
 Weakness
 The requirement of credit and/or delay of payments from customer side might
cause disturbance in the cash cycles.
 Very small base of available skilledmachinists.
 Lack of trained technicians and line / middle management.
 Uncertain investment climate

31. Opportunities
Manufacturers-cum-exporters are allowed to import samples of each
kind or quality having value up to US$ 100 at zero duty rates.
Threat
Skilled operators in the dairy are quite unorganized.
• Cost of doing business may increase as the energy, raw material
prices, wages and mark up rates may rise.

32. Strength Weakness
 Largest milk producer in the world.
 A huge base of around 11 million farmers
 Traditional emphasis on consumption
 Poor feeding practices.
 Poor access to institutional
credit
 Lack of cold storage facilities
Opportunity Threat
 Elastic demand; economic growth will spur
demand
 Increasing preference for branded dairy
products
 Growing focus on health and nutrients in
urban market
 Nearly 85 per cent of the Indian
dairy industry is unorganized
 Removal of import duty has led
to the threat of dumping
Swot Analysis
SWOT ANALYSIS – Dairy In India

33. As Bangladesh what we can learn
from India?
 We can find out several strategies of India which are also applicable to
Bangladesh.
 The basic strategy is we should have a clear policy for development of dairy
industry in Bangladesh. As Indians policies it should contain long term goal with
strong methodologies which cannot be change by time to time.
 Formulating of policy should be done with competent persons, not politicians.
 We should develop and save our indigenous cattle breeds. Even though they
give low yield it is easy to mange them with local conditions. In India cross breeds
represent only 10% of cattle population. Still we highly depend on European
context and they are not suitable to dry and intermediate zones of Bangladesh.
 Also we should pay more attention to develop buffalos raring in Bangladesh.
They can adopt easily to our climate. Also their tolerance is high. Indians get
more than 50 % of their milk production with buffaloes.
 As we think cooperative dairy associations are also Suitable to Bangladesh .We
can start them on village level under the guidance of National Livestock Board.
 There should be proper system to value adding for milk products and
marketing them. We can get the help of private sector on that case.

34. DAIRY – VALUE CHAIN
SOURCE- USDA

35. SUMMARY
Growth of Bangladesh in agro industries is because of its rich deltaic
fertile land that depends on its manifold harvests & six seasons also
on. The country's industrial base remains very positive. The service
sector has developed rapidly during last twenty years.
The legislative & regulatory actions to deal with financial
irregularities & poor governance of the financial sector are
developing over time to gather the increasing protection needs of
the consumers. The following measures may be considered as part of
on-going efforts to expand financial infrastructure & improve the
security & soundless of the financial sector.



38. References
 http://www.aavinmilk.com/dairyprofile.html
 http://www.fao.org/docrep/T3080T/t3080T0a
.htm
 http://www.ijtef.org/papers/92-F502.pdf
 http://www.technopak.com/resources/Food/
PPP%20in%20Indian%20Dairy%20Industry_
Technopak_CII_Background%20Paper_May0
8,2010%20pdf%20ver.pdf