The purpose of the study is to assess the economics of dairy farming in Bangladesh and the prospects for improving the dairy income for small-scale producers, which currently form the backbone of the dairy industry. The document begins with a general overview of milk production in the country, followed by a detailed study of dairy farming in the in the northern district of Sirajganj. The study applies a method of farm-level economic analysis developed by the International Farm Comparison Network (IFCN) which is based on the concept of 'typical farms'. Three farm types were identified as 'typical' in the district and were subjected to detailed analysis: A two cow farm with 0.4 ha of land, a ten cow farm with 1.6 ha of land and a 25 cow farm with 1.8 ha of land. Each farm is described in detail with assets, production costs, profits and other economic information presented both graphically and in the text. Preliminary estimates of the margins in the dairy chain are provided. The study concludes that milk production from bovines in Bangladesh is not competitive internationally and that under a liberal trade regime for dairy products dairy farmers in Bangladesh are unlikely to fully benefit from the vast increase in milk demand predicted to occur over the next ten years unless productivity is significantly improved.


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