Agriculture still dominates the bangladesh economy

Agriculture still dominates the Bangladesh economy

CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION Agriculture still dominates the Bangladesh economy. Eighty percent of the 140.0 million inhabitants of Bangladesh depend on agriculture. The area of this country is 1, 47,570 sq. km. As developing country poverty, unemployment and malnutrition are the major problems of Bangladesh. Forty four percent of this country's populations live below the absolute

poverty line and the number of landless poor people has been increasing by 3.7 percent per annum (BBS, 2004). According to the government estimation, the total number of educated but unemployed people in the country is about 2.2 million. So the importance of agriculture in Bangladesh can never be overemphasized.

Livestock is one of the most important sub-sectors of agriculture in Bangladesh. The rural people have been keeping indigenous domestic animals and chicken for centuries under semi-natural conditions mainly for their domestic consumption with very little commercial motives. At present, a large number of livestock and poultry farms have been established on commercial basis in and around the cities and towns and are operating under intensive management.

1.2 BACKROUND OF THE STUDY 1.2.1 Contribution of Livestock as Food The foods of animal origins are richer than the foods of plant origin. Food of animal origins provides higher proteins, vitamins and minerals than that of food of plant origin. Meat is the most important food of animal origin. It includes beef, goat meat, poultry meat, etc. Among these poultry meat is the most desirable source of animal protein and highly accepted by most of the people of Bangladesh. Poultry meat can efficiently and rapidly fill in the shortage of body requirement. The context of different nutrients in chicken meat and other animals is presented in the table 1.1

Table 1.1 Nutrient contents of chicken meat and other animal (per 100 gm.)

Nutrients Water {gm) Food energy (K.cal.)

Protein (gm) Ash (gm) Fat (gm) Saturated Fatty acid (gm) Unsaturated fatty acid (gm) Cholesterol (mg)

Chicken meat 73.30 117.00 23.40 1. 00 1.90 60.00

Beef 66.60 197.00 20.20 0.90 12.30 4.70 5.75 70.00

Egg 74.60 158.00 12.10 11.90 11.90 3.30 6.63 550.00

Milk 87.70 64.00 3.30 0.70 3.60 2.05 1.25 11.00

Chicken meat contains large amount of high quality and easily digestible vitamins and minerals. Vitamins and mineral content of chicken meat and other products are shown in table 1.2 Table 1.2: Vitamin and mineral content of chicken meat and other products (per 100 gm. Of edible portion) Nutrients

Chicken meat

Beef

good Egg

grade Calcium (mg) 11.00 10.00 Phosphorus (mg) 265.00 152.00 Iron (mg) 1.03 2.50 Sodium (mg) 64.00 63.00 Potassium (mg) 41.00 333.00 Magnesium (mg) 19.00 18,00 Vitamin-A(IU) 60.00 60.00 Thiamin (mg) 0.04 0.07 Riboflavin (mg) 0.10 0.15 Niacin (mg) 11.60 4.00 Vitamin-C (mg) 1.2.2 Contribution of Livestock Other Than Food

54.00 205.00 2.30 122.00 129.00 11.00 118.00 0.11 0.31 0.31 -

Milk 118.00 93.00 Traces 50.00 144.00 13,00 140.00 0.03 0.17 0.10 1.00

Livestock resources necessarily encompass animal health care and welfare, quality production factors, and effective rearing to keep pace with expansion of entrepreneurship related to concerned industries. It plays an important role in the agricultural production sphere. Statistics show that about 6.5% of national GDP is covered by the livestock sector, and its annual rate of productivity is 9%. About 20% of the populations of Bangladesh earn their livelihood through work associated with raising cattle and poultry. Draught power for

tilling the land, the use of cow dung as manure and fuel, and animal power for transportation make up about 15% of the GDP. Hides and skins are other non-edible valuable animal products. The production of hides and skins in Bangladesh is quite high. The domestic use of hides and skins, for leather production is low in the country. About 81% of the total production is exported in the form of 'wet blue' leather and leather products. There are several hundred tanning and finishing industries in the country. Several thousand people are engaged full time in this industry. Notable leather-made commodities are shoes, suitcase, bags, tents; etc. Cow dung is an important source of natural manure and fuel. About 80 million m tons of cow dung is produced annually. Cow dung is also used to produce biogas.

Moreover the bones, horns, and hooves from ruminants have great economic value.

1.2.3 History of Livestock Rearing in Bangladesh The indigenous breed of cattle is common in Bangladesh. In pre-independent India, Lord Linlithgow brought some Hariana cattle for the improvement of the indigenous cattle. After the partition of India in 1947 several breeds of cattle such as Sindhi, Shahiwal, Tharparkar, etc were brought to this region. In 1958 the artificial insemination programme started to improve local breeds. From 1969 to 1982, German specialists worked in the Savar Dairy Farm to evolve suitable breeds for draught and milk purposes. In 1974 the Australian Government donated milch cows and breeding bulls of the Holstein-Friesian variety to Bangladesh. In addition, frozen semen of Bos taurus was imported from Germany, America, France, Australia, and Japan for use and improvement of local cattle. In joint collaboration with JICA (Japan International Cooperation Agency) embryo transplants were successfully conducted by the scientists of both countries. Despite these efforts to improve the cattle wealth of the country, the success was not very encouraging.

Many commercial poultry breeds have successfully been established in recent years in Bangladesh and are being profitably utilized by different entrepreneurs. Because of the extension programmes undertaken by the government and poultry entrepreneurs, the numbers of poultry farms in the country are increasing steadily. During 1997-98 total duck farms in the public and private sectors, there are a few military farms, which cater partially to the needs of armed forces personnel.

The Government of Bangladesh has given top priority to livestock development in recent

years to meet the growing demand for milk, meat and egg production, and to create employment and generate income for the rural poor. To effectively organize the functional aspects of the activities of the government, technical personnel are educated and trained in various academic institutions like the BAU and the Veterinary College. The BLRI located at Savar, Dhaka, also conducts research activities for the development and improvement of the livestock sector.

1.2.4 Livestock and Bangladesh Krishi Bank Livestock is sub sector of agricultural sector. Specialized bank, Bangladesh Krishi Bank and Nationalized Commercial Banks provide credit in the agricultural sector. But the Bangladesh Krishi Bank is the major provider of the agricultural credit. BKB is also the major provider livestock credit as the livestock is the sub sector of the agricultural sector.

BKB provides loan for Bullock, Milch Cow, Goatery, Beef fattening and other draft animals. In Poultry farming BKB Provides loan for Poultry broiler farm, Poultry layer farm, Poultry (broiler/layer) hatchery and Poultry farm related/dependent project. In Dairy farming BKB provides loan for Milk production, Milk collection, milk processing (ghee, butter, and pasteurized milk etc production) and marketing.

1.3 OBJECTIVES OT THE STUDY The proposed project will aim at the following objectives: 1. To familiarize with the prospect of livestock for investment by banks in Bangladesh.

2. To know the policy and its implications by government in the livestock sector of Bangladesh.

3. To find out the investment details in the livestock sector by Bangladesh Krishi Bank.

1.4 METHODOLOGY This research is basically descriptive in nature. Keeping the back ground, rationale and objectives in mind, related available information have been collected for thorough analysis from Bangladesh Agricultural University (BAU), Department of Livestock Services (DLS), Ministry of Fisheries and Livestock, Bureau of Statistics, Economic review of Bangladesh and also from other relevant sources such as various books, publications & compilations.

The research has done on the basis of secondary data which are applied in the research project.

The loan disbursement data in the livestock sector was collected from Bangladesh Krishi Bank.

Collected data have been furnished in Microsoft Excel and then analyzed for trend, forecast, and relevant graphs by using Ms- Excel software.

Finally, Interpretation of results and recommendation and conclusion has been done.

1.5 RATIONALE OF THE STUDY Bangladesh is a densely populated country. Malnutrition and hunger are serious problems in this country. Fifty percent of the newborn are low birth weight and more than 90 percent of the children (aged <5 years) suffer from mild to severe forms of malnutrition. Egg, meat and milk, the three important protein foods originate from the poultry and livestock sector. On an average every person should consume at least 100 eggs, 43.5 kg. Of meat and 90 liter of milk per annum to prevent malnutrition. Therefore, it is essentially needed to increase the production of poultry and livestock products.

Livestock and Poultry farming has a great potential for providing additional income to male and female of rural and urban areas through creation of employment opportunities. Broiler, however, has a shorter life cycle and its production requires less capital compared to other meat-producing animals. Since the majority of the people irrespective of caste or religion prefer chicken, its demand is very high. As a result, the price of those products has gone up.

Having received the signal of higher price and demand in home market, recently a tendency to establish small-scale commercial farm is observed among some people both in rural and urban areas. Poultry is no more a backyard farming now. It is shaping up as an industry. So an efficient production system is required for supporting commercial broiler farming in the country.

Although is difficult to set up commercial dairy, sheep and goat farm for want of capital, inadequate lands for producing fodder, technological problems and so on, but it is very much essential to develop their farming to meet up the demand of milk and meat.. The merits of poultry rearing are noted below: I. People are accustomed to raise a small number of cattle, buffalo, sheep, sheep and

poultry in their houses.

II. Sheep, goat and poultry rising is one of the best ways for earning within the shortest possible time.

III. Unemployed young men, women and widows can look after those very easily.

IV. Livestock farming can be started with small capital.

V. Indigenous animals and poultry can be adaptable very easily in all climatic conditions.

VI. Small area of land is required for raising chicken. Hence it would be one of the profitable businesses as for small farmers and landless laborers.

VII. All by products such as bone meal, wheat and rice bran can be efficiently be used by raising poultry.

Livestock is a part of subsistence agriculture farming system in Bangladesh and an important component of farming system and plays a significant role in rural economy.

Commercial livestock and poultry farming create various job opportunities for unemployed people through the establishment of agro-based industries. With this backdrop, the present study is an attempt to find out the existing picture of livestock and poultry production in Bangladesh. This research will focus on justifying the soundness of the investment by Bangladesh Krishi Bank in the livestock sector of Bangladesh.

1.6 SCOPE AND LIMITATIONS 1.6.1 Scope More than eighty percent of the 140.0 million population of Bangladesh depend on agriculture. The economy of Bangladesh is mainly based on Agriculture. Livestock

and poultry play an important role in the agricultural economy. In order to enhance livestock and poultry production in Bangladesh, supply of livestock and agriculture credit through different credit institutions have increased substantially in recent years. Bangladesh Krishi Bank is the largest amount of credit provider in this area. With the Bangladesh Krishi Bank, Nationalized Commercial Banks (NCBs) and Bangladesh Rural Development Board (BRDB) have provided loan in this area. Most recently Private Commercial Banks are also thinking and starting to provide loan in this area. On the other hand livestock sector is growing sector in Bangladesh. Livestock and Poultry rearing is now limited only to the

small-scale farming. Many agro-based industries are growing up by livestock and poultry for the production of milk, meat, egg etc. So the scope of study in this area is increasing day by day.

1.6.2Limitations Here most of the analysis has been done on the basis of secondary data. As livestock credit in Bangladesh provided by Bangladesh Krishi Bank, Nationalized Commercial Banks (NCBs) and Bangladesh Rural Development Board, their traditional record keeping is tough to collect secondary data. Time and resource are other constraints for which extensive study can not be carried out. Despite having al these limitations have tried my best to make a clear view of the facts with the available information. .

CHAPTER 2 LITERATURE REVIEW Agriculture is a broad sector of Bangladesh and many studies related agricultural development of Bangladesh by the enforcement of financial institutions has been found. But the livestock is a specific growing sector of Bangladesh and Bangladesh Krishi Bank is a specialized bank which contributed in this sector from long time. Many studies of agricultural development of Bangladesh and Bangladesh Krishi Bank are also found. But I am not yet found any study of livestock development by Bangladesh Krishi Bank. As I am a graduate of B.Sc. (A.H) Hon’s, Faculty of Animal Husbandry, Bangladesh Agricultural University and present student of MBA (Evening) Program, Department of Banking, Dhaka University, I think that I can study in this area.

I have been found related study of mine which was by W.M.H. JAIM and M.L. RAHMAN “DISBURSEMENT AND RECOVERY OF AGRICULTURAL CREDIT–A MACRO LEVEL ANALYSIS.” The article was published in 1983 in the Bank Parikrama, a quarterly publication of BIBM, Dhaka. Their study area was whole agriculture of Bangladesh and contributing financial institutions such as BKB, NCBs, BRDB and BSBL. That time they showed their study how credit was disbursed by banks in the agriculture of banks, recovery and factors responsible for failure of recovery.

For the development of livestock in the rural area many NGOs are working in Bangladesh. I have been also found a study â&#x20AC;&#x153;LIVESTOCK DEVELOPMENT THROUGH NGOs IN BANGLADESH: A STUDY OD BRAC.â&#x20AC;? BRAC works for this purpose under its Rural Development Program (RDP) by a branch network of 330 area offices and 300 sub-area offices. It is supporting in livestock development program by giving micro-credit in poultry rearing, sheep and goat rearing and cow rearing. They also established a bull station for the purpose of development of animal breeds by giving artificial insemination.

In study tried to show the contributions of livestock in Bangladesh and how Bangladesh krishi Bank contributes for the development of livestock in Bangladesh. This is a microlevel analysis. Regarding this I found that the disbursement of loan in livestock sector by Bangladesh Krishi Bank is increasing every year but the recovery of loan is poor. For this reason amount of outstanding and overdue of loan is increasing day by day.

CHAPTER 3 CONCEPTUAL ANALYSIS AND COMPANY INFORMATION 3.1 DIFFERENT TERMS REGARDING LIVESTOCK AND CONCEPTUAL FRAMEWORK OF LIVESTOCK 3.1.1 Different Terms Regarding Livestock Livestock: Animals that are especially kept on a firm for economic benefits. In Bangladesh these are generally Poultry, Cattle, Buffalo, Goat and Sheep.

Poultry: Domesticated birds which are rendered by the people for the purpose of getting economic benefit from them.

Cow: Adult female cattle which has calved at least one calf or after calving, or when more than thirty months old, a female dairy animal is known as a cow.

Beef: Meat of adult cattle is called beef.

Veal: Meat of calf from birth to three months of age.

Herd: A group of large animal is called herd.

Flock: A group of small animal is called flock.

Feed: It is the materials which after ingestion by the animals, capable of being digested,

absorbed and utilized.

Artificial Insemination (A.I.): The technique of placing semen from the male in the reproductive tract of female by means other than natural service is called Artificial Insemination.

Lactation Period: Length of time of cow producing milk is called lactation period. The period of continuous milk production time of cow from calving to dry is the lactation period.

Genes: The basic unit of heredity that occur in pairs and have their effect in pairs in the individuals, but which is transmitted singly (one or the other gene at random of each pair) from each parent to offspring.

Chromosome: Chromosomes are long DNA molecules on which genes (the basic genetic codes) are located.

Breeds: Either a sub specific group of domestic livestock with definable and indefinable external characteristics that enable it to be separated by visual appraisal from other similarly defined groups within the same species or a group for which geographical and/or cultural separation from phenotypically similar groups has led to acceptance of its separate identity.

3.1.2 Distribution and Production of Livestock in Bangladesh According to the last statistics of Livestock and Poultry population for the year 1993-94, the number was 3 crore 52 lac and 12 crore 28 lac respectively. In 2006-07 the population of Livestock and Poultry raised to 4 crore 75 lac and 24 crore 60 lac respectively.

Table 3.1 Livestock & Poultry population in Bangladesh Number (in million) Livestock/ 1993Poultry 94 Cattle 21.88 Buffalo 0.68 Goat 12.45 Sheep 1.51 Total 35.52 Livestock Chicken 97.04

200001 22.39 0.92 16.27 2.11 40.69

01-02

02-03

03-04

04-05

05-06

22.46 0.97 16.96 2.20 41.59

22.58 1.01 17.69 2.29 42.52

22.60 1.06 18.41 2.38 43.45

22.67 1.11 19.16 2.47 44.41

22.80 1.16 19.94 2.57 46.47

142.6 152.2 8 4 Duck 25.76 33.83 34.67 Total 122.8 176.5 186.9 Poultry 0 1 1 The density of Livestock and Poultry

06-07 March/07 22.87 1.21 20.75 2.68 47.51

162.4 172.6 183.4 194.8 206.89 4 3 5 2 35.54 36.40 37.28 38.17 39.08 197.9 209.0 220.7 232.9 245.97 8 3 3 9 population per unit of land is high in Bangladesh,

compared to other countries of the world. From the year 1998-99, the production of milk, meat (beef, mutton and chicken) and egg were increasing on a regular basis with a lower increasing rate which has reached to a higher rate in the year 2005-06. Table -3 shows the production of livestock products for the last 9 years in our country.

Table 3.2 Production of Milk, Meat & Egg. Product Milk Meat Eggs

Production Unit 9394 Million 1.39 Ton Million 0.49 Ton Million 240 Ton 4

9899 1.66

9900 1.70

2000- 0101 02 1.74 1.78

0203 1.82

0304 1.99

0405 2.14

0506 2.27

06-07 March/07 1.635

0.66

0.70

0.75

0.78

0.83

0.91

1.06

1.13

0.7675

351 2

379 3

4097

442 4

477 7

478 0

562 3

542 2

3813

In order to continue the previous success it has taken initiative to strengthen the dairy sector.

Taka ten crore has already been distributed to 15 thousand registered private dairy farms as incentive. In addition to that, training program has been organized to reduce the feeds and forage scarcity through Animal Nutrition & Technology Transfer Project The per capita consumption of milk, meat and egg has been increased significantly due to augmented production. During the year 2000-01, the per capita availability of milk, meat and eggs were 36 ml/day, 15 g/day and 31 number/year respectively, which has been increased to 45 ml/day, 22 g/ day and 39-number/ year in 2005-2006.

3.1.3 Economic Contribution of Livestock The economy of Bangladesh is mainly based on Agriculture. Livestock plays a crucial role in the agricultural economy. About 36 percent of the total animal protein comes from the livestock products in our every day life. It also helps to earn foreign exchange by exporting hides & skins every year. In addition to mechanical cultivation still being cultivating by bovine animal. Countries 25 percent peoples are directly engaged in livestock sector, and 50 percent peoples are partly associated in livestock production. Last year, the contribution of livestock sub-sector to the GDP was 2.95 percent, which was estimated about 17.32 percent GDP to agriculture. Last year, the growth of livestock in GDP was 7.23 percent.

Table 3.3 Contribution of Livestock & Poultry on National Economy Growth of Livestock in National Economy

7.23%

Contribution of livestock sector in National Economy Role of livestiock in Agricultural production Cultivation of Land Self Employment Production of Livestiock Products (crore) Foreign exchange earning (only from hides & skins) 2003-04 Rural Transport Production of Organic Fertilizer Fuel Supply

2.95% 17.32% 75% 25% 15000 (Approx) 4.31% 50% 80 m.m.t 25%

Source: DLS 3.2 DESCRIPTION OF BANGLADESH KRISHI BANK 3.2.1 Overview of the Bank Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President's Order No 27 of 1973). BKB is Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh.

The primary objective of BKB is to provide credit facilities to the farmers for the development of agriculture and entrepreneurs engaged in development of agro-based and cottage industries.

The Bank is guided in accordance with the policies and principles of the Government of the Peoples Republic of Bangladesh. BKB has an authorized capital of Tk. 10,000 Million (Taka Ten thousand Million) only and paid up capital of Tk. 5000 Million (Taka Four thousand Million) only which is fully paid by the government. The Bank started commercial functioning since 1977 to generate more loanable fund from the idle rural and urban savings and invest them for the betterment of our economy.

In the Head Office the Bank has 4 Divisions headed by General Managers and 28 Departments including Local Principal Office and Training Institute headed by Deputy General Managers. The existing strength of Bank's manpower is 9526 against the approved strength of 11968 as on 31 March, 2008.

The Bank has a Board of Directors comprising of 11 members. The Board is headed by a Chairman. The Directors represent both public and private sectors and are appointed by the government. The Managing Director is the Chief Executive of the Bank. He is appointed by

the government.

The Bank has two posts of Deputy Managing Directors and are appointed by the Government.

The Bank has 12 posts of General Manager. They are also appointed by the Government.

In the Head Office there are 4 Divisions each headed by a General Manager? The divisions are: •

Administration Division

•

Planning & Operation Division

•

Accounts Division and

•

Loan Recovery Division

Under the control and supervision of the above four divisions 28 departments are working in the head office headed by Deputy General Managers.

3.2.2 Organogram of Bangladesh Krishi Bank

3.2.3 Branches The Bank operates its function through its 951 branches (except Rajshahi Division) of which 821 are rural and 130 are urban. It has 15 foreign exchange (Authorized dealer) branches. In the field level the Bank has 8 Divisional, 21 Chief Regional and 30 Regional offices for close supervision of the branch activities. For smooth operation, s a part of internal control and compliance system, the bank has also 56 field level audit offices of which 5 at Divisional and 51 at Regional levels.

CHAPTER 4 PROSPECT OF LIVESTOCK AND GOVERNMENT POLICY 4.1 PROSPECT OF LIVESTOCK IN BANGLADESH 4.1.1 Environment The environment of Bangladesh is suitable for livestock rearing. Because, the temperature of Bangladesh is not neither so hot nor so cold. Although we have no parent stock of poultry and we have no high yielding breeds and variety of cattle, sheep and goat variety but the exotic parent stock, breeds and variety give a good production.

4.1.2 Land For the farming the poultry, cattle, sheep and goat 65-70% cost are incurred for their feeding. Our land is suitable for the production of feed. We have many char land which could be use for purpose of feed production and grazing animals.

4.1.3 Labor Bangladesh is densely populated country in the world. Many people are seeking work to livelihood. We can easily engage them in agro-based industries.

4.1.4 Availability of Breeds The breeds of livestock and poultry available in Bangladesh are as follows: Cattle: (i) local breed of cattle- non-descript indigenous type, Red Chittagong Goyal, Pabna Cow; (ii) Exotic: Hariana, Sindhi, Shahiwal, Jersey, and Holstien-Friesian; (iii) Hybrid: Bos

indicus×Bos taurus. Buffalo: (i) River type, (ii) Swamp type, (iii) River Swamp type. Goat: (i) Black Bengal, (ii) Jamuna Pari, (iii) Crossbred- Black Bengal×Jamuna Pari. Sheep: nondescript indigenous type. Poultry: (i) non-descript indigenous type - Asseel, Chittagong Fowl, and Naked Neck; (ii) Exotic: White Leghorn, Rhode Island Red, Fayomi, Australop, several commercial broiler and layer breeds; (iii) Crossbreed: Indigenous×Exotic. Duck: (i) Local: non-descript indigenous type, Sylhet Mete, Nageswari, Moscovy, Goose; (ii) Exotic: Khaki Cambell, Indian Runner, Jinding, Cherry Valley; (iii) Crossbreed: Indigenous×Exotic.

Pig: non-descript indigenous type. We can use them for the production of livestock.

4.1.5 Demand of Livestock Products Livestock products such as milk, meat, egg are great source of protein. Animal protein is much richer than plant protein. The people of Bangladesh suffer from malnutrition. Because the present production level of livestock and poultry can not meet the demand of our needs.

So livestock products are very demandable in our country.

4.1.6 Utilization of Livestock By-products Livestock by-products are utilized for various purposes. Meat meal, bone meal etc. nonedible by-products are used for poultry and fish meal production. Cowdung is an important source of natural manure and fuel. About 80 million m tons of cowdung is produced annually. Cowdung is also used to produce biogas.

4.1.7 Marketing Facility There is a good marketing environment in Bangladesh for marketing of livestock products and by-products.

4.1.8 Exporting Hides and skins are other non-edible valuable animal products. The production of hides and skins in Bangladesh is quite high. The domestic use of hides and skins, for leather production is low in the country. About 81% of the total production is exported in the form of 'wet blue' leather and leather products. By processing different livestock products we can also earn foreign currency.

4.1.8 Profitability Livestock business is profitable business in Bangladesh. Most of the livestock based agro industries are in the rural area where production cost of is less and their profitability is high.

4.2 GOVERNMENT POLICY NATIONAL LIVESTOCK DEVELOPMENT POLICY

4.2.1 Introduction Livestock plays an important role in the national economy of Bangladesh with a direct contribution of around 3 % percent to the agricultural GDP and providing 15 percent of total employment in the economy. The livestock subsector that includes poultry offers important employment and livelihood opportunities particularly for the rural poor, including the functionally landless, many of whom regard livestock as a main livelihood option. About 75 percent people rely on livestock to some extent for their livelihood, which clearly indicates that the poverty reduction potential of the livestock subsector is high. According to Bangladesh Economic Review, (2006), the growth rate in GDP in 2004-05 for livestock was the highest of any sub-sector at 7.23%, compared to 0.15% for crops, and 3.65% for fisheries sub-sector. These changes have been prompted by a rapid growth in demand for livestock products due to increase in income, rising population, and urban growth.

It is an established fact that high quality animal protein in the form of milk, meat and eggs is extremely important for the proper physical and mental growth of human being. In Bangladesh, around 8% of total protein for human consumption comes from livestock. Hides and skin of cattle, buffaloes, goats and sheep are valuable export items, ranked third in earnings after RMG and shrimp. Surprisingly, Bangladesh has one of the highest cattle densities: 145 large ruminants/km

2

compared with 90 for India, 30 for Ethiopia, and 20 for

Brazil. But most of them trace their origin to a poor genetic base. The average weight of local cattle ranges from 125 to 150 kg for cows and from 200 to 250 kg for bulls that falls 25-35% short of the average weight of allpurpose cattle in India. Milk yields are extremely low: 200-250 litre during a 10-month lactation period in contrast to 800 litre for Pakistan, 500 litre

for India, and 700 litre for all Asia. Despite highest cattle densities in Bangladesh, the current production of milk, meat and eggs are inadequate to meet the current requirement and the deficits are 85.9, 77.4 and 73.1% respectively. If 5% GDP growth rate is considered then the current production of these commodities need to be increase 2.5 to 3.0 times by the year 2020 to feed the growing population in the country. This illustrates how urgent is the need to increase the production of milk, meat and eggs. The PRSP stresses the importance of the livestock sub-sector in sustaining the acceleration of poverty reduction in the country. The dynamic potential of this emerging subsector thus requires critical policy attention.

In the past, due importance was not given to the development of the livestock sub-sector despite its significant contribution to the national economy. In the Financial Year 2006-07 the livestock sub-sector received only about 1.0 percent of the total budget allocation, or only about 3.5 percent of the agricultural sector budget. Though production of animal protein has maintained an upward trend, per capita availability of animal protein presently stands at around 21 gm meat/day, 43 ml milk/day and 41 eggs/year vis-Ă -vis the recommended intakes of 120 gm meat/day, 250 ml milk/day and 104 eggs/year. Shortage of quality inputs, inadequate services and physical infrastructure, institutional weaknesses in terms of weak regulatory framework and enforcement, limited skilled manpower and resources, and inadequate research and technological advancement are all continuing to act as constraints to livestock development.

The growth opportunities in the livestock sub-sector vary significantly among the species.

Qualitative rather than quantitative development of large ruminants (cattle and buffalo), a parallel increase of the productivity and population size of the small ruminants (goat and sheep), and poultry keeping emerges as promising to offer substantial growth potentials with a positive impact on nutrition, employment and poverty alleviation. Research and technological development merit priority to counteract allied problems in the fields of feed, breed and disease and meet the challenge of the countryâ&#x20AC;&#x2122;s livestock sector in the 21st century

.

National Livestock Development Policy has been prepared to address the key challenges and opportunity for a comprehensive sustainable development of the Livestock sub-sector through creating an enabling policy framework.

4.2.2 Objectives of the National Livestock Development Policy The general objective of the National Livestock Development Policy: To provide the enabling environment, opening up opportunities, and reducing risks and vulnerability for harnessing the full potential of livestock sub-sector to accelerate economic growth for reduction of rural poverty in which the private sector will remain the main actor, while the public sector will play facilitating and supportive role.

The specific objectives of the National Livestock Development Policy: 1. To promote sustainable improvements in productivity of milk, meat and egg production including processing and value addition; 2. To promote sustained improvements in income, nutrition, and employment for the landless, small and marginal farmers; and 3. To facilitate increased private sector participation and investments in livestock production, livestock services, market development and export of livestock products and by-products.

4.2.3 Legal Status of the National Livestock Development Policy All the government and autonomous organizations, multi-national institutions, NGOs, CBOs and persons who are working within the geographical territory of Bangladesh for the management, development and conservation of Livestock resources, import-export or other business related to the livestock sub-sector will be under the perview of National livestock Development Policy.

4.2.4 Scope of the National Livestock Development Policy The following ten critical areas have been identified for formulating the National livestock Development policy: i. Dairy Development and Meat Production: ii. Poultry Development; iii. Veterinary Services and Animal Health; iv. Feeds and Fodder Management;

v. Breeds Development; vi. Hides and Skins; vii. Marketing of Livestock Products; viii. International Trade Management ix. Access to Credit and Insurance; and x. Institutional Development for Research and Extension The key policy issues for each of these critical areas are outlined in the following section: 4.2.4.1 Dairy Development and Meat Production Dairy Development The opportunity for development of large-scale dairy is limited in Bangladesh due to scarcity of land. However, the potential for development of smallholder dairy is high. Over the last few years, small-scale dairy farming has increased significantly with the support of credit, feed, veterinary services and provision of self-insurance systems.

Small-scale dairy farming provides employment for the poorer segments of the population. The availability of this form of traditional selfemployment to rural dwellers, particularly women, is important where there is scarcity of alternative income generating opportunities.

Smallholder dairy thus widens the scope for the poor with limited access to land to enhance their income. Dairy animals can play a crucial role in household food security, through improved income and nutrition of the low-income groups.

Daily farming in Bangladesh is affected by myriads of constraints such as: (i) limited knowledge and technical skills of smallholder dairy farmers; (ii) scarcity of feeds and fodder; (iii) poor quality of feeds; (iv) frequent occurrence of diseases; (v) limited coverage of veterinary services including poor diagnostic facilities; (vi) lack of credit support; (vii) limited milk collection and processing facilities and low prices at collection points; (viii) lack of insurance coverage; (ix) absence of market information; (x) lack of appropriate breeds; and (xi) absence of a regulatory body.

Policy framework for dairy development is: 1. Cooperative dairy development (Milk Vita model) would be expanded in potential areas of the country; 2. Successful pro-poor models for community-based smallholder dairy development including appropriate contact farming schemes would be replicated; 3. Smallholder dairy farming, integrated with crop and fish culture would be

promoted; 4. Supply chain based production, processing and marketing of milk and milk products would be promoted; 5. A National Dairy Development Board would be established as a regulatory body to promote dairy development; 6. â&#x20AC;&#x153;National Dairy Research Instituteâ&#x20AC;? would be established to carry out research in various aspects of dairying.

Meat Production Around 3.5 million cattle are slaughtered annually in the country of which 40 percent are imported through cross-border trade. Around 15 million goats are slaughtered annually mostly of local origin. Of the total slaughter of cattle and goats, around 40 percent is performed during Eid-ul-Azha.

Increased demand for quality meat, beef production has become an important income generating activity for small fanners, and a potentially important tool for reducing poverty.

Beef production is considered to have high income generating potential, but faces constraints such as lack of appropriate breeds, knowledge gaps of farmers, lack of proper veterinary services and quality feeds.

Most meat is handled under unsatisfactory sanitary conditions in both rural and urban areas.

Enforcement of legislation relating to slaughtering or meat inspection is weak. There is generally poor pre-slaughter conditions, sanitation, removal of waste materials, and disposal of offal.

The Black Bengal goat is a highly prolific native breed that can be easily raised on low quality feed and with little investments. Rearing of Black Bengal goat is an appropriate option for many subsistence farmers. Its demand is growing in both domestic meat markets and internationally for its skins and high quality leather goods.

Policy framework for meat production: 1. Animal Slaughter Act and Animal Feed Act would be approved and enforced in order to promote hygienic production of quality meat; 2. Butchers would be trained on scientific methods of slaughtering, meat processing and preservation techniques; 3. Development of beef breeds for increased productivity at farm level; 4. Development of backward and forward linkage system to help improvement of

existing cattle fattening system into private enterprises; 5. Private sector would be encouraged to establish mechanized slaughter houses with Static Flaying Frame around big cities; and Local Government would be encouraged to establish slaughter slabs in municipality and Upazila headquarters; 6. Production of Black Bengal Goats would be promoted by ensuring disease prevention, availability of quality bucks and semen for artificial insemination, and knowledge transfer through special projects; 7. Buffalo and sheep farming would be developed in selected high potential areas through special projects.

4.2.4.2 Poultry Development The backyard poultry units require minimum inputs and are often part of integrated cropaquaculture-livestock farming systems. Their level of production is relatively low but profitability can be high due to low inputs costs and recycling of on-farm by-products.

Commercial production systems use birds of improved genetic stock and reared under semiintensive or intensive management. There are currently estimated around 100,000 commercial poultry farms in Bangladesh, supported by 08 Grand Parent Farms and 130 Parent Stock Farms.

While the growth of the poultry industry has contributed to economic growth and income of commercial farmers, indiscriminate and unplanned growth of breeder farms and commercial poultry farms, particularly in and around cities and towns is creating environmental hazards.

There are at present no guidelines for environmental protection and bio-security when establishing poultry farms. The use of antibiotics in feeds is thought to be common and a cause of public health concern.

The constraints facing the sector in general include: (i) lack of infrastructure beyond the Upazila Head Quarters for providing services to poultry farmers; (ii) shortage of skilled manpower; (iii) shortage of quality chicks and breeding materials; (iv) shortage of poultry , feed/feed ingredients and high prices; (v) poor quality of inputs; (vi) lack of quality control facilities for medicine, vaccines and biological products, feed and feed ingredients, chicks, eggs and birds; (vii) drug and vaccine residues in poultry meat; (viii) shortage of vaccines; (ix) lack of organized marketing systems; (x) poor provision of veterinary services; and (xi) insufficient credit and capital especially for the poor. The possible threat of Avian Influenza exacerbates some of these concerns and shortcomings and would require additional measures to be taken.

Policy framework or Poultry Development:

1. Successful pro-poor models would be replicated for semi-scavenging poultry development; 2. Formation of poultry smallholder groups, CBOs, and producers associations would be facilitated; 3. Quality control of poultry feeds and feed ingredients would be ensured through establishment of a legal body and enforcement of regulations; 4. Production and consumption of safe meat, milk and eggs would be ensured; 5. Organic meat, milk and eggs production would be promoted; 6. Criteria and guidelines would be established to ensure supply of quality day-old chicks; 7. Specific guidelines would be developed and enforced for establishing environment-friendly commercial poultry farms. Small commercial farms would be converted into profit oriented large farms following cooperative system; 8. Poultry farms of the DLS would be utilized as breeding and multiplication farms / centres for smallholder training, technology testing and demonstration etc; 9. Smallholder production and marketing of ducks and minor poultry species (e.g.

Quail, Goose, Pigeon, Guinea fowl) in selected areas would be promoted; 10. Government has already declared BLRI as National Reference Laboratory for detection of Avian Influenza virus and other emerging diseases . It would be strengthened at International standard; 11. National Avian Flu Preparedness Plan would be implemented; 12. All Commercial Poultry farms will be registered with DLS; 13. Bio safety protocol developed by the

should be followed by the concern

stakeholders.

4.2.4.3 Veterinary Services and Animal Health Inadequate veterinary services are one of the major obstacles for livestock development in Bangladesh. The ratio of Veterinary Surgeons to farm animals and birds was estimated at I: 1.7 million and only 15-20 percent of farm animals receive routine vaccination. Private sector investment in the animal health sector remains low and is expanding gradully.

The quality and quantity of vaccines produced and delivered by the DLS are inadequate. The use of subsidies in vaccine production in present form is a possible deterrent to private investors. There is no independent authority to check the quality of domestically produced or imported vaccines. Vaccination is done in a haphazard manner without any strategic plan for controlling the targeted diseases. There are no provisions for movement control and quarantine during disease outbreak or epidemics.

No registration is required for feed additives such as toxins binder, antibiotics, and vitaminmineral premixes, animal protein, many of which are potentially detrimental to human health. Most of the drugs traders and shop keepers have no formal training on drug handling, transportation, storing and dispensing, and readily sell drugs such as antibiotics, hormones, and sedatives across the counter without prescription.

Disease diagnostic facilities are limited. The DVH, Regional FDIL, and the CDIL of DLS are responsible for providing diagnostic services. However, due to shortage of skilled manpower and non-availability of funds they cannot provide the intended services. There is no provision for residue analysis of drugs, heavy metals, hormones, pesticides and toxins in foods of animal origin. There are only few local veterinarians trained in clinical pathology to diagnose diseases properly.

The disease surveillance system is almost non-existent. 'The Veterinary Public Health Unit in the DLS has the mandate to perform diagnosis, surveillance and control of zoonotic diseases, ensure food safety of animal origin, and liaison with the Health Department. The Unit is however, suffering from serious shortages of human capital, funding and laboratory facilities. It has no legal framework to implement its mandate. Coordination between animal and human health bodies is virtually non-existent.

Veterinary research is similarly constrained due to shortages of staff and funds. Very limited fund is available for veterinary research. There are important areas of public goods services like veterinary epidemiology, veterinary public health, food safety and diagnostic techniques within which research needs to be expanded urgently.

The Animal Quarantine Act enacted (Act no-VI of 2005) by the Parliament, but quarantine stations, manpower and funds to enforce the Act are not in place yet. Laws and Regulations are essential for high quality service delivery and quality assurance of products for trade.

Some laws and regulations are in place but overall regulatory framework and implementation remain very weak.

Policy framework for Veterinary Services and Animal Health:

1. Soft loans would be provided to accelerate the development of private veterinary services; 2. Community-based veterinary service would be developed through special projects; 3. Mobile veterinary services will be provided by DLS; 4. An autonomous Quality Control Agency would be established to ensure quality of veterinary drugs, vaccines, feeds, feed ingredients and breeding tools and materials; 5. A licensing system for veterinary pharmacists and a quality monitoring system of veterinary services would be introduced; 6. Veterinary research would be strengthened in critical areas, particularly those related to provision of public goods and services; 7. Veterinary public health services would be strengthened and closer linkages with the Department of Health would be established; 8. Capacities of disease investigation network of DLS would be strengthened for disease surveillance, quarantine services and emergency planning to manage major disease outbreaks including Avian Influenza and other emerging diseases; 9. Specific strategy would be developed for controlling economically important trans-boundary animal diseases; 10. Veterinary Council would be strengthened to help ensure quality veterinary services; 11. “National Livestock Health Disaster Committee” would be formed including all trade organizations to combat crises related to animal and human health; 12. A separate “Veterinary Cell” would be established in Department of Drug Administration for facilitating decision making on veterinary drug registration and approval in Bangladesh. Animal Health Companies Association and related trade association would be included in the committee to represent the private sector.

13. Promote and encourage private sector to set-up compliant veterinary diagnostic center, clinics and hospitals to cater the needs of the farmers and other beneficiaries.

4.2.4.4 Feeds and Fodder Management The acute shortage of feeds and fodder is one of the single most important obstacles to livestock development in Bangladesh. The main constraints for feeds and feed management include: (i) shortage of feeds and fodder; (ii) scarcity of land for fodder production; (iii) seasonal fluctuations in supply of feeds and fodder; (iv) low quality feed; (v) high feed prices; and (vi) poor husbandry practices.

Feed resources for large livestock are primarily derived from crop residues and cereal by- products as well as grasses, tree leaves and aquatic plants. Very little grain is available for animals. Feed concentrates contribute only a small portion of the feed. Feed resources for scavenging rural poultry comprise scattered grains from threshing floors, left over grains, pulses, broken rice, kitchen wastes, green grasses, insects, worms, left over boiled rice, etc. Because of increasing demand for human food land is intensively used for cereal production.

Neither sufficient grazing land, nor spare land is available for growing fodder. This has resulted in shortages of quality forage for ruminant livestock, causing stunted growth, reproduction problems, reduced lactation, working inability, lower growth rates, and reduced productivity.

Most of the dairy and poultry farmers are facing the problem of adulterated and inferior quality of commercial feeds and feed ingredients. Feed labeling and control is inadequate. Most feed millers do not disclose the necessary information on the packaging with regards to feed composition, ingredients, date of manufacturing, date of expiry, storage guidelines, energy levels, and protein and vitamin contents. Feed millers are widely suspected of minimizing feed production costs either by use of inferior quality ingredients and/or inclusion of lower proportions of high value ingredients. Poor packaging materials contribute to reduced quality and shelf life.

Policy framework for Feeds and Animal Management:

1. Feed and fodder development strategy would be developed for community- based fodder cultivation along roads and highways, rivers and embankments, in Khas lands, and in combinations with crops; 2. Necessary support would be provided to the private sector for utilization and promotion of crop residues, agro-industrial by-products and unconventional feed resources as animal feed; 3. An Animal Feed Act would be approved and implemented to ensure feed quality; and 4. Resources would be provided for training of dairy farmers on improved animal management and husbandry practices.

5. Market driven industries should be developed on feed, feed additive, forage seed and

forages; 6. Human resource should be developed for feed and fodder production.

4.24.5 Breeds Development Livestock development through the application of science-led methods of breeds and breeding in Bangladesh is still at a rudimentary stage. There is, however, enthusiasm for applying breeds and breeding interventions to enhance livestock performance. Lack of a national breeding policy, use of inappropriate breeds, weak infrastructure (human capacity, national service delivery, breeding farms), and limited technical knowledge has constrained the development of improved breeds.

Available high yielding seed materials (in cattle and chicken industry) are mostly exotic and imported. However, not all of these imported exotic species adapt well under Bangladesh climatic conditions.

There are a number of promising well-adapted native livestock breeds in the country (e.g.

Red Chittagong cattle, Black Bengal goat, Bengal sheep, Naked Neck chicken etc), which could be developed into high yielding breeds through cross breeding in a systematic manner.

Importation of inappropriate genetic material coupled with indiscriminate crossbreeding and a clear neglect of indigenous breeds has created a situation, where a number of native breeds of livestock are under threat of extinction.

Unplanned and sporadic attempts that were made for breed improvement of various species failed, because the initiatives were not based on thorough breed/ genotype testing results and not based on well-thought out and sound breeding goals, breeding criteria, animal recording systems, animal evaluation procedures, and animal selection and mating plans. Breeds and breeding program inherently requires heavy initial investments and regular and timely flow of resources. Sustained funding support for breeding work has not been forthcoming.

As a result, the limited expertise available in this field remains underutilized.

There is no regulatory body or National Breeding Act to regulate breed imports, prices of breeding materials, merits and quality of breeds, breeding materials and breeding services.

Within the existing cattle breeding services (including artificial insemination), farmers have little or no idea of the merit and quality of the semen being provided for insemination. The same is true for other species such as goats and buffaloes, and applies also to imported germplasm (live animals, semen, embryos, etc).

Policy framework for Breeds Development:

1. Conservation and utilization program of potential indigenous breeds for subsistence farming would be developed; 2. A comprehensive human resource development program in animal breeding would be developed; 3. Frozen semen production unit would be established/extended for wide scale artificial insemination of Cattle, Buffalo and Goats to face the challenges of service shortage of proven buck throughout the country; 4. â&#x20AC;&#x2DC;Breeders Associationâ&#x20AC;&#x2122; would be established for monitoring and coordination of livestock breeding activities in the country.

Breeds and Breeding:

Policy Recommendations Rapid improvement in animal productivity for food security and livelihood leading to poverty reduction is needed in Bangladesh. The need for planning to intensify livestock productivity is a crying need of the time. In order to maximize overall profitability, the herd/ flock must have appropriate combination of genetically high potential breeds along with good health care, feeding and management system. Appropriate breeding program is an important part of livestock development strategy. Breeding strategy usually aims at maximizing production per animal / bird. Conventional animal breeding techniques are based on quantitative genetics, essentially a statistical science and this approach has been very successful in temperate part of the globe. However, pre-requisites for breeds and breeding program are (a) accurate recording, (b) large herds / flocks or cooperation between small herds / flocks, (c) efficient artificial insemination and breeding organizations, and (d) a well-trained extension service. Very few developing countries including Bangladesh can afford to have such an infrastructure for animal breeding program. But one can always proceed in gradual fashion with priority needs.

It is essential to understand that implementation of a breeding program is a joint function of all pre-requisites mentioned above. The scientific rationale of designing a livestock breeding

program encompasses: i) Identification of production and marketing system ii) Defining economic merit i.e. breeding objective iii) Evaluation of available breeding stocks & crosses for economic merit (to choose the best stocks) iv) Choice of appropriate breeding tools (pure breeding and crossbreeding) v) Application of breeding tools: a) Development of animal recording system (pedigree & performance) b) Estimation of genetic parameters for at least target traits c) Development of genetic evaluation system (breeding value estimation) d) Application of rigorous selection on the basis of higher EBV e) Designing mating plan (semen distribution strategy) f) Sound AI program (quality of semen and actual AI) g) Continuation of steps a to f generation after generation vi) Development of testing and selection systems for further improvement vii) Dissemination of improved stock to the industry or whole country viii) System for production of superior breeding males including better samples arising in the industrial layers of the livestock population.

Breeding policy for increasing Milk, Meat and Egg Production The main aim of livestock development programme in Bangladesh should be to assist farmers to produce and sustain livestock of high economic potential. As mentioned before only a small proportion of cattle and poultry industry are under commercial operation, the rest of the livestock breeds / types are predominantly indigenous and are under traditional subsistence mixed farming systems. The future efforts should, therefore, be focused on the in situ development and conservation of potential breeds / types. Taking account the human population growth rate, socio-economic trend of the country and land available for agricultural operation of the country in future, the following cattle, buffalo, goat, sheep and duck & poultry breeding program is being recommended.

General consideration

To achieve the immediate and long-term goal, the implementation strategy should be partitioned into 3 action plans only for cattle and buffalo as follows: •

Short-term activities (up to 5 years) for immediate effect on the existing production system

•

Medium-term activities (6-10 years) for evaluating and intensifying the programme undertaken during the short-term period

•

Long-term activities (11 years and beyond) for final evaluation and continuing the intensification process for sustainable development of the livestock industry

The total population (cattle and buffalo) should be categorized into 3 groups depending upon the management system: •

High level of input in which animals are confined full time in stall fed condition

•

Medium level of input in which animals are confined partially in stall and are allowed for partial supplementary feed.

•

Low level of input in which animals are maintained traditionally on crop residues and grazing with minimum supplement.

The following tools and techniques should be implemented:

•

The breeding policy will be based on proper animal identification system

•

Animal recording systems approved by ICAR should be implemented and the semen of proven bulls/ pedigree bulls should be used.

•

Attempts should be taken to produce bulls that are tested for growth, semen and are free from vertically transmissible infectious and hereditary diseases, and have quality and quantity semen, and finally have desired milk yield capacity.

•

All stakeholders (GO, NGOs and private entrepreneurs) should follow this policy

1. Cattle A. Short term policy (Up to 5 years) 1A (i) For cows reared under intensive system i.e. high level of inputs supply and zero grazing Target/Goal: To produce dairy cattle that will yield more than 6000 kg milk per lactation (305 days lactation period) at the end of 5 years.

Policy: •

Inseminate the top most cross bred Holstein-Friesian cows (daily yield 10 kg or more) reared under intensive management system with imported semen of progeny tested bulls of Holstein- Friesian cattle having milk yield capacity of 9,500 – 10,000 kg in 305 days lactation period. 1 million doses of such semen should be imported by DLS and inseminated maintaining proper records. Private sector should be encouraged to import such semen.

Action to be taken •

The farmers should be selected from 10% top farmers depending on the production performance of the registered farms of DLS, who wish to maintain animal identification and recording system, be trained on modern techniques and intensive management of dairy farming including recycling of farm wastages and environmentally friendly farming.

•

The herd size of the farm should be 5 breedable cows or more.

1A (ii) For cows reared under semi intensive system i.e. medium level of inputs supply and minimum grazing Target/Goal: To produce dairy cattle that will yield more than 3000 kg milk per lactation (305 days lactation period) at the end of 5 years.

Policy: •

Inseminate cross bred Holstein- Friesian cows (yielding 6-10 kg milk a day) reared under semi intensive management system with semen of progeny tested 50 % Holstein- Friesian bulls (50% Holstein-Friesian X 50% Local) having milk yield capacity of about 4,500 kg in 305 days lactation period.

•

The sahiwal or sahiwal cross bred cows should be inseminated with semen of Sahiwal bulls having at least 2,500 kg or more milk production potential per lactation.

Action to be taken •

The farmers should be selected from the registered farms of DLS, BMPCUL, CLDDP and NGOs who maintain animal identification and recording system,

wish to be trained on modern techniques and management of dairy farming and interested to practice recycling of farm wastages.

1A (iii) For cows reared under low input production system Target/Goal: To produce native dairy cattle that will yield more than 1000 kg milk per lactation (305 days lactation period) at the end of 5 years.

Policy: •

Inseminate native cows reared under low input production system with semen of progeny tested/ pedigree bulls of Sahiwal, Pabna cattle, RCC, Munshigong, other improved deshi cattle.

Action to be taken •

The farmers should be selected from the registered farms of DLS, BMPCUL, CLDDP and NGOs who maintain animal identification and recording system, wish to be trained on modern techniques and management of dairy farming and interested to practice recycling of farm wastages.

1A (iv) Special breed test program for Jersey imported by BMPCUL (Milk Vita) •

The performance of Jersey should be tested by BLRI and BAU at Baghabari and in another operational area OF BMPCUL. If found suitable, this breed should be introduced under semi-intensive system.

1A (v) Special conservation and improvement program for RCC, Pabna cattle and local variety •

The existing conservation and improvement program on RCC run by BAU, BLRI and DLS should be continued.

•

Another conservation and improvement program on Pabna cattle should be undertaken immediately by BLRI, DLS, BMPCUL and BAU.

•

All local variety should be preserved.

B. Medium term policy (6 -10 years)

1B (i) For cows reared under high level of inputs supply and zero grazing Target/Goal: To produce dairy cattle that will yield more than 4500 kg milk per lactation (305 days lactation period) at the end of 10 years.

Policy: •

Inseminate the top most cross bred Holstein-Friesian cows reared under intensive management system with imported semen of progeny tested bull of HolsteinFriesian cattle having milk yield capacity of 9,500 – 10,000 kg in 305 days lactation period.

•

The herd size of the farm should be 10 breedable cows or more.

1B (ii) For cows reared under medium inputs production system Target/Goal: To produce dairy cattle that will yield more than 15 kg milk daily in 305 days lactation period (4,500 kg per lactation) at the end of 10 years.

Policy: •

Inseminate cross bred Holstein- Friesian cows (yielding 6-10 kg milk a day) reared under semi intensive management system with semen of progeny tested 50 % Holstein- Friesian bulls (50% Holstein-Friesian X 50% Local) having milk yield capacity of 6,000 kg in 305 days lactation period.

•

The sahiwal or sahiwal cross bred cows should be inseminated with semen of Sahiwal bulls having at least 2,500 kg or more milk production potential per lactation.

1B (iii) For cows reared under low inputs production system Target/Goal: To produce native dairy cattle that will yield more than 1500 kg milk per lactation (305 days lactation period) at the end of 10 years.

Policy: •

Inseminate the native cows reared under semi intensive management system with semen of progeny tested Pabna cattle, RCC and improved deshi bull etc.

1B (iv) Special breeding program for Jersey imported by BMPCUL (Milk Vita)

•

A decision will be taken from the field trail (to be carried out by BLRI and BAU) whether jersey breed will be used for breeding purpose in Bangladesh as 4

th

breeding line.

1B (v) Special conservation and improvement program for RCC, Pabna cattle and local variety •

The conservation and improvement program on RCC run by BAU, BLRI and DLS should be continued.

•

Another conservation and improvement program on Pabna cattle should be continued.

•

All local variety should be preserved.

C. Long term policy (10 years and beyond) A national seminar involving all concerned institutes will be organized to review the results of implementation of short and medium term breeding policy. Decision will be taken accordingly.

2. Buffalo for more Milk 2(i) For buffaloes reared under intensive system i.e. high level of inputs supply and zero grazing •

Continuous up gradation of dairy buffaloes in the plain land with imported semen of Murrah, Nili-Ravi or Mediterranean Breed having milk yield production potentiality of 3,000 kg per lactation.

2(ii) For buffaloes reared under semi- intensive system i.e. medium level of inputs system •

Use and fixed 50% gene of Murrah or Nili-Ravi 50% genes of native buffaloes.

Practice of inter se mating.

2(iii) For buffaloes reared under low input production system •

Fix and use 50% gene of Murrah or Nili-Ravi Breed and 50% genes of native buffaloes. Practice inter se mating.

2(iv) For swamp buffaloes of greater Sylhet and Chittagong districts •

Special conservation program should be undertaken to conserve the swamp buffaloes of greater Sylhet and Chittagong districts through establishment of farms in respective regions.

3. Cattle for more meat(i) Use dual purpose crossbred males (Friesian x Deshi) in the high input production system (ii) Use up-graded Brahman x Deshi (50 % - 50 %) germplasm under research trial (iii) Procure small doses of high merit Brahman semen from beef rich countries (iv) Use only improved Deshi males (Red Chittagong, Pabna and typical indigenous) in the subsistence low input production system Suggested Breeding Policy for other species of Livestocks: 1. Goat for more meat (i) Use high merit purebred Black Bengal buck or semen all over the country (ii) Ensure steady production of consistently superior pure Black Bengal buck or semen by government or other stakeholders 2. Sheep for more meat – (i) Use and fix up crossbred (Lohi/Romney Marsh x Deshi (50% X 50%) in the sheep pocket areas of the country (ii) Ensure steady production of consistently superior Lohi/Romney Marsh Deshi ram or semen by government or other stakeholders 3. Chicken for more egg (i) Use of specialized germ lines for high input production system (ii) Initiate programme for in–country strain development using exotic and Deshi

chicken genetic resources (e.g. improved Deshi) 4. Chicken for more meat (i) Use of specialized germ lines for high input production system (ii) Initiate programme for in窶田ountry strain development using exotic and Deshi chicken genetic resources (e.g. Naked Neck, Aseel, improved Deshi) 5. Duck for more egg(i) Use of specialized germ lines for high input production system (ii) Initiate programme for in窶田ountry strain development using exotic and Deshi duck genetic resources (e.g. Khaki Campbell and Deshi) 6. Duck for more meat(i) Use of specialized germ lines for high input production system (ii) Initiate programme for in窶田ountry strain development using exotic and Deshi duck genetic resources (e.g. Khaki Campbell and Deshi) D. Plan of action in supporting breeding policy Tools and techniques The following steps should be adopted and implemented in order to achieve desired results: 1. The mechanism for implementation of aforesaid breeding policy be developed and monitored by an independent National Breeding Task Force to be formed by MOFL. 2. A technical regulatory committee be formed to certify the breeding establishment, stud animals, release of breeding materials for use in public and private sectors.

3. To implement this policy necessary funds and development projects should be provided by the government with most priority basis.

4. The existing dairy herd in Central Cattle Breeding & Dairy Farm, Savar, Dhaka and herds in other Govt. dairy farms should be reformed to match with this policy.

5. A suitable animal identification system should be developed and applied for all farmers.

6. ICAR approved animal recording system should be implemented in all registered

herds.

7. All the bulls under breeding programme should be screened for transmissible infectious (FMD, Brucellosis, Trichochomonasis, Tuberculosis, BVD, MD) and hereditary (Translocation, Bovine leukemia) diseases.

8. Mass castration program should be in operation to inactivate the unused weaned male calves.

9. Advanced animal biotechnologies in the field of livestock breeding and reproduction particularly in the focal areas of embryo transfer, genetic engineering, production and use of sexed semen should be encouraged and implemented both at public and private sectors.

10 national gene banks for the conservation of genetic materials of local breeds / types of livestock species may be established. The national herd replacement system is introduced.

11. A defined roadmap of central and local semen distribution ensuring quantity and quality should be streamlined to match with the Policy.

12 The culled cows and bulls must be slaughtered to avoid negative effect on production.

13. Modern herd health and fertility management system should be implemented.

14. Modern feeding system should be introduced.

15.A special human resource development programme be developed for creating a pool of graduate with in-country M.S. and Ph.D. programmes in different areas of animal genetics, animal breeding, and animal reproduction to provide technical support to the breeding programs.

16. Export of cattle feeds should be banned.

E. Special Program for characterization of all livestock species a. There should be a data base center under BLRI in cooperation of DLS and BAU to document the characteristics of all livestock species. b. Concern scientists from DLS, BLRI and BAU should come together to form a scientific team for such compilation.

4.2.4.6 Hides and Skins Leather including crust as well as finished leather and leather goods is an important export earner contributing about 6 to 7 percent of total export earnings. A large proportion of leather materials are however downgraded and rejected due to poor quality. Leather defects

are reported to be responsible for a more than 50 percent cut in the value of leather. Cattle and goats are the major skin and hide producing species followed by buffalo and sheep.

Most slaughtering takes place with inadequate facilities for electricity, water, and sewerage. There are an estimated 192 improvised slaughter houses at district level, 1215 at Upazila level and more than 3,000 slaughtering points in hats and bazaars as well as by road sides of cities and towns. Hides are in most cases removed by unskilled persons using inappropriate tools, giving rise to irregular shapes and flay cuts. Defects in goat and sheep skins have been significantly reduced in recent years with the introduction of hang and pull systems of flaying. Besides hides and skins, the slaughtering of animals generates potentially valuable by- products including blood, bones, hoofs, rumen and visceral contents, hairs, etc. Only a part of certain by-products, generated mainly in organized slaughter houses, are collected and processed by cottage level factories. Most of these by-products are discarded and thrown away, resulting in large economic losses and environmental pollution. Tannery operations are further impacting negatively on the environment.

Financing is a major problem, particularly the primary market intermediaries like farias and beparis suffer due to lack of adequate working capital and inadequate access to finance. The shortage of capital reduces the purchasing capacity of intermediaries and consequently, a large quantity of hides and skins are pilfered in the neighboring country, especially during Eid-ul-Azha. Ful1hennore, prices drop during Eid-ul-Azha, when large quantities of hides and skins are produced. The low prices in turn provide little incentive for proper flaying, handling and preservation.

Policy framework for Hides and Skins:

1. Butchers and merchants (Farias, Beparis and Aratdars) would be trained on basic knowledge of flaying, curing and storing for improved management and quality of hides and skins; 2. An autonomous agency would be established for quality control and certification of hides and skins; 3. Environmental legislation on slaughter and tannery operations would be framed and enforced; 4. Private sector would be encouraged to establish small to medium scale industries to utilize slaughter and tannery by-products for producing high quality feed supplement for animal feeds; and 5. Access to micro-finance and banking facilities would be improved for intermediaries.

4.2.4.7 Marketing of Livestock Products Milk: There is no systematic marketing network and market information system for milk and milk products to support smallholder dairy farmers in the rural areas. Farmers sell milk either in the local market or to goal as (traditional milk collectors) who continue to render

useful services to the rural community, and sometimes work as supplying agents to private firms.

Commercial marketing of milk started in the late 1970s by Milk Vita. Milk Vita has established milk-processing plants in various places and collects milk from its cooperatives members. BRAC, Pran and CLDDP have also recently installed milk processing, and a small number of other private farms are dealing with pasteurized milk. These enterprises however, only cover a part of the country.

Most small-scale dairy farmers in rural areas sell their milk in local markets at around a third to half of the price at which milk is sold in the cities. Low prices and price fluctuations are found to be important constraints to increased production and higher income of milk producers. Milk production costs are largely determined by feed prices (wheat and rice bran), which are increasing, in some cases rapidly.

Meat: There is a high demand for meat in the local markets. In the past, the beef price was relatively low due the ready supply of cattle from neighboring country. The supply has recently been restricted and as a result meat prices have increased sharply. Constraints to long-term development of the beef industry include lack of improved breeds, low meat quality, and limited access to credit and insurance amongst smallholders.

Eggs: The egg marketing system can be characterized as oligopolistic, under control of the Aratdars who extend credit to the poultry farmers who in turn are obliged to sell through the Aratdars for loan repayment. The price of eggs in large city markets is usually not known to the rural poultry farmers The time and distance from collection to marketing is often long with traditional means of transportation. Spoilage and broken eggs are common Policy framework for Marketing of Livestock Products:

1. Farmers groups and cooperatives formation would be encouraged and supported for collective marketing of livestock products by community based organizations and associations; 2. Organized marketing system should be established. c. Access to micro-finance and insurance schemes would be introduced / improved with emphasis on smallholder and women entrepreneurs;

d. Farmer's information network for price data and processing of trade related information would be established with private sector support; e. An Internet-based communication system would be established alongside regular broadcasting of trade related information and monitoring and forecasting of prices of livestock products; f. Management Information Systems (MIS) would be established in the DLS on livestock product marketing; g. Government if required will intervene the market to ensure minimum price of egg and meat for farmers; h. Private sector would be encouraged to be involved in milk, meat and egg processing and other value added product manufacturing industries.

4.2.4.8 International Trade Management In order to derive the full benefits of globalization and trade liberalization, Bangladesh must further develop its export products to satisfy product standard requirements of importing countries and obtain up-to-date information from different markets.

Bangladesh is signatory of the WTO (World Trade Organization) Agreement on Agriculture (AOA). The AOA provides a framework for the long-term reforms of agriculture trade and domestic policies to move forwards market orientation in agricultural trade. The obligations and disciplines incorporated in the AOA relate to four aspects, viz, i) agreement on market access; ii) agreement on domestic support; iii) agreement on export competition/subsidy; and iv) agreement on SPS (sanitary and phytosanitary) measures.

Bangladesh is not fully able to meet the recommended safety and quality standards for livestock products consistent with the SPS guidelines as regulated by the World Organization for Animal Health (OIE) and the Codex Alimentations Commission. The main problem stem from: (i) inadequate veterinary services; (ii) lack of skilled human resources; (iii) lack of diagnostic facilities; (iv) lack of financial support; (v) lack of disease surveillance and monitoring of animal health; (vi) lack of updated food legislation; and (vii) need for an improved national food export inspection and certification program.

Incidences of TADs, such as foot and mouth disease, are preventing Bangladesh from entering potential markets for livestock products. As the problem of Tads is being addressed

on a larger scale, regional initiatives are becoming important and Bangladesh will seek the opportunity to enter into regional agreements to control Tads. This will necessitate significant changes in the veterinary service system, particularly within diagnostic services and veterinary public health.

Most export-oriented enterprises are small and medium size, with limited capacity to undertake market research, invest in technologies, and collect, store, and process trade information. Other important challenges relate to meeting labour and environmental standards, improving design and packaging, and accessing and using up-to-date information on consumer preferences and trends in global markets. Many enterprises have neither the in-house capacity to gather the necessary trade-related information nor the networks to access such information.

Policy framework for International Trade Management:

1. Focal points would be set up in the DLS and the MoFL to deal with the international and regional trade agreements and ensure implementation of notifications and obligations; 2. Training would be provided to the officials in the DLS, MoFL and livestock related industries to enable them to fully appreciate and deal effectively with international and regional trade agreements; 3. Requirements of trade related technical assistance for the DLS, MoFL and private exporters would be assessed and required assistance would be provided; 4. The capacity of DLS would be developed through institutional reform to address SPS and HACCP requirements; 5. An Internet-based communication system would be established to facilitate international market networking for livestock products; 6. MIS (Management Information Systems) would be established in the DLS and MoFL for international trade management of livestock products; and 7. Private sector participation would be ensured in all activities of international trade management.

4.2.4.9 Access to Credit and Insurance Credit The effective coverage of micro credit programs in Bangladesh was around II million households in 2002 of which around 80% were below poverty line. It is estimated that less than a fifth of the total micro credit disbursed by NGOs till June 2001, was given to the livestock sub-sector mostly to poor women in rural areas.

Financing of agricultural and other rural economic activities have not in the past attracted adequate interest of

banks and institutional lenders. As recently as 2003 livestock attracted less than 5% of the total credit disbursed in the agricultural sector by state-owned lending institutions, although the trend in recent years has been sharply upwards.

The livestock development has accelerated the demand for concentrate feeds, drugs, vaccines, and veterinary services. These trends are expected to continue in the coming years with resultant increases in demand for credit support. Expansion of livestock operations among poor smallholders and commercial livestock producers, as well as input suppliers (feed mills, drug producers, etc.) and processors of livestock products is thus expected to increase the demand for finance throughout the sub-sector, and will be needed to help facilitate continued horizontal and vertical integration.

The following constraints and challenges in particular characterize the micro-credit sector: (i) insufficient funds; (ii) inappropriately packaged loans for production cycles of livestock; (iii) red tape and collateral requirements effectively reducing credit access for smallholders, notably the poor; (iv) inadequate loan supervision; (v) insufficient training in financial management and business planning (applies to both loan providers and takers); (vi) inadequate technical support; (vi) inappropriate interest rate policies and practices; (vii) conflicts of interest within NGOs providing both technical and credit support often to the detriment of the former; (viii) smallholder vulnerability and risk from natural and man-made disasters; and (ix) better servicing of the hard-core poor.

Policy framework for Increasing Access to Credit: 1. Formation of CBOs (Community Based Organizations) linking them with DLS, NGOs, commercial banks, and insurance companies would be encouraged for delivery of appropriate livestock credit packages to the doorstep of smallscale livestock farmers including poor women; 2. A Livestock Credit Fund would be established in the Bangladesh Bank for distribution of subsidized credit to smallscale livestock farmers through CBOs; 3. Micro-finance packages better tailored to the production cycles of various livestock species would be promoted; 4. Micro-finance packages targeted towards and appropriate for the hard-core poor including women would be promoted;

5. Training would be provided to smallholder groups in livestock-related business planning and financial management; 6. Monitoring and supervision of micro finance institutions would be enhanced for adherence to international best practice; and 7. Micro-finance services would be separated from technical services where necessary for clearer regulation.

Insurance Livestock production is subject to the risks of animal disease, accident, and death. The result is often a serious decline in farm income and consequent failure on the pa11 of especially poorer farmers to maintain their livelihoods. Livestock insurance can: i) provide protection against loss of livestock from accident or disease, stabilizing income; ii) raise credit worthiness; iii) contribute to a reduction in the incidences of animal death and accident by requiring certification of a minimum standard of animal husbandry practices; and iv) encourage development of cattle breeding and dairy industries.

Out of 62 insurance companies in Bangladesh, 60 are private companies of which none are involved in livestock insurance. Only a state owned insurance company, SBC has since 1980 been providing livestock insurance. It covers only projects financed by BKB (Bangladesh Krishi Bank) and other nationalized Commercial Banks. SBC insured 7.567 dairy animals between 1981 and 2003, indicating only very negligible insurance coverage for livestock.

No modifications of the SBC insurance program have been made since 1985 to address the changing scenarios in the dairy and poultry industries.

There are at present none or only very few private sector companies with the skills or funds to initiate livestock insurance. There are no collaborative arrangements between insurance companies and public sector organizations to assist the companies in setting up insurance schemes. Milk Vita and CLDDP have developed a self-insurance scheme for their cooperative members and farmer groups/associations, which appears to be working well, Smallholders may not, however yet fully recognize and appreciate the implications and potential benefits of livestock insurance. Experience suggests that some level of subsidy for smallholder livestock enterprises may be necessary, at least during the initial period.

Policy framework for Increasing Access to Livestock Insurance: 1. In consultation with insurance companies, CBOs and NGOs and other

stakeholders, a strategy for expansion of livestock insurance coverage would be developed; 2. A Livestock Insurance Development Fund would be established in scheduled Bank on consultation with Bangladesh Bank, 3. Self-insurance systems for smallholder farmers through community-based livestock development programmes would be promoted;

4. A national database on livestock mortality, disease incidence and productivity of livestock would be developed and maintained at the DLS; and 5. Awareness among smallholders on the benefits of livestock insurance schemes would be raised.

4.2.4.10 Institutional Development for Research and Extension

Livestock Research To carry out livestock research in the public sector BLRI (Bangladesh Livestock Research Institute) was established under a Presidential Ordinance in 1984 as a semi-autonomous body. It is organized into eight research divisions and an administrative division, called the support service division. The research divisions are: (i) Animal Production; (ii) Poultry Production; (iii) Animal Health; (iv) System Research; (v) Socio-economics; (vi) Goat and Sheep Production; (vii) Biotechnology; and (viii) Planning, Training and Technology Demonstration. The 1984 Ordinance was amended in 1996 as an Act in line with the amendment of the Act of the Bangladesh Agricultural Research Council (BARC).

The functions of BLRI are not sharply focused and its structure has a number of deficiencies. There are many important new issues that are not reflected in the functions.

Dramatic changes that have taken place in recent years within Bangladesh and internationally (globalization and trade liberalization combined with WTO regulations and OIE requirements), which have changed both domestic and the international market scenarios. In the context of these changes, the functions of BLRI need to be sharpened.

Major deficiencies exist in veterinary research, planning and management, human resource management, and information management. There is no Unit and staff to deal with planning,

evaluation and monitoring. Veterinary research is done only on a limited scale under the Animal Health Division, There is no provision of a Director (Research), responsible for research planning, coordinating and monitoring the implementation of research projects; evaluating and reporting research outputs on a regular basis; and maintaining direct contact with DLS and sister research institutions, as well as liaison with other concerned Departments. There is no management information system (MIS) for research at BLRI and Information management is generally weak.

The shortage of operating funds for research is acute in BLRI. The annual allocation shows a declining trend in real terms. BLRI has been entirely depending on the development budget and contract research grants from BARC (also under development projects) for carrying out research. This has restricted BLRI in developing and undertaking meaningful research programs to support the poverty reduction program of the Government.

BLRI has problems with training of its personnel. There is no provision for staff training or a built-in system of carrier progression within the research divisions like in the research institutes in the crop sector. This has created a high rate of attrition of qualified scientists.

Policy framework for Livestock Research: 1. Research capacity of BLRI headquarters and its Regional Stations would be enhanced to address national priority and untapped potential regional livestock resources; 2. Private and NGO initiatives in livestock research would be encouraged and supported;

3. The mandate, functions and structure of BLRI would be sharpened with a view to enhance the capacity to coordinate, maintain liaison with other concerned Departments; and conduct livestock research for pro-poor sustainable development; 4. Research capacities of BLRI and Universities/ Academic Institutes, would be extended to ensure safe production of animal products and by-products, animal protein supplement, feed additives, premixes, probiotics and mineral and vitamin supplements as inputs for poultry and livestock development; 5. The Act of BLRI would be amended to give greater autonomy to the Management Board and the Institute to bring it at par with the crop research institutes; 6. Enabling environment should be created to develop quality manpower in livestock

research to undertake

challenges

for emerging

livestock

resource

development in the context of global reformation; 7. Service structure and rules of business would be framed for BLRI to improve its management and to provide career development opportunities for talented scientists; 8. Livestock research budget would be increased to 40 to 50 percent of its total annual budget to meet the research operating costs.

9. National Avian Influenza Laboratory established in BLRI will be upgraded to BSL-3.

Livestock Extension For the extension of livestock services The Directorate of Livestock Services was established in 1960 and renamed as the DLS in the late 1980s.

The mandate and functions of DLS include all activities related to livestock development and control of livestock diseases. This includes provision of veterinary services, conservation and genetic improvement of livestock and poultry breeds, artificial insemination, development of feeds and fodder for improving livestock nutrition, extension of livestock services, vaccine production, procurement and distribution of drugs and equipments, training, analysis and diagnostic services, collection of data and economic assessment of livestock production and the development of zoo animal and survey of wild life. Since 1960, the mandate and functions, structure, organization and management system of DLS have remained almost unchanged.

DLS is organized into five divisions, headed by five Directors. The five divisions are (i) Animal Health and Administration, (ii) Research, Training and Evaluation, (iii) Extension, (iv) Production and (v) Officers Training Institute. The divisions are functionally split into sections to deal with different subject matters. It has 5 Divisional Livestock Offices, 64 District Livestock Offices and 476 Upazila Livestock Offices. Divisional Offices coordinate and supervise the activities of the District offices and carry out liaison functions with the sister and other related organizations. DLOs (District Livestock Officer) supervise and coordinate the livestock development activities at the Upazila level and maintain liaison

with the concerned departments and the district administration. ULOs are charged with the following functions; (i) awareness building, motivation and technology transfer, (ii) vaccination and prevention of diseases, (iii) collection and documentation, (iv) artificial insemination, (v) reporting, (vi) farmers training, (vii) fodder cultivation, (viii) implementation of special projects, (ix) distribution of micro credit along with execution of PRSP. VS (Veterinary Surgeon) are charged with animal/poultry health management and disease control activities at the upazila level.

Other entities of DLS include a Livestock Research Institute (LRI), a Central Veterinary Hospital, Dhaka Zoo, Rangpur Zoo, 7 Field Disease Investigation Laboratories (FDIL), District veterinary Hospitals, 22 District Artificial Insemination Centers. Livestock Research Institute includes Veterinary Public Health Section, Central Disease Investigation Laboratory, Toxicology Section, Parasitology section, Pathology Section, Animal Rearing Section, Animal Nutrition Section, Quality Control Section and Vaccine Production Sections. DLS has a number of training institutes such as OTI, VTI and LTI, but remain grossly underutilized due to lack of funds. DLS also has 35 poultry farms, 4 duck farms, 7 cattle breeding and dairy farms, 1 buffalo breeding farm, 5 goat farms and 1 pig farm. The Director General is the executive head at the top of the line of command, followed by Directors, Deputy Directors, and Unit Heads and so on. DLS follows a highly centralized management system.

The structure of DLS offers insufficient focus on the issues that matter most. The functional Divisions are not structured in a logical fashion. Front line services at the upazila level is thin and weak. Load and activities in the extension area at the upazila level increased significantly, but the number of technical manpower and staff is not increased. Recently, with the up gradation of ULOs creates a vacuum in the entry level extension service at the upazila level which hinders extension activities. Recruitment for front line extension service is not possible due to shortage of post in the entry level. District Artificial Insemination Center with well equipped modern laboratory facilities is not available in every district.

Sound organizational structures for animal recording, genetic evaluation, conservation & improvement throughout the country is absent. District level mini-laboratory is now out of operation due to shortage of skilled manpower. Country faces acute shortage of feeds and fodder for livestock development, but long term fodder production plan is absent due to lack

of proper organizational structure. The Veterinary public health section exists but it is neither equipped nor does it have the funds to deal with disease surveillance and reporting, control of zoonotic diseases, food safety and other public health issues. It does not have a supporting legal framework to implement its mandate. Almost nothing is done on disease surveillance, including trans-boundary diseases.

The major challenges faced by DLS were identified as. (i) Inappropriate mandate and functions; (ii) Structural and Organizational deficiencies; (iii) Thin and weak frontline services at the upazila; (iv) Weak linkage with research organization including BLRI; (v) Weak management system and MIS (management information system); (vi) Lean recruitment and promotion system; (vii) Shortage of skilled manpower; (viii) Lack of regular skill development training; (ix) Limited budget allocation.

In the context of increasing participation by the private sector and NGOs in livestock development, there is an urgent need to redefine the mandate and functions of DLS in a fashion that will allow it to gradually withdraw from private goods services, engage increasingly in delivery of public goods services, viz. enforcement of laws and regulations, quality control of feeds / drugs / vaccines / semen and breeding materials, extension services, disease investigation and surveillance, veterinary public health, conservation and development of native breeds, policy formulation and strategy development.

Policy frame work of livestock extension: (1) Private sector, NGOs and CBOs would be encouraged to provide private goods livestock services viz. veterinary services, vaccination etc.

(2) DLS would be reformed to enhance its role as a provider of public goods services, viz. regulatory measures, quality assurance and control, monitoring function, food safety function, disease surveillance etc.

(3) Front line extension services of DLS would be updated and extended for rapid livestock development and sound service delivery.

(4) Resource allocations to DLS would be increased to make it effective in delivery of public good services.

(5) Autonomous unit/ institute would be established for quality assurance and certification of livestock products, vaccines and biologics, and consumers right

protection.

(6) Quality Control of breeding materials would be ensured by extending District AI centre with modern laboratory facilities to all districts.

(7) Long term fodder development programme would be taken throughout the country to minimize the acute shortage of feeds and fodder.

(8) Analytical and diagnostic facility in the district mini-laboratory would be strengthened for full time service with skilled manpower.

(9) DVH would be further extended to UVH to ensure better services.

(10) A special cell in all DVH would ensure round the clock service for emergency purpose.

(11) Retraining program would be developed and implemented to equip DLS staffs with modern knowledge and skills within the frame work of a clearly declined human resource development action plan.

(12) Besides staff training, DLS training institutes would be opened for all eligible candidates from private sector NGOs and CBOs for livestock service extension training.

(13) Extension-research-NGO linkage would be strengthened for field testing and dissemination of livestock technologies.

(14) An MOU has been signed between DLS and BRAC to Provide / extend Artificial Insemination Programme throughout the country.

(15) More Administrative and Financial power has been delegated/ give and to field level Officialâ&#x20AC;&#x2122;s to works smoothly.

(16) The Procurement of Veterinary drugs and surgical instruments has been decentralized to District levels.

4.5 Implementation strategy of the National Livestock Development Policy.

The implementation strategy would be to provide support that specifically target sector productivity, investment and risks as follow: (a) Implementations of recommendations in the respective policy framework identified in the National Livestock Development Policy 2007 (section 4.1 â&#x20AC;&#x201C; 4.10) would be ensured;

(b) Implementation of the national Livestock Development Policy would be realistically phased out; (c) Livestock sector should be consider as a thrust sector, because the sector proved to be a useful tool for poverty reduction, income generation and meet up the nutrition deficiency; (d) Adaptation of locally proven technology would be preferred; (e) Due consideration would be given for the conservation/ restoration of nature during implementation of the National Livestock Development Policy 2007; (f) Public investment would be increased for further development of the livestock sector infrastructure which will increase the capacity of public goods and services delivery and promote private investment in the livestock sector; (g) Public investment would be increased in live stock research for making up to date information on the sector available to the stakeholders and technology development to enhance productivity, income and employment; (h) An appropriate legal and regulatory frame work would be put in place; (i) Institutional reforms would be carried out by strengthening manpower and infrastructure of DLS and BLRI; (j) Good sectoral governance would be more effective, transparent, accountable and mutually supportive; (k) Market regulatory measures would be taken to shift in relative prices of inputs and outputs to correct market distortions, rationalize the incentive structures for investment and mitigate negative impacts on the sectoral environment.

3.2.4 Financial Statement: Year 20007-2008 Table 3.4 Balance Sheet of Bangladesh Krishi Bank as at 30 June 2008 BALANCE SHEET As at 30 June 2008 Particulars

Cash Cash in Hand (including foreign currency)

2007-08 Taka 5,729,584,085 782,004,066

2006-07 Taka 4,768,489,286 574,235,858

Balance with Bd. Bank & Sonali Bank Balance with Other Banks & Financial Institutions:

In Bangladesh Outside Bangladesh Money at call and short notice Investments: Government Others Loans and Advances: Loans, cash credits, Overdrafts etc.

Bills Purchased and Discounted Fixed Assets including premises, furniture & fixtures: Other Assets Non-Banking Assets Total Assets Liabilities and Capital: Liabilities: Borrowing from other banks, financial institutions and agents In side Bangladesh Out side Bangladesh Deposits and Other Accounts: Current and Contingency Accounts Bills Payable Savings Deposit Fixed Deposit Other Liabilities Total Liabilities: Capital/ Shareholders' Equity Paid-up Capital Other Reserve Surplus/(Deficit) in Profit/ (Loss) Accounts Total Equity Total Liabilities and Shareholders' Equity Off Balance Sheet Items: Acceptance for Constituents Liabilities(L/C) Outstanding customers Liabilities Guarantees

Bills for Collection Others Total

4,947,580,019

4,194,253,428

357,234,389 192,404,311 164,830,078 1,491,694,500 1,488,694,500 3,000,000 89,141,847,423 86,680,250,096 2,461,597,327 1,148,351,844

357,685,012 177,857,038 179,827,974 1,608,290,500 1,605,290,500 3,000,000 78,443,835,588 77,182,521,303 1,261,314,285 980,063,660

19,954,317,172 117,823,029,413

19,577,153,601 105,735,517,647

36,273,484,214

32,696,855,945

35,764,705,390 508,778,824 80,308,525,188 18,911,075,268 791,508,592 24,218,512,476 36,387,428,852 20,651,248,459 137,233,257,862

32,101,510,764 595,345,181 71,623,188,414 16,752,262,781 554,095,675 22,572,610,135 31,744,219,823 19,531,443,675 123,851,488,034

3,500,000,000 1,540,797,777 (24,451,026,225) (19,410,228,448) 117,823,029,413

3,000,000,000 1,368,680,385 (22,484,650,772) (18,115,970,387) 105,735,517,647

7,220,091,643 105,583,608 141,300 3,579,243,587 10,905,060,138

2,648,036,441 102,507,127 985,633 3,602,385,175 6,353,914,376

Table 3.5 Profit & Loss Accounts of Bangladesh Krishi Bank for the Year ended of 30 June 2008 PROFIT AND LOSS ACCOUNTS For the year ended on 30 June 2008 Particulars

2007-08 Taka

2006-07 Taka

Interest Income Less : Interest paid on Deposit & Borrowings

5,716,424,969

5,087,264,831

(5,712,806,529)

(4,865,546,833)

3,618,440

221,717,998

81,487,900

80,236,461

Commission, Exchange & Brokerage

462,644,955

446,767,638

Other Receipts Total Operating Income

239,929,526 787,680,821

243,548,748 992,270,845

2,290,883,881

2,039,014,303

127,170,293 680,316

116,169,982 647,818

(708,881)

5,824,448

825,000

844,000

28,576,057

27,448,741

Pay & Allowances of Managing Director

221,382

476,580

Director's Fees & Traveling Allowances

540,700

380,101

43,139,983

46,427,348

262,727,544 2,754,056,275

242,737,282 2,479,970,602

Profit / (Loss) before provision : Provision for Loan Provision for diminution in value of Investment

(1,966,375,453) -

(1,487,699,757) -

Other Provision Total Provision Total Profit /(Loss) before taxes

(1,966,375,453)

(1,487,699,757)

Provision for Income Tax Net Profit/(Loss) After Tax

(1,966,375,453)

(1,487,699,757)

Net Inrerest Income Income from Investment

Salary & Allowance Rent, Taxes, Insurance, Lighting etc.

Law Charges Postage, Telegram, Telephone & Stamps Auditor's Fees Stationery, Printing & Advertisement

Depreciation & Repairs of Bank Property Other Expenditure Total Operating Expenditure

-

Table 3.5 Highlights on the Overall Activities of the Bank Highlights on the overall activities of the Bank

-

Particulars

2007-08 Taka

2006-07 Taka

Paid up capital

3,500,000,000

3,000,000,000

Capital & Reserves

5,040,797,777

4,368,680,385

Capital Surplus/(Shortfall)

(28,117,815,278)

(26,059,737,929)

Total Assets

117,823,029,413

105,735,517,647

Total Deposits

80,308,525,188

71,623,188,415

Total Loans and Advances

89,141,847,423

78,443,835,588

10,905,060,138

6,353,914,376

Contingent Liabilities Commitments

and

Credit Deposit Ratio

other

111%

109%

Percentage of classified loans against total loans and advances 26.45% Profit after tax and provision (1,966,375,453) Total classified loan Provision against classified Loans

34.98% (1,487,699,757)

23,575,222,000

27,440,049,000

3,590,695,396

4,157,145,775

(8,627,834,000) (7,504,203,934)

(7,310,218,225) (7,059,541,000)

Provision excess/(short fall): Loans and Advances Other Assets Cost of Fund

7.91%

7.51%

Interest Earning Assets

67,452,839,974

54,817,555,494

Non-Performing Assets

50,370,189,439

50,917,962,153

Return on Investment (ROI)

(-) 4.22%

(-) 4.32%

Return on Assets (ROA)

(-) 1.66%

(-) 1.40%

Income from Investment

81,487,900

80,236,461

3.2.5 Credit Programs BKB finances t he following 7(seven) priority sectors, namely: 1. Crop 2. Fisheries 3. Live Stock 4. Farm and Irrigation Equipment 5. Agro based Industrial Project 6. S M E 7. Continuous Loan (Working Capital and Cash Credit) 8. Micro Credit (Small Loan) 3.2.6 Deposit Scheme Bangladesh Krishi Bank offers different deposit banking facilities like Current

Deposit

Account, Short Term Deposit Account, Savings Bank Account, Fixed Deposit Account & other

Time Deposits.

3.2.7 International Banking Bangladesh Krishi Bank (BKB) has been engaged in Foreign Exchange Business since 1980. It deals in all kinds of export, import, remittance and other sorts of foreign exchange business. BKB has got 200 major correspondent banks globally and maintain sufficient number of Nostro accounts in various foreign currencies with different leading banks in important business centers of the world. BKB has taken a massive foreign exchange programmes to increase business.

Import of capital machinery and raw materials for agro-processing industries and export of agricultural products, foreign remittance & all sorts of foreign exchange transactions and services are being provided by BKB. Products and Services: o

LC

o

Bill purchase/Discount

o

Export Credit (Pre Shipment & Post Shipment)

o

Remittance (Inward, Outward)

o

Collection, Purchase and Sale of Foreign Currency and Travelers Cheques.

o

Maintenance of Student education file.

o

Guarantees in Foreign Currency.

o

Foreign Currency accounts.

o

NFCD A/C.

o

RFCD A/C

o

Forward Contracts

o

Correspondent Banking Relations.

o

Taka Drawing Arrangement

o

Dealing Room

o

S.W.I.F.T.

3.2.8 ICT Desk of BKB Bangladesh Krishi Bank started its ICT Journey back in 1987 with two personal computer (PC) installing in its Head office. Today BKB has computerized its different activities by establishing an “IT Department” in the Head Office. The Department is enriched with one Server, one Local Area Network (LAN) system and good number of PC’s. Skilled and well trained officers bearing scholastic background are posted here to run the Department efficiently. Meanwhile the bank has also Computerized different activities like clearing house, weekly position, SBS, classification of loan, follow-up, reconciliation of interbranch transactions, employees provident fund account, preparation of statement for CIB, CTR/STR System, Foreign Exchange Transaction System, Balance Sheet, Situation report, Budget & Expenditure control and other necessary statements for various purposes. Now, all the departments of Head Office are equipped with computer, activities of which are being monitored by the IT Department. International Department already introduces SWIFT System for secured and rapid delivery of Remittance.

BKB has taken an extensive expansion program for automation of its branch banking activities and the controlling offices. For this purpose a five years computerization plan has been approved by the Government. The first phase has already been implemented. A computer laboratory for training purpose has been set up at the Training Institute and 28

important branches are computerized with a LAN set-up. All the divisional office has been computerized in this phase. The 2nd & 3rd phase of implementation computerization in under implementation with a view to computerized 55 city/District level Branch including district level controlling offices. Computerization of other 44 branches in 4th and 5th phases is under process. BKB has aimed to achieve a countrywide network under extensive computerization programme in the near future.

BKB has introduced "One Stop Service" in its 28 computerized branches. Bankâ&#x20AC;&#x2122;s clients may get banking facilities they need from a single desk. This reduces hassles of the customer and their valuable time. To cope with the changing Banking situation of the 21st century its friendly and experienced staff will meet-up all the banking requirements from a single point/desk.

3.2.9 Focus on New Millennium 1. Automation: Bangladesh Krishi Bank has launched a five years computerization plan under which 28 selected branches are computerized in the first phase and the computerization process will continue in future.

Many precautionary measures have been taken to increase the efficiency and efficacy of the banking activities. Additional tools like money counting machine and additional counters for utility service have been set in different branches so as to ensure better and quick services to the customers. As much as possible traditional system of banking will be transformed into electronic and internet system of banking. In line with government policy more rural branches/booths will be opened in the remote areas to facilitate smooth supply of agricultural credit.

2. Diversified Credit Mix: The credit portfolio of the Bank encompasses a wide range of credit programs. Credit will be offered to all sectors and sub-sectors of agriculture including new product development at reasonable interest rate. Main thrust has been given to poverty alleviation, export and earning foreign currencies.

3. Development of Human Resources: With the objective of development of human resources to desired level a comprehensive plan for training of employees of the Bank has been undertaken. The Bank has a well-

equipped training institute to meet up the training needs to develop knowledge, skill and attitude.

3.2.10 Asian Banking Award For making a special contribution to the micro credit sector through the program “Ghare Phera” Bangladesh Krishi Bank has been awarded the prestigious international Asian Banking Awards 2001 by the Manila based ABA and the ADFIAP.

Asian Banking Award

CHAPTER 5 BANGLADESH BANK

AND

KRISHI LIVESTOCK

SECTOR 5.1 LOAN DISBURSEMENT BY BANGLADESH KRISHI BANK IN DIFFERENT SECTORS. Bangladesh Krishi Bank is a major financial institution in the country for the purpose of meeting credit needs of the individuals as well as limited companies engaged in agriculture and agro-based industries.

The salient feature of the Bank’s operational activities during the financial activities during the financial year 2007-2008 compared those of last years (i.e., 2002-03, 2003-04, 2004-05, 2005-06 2006-07 & 2007-08) are as follows: DISBURSEMENT During the financial years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07 & 2007-08 the loan disbursement target of the Bank were TK. 1600.00, 1900.00, 2400.00, 3000.00, 3500.00 & 4100.00 crores respectively. Against these targets the bank disbursed TK. 1668.67, 1964.14, 2279.64, 3040.68, 3213.79 & 3756.29 crores in the aforesaid years respectively representing percentage wise attainment of 104.29%, 103.37%, 95% 101.36%, 92% & 91.62.

Table 5.1 Item Wise Statement of Disbursement Target and Achievement of Bangladesh Krishi Bank S.L.

DISBURSEMENT TARGET ITEMS

1

Crop

Loan

2003-

2004-

2005-

2006-

2007-

2002-

2003-

2004-

2005-

2006-

2007-

03 960.00

04 1110.0

05 1300.0

06 1550.0

07 1750.0

08 1900.0

03 972.28

04 1024.2

05 1009.0

06 1254.7

07 1406.5

08 1527.73

0

0

0

0

0

7

1

6

1

50.00 100.00 30.00

85.00 185.00 20.00

150.00 250.00 30.00

200.00 300.00 30.00

250.00 350.00 40.00

300.00 400.00 50.00

36.62 92.86 7.62

70.00 152.41 13.88

92.48 172.12 15.19

160.74 190.54 21.45

207.73 202.98 31.76

251.21 241.61 39.62

(Excluding 2 3 4

Tea) Fishery Livestock Irrigation

&

ACHIEVEMENT

2002-

Agricultures 5

equipment Agro based

73.00

100.00

350.00

300.00

350.00

500.00

63.32

71.61

154.82

376.88

468.88

673.46

6

Industries Working

260.00

275.00

200.00

350.00

600.00

700.00

253.69

413.59

489.62

724.74

707.43

772.23

7

Capital Socio-

100.00

100.00

100.00

100.00

110.00

150.00

82.56

68.16

58.86

57.02

54.51

77.68

27.00 1600.0

25.00 1900.0

20.00 2400.0

170.00 3000.0

50.00 3500.0

100.00 4100.0

159.71 1668.6

150.22 1964.1

187.54 2279.6

254.55 3040.6

133.99 3213.7

172.81 3756.29

0

0

0

0

0

0

7

4

4

8

9

economic

/

Poverty 8

allviationProg.

Others Total

5.2 LIVESTOCK CREDIT ANALYSIS OF BANGLADESH KRISHI BANK Bangladesh Krishi Bank provdes loan in the livestock for the purpose of cattle, sheep, goat and poultry rearing. For the farming of cattle, sheep, goat and poultry and their development

by Artificial Insemination and other breeding policies Bangladesh Krishi Bank provides loan. In Beef Fattening and Dairy Development Projects BKB also provides loan.

Table 5.2 Target Set and Achievement in Disbursing Livestock Credit over Time (TK. In Crore) Years 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Target 100.00 185.00 250.00 300.00 350.00 400.00

Disbursement 92.86 152.41 172.12 190.54 202.98 241.61

% of Disbursement 92.86 82.38 68.85 63.51 58.00 60.41

Bangladesh Krishi Bank has given special emphasis for supplying livestock credit for the development of livestock in Bangladesh which realized by increasing trend of disbursement target from 2002-2003 to 2007-2008. But the achievement of disbursement percentage was

in decreasing trend up to 2006-2007. In 2007-2008 the achievement of disbursement percentage was slightly higher than 2006-2007. Graphical presentation of the table 5.2 is

TARGET SET AND ACHIEVEMENT IN DISBURING LIVESTOCK CREDIT OVER TIME 500 400 Target

300

Disbursement

200

% of Disbursement

100 0 20022003

20032004

20042005

20052006

20062007

20072008

given bellows: Table 5.3 Recovery of Livestock Credit over Time (TK. In Crore) Years 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Amount Recovered 76.67 145.33 137.16 219.01 243.92 282.37

Amount Overdue 242.09 274.47 226.32 203.43 296.36 321.46

Recovery Rate 31.67 34.62 37.74 51.84 45.15 46.72

Note: Recovery Rate= Amount Recovered / (Amount Recovered + Amount Overdue) With the increasing volume of loan the recovery rate of loan was also in increasing trend from the year 2002-2003 to 2005-2006. But the recovery rate was fall in the year 2006-2007.

In 2007-2008 the rate was slightly higher than the previous year. Graphical presentation of the table 5.3 is given bellows:

RECOVERY OF LIVESTOCK CREDIT OVER TIME 350 300 250

Amount Recovered

200

Amount Overdue

150

Recovery Rate

100 50 0 20022003

20032004

20042005

20052006

20062007

20072008

Table 5.4 Amount of Outstanding Livestock Credit over Time (TK. In Crore) Years

Amount

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Outstanding 441.12 587.12 669.61 686.58 648.08 752.07

Amount Overdue

Overdue as % of

242.09 274.47 226.32 203.43 296.36 321.46

Outstanding 54.88 46.75 33.80 29.63 45.73 42.74

Overdue as percentage of outstanding was in decreasing trend from the year 2002-2003 to

2005-2006. Comparing with the 2005-2006 this rate was increased in 2006-2007. But in the 2007-2008 the rate was decreased than the previous year. Graphical presentation of the table 5.4 is given bellows:

AMOUNT OF OUTSTANDING LIVESTOCK CREDIT OVER TIME 800 700 600 500 400 300 200 100 0

Amount Outstanding Amount Overdue Overdue as % of Outstanding 20022003

20032004

20042005

20052006

20062007

20072008

CHAPTER 6 CONCLUSION AND RECOMMENDATIONS 6.1 CONCLUSION The report is completely livestock and Bangladesh Krishi Bank based. Livestock is a growing sector and provide a crucial role in the agriculture economy of Bangladesh. Poultry meat which come from the broiler farming, meet the major part of the demand of meat in Bangladesh. To get egg as source of nutrients we are mostly dependent on the layer farms but they canâ&#x20AC;&#x2122;t meet up of our demand. So the establishment of new broiler and layer farms has been hardly needed in Bangladesh.

The price of mutton and beef are increasing day by day due to the lack of their supply. Few years ago, the major part of beef was meeting up by the import of cattle from India. Now India exports cattle in the processing form of beef and products to the western countries and

Middle East.

Black Bangal goat is rapid growing and large number of kits producing breed in Bangladesh.

Their farming can be done by a lower amount of capital.

To meet the scarcity of milk, we are no completely dependent on the market milk in the urban area thatâ&#x20AC;&#x2122;s available in packaging form by the name of different brand at high price. In small scale Rearing of milking cow is costly by the poor farmer in the rural area. By the help of Banksâ&#x20AC;&#x2122; credit in low interest rate they can rare high yielding cross-bred cow which could be profitable for them and can meet the scarcity of milk in Bangladesh.

Banks can contribute by providing credit in the broiler and layer farming; sheep, goat and cattle rearing and their farming and also in milk producing and processing. By this way along with Bangladesh Krishi Bank, other banks can also play a vital role not only in the agriculture economy but also in the socio-economy by generating employment.

6.2 RECOMMENDATIONS Banks are the mother of business. There is a great deal of risk in the provision of loans and advances of banks. To diversify the risk in loans and advances they should give more attention to livestock sector of Bangladesh.

Proper marketing policy should be developed by establishing the proper policy guideline regarding the livestock products. Government should band the importing of milk from abroad for encouraging the producer of milk in Bangladesh.

The supervision of Bangladesh Krishi Bank regarding the recovery of loan should be improved.

Before providing loan, Bangladesh Krishi Bank should properly evaluate the credit worthiness of borrowers.

Legal actions should implement against the defaulters, Bangladesh Krishi Bank should provide the transportation facilities to the credit personnel for effective supervision of borrowing farms and farmers.

Proper training should provide to the bank personnel regarding the livestock credit for

effective supervision of loans and advances.

The back-ward linkage of livestock and poultry industries should also be supported by the Bangladesh Krishi Bank and other banks.

Before providing loan, bank’s personnel should properly judge the training and experiences of farmers who want to farming by bank credit.

The study is not conclusive but it has some essential indications as a guideline for future research.

REFERENCES •

Bangladesh Agricultural University, Mymensingh.

•

Bangladesh Livestock Research Institute, Savar, Dhaka.

•

Department of Livestock Services, Khamarbari, Farmgate, Dhaka.

•

Bangladesh Krishi Bank, Head Office, Krishi Bank Bhaban, 83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh.

•

Statistical Book-Let, Research and Statistics Department, Head office, Bangladesh Krishi Bank.

•

Jaim, W.M.H. and Rahman, M.L., “Disbursement and Recovery of Agricultural Credit in Bangladesh – A Macro Level Analysis” Article Published at the Bank Parikrama, at March, 1992, a Quarterly Publication of Bangladesh Institute of Bank Management.

•

“Livestock Development through NGOs in Bangladesh – A Study on BRAC” A by the Marketing Department of Chittagong University.

•

www.mofl.gov.bd

•

www.krishibank.org.bd

•

www.dls.gov.bd

APPENDIX List of Acronym

ABA = Asian Bankers Association ADFIAP = Association of Development Financing Institution in Asia & the Pacific AH = Animal Husbandry AI = Artificial Insemination AOA = Agreement on Agriculture BRAC = BAU = Bangladesh Agricultural University BBS = Bangladesh Bureau of Statistics BKB = Bangladesh Krishi Bank BLRI = Bangladesh Livestock Research Institute BMPCUL = Bangladesh Milk Producer Co-operative Union Limited BRDB = Bangldesh Rural Development Board BSBL = Bangladesh Somobay Bank Limited CBOs = Community Based Organizations CIB = Credit information Bureau CDIL = Central Disease Investigation Laboratory CLDDP = Community Livestock and Dairy Development Project DVH = District Veterinary Hospitals DNA = De-Oxyribo Nucleic Acid EBV = Estimated Breeding Values FDIL = Field Diseases Investigation Laboratories FMD = Foot and Mouth Disease GDP = Gross Domestic Products HACCP = Hazard Analysis and Critical Control Point ICAR = International Committee of Animal Recording IT = Information Technology ICT = Information and Communication Technology JICA = Japan International Cooperation Agency LAN = Local Area Network LC = Letter of Credit LTI = Livestock Training Institute

MOFL = Ministry Fisheries and Livestock.

NCBs = Nationalized Commercial Banks NFCD = Non-Resident Foreign Currency Deposit PRSP = Poverty Reduction Strategy Paper RCC = Red Chittagong Cattle RFCD = Resident Foreign Currency Deposit RMG = Ready Made Garments NGOs = Non-Government Organization OTI = Officers Training Institute RDP = Rural Development Program SBC = Sadharan Bima Corporation SBS = Scheduled Bank Statistics SME = Small and Medium Enterprise SPS = Sanitary and Phytosanitary Measures S.W.I.F.T. = Society for Worldwide Interbank Financial Telecommunication TADs = Trans-boundary Animal Diseases ULO = Upazila Livestock Officer UVH = Upazila Veterinary Hospital VTI = Veterinary Training Institute WTO = World Trade Organization