Crisis turns into opportunity

Restriction on cattle influx from India has become a boon for Bangladesh as many youths are setting up farms to boost meat and milk production, ushering in hopes for reducing deficits through faster development of the dairy and beef sector.

Compared to the past, Bangladesh is in a better position today to ensure enough cattle supply ahead of the Eid-ul-Azha, say officials from the Department of Livestock Services (DLS), cattle farmers and traders.

“A revolution has been taking place [in the sector] for the last one year. Many educated unemployed youths started farming for dairy products and fattening cattle in order to become self-reliant,” said Mohammad Shah Emran, who runs a farm at Trishal in Mymensingh.

The trend started after farmers made profits following the crisis in cattle supply from India, he said.

Emran started his farm, Shopno Dairy and Fisheries, with only three cows in early 2015. Today, it has 32 cows, and 14 of them are being fattened for beef.

Emran, also an administrator of Facebook group “Amra Dairy Farmers”, said as far as he knew, 500 people started cattle farming in the last year.

“The total number of new farmers in this sector across the country would be huge,” he said, adding that at least 60 people in his village in Trishal raise bulls and the number of cows there has also grown in recent years.

The Facebook group has around 3,500 members.

DLS estimates say nearly 88 lakh cattle are slaughtered annually in Bangladesh, of which almost 50 percent or even more are slaughtered during the Eid-ul-Azha, the second biggest religious festival of the Muslims.

In the past, over 20 lakh cattle were informally traded through the borders of Bangladesh and India every year, due to lax monitoring. It accounted for nearly $1 billion annual business.

During that time, local farmers used to be less enthusiastic about cattle farming, fearing losses due to the huge influx of Indian cattle. Prices of sacrificial cattle remain low if the supply is high.

The flow, however, has become a trickle in the last two fiscal years because of a crackdown by the Indian authorities.  

More than 11.5 lakh cattle entered Bangladesh from neighbouring countries, mainly from India, in fiscal year 2015-16, down from 14 lakh the previous year, according to National Board of Revenue (NRB) data.

The number was around 21 lakh in 2013-14.

Following the fall in the supply of Indian cattle, beef prices rose in the domestic market in Bangladesh, encouraging local farmers to rear cattle, said farmers and traders.

“It seems locally reared and fattened cattle would be enough to meet Bangladesh's demand for meat this Eid,” said Abu Ahmed Abdullah, owner of Ahmed Farmhouse, which has 150 cows, in Narayanganj.

Apart from areas adjacent to Dhaka, farmers in various other districts, particularly in Pabna, Sirajganj, Nilphamari and Patuakhali, have reared and fattened bulls for profit.

Low-cost loans, with a five percent interest rate, provided to farmers under Bangladesh Bank's refinance scheme also encouraged cattle farming.

DEPENDENCE ON INDIAN CATTLE DECREASING

Meanwhile, trade body leaders claim the dependence on Indian cattle would come down to 10% of the total demand from about 40% in recent past.

Robiul Alam, secretary general of Bangladesh Meat Merchants' Association (BMMA), said the dependence on Indian cattle has been going down for the last two years, adding that supply of locally-reared cattle was around 40 lakh or some 70 percent of total 55 lakh bulls and buffaloes slaughtered during the last Eid.

The supply of locally-farmed cattle would rise further this year, he said, expecting that similar number of cattle would be slaughtered this year.

“Our dependence on Indian cattle will be only one-tenth of the demand the next year,” said Robiul.

Department of Livestock Services said the supply of locally-reared cattle may rise to 44 lakh in the forthcoming Eid. It was 41 lakh during the Eid last year.

The number of cattle being fattened has increased 10 percent from last year to 33 lakh.

The supply of 44 lakh home-reared cattle would be around 80 percent of the total demand which DLS and association of tanners, meat, hide and skin merchants estimate at 50-55 lakh.

DLS DG Ajay Kumar Roy claimed that the number of locally-grown cattle that are ready for slaughtering rose to 1.14 crore this year from 1.09 crore in 2015.

“There will be no crisis [of sacrificial animals] ahead of Eid,” he said.

DLS said the total number of cattle in Bangladesh increases every year.

The number rose to 2.37 crore in fiscal 2015-16 from 2.36 crore the previous year. Production of beef and milk also increased.

Total milk production rose four percent to 72.75 lakh tonnes in fiscal 2015-16 from 69.7 lakh tonnes the previous year, it said.

However, deficit remains. For example, milk deficiency stood at 74.16 lakh tonnes in fiscal 2015-16, said the department.

The country has to import huge amount of powdered milk and depend on Indian cattle for beef to meet domestic demand throughout the year.

Farmers and traders say the shortage can be reduced if the current enthusiasm for farming continues. But it depends a lot on the restriction on informal cattle flow from India.

FEAR OF LOSSES

Many farmers incurred losses in the past years because of low prices after low quality Indian cattle were brought in ahead of Eid, said Mohammad Imran Hossain, owner of Sadeeq Agro near Mohammadpur Dam in Dhaka.

He said farming for beef and milk production has expanded in areas around Dhaka, encouraged by the reduced flow of cattle from neighbouring country.

“Not all of them [engaged in farming] are farmers. There are some big businessmen who have invested in cattle farming. Once they settle in, this will become an industry,” said Imran, who has raised 350 bulls targeting the coming Eid festival.

Last year, his farm fattened 250 bulls.

“It seems that an industry is developing. But it will not sustain and grow unless we feel confident. Farmers fear losses following the arrival of a huge number of cattle from India. This fear has to be removed,” said Ahmed, the owner of the farm in Narayanganj.

However, Bangladesh Meat Merchants' Association President Golam Mourtaza said there might be a crisis of sacrificial animals if cattle do not come from India.

He added a large number of cattle have been brought along the Indian boarder and are expected to be pushed into Bangladesh ahead of Eid.

Traders said the flow of cattle from the neighbouring country has increased in the recent weeks.

 Some 6,000-7,000 cattle are being brought through borders in Lalmonirhat every day ahead of the festival, reports our correspondent there.

BMMA Secretary General Robiul said 2-3 lakh cattle entered through various borders in the past weeks.

“Farmers had suffered losses for huge influx of cattle during the last three Eids. If this happens again, they will be discouraged to continue farming,” he said.

PROSPECT FOR SELF-SUFFICIENCY

Farmers, traders and livestock officials said India's restriction on cattle flow has created scope for Bangladesh to become self-sufficient in milk and beef production.

The development of cattle farming is also expected to contribute to the $1 billion leather and footwear industries.

 They have urged the government to restrict informal import of cattle from India. They also demanded better veterinary and extension services along with increasing artificial insemination to improve milk and beef yield.

They have also urged the government to impose higher taxes on powered milk and low cost cattle feed to discourage their use.

There is also demand for increasing the amount of loans from Bangladesh Bank's low-cost loan scheme.

The central bank launched the scheme for dairy farmers this January after forming a Tk 200 crore revolving fund, to make the country self-sufficient in milk production.

Ahmed, the owner of the farm in Narayanganj, said more and more cattle farmers should get funds from the scheme for a faster development of the sector.

Permission for import of semen of improved breeds of cows should also be given to boost beef production, he added.

“With the required support, I am very much hopeful that we will be self-sufficient particularly in beef production within the next three years,” he said.

BMMA Secretary General Robiul said Bangladesh is moving towards self sufficiency in beef production and government's support is must in this regard.

He also suggested allocating fallow land for cattle farming and ensuring government funds for the development of the sector.

Imran, the owner of the farm in Mohammadpur, said the sector suffers from because of a crisis of veterinarians and poor extension service.

The issue should be addressed to prevent disease among cattle and to ensure their healthy growth. “A reduction in mortality will be a big boost for the sector,” he said.

DLS DG Ajay said the number of cattle, including cows and calves, in the country is rising every day. Yet, the country has not been able to meet the demand.

The livestock department targets to increase cattle population by 10 percent and artificial insemination by 15 per a year for the development of the sector, he said.

“The recent trend of domestic production is gratifying. Given the current pace of growth, we expect to be self-sufficient in seven-eight years,” Ajay added.

(Ahmed Humayun Kabir Topu, Anwar Ali Himu, EAM Asaduzzaman, Sohrab Hossain and S Dilip Roy contributed to the report)