Why dairy farmers earn so little per litre, and what helps

29 October 2026 · 2 min read · Krishoker Thikana desk

Bangladesh produces more milk every year but still not enough to meet demand. You might expect that to mean good prices for dairy farmers. It does not.

The squeeze in numbers

The Business Standard spoke to farmers in Sirajganj and Pabna, the heart of the dairy belt, in early 2024:

• Processors such as Milk Vita, BRAC, PRAN and Akij were paying farmers about Tk 45 to 52 a litre, depending on fat content.
• That farm-gate price had risen by only about Tk 10 in five years, and not at all in the last two.
• Over the same two years, packaged milk in shops rose from about Tk 70 to Tk 90-95 a litre.
• Farmers said cattle feed had doubled in price in five years; a 43 kg bag of husk alone went from Tk 1,650 to over Tk 2,300.

In short: the farmer carries the rising cost of feed, while the higher shop price is captured further along the chain.

Five things that help

• Grow green fodder. The Director General of Livestock Services told farmers that those who feed more grass are making a profit. A small plot of Napier or other fodder grass cuts the feed bill sharply.
• Know your fat content. Processors pay by fat, so ask for your test result each time and compare buyers. Clean milking and good feed raise fat and the price per litre.
• Sell together. A cooperative or village collection centre gives you a steady buyer and a stronger voice on price.
• Cool milk quickly and keep it clean; rejected milk is pure loss.
• Keep a simple daily record of milk, feed and sales, so you know your real cost per litre before you agree a price.

What is changing

The government's Livestock and Dairy Development Project aims to build milk collection centres and processing zones so that farmers depend less on a few large buyers. Ask your Upazila Livestock Office whether a centre is planned near you.

Note: the prices above are from early 2024; check current rates with your buyer or collection centre. The Dairy page of this site lists Milk Vita, the Department of Livestock Services and dairy research bodies.