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What workedA dairy farmer in Bogura town, in a Prothom Alo report · Started in 1994

Two cows at the start, 1,500 litres of milk a day now

Started in 1994 with two cows bought for 1.5 lakh taka; the farm now holds 215 cattle, produces about 1,500 litres a day and sells at the gate at 80 taka a litre.

In 1994 this farmer at Rahmannagar inside Bogura town gave up contracting work, bought two cows for 1.5 lakh taka and started a dairy. The first 15 to 20 litres a day had no buyers, so every afternoon he hired a rickshaw, carried the milk round the neighbourhoods in a bucket and sold it himself. Thirty-two years on, the farm sits on 48 shotok of land with 215 cattle - 170 milking cows and 45 heifers - worth over 4 crore taka, producing about 1,500 litres a day. He no longer looks for buyers: customers queue at the gate in three shifts, at 8 in the morning, 3 in the afternoon and 8 at night, and many are turned away empty-handed. Milk goes at 80 taka a litre, up from 70 a month earlier, against a production cost of over 75 taka a litre, 80 percent of which is feed. Demand at the gate runs 6,000 to 7,500 litres a day against his 1,500, so buyers are limited to one or two litres each. The farm sells over 1 lakh taka of milk a day and over 4 crore taka a year, with 11 regular employees and about 20 people working directly and indirectly.

Lessons

  1. 1.Selling direct from the farm, in front of the customer who watches the milking, built the trust that lets him charge 80 taka and clear the whole output with no middleman
  2. 2.Feed is 80 percent of the cost of a litre, so the retail price has to move with feed prices: he raised his by 10 taka in a month and kept the queue

Published with the person's permission, without revealing who they are.

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