In the lush, cattle-rich plains of Bangladesh, the humble glass of milk tells a story far bigger than its creamy surface. It speaks of small farmers hauling their morning yield door-to-door, of rural family incomes struggling under volatility, and of an economy yearning for inclusive growth. But embedded within that narrative is a transformative opportunity: value-added dairy processing at scale, driven not just by commerce but by social enterprise and business-as-mission principles that marry profit with purpose.
Bangladesh’s dairy landscape is undergoing a quiet revolution. Once a largely informal and subsistence-driven sector, it now produces an estimated 13–15 million tonnes of milk annually, a dramatic rise over the past decade. Even so, per capita consumption lingers well below World Health Organization recommendations, and an overwhelming 91 per cent of milk still moves through informal channels, bypassing quality controls and fair pricing structures. Only around 9 per cent is processed through formal dairy processors — a clear indication of untapped value and potential for transformation.
This context makes the case for value-added dairy processing — products such as yoghurt, cheese, ghee, UHT milk, and more — not only a business opportunity but a social imperative. Value addition extends beyond simply converting raw milk into retail products. It enhances nutritional reach, creates diversified income streams for producers, and unlocks higher economic value per litre than liquid milk alone. In regions like Sirajganj, for example, micro-entrepreneurs are increasingly producing ghee, paneer, yoghurt and traditional sweets with support from sustainable enterprise projects that bring modern hygienic techniques to local cottage industries.
Social enterprises and business-as-mission (BAM) organisations are uniquely positioned to accelerate these gains because their missions seamlessly integrate economic viability with community impact. BRAC Dairy and Food Project, an arm of one of Bangladesh’s largest development NGOs, exemplifies this hybrid model. Founded to provide market access and fair pricing to rural dairy farmers, BRAC Dairy now collects milk from more than 50,000 registered farmers and processes it under the Aarong Dairy brand, with ISO-certified safety standards and expanded services including cattle training, vaccination programmes and feed support.
Similarly, corporate entities like PRAN have leveraged a ‘Dairy Hub’ model that links thousands of smallholders to collection centres, offering veterinary support, training and assured procurement at fair prices. Over time, their product portfolios have expanded from basic milk to include pasteurised milk, UHT products, yogurt, cheese and ghee, nurturing rural entrepreneurship and building trust among urban consumers who increasingly prefer safe value-added dairy goods.
The integration of BAM principles intensifies this impact by intentionally aligning business growth with spiritual and social objectives. For BAM practitioners, profitability is not the sole marker of success; rather, it is the means to sustain employment, strengthen communities, and build dignity for people at the margins. In dairy processing, BAM enterprises can prioritise innovations that enhance farmer welfare, reinvest profits into training and infrastructure, and use commercial scale to challenge exploitative practices in the informal sector.
International collaborations are bolstering this transition. The Denmark-funded Green Dairy Partnership, for example, seeks to create a sustainable and commercially viable dairy value chain in Southwest Bangladesh, targeting a 30 per cent increase in farmer incomes and reduction in greenhouse gas emissions. Crucially, this initiative emphasises women’s economic participation, with a stated goal of ensuring 80 per cent of beneficiary households are led by or involve women — an explicit nod to inclusive growth ideals central to social enterprise and BAM.
Yet, challenges remain. Bangladesh’s average milk yield per cow still trails global benchmarks, feed costs fluctuate, and cold-chain logistics are underdeveloped outside urban centres. Traditional middlemen continue to dominate much of the informal market, distorting prices and food safety. Researchers have pointed to limited storage, lack of credit, weak processing infrastructure and transport issues as ongoing constraints that policymakers and enterprise leaders must address to unlock a fully-fledged value-added dairy economy.
Despite these hurdles, the consumer market for value-added dairy is expanding rapidly. Urbanisation, rising incomes and changing dietary preferences are driving demand for convenient and diversified products — from flavoured milks and yoghurts to artisanal cheeses. Milk Vita, the long-established cooperative dairy union, now manufactures over 20 dairy variants, while private players are pushing further into niche products that appeal to evolving tastes.
For Bangladesh, the stakes are high. Rising production alone will not guarantee prosperity; how that milk is captured, processed and marketed will define whether smallholder farmers can escape entrenched poverty. Value-added dairy processing — supported by social enterprise cultures and anchored in BAM’s dual commitment to profit and people — offers a compelling pathway. By embedding ethical purpose into commercial operations, these models can transform villages into entrepreneurial hubs, strengthen rural livelihoods and ensure that the economic tide lifts all boats.
In the end, a glass of value-added milk should not merely quench hunger — it should reflect a system in which farmers earn fairly, consumers access safe nutrition and businesses thrive with social conscience. For Bangladesh’s dairy sector, this is not an abstract ideal but a palpable future well within reach.
Dr Makhan Lal Dutta, an irrigation engineer, is chairman and CEO of Harvesting Knowledge Consultancy.
