Economic Outlook of Bangladesh on Cattle Fattening

Cattle farming, a significant component of the country’s agro-economic landscape, has a considerable impact on fulfilling the country’s demand for red meat. According to Market Reports World, the global red meat market was valued at USD 458,818 million. Furthermore, the global red meat market is expected to expand at a compound annual growth rate of 6.4% and reach USD 665,788 million by 2028, pointing out significant future potential for the growth of cattle farming and the fattening industry.

A report published by the Department of Livestock Services (DLS) states the total cattle population to be 2.49 crore in FY2022-23, whereas it was 2.42 crore in FY2018-19, providing evidence that the cattle population has remained consistent over the years.

This consistency in the cattle population can be attributed to the government and the institutes that have been involved in the cattle sector extending their activities during the last decade. Many small farms across the country have also entered this business, and many institutional investors have grabbed the opportunity created by high demand and a shortage in supply due to India’s ban on cattle exports. Because of the favourable environment, lots of small farms have been established in the north-western regions of Bangladesh. Especially, cattle farming and fattening clusters have been formed in Brammonbaria, Kushtia, Sirajganj, Pabna, and Munshiganj.

The DLS data also shows that total meat production in FY2022-23 was 87.10 lakh metric tonnes and the demand for meat was 76.08 lakh metric tonnes, leading to a production surplus of approximately 11 lakh metric tonnes. During Eid al-Adha, the demand for cattle spirals up, and the prices keep going up significantly compared to other times of the year. The demand for cattle during Eid al-Adha is now met exclusively by domestically bred cattle. Indeed, it is a fact that most prominent agricultural corporations and small to medium-sized farms in Bangladesh engage in cattle rearing with the specific aim of catering to the demands during Eid al-Adha. However, self-sufficiency in meat production should have pulled the price of meat down. In contrast, high prices for meat prevail in the market due to increased production costs and inefficiencies in the supply chain. On the bright side, if such a production surplus can be achieved in a persistent manner, it may in turn become a new item in Bangladesh’s export basket in the near future. Livestock farming is creating 20% direct agricultural employment and 50% indirect agricultural employment. The DLS report also suggests that livestock farming contributes to 16.52% of agricultural gross domestic product.

 

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