Background

BRAC Dairy was launched in 1998 to assist members of our Village Organisations (VO) who borrow to
invest in cows. A large number of our microfinance loans are being used to buy livestock, which can
pose high risks for borrowers owing to poor breeding, limited veterinary services and shortages in
cow feed. Our Dairy and Food Project provides a market to members of the VOs by buying milk from
them at a fair price, and ensures a constant and steady demand and good return for the milk being
produced by these rural entrepreneurs.

BRAC Dairy today
Today, BRAC Dairy not only secures fair prices for its rural entrepreneurs, but has also expanded to
offer cattle development and technical training, vaccinations and feed cultivation facilities. BRAC
Dairy collects milk from 100 collection and chilling stations located across the country including 10
that are located in ultra-poor areas. BRAC Dairy is currently the only dairy company in Bangladesh to
have received ISO 22000 Certification, setting an example of vigilance at every stage of dairy
production, processing, and distribution contributing to dairy products safety record.

Quick Stats
BRAC Dairy has 100 collection and chilling stations located in 25 districts, including 10 located in
ultra-poor areas. The enterprise collects 102,559 litres milk daily and erves 40,000 farmers, 64%
being women. BRAC Dairy has 23 Distributors and 37 Sales centres nationwide, covering 16,000
outlets out of 23,000 and enjoying an overall market share of 22% with a dedicated consumer base
of around 500,000. More than 2 packets of Aarong Milk (a BRAC Dairy product) every second
Foundations
BRACs microfinance programme used to enable farmers to buy land and cows in order to produce
milk. While BRAC helped these farmers to generate income through micro financing, dairy farmers
still did not have consistent access to the market. The demand of milk in a single village was not
enough to generate a hefty profit. Sir Fazle Hasan Abed, founder of BRAC, noticed this problem and
proposed establishing a milk factory to collect milk from local farmers for a fair price. As a result,
BRAC initiated BRAC Dairy & Food Project (BDFP) in 1998 to serve as a market for dairy farmers
throughout rural Bangladesh.
Mission
BDFPs original mission was to grant farmers market access, ultimately helping them generate
income. Over time, BDFPs goals have expanded to serve high quality milk product to their
customers. With inconsistent electricity and therefore refrigeration, dairy products generally are not
widely available in Bangladesh. 85 percent of Bangladesh still relies on the informal milk market
which delivers bulk amounts of raw milk to consumers. BDFP caters to the 15 percent of
Bangladeshis who rely on the formal milk market which sells processed and packaged milk. In
essence, BDFP channels milk from rural areas into urban areas while channeling urban money into
rural areas.
Growth
When BDFP first started, it produced 140,000 litres of milk per day. As of now, it has the processing
capacity of 170,000 litres of milk per day engaging 1500 employees. Today, BDFP holds 22 percent of
the national market share. It is also one of the largest BRAC enterprises, making profits of over BDT
220 million.
Clients
BDFP has three main groups of clients: dairy farmers, consumers, employees and institution
providers. Currently this enterprise serves roughly 40,000 farmers in western part of Bangladesh.
Consumers of Aarong dairy products benefit from high quality, hygienic dairy products which BDFP
produces.




















Brand
Emotional appeal
Reliability of the brand
Quality
Proposed and actual quality
Healthy or not
Shape
shapes of the bottle
Sizes of the bottle
Customized
Availability
Is it available accross the country?
Is it avaiable in retail stores?
Is there any problem in supply chain?
Are the remote village people getting this product?
Taste
Is it taste good?
How taste vary from one to another?
Price
Is it affortable?
Can the lower income people buy this?
Price in terms of shape