Assessing the factors and constraints for value chain development of dairy food products in Bangladesh

The dairy sector in Bangladesh has shifted from subsistence to commercial and enterprise-driven due to the increasing demand of milk and milk products. In this context, this study was conducted to explore the different participants in dairy value chains and their role in the production, processing and marketing of dairy products. This study addresses the constraints faced by these participants and the factors influencing the value chain efficiency as a case study from Bogura districts of Bangladesh. The Bogura district was selected purposively considering the most potential geographical area of dairy farming. Face-to-face surveys were conducted to collect data during January to April 2019 using two sets of well-designed questionnaires. Multiple regression models were analyzed for the factors affecting the value addition of selected dairy food products. Moreover, Kendall's coefficient of concordance was applied for identifying the constraints faced by dairy products value chain actors. The empirical findings showed that processors of dairy food products added the highest value among all the actors involved in the value chain. Furthermore, the findings revealed that gender, education, purchase price, and sale price significantly influenced the value addition of processed dairy products (yogurt and ghee) value chain. The findings also revealed that the most untiring constraints faced by the market actors were the lack of capital and credit facilities, insufficient storage facilities, lack of processing center, and lack of proper transportation facilities. The findings of this study can help the stakeholders to improve the policy measures towards developing a new market for the dairy food products which might result in high value added, domestic, and export oriented dairy industry.