1) The document analyzes the beef cattle value chain in northern Bangladesh by identifying key actors, challenges, and opportunities for improvement. 2) It outlines the objectives of identifying the main actors and their roles, challenges and opportunities in the value chain, and recommendations to policymakers. 3) The methodology includes surveys of producers, traders, brokers, retailers, and others to map the value chain and identify strengths, weaknesses, opportunities and threats through analytical tools.

1. ANALYSIS OF BEEF CATTLE VALUE CHAIN IN SELECTED
AREAS OF NORTHERN BANGLADESH
1
Presented By:
Paresh Kumar Sharma
PhD Research Fellow, Dept. of Agribusiness and Marketing
and Senior Scientific Officer, BAU Research System
BAU, Mymensingh-2202
Bangladesh
Bangladesh Economic Association (BEA)

2. Contents of the Study
• Background of the Study
• Justification
• Objectives
• Methodology
• Results
• Conclusion
Bangladesh Economic Association (BEA)

3. Background of the Study
• Beef cattle rearing are creating opportunities for additional employment
and alternative source of income in rural areas of Bangladesh. Cattle
fattening has become a source of dependable income for poor farmers.
Among the livestock beef cattle enterprise is the quick money making and
profitable business
• Bangladesh has the seventh largest cattle population in the world, but has
one of the lowest per capita meat consumption
• Contribution of livestock sector to agricultural GDP has been decreasing
from 3.12% in 1998-99 to 2.45% in 2012-13.
• Growth of livestock population is also decreasing from 0.53 % in 2001-
2012 to 0.34 % in 2012-13
• Availability of beef increased from 344 000 M ton in 2000-2001 to 4000
000 M ton in 2011-2012
• Percapita consumption of all meat increased from 4.42 kg in 2000-2001
to 4.80 kg in 2011-2012
Bangladesh Economic Association (BEA)

4. Contribution of sector wise in agriculture GDP at constant price
(base year 1995-96 to 2012-2013)
Year Crops and Vegetables Livestock Forestry Fisheries
1998-1999 14.33 3.12 1.90 5.93
1999-2000 14.59 3.02 1.88 6.09
2000-2001 14.70 2.95 1.87 5.51
2001-2002 13.75 2.96 1.88 5.40
2002-2003 13.43 2.93 1.86 5.25
2003-2004 13.23 2.91 1.83 5.11
2005-2005 12.51 2.95 1.82 5.00
2005-2006 12.28 2.92 1.79 4.86
2006-2007 12.00 2.88 1.75 4.73
2007-2008 11.94 2.79 1.75 4.65
2008-2009 11.43 2.73 1.75 4.58
2009-2010 11.42 2.65 1.73 4.49
2010-2011 11.32 2.58 1.69 4.43
2011-2012 10.86 2.51 1.66 4.39
2012-2013 10.25 2.45 1.63 4.37
Source: Ministry of Finance, 2013

5. Livestock Population of Bangladesh
Sources: BBS 2011, BER 2014,
Profile of Livestock in Bangladesh (In millions)
Year Cattle Growth
(%)
Buffalo Growth
(%)
Goat Growth
(%)
Sheep Growth
(%)
2001-2002 22.46 - 0.97 - 16.96 - 2.2 -
2002-2003 22.58 0.53 1.01 4.1 17.69 4.30 2.29 4.09
2003-2004 22.6 0.09 1.06 5.0 18.41 4.07 2.38 3.93
2004-2005 22.67 0.31 1.11 4.7 19.16 4.07 2.47 3.78
2005-2006 22.8 0.57 1.16 4.5 19.94 4.07 2.57 4.05
2006-2007 22.87 0.31 1.21 4.3 20.75 4.06 2.68 4.28
2007-2008 22.9 0.13 1.26 4.1 21.56 3.90 2.78 3.73
2008-2009 22.98 0.35 1.3 3.2 22.4 3.90 2.88 3.60
2009-2010 23.05 0.30 1.35 3.8 23.28 3.93 2.98 3.47
2010-2011 23.12 0.30 1.4 3.7 24.15 3.74 3.02 1.34
2011-2012 23.2 0.35 1.44 2.9 25.12 4.02 3.08 1.99
2012-2013 23.34 0.60 1.45 0.7 25.28 0.64 3.14 1.95
2013-2014 23.44 0.43 1.45 0.0 25.61 1.31 3.16 0.64
Average 0.36 3.4 3.5 3.1
Bangladesh Economic Association (BEA)

6. Year Meat production (‘000’M. tons) Per Capita
(Kg)Livestock Poultry Grand
totalBeef Buffalo Goat Sheep Total Poultry
2000-2001 344.00
(59.83%)
7.00
(1.22%)
46.00
(8.00%)
5.00
(0.87%)
402.00
(69.91%)
173.00
(30.09%)
575.00
(100.00%)
4.42
2001-2002 349.00
(48.47%)
8.00
(1.11%)
46.00
(6.39%)
6.00
(0.83%)
409.00
(56.81 %)
311.00
(43.19%)
720.00
(100.00 %)
5.42
2002-2003 353.00
(45.43%)
8.00
(1.03%)
46.00
(5.92%)
6.00
(0.77%)
413.00
(53.15 %)
364.00
(46.85 %)
777.00
(100.00 %)
6.90
2003-2004 358.00
(42.32%)
8.00
(0.95%)
46.00
(5.44%)
7.00
(0.83%)
419.00
(49.53 %)
427.00
(50.47 %)
846.00
(100.00 %)
7.40
2004-2005 363.00
(37.46%)
8.00
(0.83%)
47.00
(4.85%)
7.00
(0.72%)
425.00
(43.86%)
544.00
(56.14 %)
969.00
(100.00 %)
8.50
2005-2006 368.00
(39.91%)
9.00
(0.98%)
47.00
(5.10%)
8.00
(0.87%)
432.00
(46.85%)
490.00
(53.15%)
922.00
(100.00%)
8.00
2006-2007 374.00
(31.86%)
8.80
(0.75%)
47.30
(4.03%)
8.60
(0.73%)
438.70
(37.37%)
735.30
(62.63%)
1174.00
(100.00 %)
8.30
2007-2008 379.00
(31.76%)
9.10
(0.76%)
47.70
(4.00%)
9.40
(0.79%)
445.20
(37.31%)
748.20
(62.69 %)
1193.40
(100.00 %)
8.40
2008-2009 384.00
(30.95%)
9.40
(0.76%)
48.00
(3.87%)
10.20
(0.82%)
451.60
(36.40%)
789.00
(63.60%)
1240.60
(100.00 %)
8.60
2009-2010 398.00
(71.40%)
9.70
(1.74%)
49.80
(8.93%)
10.50
(1.88%)
468.00
(83.96%)
89.40
(16.04%)
557.40
(100.00 %)
8.80
2010-2011 413.00
(38.74%)
10.00
(0.94%)
51.70
(4.85%)
10.90
(1.02%)
485.60
(45.55 %)
580.40
(54.45%)
1066.00
(100.00 %)
8.90
2011-2012 400.00
(54.55%)
10.00
(1.36%)
49.00
(6.68%)
13.00
(1.77%)
472.00
(64.37 %)
261.30
(35.63%)
733.30
(100.00 %)
4.80
Meat availability for domestic consumption
Sources: BBS 2012

7. 7
Bangladesh Economic Association (BEA)
Anandaja
yasekera
m and
Berhanu,
2009
Value chain analysis facilitates-
1) Improved understanding of competitive challenges,
2) Helps in the identification of relationships and coordination mechanisms, and;
3) Assists in understanding how chain actors deal with powers and who governs or influences the chain.
4) Improving access to markets and ensuring product flow so that all actors in the chain benefit.
Kaplinsky
and
Morris
(2001)
The main sets of reasons why value chain analysis is important in this era of rapid globalization.
1) Growing division of labour and the global dispersion of the production of components, systemic
competitiveness has become increasingly important
2) Efficiency in production is only a necessary condition for successfully penetrating global markets.
3) Entry in to global markets which allows for sustained income growth requires an understanding of
dynamic factors within the whole value chain.
Teshager
et al,
2013,
GTZ,
2007
Value chain analysis identifies and investigates;
1) Bottlenecks.
2) Holistic strategies for upgrading.
3) How actors are influenced by the business environment in which they operate.
4) Focus on key growth and upgrading opportunities.
5) Goes beyond linkages between suppliers and buyers.
UNIDO,
2012
It is increasingly used by donors and development assistance agencies, including UNIDO, to better target their
support and investments in various areas such as trade capacity, enterprise competitiveness, income
distribution and equity among value chain participants.
Mlote et
al., 2012;
Neves et
al., 2012
Value chain analysis is important to;
1) Examine the profitability in each node and factors affecting profitability and willingness to adopt improved
production technologies.
2) Important evidence which indicates a strive for some actors in the beef cattle value chain to shift from
subsistence to more commercialized agribusiness.
3) Identify market opportunities and linkages for selling cattle and beef products to inform policies and
decisions on which parts of the beef cattle value chain need strategies interventions.
4) Identify appropriate production technologies and marketing strategies of beef cattle.
Why value chain important?

8. Justification of the study
• This study generated useful information in order to develop
beef cattle value chain in the study area.
• The potential users of the findings are farmers, traders,
butcheries, slaughterhouse, hotel and restaurants, consumers,
government and non-government organizations that have an
interest in improving the beef cattle value chain.
• The value chain analysis of the beef cattle initiates to
understand the sources of the problems and recommend viable
options to the households to overcome the problems and
improve the production and supply value added products.
• The study gives insight to researchers and students interested
in the topic to stimulate further investigations of the problems.
Bangladesh Economic Association (BEA)

9. Justification of the study (cont.)
Bangladesh Economic Association (BEA)
1. Why beef cattle?
i) Economic factors, ii) Rational for gender
iii) Other Factors a) Nutritional value, b) Exports potential, c) Religious culture
2. Increase in demand
3. Beef cattle agribusiness is the ‘pathway of poverty’.
4. Beef cattle sector is highly dualistic.
But
1. Beef supply is dominated by Low productive Indigenous breeds.
2. Small scale cattle farmers are still predominant of beef cattle supply.
3. Rapidly growing retail industries in Bangladesh.
4. Export potential of beef and beef products.
5. Lack of year round adequate feed supply
6. Poor herd health management
7. Scope of beef cattle production.

10. Objectives of the study
10Bangladesh Economic Association (BEA)
The specific objectives of the study are:
1) To identify main actors of the beef cattle value chain
and their roles and interrelationships.
1) To identify the major challenges and opportunities for
improving the value chain; and
2) To recommend to policy markers on how to promote
beef cattle based agribusiness and their value added
products.

11. Methodology
SampleSize
SL. No. Population Sample Size
1 Producers 180
2 Cattle traders 24
3 Brokers 6
4 Butcher shop 3
5 Supermarket 2
6 Meat Processing Company 2
7 Hotel and restaurant owner 3
Total Sample Size 220Datacollection
method Survey
Key Informant Interview (KII)
Observation
Focus Group Discussions(FGD)
Study
Areas
District Upazila
Pabna District Sathia Upazila
Sirajgonj District Raigonj Upazila

12. Methodology (cont.)
12
Analytical tools
Value Chain Mapping Analysis
SWOT (Strengths , Weakness, Opportunities and Threat ) Matrix analysis
Bangladesh Economic Association (BEA)

13. Processing
Input supply
Trading
Trading
Retailing
Consumption
Production
HH
,H&R
Expor
Road side meat stall
Butcher or Meat Shop
Supermarkets:
•vehicle
•Loading
•Transportation
•Unloading
•Slaughtering,
• Chilling
•and Packing etc.
•Buying
•Transporting,
•Distribution to consumer etc.
•Vehicles
•Loading and
•Unloading etc.
•Selection
•Feeding
•Management etc.
•Feed
•Fodder
•Calf
•V. Medicine
•Finance and
•technology etc
BeefCattleValueChain
Distribution
Retailing
Processing
Consumtion
Transportation
Marketing
Production
Input supply
Benefit of Value Chain
•Value creation
•Employment for livelihood
•Creating profit
•Competiveness
•Improved customer service
•Productivity
A ‘value chain’ describes the full range of activities which are required to bring a product or service from conception,
through the different phases of production (involving a combination of physical transformation and the input of various
producer services), delivery to final consumers and final disposal after use Kaplinsky and Morris (2000) .
Results and Discussion
Beef cattle value chain is the sequential set of
primary and support activities that an enterprise
performs to turn inputs into value added outputs
for its external customers

14. Actors Functions and Interactions Activity
Processors
/Abattors
Institutional
Consumers
(Hotels, restaurants
etc)
Input Suppliers
(Calves, Feeds, Medicine & veterinary, Technology, Credit. Market
information etc)
Intensive
Production System
Village Cattle
Market
Extensive
Production System
Semi-intensive
Production System
Secondary
Cattle Market
Terminal
Cattle Market
Primary
Cattle Market
Butchers
Shop
Roadside
Butcher stall
Urban
slaughter slabs
Rural
Slaughter slabs
Household
consumers
Exports
(Dubai, Kuwait, Malaysia,
Saudi Arabia, Europe
(some countries) etc
Supermarket
Meat Corner
Inputs Supply
Consumption
Distribution/
Retailing
Processing
Live cattle
Marketing
Production
Input
SupplierProcessorsTradersProducersDistributorsConsumers
Beef Cattle Value Chain Map
Results and Discussion (cont.)
The information gathered during
the study enabled the longitudinal
Mapping of the beef cattle value
chain in the study area is presented
in this figure. The VCM illustrates
the way in which beef cattle and
their products flow from
production areas in the study areas
to end markets and how the overall
beef cattle sector operates.
This is the core process of VC. The figure
shows that the visualize networks to get
understanding of the connection and
interdependency among the VC actors of
beef cattle agribusiness.
Bangladesh Economic Association (BEA)

15. Results and Discussion (cont.)
Actors Buying Price Selling price Value Addition Percentage
Farmers 29138.76 50747.61 21608.85 74.16%
Traders 50198.33 62568.71 12370.38 20.34%
Butcher 62568.71 70465.11 7896.40 12.62%
Processor 62568.71 72285.05 9716.34 15.53%
Restaurant/Hotel 76423.55 114320.31 37896.76 49.59%
74.16%
20.34%
12.62%
15.53%
49.59%
Farmers
Traders
Butcher
Processor
Value additions of beef cattle at different stages in value (in BDT.)
The figure shows various actors who are
involved in the beef cattle value chain and also
indicates value addition by farmer (74.15%),
trader(20.34%), butcher (12.62%), meat
processor (15.53%) and restaurant or hotel
(49.51%). The highest value was added by
farmer followed by hotel and restaurant owner,
trader, processor was the second largest and
lowest value was added by butcher.

16. Results and Discussion (cont.)
Farmer’s contribution was 49.36% of value added cost but received only 21.58% of revenue
which is lower than the cost. In the live animal trading stage, trader contributes to 9.50% costs of
value addition activities and received 21.37% of total revenue.
Butcher, processing industry and hotel or restaurant owner contributed cost at 4.39%, 6.50% and
29.71% and received profit or revenue at 14.19%, 17.25% and 25.61%.
Profit share farmer 21.58% in 3-5 months, traders 21.37% in 7-10 days, butcher 14.19% in 2-3
days, meat processor 17.25% in 2-7days and restaurant share 25.61% during the value added
activities. Among the actors, butcher and meat processor gain more profit in terms of time
involvement the chain.
Sources: Field Survey 2014
49.36
9.5
4.39
6.5
27.71
15.46 15.31
10.17
12.36
46.7
0
10
20
30
40
50
60
Farmer Traders Butcher Meat processor Hotel and Restaurent
owner
Cost Share Share of Return in the chain
Actors
%
Share of Costs sand Returns of different actors in the chain

17. 17
Bangladesh Economic Association (BEA)
Strengths
1) Domestically produced
2) Beef cattle are renewable natural resource
3) Large number of labour force.
4) Government is committed to develop the sector
5) High interest in beef cattle rearing among respondents
6) Rapid growth of supermarkets, superstore, restaurant
and tourist hotel.
7) Availability of innovative technology
8) Availability of crossbred calves
9) Consumers preference for beef
Weakness
1) Lack of feed and fodder
2) Lack of meat processing knowledge
3) Prevalence of Anthrax diseases
4) Lack of sufficient and proper slaughter houses
5) Limitations of supporting institutions related to beef
cattle
6) Inadequate institutional support
7) Lack of working capital
8) Absence of beef cattle breed
9) No organized marketing system
Threats
1) Increase in feed prices
2) Govt. regulative in law safety and standards
3) Absence of pasture lands
4) Poor access to credit
5) High transportation cost (Illegal toll for cattle
marketing)
6) Beef cattle smuggling and credit sale by Indian traders
7) Spread of cattle diseases
8) Lack of veterinary check up of animal before and
after slaughter and
9) Low hygienic handling the meat lead to health risk for
consumers.
Opportunities
1) Potential demand for beef over the country
2) Government support to develop beef cattle
3) Scope for investment by national and international
farm.
4) High potential for profitable slaughter and processing
business
5) High value addition potential
6) Consumers express more interest and are willing to
pay for safe food
7) Options for private public partnership in domestic
market for product differentiation & diversification.
8) Labor intensive and employment opportunities
9) Scope exists for developing backward and forward
linkage.
Challenges and opportunities in the value chain
Results and Discussion (cont.)

18. Bottlenecks and intervention of beef cattle value chain
development
18
Bottlenecks/ Challenges Level Possible intervention and
Strategies
1) Inadequate access to
calf, feed and
veterinary services.
2) Lack of grazing land.
Inputsuppliers
1. Linkage between cattle
producers and input sellers
2.Facilitate development of
entrepreneurs in input sector.
3. Provide feed processing
techniques for preservation
cattle feed
4.Allotment of Khas land to
actual users
.
Bangladesh Economic Association (BEA)

19. Bottlenecks and intervention ------------- (Cont.)
19
Bottlenecks/ Challenges Level Possible intervention
1. Lack of access to market
information and appropriate
fattening technologies.
2. Lack of capital
3. Low productivity.
4. Lack of support services.
Producers
1. Promotion of market information &
production technologies by DLS
and NGOs
2. Provide easy access to finance to
farmers for purchase of inputs and
other related services.
3. Facilitate introduction and adoption
of crossbred calves and fattening
technologies that will improve
productivity
4. Development of cattle producers
group, contractual arrangements
and needs advocacy for support
services
Bangladesh Economic Association (BEA)

20. Bottlenecks and intervention ------------- (Cont.)
20
Bottlenecks/ Challenges Level Possible intervention
1) Poor access to market
information and
transportation.
2) Lack of access to finance of
cattle traders.
3) Illegal highway toll or
market toll.
4) High risk to carry cash
during the marketing.
5) Lack of market
infrastructures.
LiveAnimalTraders
1) Establish MIS and disseminate
information on price, demand-
supply situation & road conditions
through SMS & national media.
2) Provide specialized cattle transport
vehicle.
3) Provide credit to traders without
land grantee .
4) Establish low and force.
5) Explore possibility of extension
banking hour during the hat day.
6) Develop cattle market
infrastructures including cattle
holding space, drainage, and water
supply etc.
Bangladesh Economic Association (BEA)

21. Bottlenecks and intervention ------------- (Cont.)
21
Bottlenecks/ Challenges Level Possible intervention
1) Importation of beef
processing equipment
2) Lack of sustainable beef
cattle supply
3) Lack of easy access to
Hallal Certificate
4) Lack of investment in
establishment of meat
processing firm
5) Lack of hygienic cattle
slaughtering slab
Processors
1) Tax free import of beef processing
equipment.
2. Linkage development with contract
farmers and Processing plant /
wholesale beef traders
3. Smoothing the process of issuing
certificates by veterinary surgeon
and Islamic foundation
4. Encourage establishment of meat
processing firm through public-
Private partnership model
5. Establish and use hygienic cattle
slaughtering slab
Bangladesh Economic Association (BEA)

22. Bottlenecks and intervention ----------development
22
Bottlenecks/ Challenges Level Possible intervention
1) Unwilling to pay for quality
beef
2) Lack of hygienic beef retail
place
3) Lack of transportation
4) Buffalo meat mix with beef
Distribution/
Retailers
1) Awareness development among the
customer about safe and quality beef
and price
2) Develop hygienic retail store and beef
packaging system.
3) Arrange transportation facilities to
carry beef from slaughterhouse to store
in the market
4) Monitoring and provide punishment of
dishonest beef seller.
1) Lack of fresh, hygienic and
Hallal beef.
2) Lack of quality
3) High price
Consumers
1) Provide training to butcher for ensuring
fresh, hygienic and Hallal beef.
2) Dissemination of information about safe
and quality beef
3) Ensure supply of quality beef by
following govt. rules
4) Promotion of consumerism .
Bangladesh Economic Association (BEA)

23. Conclusion
• Value chain actors in beef cattle are butchers, hotel and restaurant owners,
smaller traders and larger traders. Butchers purchase fattened beef cattle
from producers or small traders to slaughter at abattoirs and provide their
value added product to hotel and restaurant owners and consumers.
• Hotels and restaurants owners are also part of the value chain who invest,
controls etc. hotel or restaurant which belongs to them. These hotels and
restaurants were owned by both gender groups.
• Traders are also other major actors in the beef cattle value chain. They are of two
types‟ small traders and larger traders. Small traders are the one who trade or
purchase beef cattle to sell to the other value chain actors. Larger traders can
afford and they often sell to other larger traders out of the district.
• Farmers have adopted this enterprise as profitable venture in their own line
• Scope exists for up scaling of activities at different stages in value chain
• Generates income, and employment for farmers, traders, service providers, butchers,
processors and exporters etc
• BVCA still remain a challenge which calls for proper marketing strategies such as
linking farmers with supermarkets. Inadequate slaughterhouse, packaging and
labeling are other challenges that require urgent attention through acquiring
Hallal certification from Islamic Foundation.

24. Conclusion (Cont.)
• Farmers have adopted this enterprise as profitable venture in
their own line
• Scope exists for up scaling of activities at different stages in value
chain
• Generates income, and employment for farmers, traders, service
providers, butchers, processors and exporters etc
• BVCA still remain a challenge which calls for proper marketing
strategies such as linking farmers with supermarkets.
Inadequate slaughter, quality and safety, and labeling are other
challenges that require urgent attention through acquiring
Hallal certification from Islamic Foundation.
Bangladesh Economic Association (BEA)

25. Policy Recommendations
For the different actors to benefit from value chain, the policy
makers should take the following issues into consideration.
• Beef cattle value addition has the potential of increasing farmers‟ income
and as such the poor smallholder farmers should be encouraged to take
up the cattle fattening technology so as to get better prices for their cattle
which translate to increased income thereby increasing their purchasing
power and improving their living standards.
• Comprehensive research should be undertaken to develop one of the
most important and profitable area of livestock sector
• Value chain approach may serve as effective means for development of
beef cattle enterprise and other related areas
• Arrangement of training for all the concerned stakeholders will be
prerequisite for proper development
• Policy for creating supply sources of calves , establishment of processing
plants, compliance of criteria of safe and quality beef, and other support
services

26. Some Picture During The Field Study
26

27. 27