A rural distribution initiative from Arla Foods Bangladesh Limited

Abstract

Bangladesh is a developing and densely populated country. For decades, Bangladesh has a large domestic market for milk products which was largely met through importation of subsidized milk, powder milk and milk products form developed countries. During 1989-90, Bangladesh imported milk and milk products worth 400 million taka to meet a short fall of 40 percent of domestic demand. Bangladesh milk sector is failed to provide sufficient supply for liquid milk. To minimize this shortage government has taken some steps such as urgent meet up through imported powder milk and try to develop dairy farms to the private entrepreneurs’ levels. Only local dairy farm could not provide sufficient supply of liquid milk according to consumers demand. To fill up this gap there are a lot of companies launch in Bangladesh to sell milk powder product. One of them is DANO which is a familiar word for each household in rural and urban area in Bangladesh. Mutual Group is primarily a 'Toll Manufacturing & Distribution company' with the legacy of establishing two global brands, 'Horlicks' and 'Dano', as the household name in Bangladesh. It separated from Mutual Group and created a joint venture with Arla Foods amba in Denmark in 2011. In Bangladesh, Arla foods has varieties of product for powder milk like regular and instant milk powder, filled milk powder, baby foods- Deelac, Dano mom for pregnant women in Bangladesh. Arla Foods is home to some of Bangladesh’s best-loved dairy brands. We work hard to make sure that our suppliers meet our exceptionally high standards of production and animal welfare and with nearly 1500 employees and a turnover of more than tk1.2bn. Globally we are 19,000 colleagues across 30 countries and 12,700 dairy farmer owners in Denmark, Sweden, United Kingdom, Germany, Belgium, Luxembourg, Netherlands and Bangladesh. Together, we share a strong identity Good Growth that guides our decisions as we create the future of dairy.