1. INTRODUCTION

1. Rationale for Selecting the Report:

Dairy sector of Bangladesh is playing an important role in Bangladesh Economy. Country is producing milk well under the requirement and most of the demands are being met from import of dry milk from the international market. This country needs 7.227 million ton milk calculating 120ml per head. Out of which we produced only 2.686 million ton and met up our requirement by importing 52 thousand ton milk power from abroad. Still we have deficit of 3.91 million ton milk. At present, daily per capita milk consumption is less than 60 ml. We are spending 10 billion Taka per annum for importing milk powder from abroad.

The total milk market in Bangladesh is estimated around 21000mt worth $ 72m of which Dano holds 22% Market Share (MS), Diploma 18%MS, Anchor 12%MS, Red cow 8%MS, Nido 4%MS and others rest local players. FCMP market reaching maturity and price competition is also increasing. Due to no/little product differentiation brands becoming very price elastic. Global Trend-Consumers moving from generalized products to specialized products. Local Trend- Consumption of packed consumer goods going up. NZDP (New Zealand Product Bangladesh Ltd.) intents to enter the specialized product segment of milk market in Bangladesh.

With the outbreak of stunning information that powder milk product specially growing up Milk product contain melamine; the global milk market has gained instability. Almost three children had died with the hazardous effect of melamine at China. Lately but massively it has created a crucial moment for the consumer as well as the FCMP producer of Bangladesh, because we do not have adequate local milk production. Therefore we largely depend on FCMP imported from abroad.

"Despite the fact that cash is the lifeblood of a business -- the fuel that keeps the engine running -- most business owners don't