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The Livestock Business Centre Changing Lives

By Farhana Shahnaz On 26.02.2019 Influence & ImpactBlog

Livestock as an important segment of the agricultural sector of Bangladesh has seen an exponentially growing demand. Its prospects as a driver of substantial and sustainable socio-economic change are very promising, however, there remains a lot of room for improvement. There has been a dearth of knowledge with regard to the livestock sector, leading to unaddressed gaps. There is a lack of service and quality inputs for the rural farmers, affordable distribution network and absence of private companies’ business hubs in the community level. That is where the Livestock Business Centre (LBC) comes in. The LBC performs a facilitative role, with the underlying objective of working towards benefitting the rural poor farmers. It has been designed to address all the unmet knowledge needs of the farmers, with a goal of commercialization of rural livestock products and relevant services and inputs. It also ensures affordable output supply for the rural poor farmers, which is contributing to market access and income increase of the rural producers, value chain actors and other market players.

Practical Action Consulting (PAC), in collaboration with a microfinance institute (MFI) established the Livestock Business Centre in Faridpur Sadr, which is an independent rural enterprise providing one-stop solution to farmers, with the vision of establishing a viable business model for products and services surrounding and including rural livestock products. This business aims towards a multi-pronged benefit approach for the producer community, for the traders as well as for the consumers. The objective of this project is to improve the supply chain by establishing rural business centre and distributions network and farmer groups and market-led production systems.

Many have made remarkable strides ahead benefiting from LBC. Stories of some have been brought to light.

Sharifa Syed was a member of the Asha Committee when she heard about the Livestock Business Centre. She heard about the benefits of LBC and realized it was here to help. Inherently, she would face difficulty availing medical services for her cows. Quality feed was not readily available. Since LBC seemed like a welcome solution, she expressed her interest in availing the services of LBC. She first took a loan and bought one cow. Then she bought another a few months later. She then sold both the cows for a significant profit. After that, she never had to look back. She then repaid her loan to LBC and bought land with the rest of the money. She cultivated all sorts of vegetables, starting from cucumber, eggplant, gourd to onion, chili etc and made a huge profit from there as well. She invested some of her profit on renovating her house and the rest on her children’s education and household expenses. Riding on her initial success, she continued taking loans from LBC. She started from scratch and achieved resilience leveraging on the benefits of LBC. She now keeps busy all day tending her cows or working in the field. She boasted that her husband consults her for every major decision and her standing in her family and the society at large, has been cemented.

Surjo Banu and Billal Sheikh have always been each other’s support throughout. They have been in the cattle rearing business for very long. When they first heard about the services LBC provided, they realized it tapped into a lot of their problem areas. They inherently faced some issues, particularly availing medical services for their cows. The local veterinary professional would not always be within reach. Additionally, availing medical services was a costly affair. It costed them BDT. 1000 to BDT. 1200, often as high as BDT. 2000. With LBC, medical services were now within their grasp, with just a phone call, and at zero costs. Things have become a lot easier for them since LBC happened. They collectively made the highest profit margin they ever made. In a very calculative move, they invested the profit in buying land and a trailer for cultivation, which led to greater profits for them. They can now support their children and cater to their needs with this safety net in place. The couple also hosts the LBC collection meeting in their courtyard, where all the cow rearers socialize, apart from talking about business. Surjo Banu and Billal Sheikh have set a wonderful example of how two partners have crafted a better life for themselves systematically, taking assistance from LBC.

Afzal Hossain reaped the benefits of the LBC to the fullest with this timely planning. He sold the cow that he bought for a very lucrative profit for Eid, just a few months ago. He then systematically invested his profit to achieve a greater level of financial stability. He bought land with this profit and is looking to cultivate onions, which is particularly profitable in this time of the year. He estimates to earn an aggregate return of BDT. 4 lac through his clever investments, multiplying his initial investment by manifolds. He believes this was only possible because he had LBC’s support. LBC has made things a lot simpler for him. With living expenses increasing every day, he was having a hard time making ends meet with the profits he was making earlier. An underlying issue he had been facing was availing medical services for his cows. Not only would it be difficult to manage veterinary services, but it was also costly. The fee would range from BDT. 1500 to BDT. 2000. For cow rearers like Afzal, this kind of cash was not always readily available. If the fee of the vets was not ensured, they simply would not come, leading to catastrophic ramifications for the cow rearers. But Afzal feels the vets of LBC are one of their own. The vets are at his service any time the need arises, which has lifted a huge burden off his chest. With the convenience that LBC has brought, Afzal could diversify his income sources and become a more resilient individual.

Abdul Kalam was sceptical about LBC at first but after hearing how his neighbours were benefitted through the service, he decided to try his luck. He previously had a bitter experience availing financial aid from the government microfinance scheme. The loan given then was a very meagre amount, not enough to meet his needs. Because of poor governance prevalent within the system, he also had to give away a huge portion of that loan as a bribe, ultimately not leaving enough for himself. He first took a loan from LBC and bought a cow. He then bought a second. He sold both his cows for a handsome profit, but he did not stop right there. With the huge profit he made, he cleared his loans and invested on land. He has been working relentlessly in the field to reap more profits. He was fortunate to have his wife Anowara by his side throughout. While he worked in the field, she would stay at home and tend the cows. Kalamwholeheartedly acknowledged his wife’s contribution. Leveraging on her enterprising spirit, he diversified his investment on goat, chicken, and turkey rearing. As a token of his appreciation, he made her a pair of gold earrings from the profits. Abdul Kalam and Anowara Kalam have a happy and prosperous life now. Because they are now more resilient, they hope to continue their youngest daughter’s education without restrictions. Abdul Kalam not only acknowledged his wife’s contribution, but he was equally thankful to LBC which gave him the footing to take up more ventures.

Itwas evident fromNaznin Akhter’s smile that things have been going in her favour. Naznin’s husband has a booming onion cultivation business, but she wanted to do something on her own and create an identity apart from her husband. Having heard about the benefits of LBC, she decided to avail the services. She bought a cow with her loan. When inspecting the feed provided by LBC, she found that it was of a much higher quality than local feed. She was also particularly impressed by the promptness of the medical services. Her effort in tending her cow yielded positive results for her, and she sold it for BDT. 3 lac 60 thousand, making a huge profit. With the additional income in hand, she was now able to contribute financially to her family as well. Some of the profit was invested in onion cultivation and the rest on her familial expenses. But Naznin made sure most of the investment went towards ensuring a better life for her daughters. Both of her daughters were students in the Faridpur Polytechnic Institute. Her oldest was receiving a degree in Civil Services and the youngest in Computer Studies. It would cost them around BDT. 6000 for their commute every month, which was now mostly covered from the profits made. Naznin wanted to set an example for her daughters, and she is proud to have done so. She believes because of the advises she received from LBC she now knows a lot more than what she had previously known. She can now transfer her knowledge and skill to her friends and acquaintances and help empower them. She is now very confident about her capabilities and is looking to buy two more cows in the coming months with support from LBC.