BRAC launches ‘Livestock Grow Initiative’ to support small farmers with financial and veterinary aid

The Report Desk

Published: February 3, 2025, 07:00 PM

BRAC launches ‘Livestock Grow Initiative’ to support small farmers with financial and veterinary aid

Source: BRAC

In a major step toward improving the lives of small livestock farmers across Bangladesh, BRAC has launched its latest program, the ‘Livestock Grow Initiative,’ to provide much-needed financial and veterinary services. 

The initiative aims to help farmers access resources to better manage their livestock and ensure their businesses thrive despite ongoing challenges.

Bangladesh’s livestock sector is crucial for rural livelihoods, providing food and financial security to millions of people. 

However, many small farmers continue to face difficulties, particularly with accessing financial services, veterinary care, and modern technology.

The recent imposition of a 15% VAT on agricultural microinsurance and cattle insurance has only made matters worse, increasing the cost of premiums and pushing insurance out of reach for the most vulnerable farmers.

To address these challenges, BRAC’s Microfinance program has rolled out the ‘Livestock Grow Initiative,’ which will offer a combination of financial support and healthcare for livestock farmers, helping them recover from losses and build stronger businesses.

Key Figures Speak at Launch Event

The program was officially launched today at BRAC Centre in Dhaka, with several high-profile guests in attendance. 

The event was chaired by Asif Saleh, Executive Director of BRAC, and featured Dr. M. Aslam Alam, Chairman of the Insurance Development and Regulatory Authority (IDRA), as the chief guest. Other special guests included Brigadier General (Retd.) Shafique Shamim, Managing Director and CEO of Sena Insurance PLC, and other senior officials from the livestock and finance sectors.

In his speech, Asif Saleh spoke about BRAC’s vision for inclusive business models, explaining that "doing good and doing business do not have to be separate goals." 

He highlighted BRAC’s past success with social enterprises like Aarong and BRAC Dairy, which started small but eventually became profitable and sustainable, showing that it is possible to balance social impact with business growth.

“BRAC’s social enterprises may face challenges in the beginning, but they eventually become scalable and sustainable. We believe the same will be true for the microinsurance sector,” 

said Saleh, adding that to make insurance accessible to small farmers, it must be viewed as a long-term business opportunity rather than just a corporate social responsibility (CSR) initiative.

Arinjoy Dhar, Senior Director of BRAC’s Microfinance program, emphasized the role of insurance in protecting farmers from financial setbacks. “Microfinance helps people rise out of poverty, and insurance ensures they stay out of it,” he said. 

Dhar stressed the importance of designing insurance products that meet the specific needs of communities, making them both accessible and useful.

Addressing the Insurance Gap in Bangladesh

Chief guest Dr. M. Aslam Alam highlighted the worrying state of insurance coverage in Bangladesh, noting that the country has the lowest insurance penetration rate in South Asia. "This trend needs to be reversed," he said. "We need policy reforms, greater use of technology, and a dedicated microinsurance body to drive the growth of microinsurance."

He also mentioned that bancassurance (the sale of insurance products through banks) and insurtech (insurance technology) will play a key role in increasing insurance adoption among small farmers. 

According to Dr. Alam, the government and private sector must work together to promote these solutions.

Brigadier General (Retd.) Shafique Shamim, Managing Director of Sena Insurance PLC, added that while it is a challenge to convince farmers to adopt insurance, the benefits far outweigh the difficulties. He called for stronger partnerships between insurers, the government, and development organizations to better support farmers.

Supporting Small Farmers Nationwide

The ‍‍`Livestock Grow Initiative‍‍` focuses on dairy farmers and cattle fatteners, offering them financial services, insurance, and healthcare support for their livestock. 

The program also provides telemedicine services for animal health and distributes free grass seeds to farmers in areas prone to natural disasters, ensuring better feed security for livestock.

As part of the initiative, BRAC aims to help farmers recover from natural disasters and protect their animals from health risks, both of which can lead to severe financial losses. 

With this comprehensive support system, BRAC hopes to increase productivity, improve livestock health, and strengthen the resilience of smallholder farmers.

Dr. ABM Saifuzzaman, Director at the Department of Livestock, said that collaboration between stakeholders is essential to closing the gaps that prevent farmers from accessing insurance. 

He called for better coordination between government agencies, insurers, and NGOs to ensure more farmers benefit from cattle insurance.

Dr. Delwar Hossain, Joint Secretary at the Financial Institutions Division, echoed this sentiment, noting that NGOs like BRAC play a key role in reaching marginalized communities. “Microfinance and microinsurance together create a win-win solution for farmers,” he said, adding that he hopes the initiative will be scaled up across the country.

K. A. M. M. Raisul Islam, Director at the Microcredit Regulatory Authority, suggested that insurance education be included in school curriculums to raise awareness among the next generation. 

He also proposed that cattle insurance cover theft as well as other risks, ensuring more comprehensive protection for farmers.

A Promising Path Forward

With the ‍‍`Livestock Grow Initiative,‍‍` BRAC is taking an important step to address the financial and health challenges faced by small farmers. 

The program’s combination of financial products, insurance, and veterinary care is designed to help farmers manage their risks and build stronger, more sustainable businesses.

As BRAC continues to lead the way in development programs across Bangladesh, the Livestock Grow Initiative could prove to be a model for other initiatives aimed at supporting the country’s rural economy.

By providing tailored solutions and working closely with the farming community, BRAC hopes to empower small farmers, protect their livelihoods, and create a brighter future for Bangladesh’s livestock sector.

 

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