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Report on milk vita in Bangladesh

Research · August 2019

DOI: 10.13140/RG.2.2.35597.69606

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Abdul Alim
Mawlana Bhashani Science and Technology University
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 Letter of transmittal
Date: August 20, 2011

To

Subrota Saha

Assistant professor, Department Of Economics

Mawlana Bhashani Science and Technology University (MBSTU)

Subject: Submission of Our Report

Dear Sir

I Would Like To Thank You For Report Me This Subject To Prepare The Report. This Task Has
Been Given Me The Opportunity To Explore One Of The Most Important Aspect Of The Products.
The Report Contains A Comprehensive Study Based On The Product. It Was A Great Pleasure
For Me To Have Such Type Of Opportunity To Work On This Topic. We Have Endeavor Our Best
To Come Out With A Good One And Also If We Do Any Mistake (Involuntary), Then Please Try
To See It In The Eyes Of Forgiven.

Finally I Would Like To Thank You For Valuable Guidance & Supportive In Preparing This Report.
We Will Be Grateful For Any Clarification When Required. I Would Be Highly Obliged If You Are
Kind Enough To Approve This Report And Provide Your Valuable Judgment On It.

Your faithfully,

Abdul Alim

ID: ECO-15056

Session: 2014-15

1
 ACKNOWLEDGEMET

First of all I express my deep gratitude and thanks to the Almighty Allah
for his infinite that allowed me to complete this report as a part of the research
methodology. A lot of effort and study have been involved in preparing this report
reality.

The successful accomplishment of this report is the outcome of the

contribution of number of people, especially those who gave us Time and share
their thoughts and gave suggestions to prepare this Report. We will pay humble
gratitude to the almighty for giving me Ability and patience to complete this
report.

I am very much grateful to our course teacher subrota saha department

of economics to give Us Guideline to prepare this report. He helped us a lot to
choose the topic and help us to thing different way to make the report. Without
his Proper guideline it may be very difficult to prepare this assignment.

2
 TABLE OF CONTENTS
NO: PARTICULAR PAGE NO:
PART-1
1. Executive summary 4

2. History of milk vita 5

PART-2
3. Introduction, background, significant 6

4. Scope of the report 6

5. Objective of the study 7

6. Methodology of the study 7

7. Limitation to make this report 8

8. Vision, objective 8-9

PART-3
9. Swot analysis 9

10. Products 10

11. Price 11

12. Place 12

13. Promotion 12

PART-4
14. Recommendation, conclusion 13

15. Questionnaire 14

16. Economic condition 16

17. Bibliography 19

3
 Part-1
EXECUTIVE SUMMARY

Milk Vila a ride name for dairy protects manufactured by the Bangladesh Milk Producers Co-operative
Union Limited (BMPCUL). Established under the co-operative fold, the organization, popularly known as
Milk Vita, makes necessary efforts to fulfill the demand for and milk products of city dwellers by
collecting milk from remote places of the country. Presently Bangladesh Milk Producers Cooperative
Union Limited operates in six milk shed areas of the country via Tangail, Manikganj, Tekerhat.
Baghaharighat, Rangpur, and Sreenagur. It collects milk through networks established by its primary co-
operative societies. BMPCUL is the central union of a total of 345 Primary Milk Producer's Co-operative
Societies and has a membership of about 40,000 milk-producing farmer-members. To become a
member of a rural primary society, farmers have to own a milking cow and have buy a share of Tk 10.00
and pay Tk 1.00 as admission fee. To maintain membership, a farmer has to supply at least 150 liters of
milk in a year

Members supply milk to societies twice a day on cash payment with a preferential system of weekly
basis matched on the market day of each area. The rate of the farmer's milk is decided on the basis of
fat and solid non-fat (SNF) percentage. Milk collected from cooperative societies is transported to the
nearest plant for preliminary processing and afterwards milk of Tangail, Manikganj. Tekerhat and
Sreenagur areas is brought lo Dhaka for the production of liquid milk, cream, ice- cream, flavored milk,
and sweet yogurt. Milk collected from Rangpur and Baghabarighat areas is processed at Baghabarighat
Dairy Plant for Powder Milk, Butter and Ghee (butter oil) production. All products of the organization
are marked under the trade name of ‘Milk Vita’

4
HISTORY OF MILK VITA:

Background of Bangladesh Milk producers' Co-operative Union Limited

In 1946, the initiative was taken to build a factory based dairy industry in the land of
Bangladesh. Due to the sale of milk at the nominal price of Pabna-Sirajganj district, the
dairy traders identified the city as "National Nutrition Company" for the purpose of
setting up an All India Institute, and brought the machinery to establish milk
factories in Lahiri Mohanpur area of Sirajganj district. Although the Pioneer of Dairy in Bangladesh
establishment of the factory was started, due to partition of the country, this
initiative was closed in 1947. Later, in 1948 Mr. Mukhlesur Rahman took Late M. Mukhlesur Rahman
ownership of the factory in his own asset exchange form. The factory name
was changed to "East Milk Products" and installation work was completed in 1952. Milk Vita was marketed
in short-lived days in the city of Kolkata by producing dairy products like milk, ghee,
butter etc. from the factory.
In 1966, the initiative was taken to bring cooperative based primary milk producers
association to the organization and the name was rectified by the name "East Milk
Producers Co-Operative Union Li". Initially cooperative management system was not
fruitful in 1968 by the Cooperative Marketing Society The responsibility of the factory
was taken. At the same time, due to financial bankruptcy, another organization of bottled
milk production and marketing was named as "Ashtai Dairy" in Tejgaon, Dhaka
by the Co-operative Marketing Society. Cooperative Marketing Society also failed Honorable chairman
to achieve the financial status of the two companies. Although the two companies sheikh nadir hossain
managed limited production and marketing activities for a few days, due to lack of
proper management and financial support, the production and marketing activities
of the two factories ceased in the early 1970s. s
The great architect of independence, the genuine friend of the peasant-worker, the voice of
the working people, the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, soon
after independence, the development of the fate of the working people, the fair value of the
farmers produced by the farmers and the milk of their own production field for the supply
of health-friendly milk in the city's consumer category. To fulfill the demand, follow the
"radical" method of India Would provide guidance for the development of dairy industry.
As a result of this, two consultants with the help of the United Nations Development

Organization (UNDP) and the International Development Agency of Denmark, in Managing director
1973, were evaluated on the milk industry by Mr. Cassatt and Mr. Nelson
respectively to determine the methods of reducing the milk crisis in the country. Md. Delowar hossain
Considering the recommendations of the Bangladesh government study two,
paying a dues of the previous factories and taking up a dairy industry development project in the new area
under the Cooperative Milk Scheme in 1973. With the help of the government's 13.1 billion rupees loan to
increase the milk production by protecting the interests of dairy-producing farmers, the factory was set up to
implement the following two fundamental principles in five dairy areas of the country. Later, the name was
changed to "Bangladesh Dairy Producer Cooperative Union Limited" in 1977.

5
 Part-2

INTRODUCTION OF THE REPORT

Report means an overall performance of a company or subject. As a partial fulfillment of the

department of economics, Mawlana Bhashani science and technology university, we got a
chance to make a report at the Milk Vita. This Report is the outcome of our experience at the
organization. We can know an Overall idea of an organization by a report.

BACKGROUND

We have tried our level best to put more emphases on the consumer demand and its Recovery
process since it was the topic of our course program. This report is to be used only for the
academic purpose. We have collected all the necessary and relevant information from various
primary and secondary sources. We would like to give thanks to everyone who has helped and
encouraged us in the process of preparing this report

SIGNIFICANT

All these information will help the management to identify various scopes and Limitations of an
organization. This is the basic rational behind the study. Besides it would be a great opportunity
for us to get familiar with this system. So this study is Very significant for both the company and
us. They satisfy to our work and helped us

SCOPE OF THE REPORT

FOR THE STUDENT:

The Student can know about the Institution,

 Formation.
 Objective
 Activities
 Active Plan
 Organ Gram
 Management processes etc.

FOR THE GOVERNMENT:

6
Government can get the information about contribute on the organization in the Economic
development of the country.

FOR THE CUSTOMER:

The study will be benefited for the customer and the potential customer The customer can
know about the various service served by the company. So That they can chose the perfect
service.

FOR THE ORGANIZATION:

 People in management process, employees can know the impression of the Institution
to the outside
 They can find out their strength and weakness.

OBJECTIVE OF THE STUDY

The Milk Vita is one of the big organizations of our economy. So we tried our best to force the
role of Milk Vita in the economic development of Bangladesh.

Our special focus was on the analysis of the socio economic condition of milk vita. So we tried
to make an analysis view of that state

Our additional focus was on the problem of the corporate social responsibility of was to find
out the solution of this problem.

Therefore, if we point specifically the main purpose of our study are follows:

 To present an over view Milk Vita

 To find out the objective of Milk Vita
 Analyzing the position in milk production of Bangladesh.
 To examine the formation of Milk Vita
 To identify the service they provide.
 To find out their existing and future programs.
 To identify the problems with their management
 Evaluate the contribution in overall economic development

METHODOLOGY OF THE STUDY

When we were to do the report the first question raised in our mind is which type of data, how
much data we need from where we would collect them. For reason we Divided our sources of
data into two section, such as primary data collection source And the secondary data collection

7
source We decided that, primary data which are not available so we have to use in websites,
published books, annual reports newspaper and TV channels; we will them By visiting to Milk
Vita head office at tejgaon.

PRIMARY SOURCE OF DATA:

 Conversation with the company

 formal and informal conversation
 conversation with the employee of the organization

SECONDARYSOURCE OF DATA:

 Official website of milk vita.

 Annual report of milk vita.
 Prospectus.

LIMITATION TO MAKE TIHIS REPORT

In report, we will need to explain limitation. The word limitation we mean things that keep in
your report from being an ideal treatment of the problem. Of course, in reality there is no such
thing as an ideal treatment. No real world problem can be completely explored & because
different writers will approach the same Problem differently, what seems complete to another.
Everyone understands that No report can provide coverage of a given topic in an absolute
sense. If a major Source of information was unavailable, we would note this limitation in our
report. Be frank in this section but not too negative, state clearly what was not done & Why,
but do so without apology or such negative the validity of our finding.

Vision:

- Our Mission is to gain self-sufficiency in the dairy sector within 2025

- To fulfill the nutritional demand.

- The activities of milk vita is contributing a bondage between the rural and urban Arcas by way
of marketing the rural products to city dwellers and on the other hand Re-investing back the
money received against milk and milk product sale to the Rural area for re-investment in milk
purchase. This creates positive impact on National economy along with materialization of the
program for country's self Sufficiency through white revolution.

8
Objective:

Supporting the hardcore poor, landless & marginal farmers & the villagers with the Best logistic
support in Milk sector to enhance countrywide milk production & Collecting the milk, making
more milk based products Our objective is

- To raise subsidiary income of the hard-core poor, landless and marginal farmers Living in
relatively remote rural areas of the country by way of purchasing their Produced milk at
reasonable price through guaranteed market under the co-Operative fold

Part-3
SWOT ANALYSIS

1. Strength:

- Arranging of balance cattle feed at no-profit no loss basis

- Human resources development for society members

- Cow loan for society members

2. Weakness:

-They have many competitors.

-A lack of retailers who can work face to face with the customers to generate Product
awareness

3. Opportunity:

- Free Medication, vaccination facilities for the society members.

- Unique supply of milk and milk products augmenting consumer's satisfaction

- Green grass seeds & grass cutting facilities for the farmers.

- Extension services, Training.

9
4. Threats:

-Future competition from already established market participation

- A slump in the economy that could has a negative effect on peoples spending of Discretionary
income on these products

Marketing mix analysis of milk vita

Product
Price

TARGET

Promotion Place

4 P's of Milk Vita:

Fig: Integrated market mix

1.Products: "Goods and service"- combination that a company offers a target Market. There are
some products are shows:

Pasteurized Milk Milk Vita Cream

Fresh Milk Milk Vita Sweet Curd
Milk Vita Rosh Malai Flavored Milk
Full Cream Milk Powder Milk Vita Ice-Cream
Milk Vita Chocolate Milk Vita Lollys

10
2. Price: Price is the amount of money that consumers have to pay to obtain the Products. The
price of Milk Vila products are given below:
Bangladesh Milk Producers' Co-operative Union Limited.
Head Office, 139-140, Tejgaon Industrial Area, Dhaka-1208.

Price List

SI NO Name of the product Consumer price

1. Liquid milk 1 ltr. Pkt 65.00
½ ltr. Pkt 35.00
¼ ltr. Pkt 20.00
200ml pkt. 18.00
Bulk in ltr. 58.00
2. Toned milk (new) 1 ltr. Pkt 68.00
½ ltr. Pkt 38.00
3. Flavored milk 200ml Pkt 20.00

4. I.F.C.M.P 1kg pouch pkt. 550.00

500gm pouch pkt. 280.00
400gm paperbox 247.00

5. Ghee 900gm tin 960.00

450 gm tin 500.00

6. Butter 400 gm tin 365.00
200 gm pkt 172.00
200 gm pkt 210.00
100 gm pkt. 92 .00
Bulk (per kg) Box 980.00
7. Ice Cream 2 ltr. box 300.00
1ltr. box 200.00
½ ltr. box 105.00
Cup(100 ml) 20.00

11
3. place:

No Place Distance from Nature of plant Capacity per Date of erection

dhaka(km) day(litter)
1. Mirpur Dhaka 10 Milk & Milk products 110,000 (Initial- May, 1996
processing 50,000)
2. Tangail 100 Milk Chilling 10,000 Jun, 1975
sadar,Tangail

3. Manikganj 90 Milk Chilling 10,000 Sep, 1975

Manikganj

4. Takerhat, 190 Milk pasteurization 25,000 Dec,1977

Madaripur
5. Baghabarihat, 125 Milk products 162,000 Nov,1977
Sirajganj processing

4. Promotion:

The major products of Milk Vita include: pasteurized liquid milk, butter, ghee, ice cream and ice lollies,
full cream milk powder, skim milk powder, flavored milk, sweet curd, cone ice cream, cream and rasa
malai (sweetmeats) With the gradual expansion of the organization, Milk Vita has been paying due
attention to addition of new products to the product range and to the maintenance of overall quality
and hygienic conditions

Milk Vita's products are mainly marketed in major cities through established marketing networks of
rickshaw van co-operative societies in addition to the formal retail agencies and wholesaling distributors.
Milk Vita's marketing operation through the Milk Distributors' Rickshaw Van Co-operative Society is
another unique example depicting success of co-operative systems in the country In this process, the
common rickshaw-pullers have formed societies, which have been supplied with locally fabricated
insulated milk delivery vans on a hire-purchase basisIt has been observed that most of the pullers have
become the owners of the rickshaw vans paying off the dues through their income from the delivery of
milk and milk products to retail shops. Presently, there are five milk distributors' rickshaw societies of
which one society is established in a 10-storeyed house.

12
 Part-4
RECOMANDATION

1. They should change their place whereas collect their raw materials That means near the factory which
will reduce the production cost

2. If they established individual firm then they provide product with reasonable price and quality
products. If they establish participative leadership then they make profit.

 framing, within a given period of time, of an appropriate dairy policy for the country depicting
all pertinent issues
 formation of the Dairy Development Board of Bangladesh with professionals of the scc assuring
adequate authority and autonomy (Rahman e a. 2000)
 Acquisition of batman land for farmers' cattle grazing
 government, national and international assistance in the milk seclor hoth for plant
estahlishment and infrastructural support
 replication of the Milk Vila model in other parts of Bangladesh through government initiatives
and funding for the benelit of both farmers and consumers and
 Channeling the government's poverty alleviation programmers through the infrastructure of
Milk Vita in all the milk-shed areas of the country Milk Vita has emerged as a successful co-
operative Endeavour in Bangladesh. It provides poor, landless and marginal milk producer
farmers and women in the associated communities with regular supplementary incomes. It has
shown it capable of strengthening its activities further to increase dairy production and thereby
to contribute effectively to the national economy through a strong and viable organization of
small farmers

Implementation f these major issues by the relevant quarters will contribute effectively in increasing
domestic agricultural production.

13
 Questionnaire

GENERAL INQUIRIES

Name: ………………………….

Age: …………… Years

Gender: A) Male B) Female C) Others

Married Status: A) Married B) Unmarried
Educational Accessibility: A) Primary B) Secondary C) Higher Secondary D) Illiterate
Number of Family Members: ……………………….

INFORMATION ON ECONOMIC STATUS:

1. How Much Money Is Your Monthly Income?

A) 5000-10000 B) 10000-15000 C) 15000-20000
2. How Much Money Do You Spend Monthly?
A) 5000-10000 B) 10000-15000 C) 15000-20000
3. Do You Have Any Stores? A) Yes B) No
4. Do You Borrow From Any Of The Following Sources?
A) Bank B) Association C) NGO’S D) Relatives
5. Do You Have Permanent Property? A) Yes B) No
6. How Many People Are Your Family Members Earning?
..........Person
7. How Many Hours Do You Work Daily?
............Hours
8. Is Your Monthly Income Sufficient? A) Yes B) No
9. Do You Get Medical Allowance From Milk Vita? A) Yes B) No
10. Do You Get Paid For Extra Work? A) Yes B) No
11. Will You Get a Retirement Allowance from Milk vita? A) Yes B) No
12. Do You Receive Any Financial Support from Milk vita For Children's Education?
A) Yes B) No

SOCIAL STATUS INFORMATION:

1. Is There Any Training From The Farm? A) Yes B) No

2. How Many Years Have You Been Working In Milk vita?
…………………. Years
3. Does Anyone Else in Your Family Work In Milk vita? A) Yes B) No
4. What Kind Of Family Do You Have? A) Single B) joint

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5. How Much Is Your Agricultural Cultivable Land?
……………. Squire feet
6. What Kind Of Accommodation Do You Have?
A) Tin shed B) Made Of Coconut C) Brick Made
7. Have You Experienced Any Problems in Milk vita? A) Yes B) No
8. How Many Of Your Children Go To School?
………………… person
9. There Enough Educational Institutions in Your Area? A) Yes B) No
10. Where Do You Get Medical Care?
A) Government Hospital B) Clinic C) Kabiraj Station C) Other!
11. What Kind Of Benefits Do You Need from Milk vita?
A) Money B) Security C) Medical D) Other
12. Has Working At Milk vita Improved Your Socioeconomic Status?
A) Yes B) No
13. Are There Any Community Clinics In Your Village? A) Yes B) No
14. Do You Have Enough Education In Your Area? A) Yes B) No
15. Does Milk vita Provide Two at The Festival? A) Yes B) No
16. Did You Get a Bonus from Milk vita On The Occasion Of the Festival?
A) Yes B) No
17. Do You Have Any Cultural Institutions? A) Yes B) No
18. Is There Any Funding Arrangement in Milk vita? A) Yes B) No
19. Why Do You Use A Smartphone? A) Yes B) No
20. Do You Use The Internet On Mobile? A) Yes B) No
21. Is There a Firefighting System in Milk vita? A) Yes B) No
22. Is the Milk vita Environmental Useful? A) Well B) No
23. Do You Get The Benefits Of Modern Technology In The Farm?
A) Yes B) No
24. Are Your Local Here? A) Yes B) No
25. Are There Any Physical And Emotional Risks To Your Work?
A) Yes B) No
26. Do You Have Your Own Mode Of Transportation? A) Yes B) No
27. Do You Have A Desire To Go To Any Other Profession?
A) Yes B) No

15
 ECONOMIC CONDITION:

1) Abdul Mannan (40):

Working as an electrical caretaker of Milkvita. He is a higher secondary passed
permanent worker.Monthly Income is between the range of 15000-20000.His
monthly expenditure is between the range of 15000-20000.Numer of family
members is four.During Crisis moment he takes loan from NGO.He has fixed
asset.Shahin Uddin ia the only earning member of his family.He works 8 hours per
day and thinking that his monthly income is sufficient for his family to lead
smoothly.He gets medical allowance, no incentive from overtime working, gets
pension allowances, getting financial help for children’s education from Milk Vita.

(2) Md. Akij uddin (32):

Working as a Mechanical assistant.With only Primary education He works as
master rule which means no works no pay.He is from Alokdia.His family members
is 6.Monthly income is between the range of 10OOO-15000 and expenditure is
Between 10000-15000 that indicates he has no savings.He has to take loan from
Banks when necessary.He is the only earning member and he has fixed asset of
his own.He also works 8 hours per day and still thinking that his monthly income
is insufficient to maintain his family. He doesn’t get medical allowance, incentive
from over time working.But, He gets pension allowances from Milkvita.There is no
financial help from Milkvita for childs education for master rule workers.So, his
economic condition is not well.

(3) Abdul Alim (40) :

Working as a Primary Labour who is associated with milk processing activities is a
Secondary passed worker.Family members is 5 and a permanent worker of
MilkVita.His monthly income is 5000-10000 tk and he has to expend the whole
income that implies no savings of his own.Generally he takes loan from NGO.He
has fixed asset.Being the only earning member of hus family he works 8 hours per
day.But he thinks that his income is sufficient to maintain his family.He gets
Medical allowances and pension allowances but no incentive for overtime
working.Sometimes financial help is given to educate his Children.

16
Social Condition:

1) Abdul Mannan (40) :

There is scope of training from farm.He has been working here for 40 years.
Another member of his family also works there and his family is single.He has 1.5
bigha property(land) and house is tenshed building.No health risk
allowances.Facing no problems during work.There is sufficient educational
institutions in his local area and has two school going children.
Takes medical allowances from govt Sadar Hospital.Has community clinic in his
area. He needs financial help from Milkvita and he thinks that his socio economic
condition has not been improved yet.

(2) Md. Akij uddin (32) :

He told us there is no scope of training from farm for master rule workers as he is
a master rule worker. He has been working here for 14 years.Another member of
his family also works there and his family is extended family. He has 0 acre
property(land) and house is Tin Shed building.No health risk allowances.Faced
problems during work.There is sufficient educational institutions in his local area
and has one school going children. Takes medical allowances from govt Sadar
Hospital.Has community clinic in his area. He needs financial help from Milkvita
and he thinks that his socio economic condition has not been developed yet.

(3) Abdul Alim (40):

He said us that there is no scope of training from farm for permanent workers as
he is a permanent worker. He has been working here for 16 years.Another
member of his family doesn’t work there and his family is single family. He has 2
Bigha property(land) and house is tenshed building.No health risk
allowances.Faced no problems during work.There is sufficient educational
institutions in his local area and has two school going children.
Takes medical allowances from govt Sadar Hospital.Has community clinic in his
area. Thinking that he also needs financial help from Milkvita and he urged that
his socio economic condition has not been improved yet.

17
Cultural and others information of the 3 workers:

1) Abdul Mannan (40) : There is opportunity of occasional holiday like EID UL

FITRE, EID UL AZHA, POHELA BOISHAKH, PUJA and others.3 occasional bonus are
given to him.He informed me that there is no cultural organisation and no scope
of entertainment. Shahin has Smartphone and uses internet also. Milkvita has the
provision of fire extinguishing. Environment of Milkvita is not well to work as
much as it would had been.The farm doesn’t have modern Technology.He is a
permanent member of this area has no via of communication to come here.He
has the Physical and mental risk in his work.But, he has no intention to leave
MilkVita.

(2) Md. Akij uddin (32) :

As he is a master rule worker.
There is opportunity of occasional holiday like EID UL FITRE, EID UL AZHA, POHELA
BOISHAKH, PUJA etc.He gets no bonus.He informed me that there is no cultural
organisation and no scope of entertainment. Shahin has no Smartphone and
can't use internet. Milkvita has the provision of fire extinguishing. Environment of
Milkvita is not well to work as much as it would had been.The farm doesn’t have
modern Technology.He is a permanent member of this area has no via of
communication to come here.He has the Physical and mental risk in his work.But,
he has no intention to leave MilkVita.

(3) Abdul Alim (40) :

As he is also a permanent worker. There is opportunity of occasional holiday like
EID UL FITRE, EID UL AZHA, POHELA BOISHAKH, PUJA and others.3 occational
bonus are given to him.He informed me that there is no cultural organisation and
no scope of entertainment. Shahin has Smartphone but can't use internet.
Milkvita has the provision of fire extinguishing. Environment of Milkvita is well
.The farm has modern Technology.He is not a permanent member of this area has
no via of communication to come here.He has the Physical and mental risk in his
work.But, he has no intention to leave MilkVita.

18
 BIRLOGRAPHY

1. Visiting Milk Vita factory at Baghabarighat, Shahjadpur, Sirajganj.

2. Interviews with questionnaire.
3. www.milkvita.org.bd
4. www.google.com
5. Official website of Milk Vita.

THE END

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