Lack of permanent market, low quantities of milk production, poor breeding, limited veterinary services and shortages in cow feed were the challenges in dairy sector in Bangladesh till the nineties. To overcome these problems BRAC launched its dairy initiative in 1998 in the country.

What started as a social business effort soon became a brand - Aarong Dairy - one that soon gained the trust and respect few businesses manage to gather.

BRAC's artificial insemination programme came into play, and has successfully helped farmers rear breed of cows that significantly increased their milk yields. When milk production increased tremendously, farmers especially the women found it difficult to sell the milk. BRAC came forward with dairy initiatives and this helped the poor milk producers market the milk at a fair price. 

Aarong Dairy now has 101 collection and chilling stations located in 25 districts, including ten in ultra-poor areas. These units collect more than 100,000 litres of milk on a daily basis and serve 50, 000 farmers, around 70 percent being women.

By targeting rural communities, it contributes to poverty reduction also encourages extra income that helps improve livelihoods. The most important substance is that women feel empowered, are respected in their communities since they begin contributing economically. The Milk initiative of BRAC is part of a case study under LANSA