Bangladesh has a very large livestock sector that supports both food and income for millions of families. The country has about 56.7 million livestock in total, of which 24-25 million are cattle. Cattle make up about 43% of all livestock and are mainly raised for dairy and beef production. Livestock farming is part of daily life: around 20% of people earn their living directly from livestock or poultry, and over 80% of households keep some form of livestock. This shows just how important the sector is for both rural incomes and national food security.

The role of dairy and beef cattle
Dairy cattle play a central role in nutrition. About 90% of Bangladesh’s milk comes from cows, and domestic milk production reached 13.07 million tons in 2021-22, which met about 83% of national demand. On average, each person gets about 208.6 ml of milk per day, which is still below recommended nutrition levels. Meat is also essential: every year, about 10 million cattle are slaughtered for beef, and nearly half of these are consumed during Eid-ul-Azha. To meet this huge demand, many farmers run cattle fattening programs, showing that both dairy and beef are pillars of Bangladesh’s food system and economy.

Climate change: a growing threat
Diseases are one challenge, but climate change is now a bigger and growing risk. Bangladesh faces more frequent floods, cyclones, and dangerous heatwaves. When the temperature-humidity index (THI) goes above 72, cattle start to feel heat stress. During Bangladesh’s summer, THI often stays above this limit for weeks.

The impact is severe:
• Dairy cows: Milk yield falls by 10-25% during heat stress, and during extreme heat waves, losses can reach 30%. Fertility and animal health also suffer, cutting farmers’ income.
• Beef cattle: Feed intake drops once temperatures crosses 25-26°C, and at 40°C, cattle may eat 40% less feed. This slows weight gain, reduces profitability, and may force farmers to sell animals earlier at lower weights and price.

A new solution: Heat Index Insurance
To respond to these risks, Green Delta Insurance PLC introduced Bangladesh’s first Dairy Heat Index Insurance in 2024. This innovative product was developed with IBISA Network (technical partner), and implemented locally by APDS and Disha, with support from Swiss Capacity Building Facility (SCBF).

On 21st August 2025, Green Delta achieved a major milestone: the first-ever settlement of Dairy Heat Index Insurance claims in Bangladesh. About 500 farmers at Chilmari, Shyamnagar, and Haluaghat in Mymensingh District received payouts. These payments were triggered automatically by weather data showing extreme heat, giving farmers fast financial support to recover losses without delay.

Why this matters for the future?
Expanding livestock insurance is vital for the future. By covering both dairy and meat, insurance can:
• Protect incomes during heatwaves, floods, or cyclones.
• Reduce the need for distress sales of cattle.
• Encourage farmers to invest in better breeds, housing, and feeding practices.
• Support national food security by stabilizing milk and meat supply.
One way to scale up is through blended finance. This means combining donor funding, government support, and private investment to make insurance affordable and sustainable. For example, donors like SCBF can help with initial costs, while private insurers provide the service. Over time, as farmers gain trust and more data becomes available, such insurance can expand across the country.

Conclusion
Bangladesh’s livestock sector is both vital and vulnerable. Climate risks, especially heat stress, are now a clear threat to livestock farmers. With new tools like Heat Index Insurance, supported by strong partnerships, farmers no longer need to face these risks alone. The recent successful claim settlement proves that innovative insurance can bring real resilience to rural Bangladesh, ensuring livestock continues to be the backbone of both nutrition and livelihoods.

Source:
https://unfccc.int/documents/637316?utm_source
https://sjsr.scione.com/cms/fulltext.php?id=95&utm_source
https://en.banglapedia.org/index.php/Livestock?utm_source
https://www.qeios.com/read/WHWLTS?utm_source