City Bank Partners with Milk Vita and Agroshift to Revolutionize Dairy Financing in Bangladesh
City Bank partners with Milk Vita – City Bank has announced a strategic partnership with Milk Vita and Agroshift to launch a groundbreaking digital dairy financing initiative, aiming to bridge the gap in financial access for dairy and cattle farmers across the country. This collaboration, which brings together a leading commercial bank, a prominent dairy cooperative network, and an innovative agritech platform, is designed to create a sustainable ecosystem that supports the growth of the dairy sector while ensuring farmers benefit from tailored financial solutions. By integrating City Bank’s expertise in banking services with Milk Vita’s extensive infrastructure and Agroshift’s digital capabilities, the partnership seeks to empower rural communities and drive economic development through improved agricultural finance.
Milk Vita, a cornerstone of Bangladesh’s dairy industry, operates a vast network of 3,300 primary societies, 61 chilling centers, and over 300,000 farmers spread across 57 districts. Its deep-rooted presence among dairy producers provides a unique platform to connect farmers with financial institutions. Agroshift, a cutting-edge agritech company, will play a crucial role by offering digital tools that simplify the onboarding process, verify farmer identities, and track operational metrics. Together, City Bank partners with Milk Vita and Agroshift to streamline access to credit, reduce transaction costs, and enhance transparency in the dairy value chain. This initiative is expected to benefit not only individual farmers but also the broader agricultural economy, fostering long-term growth and resilience.
How the Partnership Addresses Key Challenges in Dairy Farming
The dairy sector in Bangladesh has shown remarkable growth, contributing nearly 2.73% to the national GDP and supporting over 9.4 million people. Despite this, many farmers still struggle with limited access to formal credit, which hinders their ability to invest in modern equipment, expand operations, or adopt sustainable practices. City Bank partners with Milk Vita to tackle this issue by leveraging the cooperative’s established farmer base and Agroshift’s digital infrastructure to create a seamless financing framework. The partnership will enable farmers to apply for loans through a user-friendly mobile application, with funds disbursed quickly and efficiently. This approach not only improves financial inclusion but also ensures that the dairy supply chain remains robust and adaptive to market demands.
“City Bank partners with Milk Vita to build a digital ecosystem that transforms how dairy farmers access financial services,” stated Mashrur Arefin, CEO of City Bank. “This initiative is a testament to our commitment to supporting rural development and food security through innovative, scalable solutions.”
Agroshift’s role in the partnership is equally vital, as its technology-driven platform ensures secure and efficient transaction processing. By combining City Bank’s banking services with Agroshift’s digital tools, the collaboration aims to reduce bureaucratic hurdles and eliminate the need for physical paperwork. This is particularly significant in a country where many farmers rely on informal credit sources due to the complexity of traditional lending processes. The partnership will also facilitate real-time data collection, allowing for better decision-making and tailored financial products that meet the specific needs of the dairy industry.
Scaling Financial Access and Strengthening the Dairy Supply Chain
Bangladesh’s dairy industry has been a key driver of economic growth, with milk production reaching 10.79 million tonnes in 2024. This places the country among the top five in Asia and the 19th globally by volume, highlighting the sector’s importance to the national economy. However, the industry’s potential is often constrained by inadequate financial support. City Bank partners with Milk Vita and Agroshift to address this by providing farmers with access to affordable credit, insurance products, and savings opportunities. The initiative is expected to accelerate the adoption of technology in dairy farming, enabling producers to scale their operations and improve productivity. This, in turn, will bolster Bangladesh’s position as a regional leader in dairy production and contribute to national food security goals.
With the domestic dairy market projected to grow at a compound annual rate exceeding 9% through 2029, the partnership is well-timed to meet rising demand. City Bank partners with Milk Vita to ensure that this growth is accompanied by equitable financial access, particularly for small-scale farmers who often lack the collateral required by traditional banks. Agroshift’s digital tools will help streamline the credit application process, reducing the time and effort needed to secure funding. Additionally, the collaboration will support the livestock subsector, which accounts for 17.15% of agricultural output, by integrating dairy and cattle farming into a unified financial framework. This holistic approach not only strengthens the dairy supply chain but also promotes cross-sector growth and sustainability.
By embracing digital transformation, City Bank partners with Milk Vita and Agroshift to set a new standard for agricultural finance in Bangladesh. The initiative will provide farmers with tools to monitor their operations, manage cash flow, and plan for future investments. This is especially important in a sector that plays a critical role in rural livelihoods, with dairy farming directly impacting the incomes of millions of households. The partnership also aligns with national strategies to modernize the agricultural sector and reduce dependency on informal credit systems. As Bangladesh continues to expand its dairy industry, the collaboration between City Bank partners with Milk Vita and Agroshift will be instrumental in ensuring that farmers are equipped with the financial resources needed to thrive in a competitive market.
