A low-lying riverine country with a total area of 55,598 miles (143,998 square kilometers). Bangladesh stretches latitudinal between 20°34' and 26°38' north and longitudinally between 88°01' and 92°41' east. it is almost surrounded by India except for a short (about 120 miles) south eastern frontier with Burma, and a southern irregular deltaic coast line that faces Bay of Bengal. The physical geography of Bangladesh primary presents a two-dimensional facet. The flat alluvial plain comprising most of the country and the much smaller hilly area of chittagong and chittagong Hill Tracts in the extreme south east. The most significant characteristic feature of Bangladesh’s landscape is its extensive network of rivers which contribute a great deal to the socio-economic life of the nation. The climate of Bangladesh is dominated by monsoon.

The population of Bangladesh was estimated at about 93.00 million in 1984, is technically homogeneous. Islam is the state religion of Bangladesh. More than 98% of the people speak Bengali. Immediately after independence in 1971. Bengali was introduced as the only medium of instruction at all levels of education. However, English is still widely used in Bangladesh.

Lowest administrative unit in Bangladesh is Union Council. Each Union comprises about 20,000 inhabitants and about 8-12 Unions are grouped into an Upazila. Bangladesh has about 464 Upazilas. The next highest administrative unit is the District. The total number of Districts stands at 64. Lastly there are 4(four) Division with their headquarters in Dhaka, Chittagong, Khulna and Rajshahi that embrace the entire country. The capital of Bangladesh is Dhaka.

Ninety percent of the people of Bangladesh are agriculturist and live in the villages. Most of the farmer’s families possess cows for draught purposes as well as for producing milk for their own consumption. In the process they produce surplus quantity of milk without any proper and organized facilities for processing and marketing. In the absence of any organized sector for collection, processing and marketing of milk and products, the middlemen like milk merchants monopolized the milk trade for ages. They purchase milk from poor, landless and marginal farmers in the villages by giving them advance.

As a result of which the farmers of the villages are deprived of their reasonable price.