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Feed the Future Bangladesh Aquaculture Activity (BAA) is a five-year project of USAID to intend to improve nutrition through growth in the aquaculture sector growth. BAA works in 21 districts of southwestern Bangladesh and two districts in the southeast.
Fish feed is the largest cost item for most pond-based fish farms at 70-80 percent of variable costs. This means there is a large supply chain which brings feed from the producers to the farms. This supply chain is very inefficient, and this inefficiency results in both higher prices to the farmers and lower profits for the suppliers.
Operational management of the chain is a major challenge for feed companies largely due to the lack of ‘Information Integration’ as sales and distribution information is not linked. That is, inventory levels and sales reports are not brought together in a way that makes re-ordering feed efficient.