Cattle and capital

In rural Bangladesh, things should be looking up for small farmers. As incomes in the country rise, demand for livestock and dairy products is growing in tandem.

Yet many farmers face a daily struggle for financial insecurity. For generations, farmers have relied on their cattle as income-generating assets. But as global temperatures rise, costs are rising as well—even as diseases and parasite infestations grow more common.

Unfortunately, many Bangladeshi farmers lack adequate information about disease management, feed requirements, and vaccination schedules. All of this is driving up bovine mortality rates, putting the country’s milk production in a slump. 

When farmers fall ill or livestock die, they turn to the only option available—local moneylenders—and end up getting caught in a debt trap. With little or no savings, Bangladesh’s farmers relied on loan sharks to borrow US$14 billion in 2023, often at interest rates of more than 40%. 

This cycle of high-interest debt and financial vulnerability is a reality for as many as 16.6 million smallholder farmers with 26 million cattle across Bangladesh. The cycle makes it hard or impossible for farmers to invest in their farms, and to escape poverty.

Yet, traditional insurance companies rarely cover livestock, citing the difficulty of identifying individual cows, and the high risk of fraudulent claims. As a result, insurance penetration remains below 0.3%. And nearly 10 million of these smallholder farmers cannot access any type of bank service. 

Recognizing the need for change, entrepreneur Tasvir A. Faheem founded InsureCow, a startup providing financial solutions for smallholders. 

"We saw farmers trapped in a system that was failing them," Tasvir explains. "Our goal was to create a platform that would not only provide asset security but also take a systematic approach to ensure farmers get access to formal financial services, farming assistance, vaccination schedules, and affordable insurance products for both farmers and livestock."

InsureCow's innovative approach centers on an AI-powered bovine biometrics engine. It creates a unique digital identity of each cow’s muzzle, much like a human fingerprint. With InsureCow, each cow's tamper-proof identity is securely recorded and verified through AI digital-twin technology, transforming livestock into trackable digital assets.

As a consequence, insurance companies can now accurately verify claims, protecting farmers against the loss of their valuable assets.

InsureCow is expanding its reach across Bangladesh, with plans to venture into other emerging markets facing similar challenges. The company's success is more than just a testament to technological innovation; it's a lifeline for millions of smallholder farmers, creating a more secure future for those who feed the nation.

Watch this video to learn more.