Bangladesh: Agro-processed food exports exceed $1.0b

[Homo Sapiens]

Agro-processed food exports exceed $1.0b​

Brighter prospects beckon for the industry, organisers tell inauguration BAPA FoodPro International Expo​

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FE REPORT | Published: November 19, 2022 09:11:00

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Visitors at the eighth BAPA FoodPro International Expo that kicked off at the International Convention City Bashundhara (ICCB) in the capital on Friday. — FE Photo

Bangladesh's export of agro-processed foods has crossed $1.0 billion so far in the current fiscal year (FY) 2022-23 indicating higher and brighter prospects in the sector in the coming days, said a platform of agro-processors at the three-day BAPA FoodPro International Expo.

The members of Bangladesh Agro-Processors' Association (BAPA) are now exporting processed foods to over 145 countries, it said.
The platform came up with the information at the inaugural ceremony of the eighth BAPA FoodPro International Expo at International Convention City Bashundhara (ICCB) in the capital on Friday.

Planning Minister MA Mannan inaugurated the event as the chief guest while chairman of the fair committee and Pran-RFL Group Chairman and CEO Ahsan Khan Chowdhury chaired the event.
Md Shahidul Islam, member of the fair committee, gave the address of welcome.

SM Jahangir Hossain, ex-senior vice president of BAPA & former director of FBCCI, and AFM Fakhrul Islam Munshi, former president of the BAPA, also spoke on the occasion.

Speaking at the event, MA Mannan urged the members of the association to boost maintaining quality and hygiene during food production to enhance export growth in the coming days.

The BAPA should concentrate more on investing in research alongside marketing, he noted.
The government is committed to providing all types of required support to boost the production of agro-processed foods, the minister added.

Production in the agriculture sector is increasing over the years, said Ahsan Khan Chowdhury, adding Bangladesh is currently exporting agro-processed foods to a total of 145 countries.

It would be one of the largest agro-processed foods exporting countries in the coming days, he hopes.
With a view to introducing the Bangladeshi local market with the international market and creating a bridge with the international technology and products, the BAPA and Rainbow Exhibition & Event Management Services Ltd are jointly organising the exposition.

Known to be the most prominent platform for the organisations who are involved in this sector, the event is aimed at exhibiting their products and services in the Bangladeshi market and expanding their businesses.

This is Bangladesh's only show on food products, food processing and packaging products and machineries.
It will attract all stakeholders from the retail and wholesale foods, beverage service sectors generating new connections and new business for everyone involved.

The show will remain open for all from 10.00am to 7.00pm in the course of three days.
India, China, Germany, Italy, USA, Switzerland, Slovenia and more than 100 companies from 17 countries will showcase their products and services at the fair, which will end tomorrow (November 20).
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Agro-processed food exports exceed $1.0b

Bangladesh's export of agro-processed foods has crossed $1.0 billion so far in the current fiscal year (FY) 2022-23 indicating higher and brighter prospects in the sector in the coming days, said a platform of agro-processors at the three-day BAPA FoodPro International Expo. The members of...

thefinancialexpress.com.bd

 

[Bilal9]

This is a huge potential export sector.

Nowadays, per what I see in US Asian and Middle Eastern markets - Turkey, Thailand and Philippines are biggest producers/exporters in this sector.

Bangladesh has not even utilized 10% of its sector capability and exports have already exceeded $1 Billion.

Without going into comparison with other countries, I can say that sector may easily exceed $3 Billion in exports over the next four/five years. But to do that - sectoral improvements per Western and other market food safety regimes have to be rigidly complied to.

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Processed food export caught in ethnic marketing strategy​

Bangladeshi manufacturers need to widen their customer target to explore the export potential of processed foods​

There has been a huge export potential for Bangladeshi agri items, agro products and processed foods in foreign markets, but it remains largely untapped.

For instance, if you browse the shelves of a super shop in Malaysia, chances are you will find puffed rice or spicy chanachur, even with a "made in Bangladesh" tag. Even in Dubai, you will get toast biscuits at the supermarkets made by the Bangladeshi Pran-RFL Group.

For now, that is all the local manufacturers can offer the Bengali diaspora abroad – some spicy snacks or sweet cookies, not the main dishes.

Local food makers said they are yet to make it to European countries and the US with fast-moving processed foods and beverages thanks to their "ethnic marketing" (Bengali community-centric marketing that targets a satisfying of the community's particular tastes and needs) strategy, limited export basket, a lack of international standards and other compliances.

"If we want to enter their market, we need to maintain their standards and compliances at the production units. That needs research and development," Kamruzzaman Kamal, director (Marketing) at Pran-RFL Group, told The Business Standard.

At present, Bangladesh exports processed foods to 144 countries, with Bangladeshi agri items and agro products going to Bengali community markets in Europe. But the items are not allowed at European chain shops since the manufacturers do not produce them through targeting foreign consumers.

According to the Export Promotion Bureau, export of agri items and agro products surpassed $1 billion in the 2020-21 fiscal year.
The government, manufacturers and trade bodies have taken a number of initiatives to boost the export of processed foods.

Md Iqtadul Hoque, general secretary of Bangladesh Agro Processors Association, said local manufacturers lag behind both in international technology and standards.

Echoing Pran's Kamal on the need for more research, he said Bangladeshi manufacturers also should focus on improving food quality.

A $4.8 billion market with 15% growth

The commerce ministry recently conducted a study on the agro-processing industry. The study found Bangladesh's processed food market registered 15% annual growth in the last five years.

At present, the size of the market comprising domestic demand and export is $4.8 billion. According to the Foreign Investors Chamber of Commerce and Industry, the market will reach $5.8 billion by 2030.

With a 32% share, spices occupy the largest segment of the domestic market for processed food. Besides, juices and drinks account for a 26% market share, while biscuits occupy 13%.

Candy, chanachur, noodles, vermicelli, puffed rice, flattened rice, frozen snacks, jam and jelly together occupy 23% of the processed food market.
In export, dried foods account for 25% of the basket, while spices hold 4.5%, vegetables 11%, fruits 0.04%, tea 0.3% and other items 58.6%.

Micro and small ventures contribute most of the processed food making, while conglomerates have only 3.4% contribution.

Initiatives to boost the export

The Foreign Investors Chamber of Commerce and Industry says the world's population will reach 9.8 billion by 2050, while global demand for processed foods will increase by 60%.

Bangladesh certainly does not want to lose out on its export potential. The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) recently signed an agreement with HSBC regarding market research.

The research is being carried out by PricewaterhouseCoopers (PWC), a UK-based consulting firm.

It will look into barriers for Bangladeshi processed foods to the UK market, how the obstacles can be overcome, areas of improvement and recommendations on international standards and compliances.

After the UK, FBCCI President Jasim Uddin said the trade body will continue the research for other markets too.

Besides, the industries ministry is working to formulate the "Agri Food Processing Industry Development Policy-2021" to provide various forms of assistance to new and old entrepreneurs of the industry.

According to ministry sources, the government's policy support to the industry targets drawing $5 billion foreign investment for processed foods by 2026. The ministry is working on a formulation of the policy within this year.