Agribusiness in Bangladesh
june 2006
Market
overview
While
its share of GDP decreased in the last 30 years, the agricultural
sector still accounts for more than 20% of GDP and for more
than 60% of employment. Agriculture in Bangladesh can be categorized
into Crops (including horticulture) and Vegetables (circa
13% of GDP), Fisheries (circa 5% of GDP), Livestock and Poultry
(circa 3% of GDP), and Forestry (circa 2% of GDP). Bangladesh
mainly exports jute and fisheries. Shrimps (frozen food) are
the main output of the fishery sector, making shrimps exports
the second largest export product of Bangladesh.1
Dutch
agricultural export to and import from Bangladesh during the
last four years has been rather limited (see table below x
million EUR).
| |
2002 |
2003 |
2004 |
2005 |
| Dutch
agricultural IMPORT from Bangladesh |
|
|
|
|
| Total
|
22,0 |
14.2 |
10,8 |
11,3 |
| Dutch
agricultural EXPORT to Bangladesh |
|
|
|
|
| Total
|
11.9 |
5.1 |
7.0 |
6.0 |
| of
which |
|
|
|
|
Live
animals |
0.2 |
0.1 |
0.6 |
1.0 |
Fruit
and vegetables |
4.2 |
1.5
|
2.5 |
1,2 |
Animal
feed |
1.5
|
0.7 |
0.6 |
0,6 |
Processed
food |
5.2
|
2.0
|
2.2 |
2,3 |
Other
|
0.8 |
0.8 |
1.1 |
0.9 |
Market
opportunities
-
At
all levels, progressive agricultural practices, improved
market technique and modern processing facilities offer
opportunities for Dutch trade and investment.
-
The canning industry: fruit, fruit juices, jam and other
canned food.
-
Shrimps:
hatcheries, sustainable aqua-culture technology, feed
meals plants, processing and freezing facilities (quality
and value for money) and testing facilities.
-
Climatic
conditions are suitable for production of a wide variety
of crops (including horticulture), livestock and fish.
-
The
large population provides a sizeably supply of low cost
labour.
-
The
USA identified in particular the export apples as an opportunity,
the same might apply for the Netherlands.
-
Innovative projects with sustainable development impact
could qualify for PSOM.
Market
challenges
-
Low productivity because of low mechanization.
-
Poor
transportation facilities (including the seaports).
-
Natural
calamities (i.e. floods).
Market
entry strategy
Personal
relations are important. Many companies license dealers or
distributors, or hire local agents to represent their products.
For foreign direct investments, often joint ventures with
Bangladeshi companies are being established.
|
