One thing which continues to favour Bangladesh in its export trade is its comparative advantage in the production of certain products for exporting them to the world’s markets. Value-addition to agricultural produces for export happen to be one such hugely prospective area. But it does not seem that even a small part of the potentials of this very promising area has been exploited so far though the few entrepreneurs in this field cannot be blamed for the most part for failing to launch this sector vigorously.
Potato based food and allied products such as flakes, starch, chips and other products have only a limited market in Bangladesh. But the same have a huge international market which can be tapped by Bangladeshi producers. The aspect of comparative advantage also should give an edge to entrepreneurs in this field because potato growing is almost an effortless and inexpensive exercise in this country due to the fertility of its soil. The potatoes are also of good quality and suitable in terms of nutrition value for overseas markets.
A record quantity of potatoes were produced in the last couple of years in excess of the total local demand . If the excess amounts could be added value by turning them into various potato based food products and exported, then the same could open up a rich new vein of export earnings for the country.
Not only potatoes, there are other agricultural products such as tomatoes, gherkin, baby corn, mushroom, various types of vegetables and fruits etc., which can be commercially grown, processed and exported successfully from Bangladesh. The doing of the same can also add much to employment generation because of value-addition and chain activities at different stages from the farms to the factories. But a supportive policy environment would be required for the private sector to be more and more interested to try their hands in this field. Banks can treat enterprises in this sector with care and flexibility to help it to gain a momentum.
Once the enterprises in this area start cropping up, the same can be a source of good and reliable customers of the banks like the garments industries. Therefore, the banks should see the merit of supporting this sector leniently even if that requires a somewhat bending of the rules for them now. Government can lease out lands to entrepreneurs in this sector for growing the basic produces such as potato. Government’s fiscal and other policies should also aim to help in the stimulation of this prospective sector.
A number of export-oriented food industries have been doing path breaking work in this direction. They have contracted with farmers to produce round the year with guaranteed stable price for their yields. Thus, the motivation of the farmers have remained strong as their earnings have become regular and ensured. More significantly, the farmers have been trained to produce quality products observing the latest health and safety factors. Secondly, the food industries have acquired good technologies in the areas of processing and packaging which means not only substantial value-addition to the produces from the fields but also the creation of appeal for the processed and packed foods among not only Bangladeshi expatriates but also foreign consumers. Thus, from the growers’ to the consumption stages, some producing and exporting houses here have been successful in ideally building up a value-chain that meets eminently the interests of all the parties involved at different phases.
Private sector operators who intend to join the ranks of successful food industries with an export dimension, need to essentially copy the methods of the few firms which are there and which have been successful in exporting food products. But the new firms should try to do better than the older ones by trying to acquire even more sophisticated technologies, innovating with food products and in their packaging. In that case, their attraction will not be limited to only expatriate Bangladesh and they can expect to gain a wider market access among foreign consumers.
Consumers abroad of food products in European, Japanese and North American countries, are usually fond of trying out foods catered to them in novel ways or enhancing their appeal through packaging and different marketing methods. Thus, the prospective food industries here will have to pay attention to these factors right from the start to become successful and retain the success over the longer run.
Specially, the problems of air shipment facilities will have to be much improved and this is one area where the government can play a major role through the national carrier, Bangladesh Biman. Biman is presently in financial difficulties but it can considerably pull up from this situation by arranging more flights or creating cargo spaces for the exporters of food products. Biman would find assured business of a lucrative kind if it attempts this because only a few foreign airlines currently agree to carry perishables but their charges are prohibitive.
Thus, Biman can financially improve its position as well as help out in opening up a rich new export outlet for the country by substantially increasing air shipment capacities for the products of food industries . The Export Promotion Bureau (EPB) should host more single country fairs abroad to introduce and popularize the food industry based products. The commercial wings of the Bangladesh missions abroad must also take up more energetic plans to make food industry based products familiar and popular among the foreign buyers.
