Trends and opportunities
The market
Agro-commodity products account for about 10 per cent (A$16 billion) of Bangladesh’s total annual imports. The figure may rise to 15 per cent based on the country’s production from year to year. Demand for some agro-based products depends on various climatic factors. Bumper crops may see food imports drop, however the import of cotton, pulse crops and oilseeds are showing ongoing upward trends.
The Bangladesh Agricultural Research Council (BARC) estimates the future requirement for food grains to be 43.82 million tonnes in 2030 compared to 25.2 million tonnes in 2000. The Bangladesh Ministry of Agriculture crop production planning is forecasting a deficient in grain production against grain requirement for a lengthy period of time.
Until the early 1990s, the Trading Corporation of Bangladesh (a government-owned trading house) and the Ministry of Food were the main importers of agro-based commodities. Now, the private sector imports most of Bangladesh’s agricultural products.
Bangladesh has a population of 144 million, making it the seventh most populous country in the world, and (apart from some small countries) the most densely populated. English is widely spoken as a second language (among the middle and upper classes) and is generally accepted for official tasks.
Since 1990, the country has achieved an average annual growth rate of five per cent. Bangladeshi consumers are price-sensitive but are also quality-conscious buyers. Australian agro-products have a good reputation for quality in Bangladesh.
Natural disaster (floods in particular) may cause abnormal increases in imports to the agribusiness sector. The government legislation for agricultural products changes with the country’s production and import requirements. For example, the government allows the import of rice at a very low tariff if there is a significant shortage between demand and level of local production.
Opportunities
Bangladesh agribusiness opportunities include:
- wheat
- oilseeds
- cotton
- pulses
- fruits
- seeds
- milk powder products
Bangladesh imports a wide variety of seeds for agricultural products including food grains, pulses and vegetables. There is a high demand for hybrid seeds and quality seed, in general.
There are opportunities for Australian suppliers to export fresh produce such as apples, grapes, and citrus fruits to Bangladesh during the regional off-season when neighbouring countries don’t have produce to supply. Australia exported A$41 million worth of fresh vegetables to Bangladesh in 2004–05.
Competitive environment
Yearly consumption of wheat in Bangladesh is about 3.3 million tonnes. Australian premium white wheat is already established in the market; a variety popular due to its quality. The major competitors are the USA, Canada and the EC.
Local production of most of the oilseeds has either stagnated or declined in recent years due to climatic constraints and increased cultivation of alternative crops, such as wheat and rice. The total yearly oilseed crush is approximately 580,000 tonnes including 220,000 tonnes of imported rapeseed/canola. Australian food oil exports to Bangladesh have increased in the recent years. French and Canadian exporters are Australia’s main competitors.
Consumption of pulses has been growing faster than local production and has resulted in an increasing amount of pulse crops imported into the country. Australia is the leading supplier of chickpeas to Bangladesh. Australian dun peas are also popular, competing with its nearest rival, the Canadian yellow pea.
Cotton imports to Bangladesh have been increasing; keeping pace with the growing textile industry (an average annual growth rate 10 per cent since the mid-1990s). Knitwear and ready made garment manufacturing represent 75 per cent of Bangladesh’s total annual exports. The textile industry is forecasting a 10–15 per cent annual increase in raw cotton imports. The USA is the major supplier of cotton to the country with a 35 per cent market share. Australian cotton, however, has already forged a strong customer base from among the spinning mills, especially those producing quality yarns.
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