Market expanding for rising incomes
Bangladesh has a market of Tk 20,000-Tk 30,000 crore of agro-processed foods and it is growing thanks to rising incomes, changing lifestyles and urbanisation, said the chief of the country's largest agro processor and exporter.
The domestic market, representing both the organised and unorganised segments, is likely to grow to Tk 40,000-Tk 50,000 crore in the next three years, said Ahsan Khan Chowdhry, chairman and chief executive of Pran Group, at a press conference in National Press Club in Dhaka.
Bangladesh Agro-Processors' Association (BAPA) organised the press meet to announce the schedule of the BAPA FoodPro International Expo 2018, a three-day processed food fair that will begin at Bangabandhu International Conference Centre on October 25.
A total of 139 local and foreign firms related to food processing are expected to participate to showcase their products and services.
The BAPA is organising the show, which is in its sixth year, jointly with the Extreme Exhibition and Event Solution.
One of the main objectives of the show, which will be open from 10:00am to 7:00pm daily, is to familiarise food processors in the domestic market with modern technology and expand trade through interaction between local and foreign companies, the BAPA said.
On the sidelines of the fair there will be various sessions run by those with the technical know-how and scope for businesses to meet with potential buyers.
Some 682 lakh tonnes of agro processed foods -- such as juice, fruit drinks, biscuits, Bombay mix, potato crisps, spices, jam, jelly, confectionary, noodles -- are annually produced in Bangladesh.
Today, locally processed foods are exported to 144 countries, enabling Bangladesh to earn $371 million last fiscal year. In fiscal 2016-17, export receipts from processed foods amounted to $263 million, according to data compiled by the BAPA.
Exports are increasing along with the size of the domestic market, said Chowdhury, also the chairman of the exhibition's fair committee.
“Our export to non-ethnic market is rising. Our processed food is gaining popularity in Europe, Africa and Americas. We have huge prospect in food processing. We need support and encouragement,” he added.
Technological development is needed for the development of the agro processed sector, which will enable farmers to get fair prices for their produce, said AFM Fakhrul Islam Munshi, president of the BAPA.
“Growers will not produce unless they get a fair price,” he added.
Farmers will remain deprived of fair prices until the day comes when excess production can be absorbed by agro processors, said Anwar Faruque, former agriculture secretary. For this, the agro processing sector has to have a strong footing.
“We will become dependent on processed food given the rising urbanisation,” he added.
