Agribusiness in Bangladesh

Present situation of Agribusiness in Bangladesh

Introduction
While the words of agriculture are vast, varied and rapidly changing with the policies and supportive investments at local national and global levels today’s agribusiness offers new opportunities to the developing country to remove out of poverty. Agribusinesses include smallholder farming and animal husbandry employment in the new agriculture high value products and entrepreneurship in the nonfarm economy. Using agriculture as the basis for economic growth in the agriculture based countries requires a productivity revolution in smallholder as well as other farming. In Bangladesh though Agribusiness is new, but it would be a most important business activity because Bangladesh is an agricultural country

Agribusiness
The term Agribusiness was first use by Jhon H. Davis of Harbart University in 1955. Now Agribusiness has become most important issue because whole world face huge food crisis. "Agribusiness is doing business with agricultural produce". Agribusiness is the off link in agro food value chains. It’s provided inputs to the farm sectors and it links the sector to consumers through the handling processing transportation marketing and distribution of food and other agricultural products. There are strong synergies between agribusiness and the performance of agriculture for development. Production agriculture is indeed a business which term as an agribusiness.

Present situation of Agribusiness Company in Bangladesh
Agribusiness companies diverse private agro enterprises a majority of which are small mostly in rular market towns and operated by households that often have wage labor and farming as other sources’ of income. Medium and large agro enterprises are mainly urban based because of the requirements for economics of scale and infrastructure. The large enterprises are often dominated by multinational corporations that have consolidated through vertical and horizontal integration.
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In recent years influenced by changes in consumer demand and rapid technological and institutional innovation the structure of agribusiness has changed dramatically and its performance has been highly dynamic. Two major challenges need to be address in considering the role of agribusiness for development. Hundreds of agribusiness trade organizations, commodity organization, committees are present in Bangladesh including the crops, livestock, fisheries and forestry and other including planning and genetic materials, agrochemicals, equipment and pharmaceuticals. Most well known Agribusiness Company in Bangladesh is Square company Ltd, ACI company Ltd, Milk vita, Aftab Group, Arong Group. Agribusiness companies provide input supplies to the production agriculturalist. The production agriculturalist produces food and fiber and cotton, wools etc) and the output it is taken by agribusiness companies that process, market and distributes the agricultural products Market forces do not guarantee competitiveness nor do they guarantee smallholder participations both essential to link agricultural growth to development. The two complement each other as competitive small and medium agro enterprises in rural areas can link smallholders to value chains and urban demand.

Category of agribusiness in Bangladesh
1. Input sector 2. Commercial farm production sector 3. Product sector(storage, processing, marketing, wholesaling and retailing exports 4. Service sector (education ,banking, finance, investment and technical advice)

Agribusiness would involve all possible agricultural sectors like
› › › › › › › › › Business service Crops Livestock Poultry Fisheries Agro Forestry Agro processing Agro-inputs Agricultural Education.

Agribusiness of recent year in Bangladesh
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Meat, milk and milk products In recent year Livestock sectors give vast opportunity for producing meat, milk and milk products. There are many organization in Bangladesh like Milk vita, Aftab Group, Arong Group are involve in this kinds agribusiness and earning a great profit which is contribute in our GDP. Bengal Meat Company in Pabna is involved in meat processing programmed and they are doing monopoly business in Bangladesh. Poultry products, fish products Now a day in Bangladesh poultry business are widely done which is one kind of agribusiness. Poultry farm are widely established for this kinds of profitable business especially in savar areas and throughout the country. On the other hand fish processing industry are growing well. Processing fish are export like Shrimp, Hilsa,Tela pia, Rui, Mrigel etc in other country by meeting our demand which contribute in our GDP growth. Fish products are also important agribusiness sectors.

Poultry and other equipment business In recent year poultry equipment demand is increasing because of the popularity of poultry business. Agro industrial Trust, Iqbal Brother, and Riaz Uddin co. are the poultry suppliers groups of Bangladesh.Some others company also doing business like Fishing net, twine and equipments.

Tannery Business Tannery industry is one of the most important agribusiness sectors. There are 240 industries in Bangladesh so many are involving this sector for doing business and also Govt can export it for earning huge amount money. Mushroom production and sales business
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Mushroom production for domestic consumption and export can be enhanced with improvement in the state of art of their production and also a important agribusiness sectors. Already many companies are producing and sale in the domestic market with high price.

Fruit business
Fruit business (like mango, banana, pineapple, jack fruit, etc.) would be a most profitable agribusiness in Bangladesh. Many company like Pran group, Square Group and ACI group are doing business by processing (juice, chips etc) those kinds of fruits and supply all year round and contribute in our GDP growth.

Seed business
Seed business in Bangladesh is important agro based business. At present seed are supplied by different organization (like BADC, BARI etc.) and some other private organization.

Feed, fodder, and bio-fertilizer business
As agricultural country there is increasing demand of agricultural inputs like feed, fodder, and bio-fertilizer.for meeting the demand almost some of public and private company doing this business.

Flowers business
Flowers business is one kind of agribusiness sector of Bangladesh. There are lots of wholesale and retail markets (Kharmar Bari and Shahabag) of flowers. Many people are engage in it and earning huge money.

Bio-pesticides and bio-control business
As an agricultural based country there is a lot of demand of Bio-pesticides and biocontrol agents to prevent the crop from pests. On the basis of this demand many company has been doing Bio-pesticides and bio-control business like SUMITHION insecticide by SHETU Corporation, ACTELLIC 50 EC by ACI Bangladesh Ltd and al so by Bayer crop science Ltd.

Apiculture business
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Apiculture is other kinds of agribusiness, much of company are engaged in Apiculture business, producing honey and distribute through the country.

Service business
Agricultural products are perishable in nature so those need quick transportation and storage facility. Many organizations doing their job which is a part of agribusiness.

Aesthetic products business
It is one of the agribusiness sectors. Much company doing their business with some aesthetic products, business for both indoor and outdoor landscaping by different kinds of Moths and Butterfly.

Agricultural Education sector
Already some public and private universities have started to provide degree in Agribusiness. Recently a national foundation named "National Agribusiness foundation of Bangladesh (NAFB)" has emerged in Bangladesh with a highly motivated people

Agribusiness contribute in GDP in recent year In the national context, agribusiness appears to have attributed an ever-flourishing trend. During the 1990s, agribusiness grew by about 66 per cent or roughly 5.2 per cent annually, replacing, it would appear the share of agriculture sector in the GDP, from 30 per cent in the 1990s to 21.77 per cent in 2008-2009. Agribusiness is set to flourish. Agribusiness, though not acknowledged in the composition and calculation of the Agriculture GDP (AGDP), accounts for about 10 percent of Bangladesh’s total GDP. Apparently, as we consider agricultural input sectors, farm production sector, agro processing, including food, and manufacturing sector and food fiber distribution and marketing sector under agribusiness, the real contribution appeared much higher than this. On the other hand, Bangladesh being a LDC is also exempted from reduction commitment on tariffs, export subsidies
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and domestic support to agriculture, which is also favorable for agribusiness development.

Some problem of Agribusiness Company in Bangladesh In spite of the growth potential of agribusiness, the state showed little or no enthusiasm in its promotion and development. In the absence of an active role from the part of the state, combined with an unprecedented convergence between agrochemicals, seeds and technology markets by the largest agrochemical companies, these companies are increasingly in complete control up and down the agribusiness chain as well as the food chain. The recent supermarket phenomenon has contributed to this trend. Thus, in spite of being the key actors, small and marginal farmers and workers are completely left out in the cold from the everincreasing profit generated by agribusiness. Except rural primary markets, these key actors are absent from nearly every other aspect of agribusinesses. Suggestion to overcome the problems of Agribusiness Company
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Agribusiness companies’ practices to be regulated so that profit is shared more equitably for the benefit of producers and farm workers Agricultural Markets Produce Regulation Act of 1964 (amended 1985) should be revisited to legally recognize existing physical markets as centre for economic growth in place of treating them as only a base for revenue generation. Appropriate steps should be taken to create the basic support facilities such as credit access, go downs, cold or cool storage, portable water, drainage, and vehicle access for loading and unloading In relation to agribusiness promotion and protection, a group of skilled and experienced human resources should be developed and maintained. Market intelligence services to all intents and purposes of agribusiness promotion and protection to be created Moreover, appropriate research and development should be initiated to find out the more efficient path for small-scale operations and agribusinesses

Conclusion

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The abundance of natural resources available in Bangladesh supports a range of highly profitable investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in Bangladesh, yet in this fertile land there is under utilization of the country’s agricultural capacity. This presents many opportunities for investors seeking to export agricultural products
Agribusiness has a large and rising share of gross domestic product (GDP) across developing country like Bangladesh. In Bangladesh agriculture declines GDP with some percentage but agribusiness including agriculture trade and distribution services typically rises some percentage before declining as economics become industrials

Dynamic and efficient agribusiness spurs agricultural growth and thus holds immense potential to reduce rural poverty.

Assignment is done bySanjib Sharma Student of Sher-e-Bangla Agricultural University Under the Faculty of Agribusiness Management For More Information Please Visit

http://bdmofiz.blogspot.com/2010/12/agribusiness-in-bangladesh.html Collected byAtiqsau@2011

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