Bangladesh is a well-established in food processing sector, Which depends on agricultural production. This sector has accounts for 25% of total manufacturing products, 22% labor force and 8% of total GDP - is equal to approx 4.64 billion USD. Main Focus is on domestic demand. Export of processed food products is limited and ethnic products is the main target, not the mainstream international markets. Other hand main products are agriculturally based like oils and bakeries, but also fishery has an important role. During the last 3 years the food processed sector has grown 25% and we expect the growth will continue as the industry is considered the most powerful growth industry in Bangladesh. There are around 720 processed food manufacturing company in Bangladesh.
At present, the export value of Bangladeshi processed food sector in worth of USD 225 million which is expected to become 2 billion within the year 2022. Bangladesh Agro Processor,s Association (BAPA) is orchestrating the food processing sector consisting of 479 active members who are exporting to more than 140 nations. For Development of this sector, Government is providing extra care and facilities to this sector which is being very helpful.In the processed food sector, the potentials for high volume export have not been exploited to the fullest yet. Main focus has been on ethnical products and export to a limited numbers of countries. The UK are major importers and there is limited export to the EU, Italy. With only smaller changes in product range and standards it is believed that there is high potential for entering the US and EU mainstream markets with processed food products Investment climate in Bangladesh is very attractive.
To attract foreign investors is the one of main goal of government and boost export 15% cash incentives to export of frozen shrimp and fish and 30% cash incentives to export of agro processed products is given. The sector has further been declared as a “Thrust Sector” and therefore receives preferential treatments including income tax exemption, tax return, cheaper air transport, low interest rates and export assistance. The industry is already well established and optimism is strong as local demand is growing as Bangladesh is experiences +7% yearly growth in GDP. Only minor product adaptation and staff training is needed in order to explore new markets.
Today a large amount of seasonal fruits and vegetables are not utilized and are just waiting to get started for the processing industry. In fishing industry demand is increasing existing supply. Labor force is very cost-efficient which is a key factor to ensure economy production in Bangladesh. To assist the development, investment capital and new technology needs to be transferred from abroad. A very potential scope of generating business activities in Bangladesh because here has being a high potential growing market. For development of this sector technological advancement is a major factor. For have been Bangladesh as a land of opportunity, Government should take major step to develop this sector.