New Food market report by Business Monitor International holds a cautious outlook towards the Bangladesh agriculture sector. The latest finding of high levels of toxic substances in poultry feed bring s much cause for concern as it reflects on the low food safety standards employed by the country, even in its largest agriculture sector.
Indeed, structural problems still plague the industry. In the medium term, for example, the frequent occurrences of strikes, or hartals and road blockages will keep our optimism for the industry at bay as these often aggravate the logistical challenges of food transportation within the country, causing the biggest hurt to the farmers.
Over the long term, we believe that there is much more room for growth and improvement in sub-sectors such as grains and livestock. That said, as the agriculture sector in Bangladesh employs close to 70% of the working population but contributes to only 20% of the country’s GDP; there is an obvious need for improvement in efficiency of operations.GM food policy is also an interesting area to look out for as Bangladesh is undoubtedly one of the most open Asian countries to GM food cultivation.
- Rice production growth to 2017/18: 11.3% to reach 37.6mn tonnes. Increased production yields as farmers purchase and plant more hybrid rice varieties should boost this growth.
- Sugar consumption growth to 2018: 35.1% to 2.2mn tonnes. While consumption growth has levelled off somewhat owing to the high price of sugar, over the longer term we expect rising per capita income in Bangladesh to continue to drive demand as consumers have more money to spend on non-essential food purchases.
- Poultry production growth to 2017/18: 22.9% to 224,000 tonnes. Better economic conditions and higher disposable incomes will help to drive demand for meat. Better disease control is also expected to support the recovery of the sector.
- 2015 real GDP growth: 6.0%, up from 5.7% expected in 2014. Predicted to average 6.0% from 2015 to 2018.
The Bangladesh Agribusiness Report features Business Monitor International (BMI)’s market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.
BMI’s Bangladesh Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.
- Use BMI’s independent industry forecasts to test other views – a key input for successful planning in dynamic agribusiness markets.
- Apply BMI’s medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
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