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Frozen Foodstuff Business in Bangladesh Business
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Abstract This paper is a review of Bangladeshi Frozen Foodstuff Business. Frosty Foods in Bangladesh encompass from these people own in to ready-to-cook foods. Yet , fishes and shrimps will be exported and generate overseas exchanges intended for Bangladesh, although, the semi-processed foods are brought in and developed locally.
Without a doubt, it is a potential business exactly where rural people can be taken advantage of by investing little amount of cash, and creating and getting together with the introduction demand available in the market.
This newspaper additionally issues on the constraints of organization such as lack of properly trained people, firm competition for the home made fully processed foods. Therefore , this paper recognizes new opportunity for the growth and advancement this segment. Since this section has got small concerns, really is endless that this newspaper would meet the requirements intended for the development of the frozen foodstuff business and aid the bottom for further exploration on this segment. Introduction Though Bangladesh can be an agricultural based region, its aquaculture is producing and causing the export of the region.
In fact , the frozen foodstuff is certainly one of largest contributor to the forex trading earnings and occupies fourth position among the export products in terms of total export revenue (Bureau of Statistics, 2004). In Bangladesh, frozen food includes shrimp and seafood, and prawn contributes to the majority of earnings in the frozen meals. However , recently, the freezing food business has become varied, and traditional thinking about it has additionally changed. In Bangladesh, it has been developing depending on the fishery along with processed beef and poultry.
Indeed, in Bangladesh, new trend in the frozen food business is definitely emerging in silence, which is semi or totally prepared food in retail outlets. But sadly, there is not much research work on this segment of frozen food business performed, which is expanding and developing a new innovative concept inside the vacuum space of freezing food organization. In fact , this kind of development as well as its policy significance have received tiny attention inside the literature upon export-led industrialization in developing countries (Athukorala & Sen, 1996).
Consequently , for our research work, we could focusing on refined frozen foodstuff found in the retail outlets, and hope that the work could help to get the additional development of this kind of segment in frozen food business in Bangladesh. In Bangladesh, these people own in, shrimps and prawns happen to be exported because frozen meals to various elements of the world. The frozen sea food sector is usually booming by exporting. Earnings from this region are increasing and have the probability of increase even more. The value of these types of exports in 1996-97 was US$342. 26 millions (Bureau of Statistics, 1997).
However , the shrimp belt of Bangladesh is actually the subject of discussions on law, order, protection and development process and food top quality and environmental issues. As such, in 1997, the European Union (EU) imposed a ban on Bangladesh’s frozen foodstuff exports after an EU inspection group report ruined shrimp finalizing plants in Khulna and Chittagong because of their failure to comply with EUROPEAN quality control regulations (http://www. ifpri. org). However , the agenda or worry is with the semi or perhaps fully prepared frozen foodstuff that is a great emerging market in Bangladesh.
These food items have been released recently under company brands like Bombay Sweets, Wealthy and Aftab. In addition , you will discover other issues that supply with this type of iced food and they are called homemade items. The number of freezing food can contain prepared or semi-prepared food like parathas, pizzas, franks, samucha, chops, shami kabab, puri, nuggets, and many more exquisite special treats. The raising demand for these kind of products provides given rise to home production of these food items, whereas, a couple of years back again everything was imported (Personal Interview, Nandon).
Origin from the Study Essentially frozen food can be a refined or semi-processed food that is certainly kept in freezer aid it later. However a better explanation might include, Frozen foodstuff is food preserved by the process of cold. Freezing foodstuff is a common method of food maintenance which decreases both food decay and, by turning water to ice, helps it be unavailable intended for bacterial progress and slows down most reactions (http://www. wikipedia. com). Additionally, the condition needed to keep frozen food is usually diifferent. Food may be stored for several a few months by very cold.
Long-term freezing requires a continuous temperature of -18 C (0 deg Fahrenheit) or perhaps less. Several freezers are not able to achieve such a low temp. The time foodstuff can be held in the freezer is decreased considerably in the event the temperature in a freezer changes. Fluctuations could occur with a small space in the refrigerator door or perhaps adding a large amount of unfrozen foodstuff. A special sort of freezer is needed to constantly amazing the food and in this manner the feel of the foodstuff remains precisely the same (http://www. wikipedia. com). Meals preserved by simply freezing or perhaps preserved by process of very cold, is termed as frozen food.
Preserving foodstuff by cold is a popular method of maintenance as it decreases both foodstuff decays. It happens by turning water to ice, making it unavailable for bacterial enlargement and decreases most chemical reactions. It is not conceivable to expand or develop all kinds of foodstuff throughout the year or perhaps every where around the world. The need for storage area and keeping food fresh for a long period of time arises to create them found in all period and all over the place. It is the blessing of scientific research that now it is also possible to keep foodstuff frozen for our enhancement. Today, iced food products make our frenzied life-styles seem a bit less difficult better.
Actually successfully changing and adapting to the demands of consumers, frozen foods have been completely around a lot longer than we think (http://www. reference. com). History of Commercialization of Freezing Food Business The frosty food sector that we discover today may be traced back to several years back to the past. Clearly, the existence of freezing food happens to be on earth, in climates that had been cold enough for the meals to freeze out. The China were the first in line to harness the power of freezing food beyond winter months months.
You read ‘Frozen Food Business in Bangladesh’ in category ‘Food’ Later on, the Greeks, Romans, Egyptians and Indians also found that (http://www. fraweb. org). Despite the fact that ice-refrigerated railroad cars allowed perishable foods to be transported as early as the 1860s, significant innovations in refrigeration architectural after Ww ii gave birth to the frosty food industry. Scientists as well developed techniques to control the ripening of fruits, fruit and vegetables, and other perishables that further more extended shelf-life. Advances in transportation arrived particularly quickly ” steamships in the mid-1800s, railroads and refrigerated pickup trucks 19th 100 years ” and combined with falling oil prices to dramatically reduce the cost of shipping foodstuff.
It today costs per cent less to ship valuables by ocean, and fifty percent less to ship by simply air, than it performed 20 years before. Furthermore, invention of freezing orange juice concentration and artificial organic food items as well cause the consumers located in different physical area to savor seasonal fresh foods whenever you want season (Halweil, 2002). While using course of time, many persons developed impressive techniques of food-freezing, including Enoch Piper, William Davis, and Daniel E. Somes. But , Clarence Birdseye (1886 ” 1956), an American taxidermist by control, is credited for his quick cold method that he developed in the year of 1924 (http://www. oc. gov) and considered the daddy of the iced food sector. He made, developed, and commercialized a way for quick-freezing food products in convenient packages and without changing the original preference (http://www. wikipedia. com). Before the quick-freezing approach came along, foods were frozen at a reasonably slow rate, producing the foods loose their preference and feel. However , Birdseye theorized that food has to be frozen rapidly so that the taste and texture may be maintained. His theory covered the packaging, sort of paper applied, and related innovations combined with , abnormally cold technique’.
In fact , this quick-freezing process in fact ended up creating 168 us patents (http://www. zona. gov). The modern frozen foodstuff industry was created over seventy years ago, in 1930, when frozen foods were being bought and sold commercially (http://www. nfraweb. org). Objectives from the Study This kind of study tries to identify the present condition of freezing food organization in Bangladesh, especially the semi-processed food segment of freezing food. Therefore , our agenda focuses on the semi-processed meals found in the retail outlet.
Consequently , this analyze will identify the future point of view of the iced food business, space of growth, work opportunity and scope of developing iced food business country vast to develop the market and foreign trade for foreign earnings. Significance of the Study As we have found from the earlier segment, frosty food organization has become extremely important for Bangladesh due to its capability of foreign income and job opportunity in this sector. However , the semi-processed food portion in the frozen food has not got any attention, consequently no right research work can be bought.
Therefore , really is endless our analyze would help the frozen food sector since it would uncover the future point of view of the freezing food organization and develop the ideas on the actual entrepreneurs and government should do for the expansion and development of this particular segment the. Methodology To prepare the record, we is going for substantial research for the frozen food business throughout the semester. The analysis is mainly based on secondary data and documentary methods. Paperwork are an significant source of info and such causes of data might be used in other ways for the study work.
To get the study several books, magazines have been studied. Different websites and websites have been went to when needed. Furthermore, we took interview of Deputy Director at Nandan. Lastly, we now have concluded the research by providing a lot of recommendations depending on our conclusions. Limitations from the Study Almost everything is it is limitations as it has in order to develop. There still exist some limitations within our study. The limitations are all of us only centered on the extra source but not able to visit any production facility.
There is time constraint as for any research work it will require more that two to three years, but within just three month semester, there were to finish the study on the frozen meals business. Books Review International business is described as , transactions that are devised and accomplished across countrywide borders’ and has existed since the nationwide borders had been formed and has shown expansion throughout the background with greater peace and security, economical prosperity through development in transportation and communication, and technological progress, especially associated with Internet, liberalization of transact policies and reduction in ariffs, and creation of global institutes and negotiating (GATT or WTO). Over the last 30 years of twentieth hundred years (1970-2000), the volume of international trade in goods and services offers expanded from a level of US$200 billion to over US$6. 8 trillion , a 34- collapse increase, which can be faster than world result. Direct international investment (FDI) reached a level of US$4. 7 trillion by 2000. The sales of foreign affiliates of multinational organizations (MNCs) documented a level twice as high because global export products.
The power behind the growing/changing international business may be the process of globalization, which has been quicker during the last 2 – 3 decades (Hussain, 2002). A noteworthy recent development on planet trade is the rapid enlargement of refined food exports and it is the fastest growing component in food products (Athukorala & Sen, 1996, Australian Food Statistics, 2001). The impetus pertaining to export expansion has come coming from new agro-based manufacturing actions, in particular different fish formulations and fully processed foods.
While labor-intensive manufactures also have demonstrated outstanding growth dynamism in overall terms, this has been dwarfed by more dramatic growth record of processed goods. There exists evidence that these new product lines have many positive features according that the contribution of produces to the aims of industrialization is normally assessed (Athukorala & Sen, 1996).
These include economy-wide linkages, crucial learning results emanating through the mastery of new production technology, higher productivity, international marketing effort and entrepreneurial expertise involved in export success (Meller, 1995). Based upon the conventional classification, export of manufacturing (Appendix A) share as a whole exports of world operate merchandise elevated to 81 percent in 1994 and closely linked to the rapid enlargement of manufacturing export products form growing countries individuals shares in world manufacturing export products increased to 24 percent in 1994.
On the other hand, talk about of refined food on planet non-manufacturing (Appendix A) transact increased to 37 percent in year 1994, and this talk about is sharper for developing countries compared to that of produced countries with an increase of to 32 percent in comparison to an increase to 36 percent recorded simply by developed countries in year 1994. However , mong the thirty seven countries, a lot of countries include performed greater than other folks in this area including Bangladesh, Republic of bolivia, Chile, Indonesia, Korea, Malaysia and Thailand, and among the low-income countries, Bangladesh is actually a notable exception, with a development rate of processed food exports that may be more than dual that regarding any other low income developing country (Athukorala & Sen, 1996). Foreign direct expenditure has been raising at a faster rate than direct exports of processed foods over the past decades.
Although it is impact is currently not quantified, national-level control is frequently offered as a potential source of nontariff barriers to trade intended for food products. These kinds of barriers may be intentionally aimed at favoring domestic production, or perhaps merely always be the innocent by-products of a country’s make an attempt to serve their consumers by assuring different food quality attributes. FDI allows food processors to avoid rules intended to disadvantage imported products by environment production within particular market segments.
It may also allow more precise and fast adaptation to domestic quality regulations (Hooker & Caswell, 1996). Von vornherein reasoning and several scattered facts suggest many factors, which results in growing reveal of processed food in the world trade. A widely discovered feature of consumer behavior in the global economy has been an increasing `internationalization of meals habits’ , the increased importance of highly processed items in food consumption patterns in designed countries in large parts of the populace in many producing countries.
Factors such as foreign migration, the communications revolution and intercontinental tourism include contributed to this kind of phenomenon. This could have presented a significant demand-side impetus for the growth of prepared food exports from developing countries. Within the supply-side, improvements in meals technology, refrigeration facilities and transportation have made processed foods easily tradable across countrywide boundaries (Athukorala & Sen, 1996). Furthermore, strategic range of FDI or export the processed foodstuff in the international market is likewise influenced simply by national-level legislation on the ood quality common. FDI permits food processors, by simply setting development within a marketplace, to avoid guidelines intended to downside imported companies to adapt rapidly to domestic quality regulations through greater versatility, better designed plants, short shipping distance, less need for preservatives, packaging or refrigeration, superior understanding of the rules or perhaps better admiration of local demands to get goods with differing qualities to immediate food top quality benefits to both firms and consumers (Hooker & Caswell, 1996).
The focus on manufactured export products expansion in developing countries is rooted in the perception that compared to primary commodities, manufactured goods have some innate characteristics, which usually contribute to outstanding growth efficiency. As such employment potential, conditions of trade gains, know-how and technology spill-over will be among the most stressed of these qualities (Athukorala & Sen, 1996).
However , on the whole, the job potential of resource-based manufacturing, based on common trade theory (Heckscher-Ohlin model), is that an abundant supply of labor is not just a key determinant of comparison advantage in international development (Findlay, 85, Roemer, 1979). The Heckscher-Ohlin model (1933) was first created by two Swedish economists, Eli Heckscher and Bertil Ohlin with the Stockholm Institution of Economics. The Heckscher-Ohlin model is a general equilibrium mathematical model of international operate.
It builds on David Ricardo’s theory of comparison advantage by simply predicting patterns of trade and production based on the factor endowments of a trading region. The model essentially says that countries can export products that use their abundant factor(s) of production and import products that use the countries’ hard to find factor(s). Yet , this generalization in refined food is usually debatable as there is no crystal clear relationship between income amounts and prepared food export growth.
Furthermore, unlike when it comes to further finalizing of solutions such as minerals and wood, final levels of foodstuff processing is very much labor-intensive. Besides, terms of trade profits from export diversification depends on the degree of salary and value elasticity of demand for the commodities concerned, and highly processed food export products are better than primary products in terms of these criteria. Furthermore, processed food would be possibly superior to standard manufactured products, hich are by their very nature, are quite import-dependent. Alternatively, processed foodstuff industries include large household resource articles and are likely to be strongly related to activities in the non-urban sector (Athukorala & Sen, 1996). It is very likely that recent operate agreements and developments will certainly significantly influence national-level dangerous food quality. NAFTA, GATT and WTO are the 1st attempt to particularly address foodstuff quality specifications as potential barriers to trade.
National-level quality legislation takes on various dimensions or perhaps regimes mainly because product quality itself can be multidimensional. Transact theory gives a foundation to get analyzing the impact of foodstuff quality regulation on FDI and control. In its standard form, financial theory shows that gains from trade happen when countries specialize in production of those goods to which they are really best suited, therefore earning export income that allows for increased consumption.
Transact theory’s new focus on examining rent in search of and rent shifting linked to national regulation, the benefits to individual industries of an economic climate from transact agreements, and the divergence of outcomes between countries with different per household income levels are also valuable. New transact theory, alternatively, discusses the consequences on operate and expense patterns of imperfect competition, economies of scale, and distortions in factor marketplaces.
It improvements two pretty many explanations of Intra-industry Trade ” a single emphasizes the interaction of product difference and financial systems of level and second one focuses on the textual two-way transact of identical products, with price splendour being the driving force. It is useful for analyzing quality rules because it is targeted on the many elements that affect the welfare effects of trade policy (Hooker & Caswell, 1996). Barriers to freer trade arising from non-tariff resources have become even more prominent because progress have been made around the world on contract price reduction.
Celebrations to new trade agreements have wanted to lower non-tariff barriers or perhaps at a minimum to make sure that improvement toward freer trade is definitely not thwarted by improves in nontariff barriers. Regulation of product quality can be a key source of nontariff barriers to trade. In the event that such barriers are to be reduced, trading partners must develop methods of regulatory rapprochement. Pertaining to processed food products the level of regulatory rapprochement in quality rules will have significant impacts on patterns of international trade in the next 10 years (Hooker & Caswell, 1996). Hirschberg et al. 1992) investigated the bilateral trading patterns of 30 countries and found that various industry size parameters (Appendix B) such as major domestic item (GDP) per capita and the comparative scale GDP among trading associates shared boundary and membership in both the Western Community or European Free of charge Trade Area proved to be significant determinants of intra-industry trade. Similarly, the study of Hartman and colleagues (1992) on processed food and beverage industries resulted anxious the positive influence on intra-industry control of US total trade and economies of scope.
The research on highly processed food of Handy and MacDonald (1989) found that product difference cultural ties, and firm size were significant determinants of FDI. Connor (1989) expanded about this evidence to suggest the importance of tariffs and non-tariff barriers to trade and domestic and foreign market structure, and stressed associated with the number country’s regulating practices, obvious protection and trademark laws and regulations as most likely factors in determining FDI levels. Ning and Reed (1995) featured the importance of factors such as sponsor market size, growth price, and membership rights in a trading bloc in explaining FDI patterns.
Additionally , research simply by Sheldon and Witzke (1992) provided different quality designs to transact in food products and highlighted the key function played in the market by consumers’ ability to confirm standards collection by another country. National-level quality rules and within just trade amas rapprochement affects firms’ choice of strategies to maximize sales overseas such as foreign trade sales, joint ventures, FDI, and license although not but quantified. The necessity for food quality will certainly continue to increase as earnings increase. National-level performance anticipations will increase later on.
Demand for top quality products boosts as income increases. In addition , National government authorities are the initial in line to respond to this demand with fresh regulations. The necessity and new national polices are likely to outstrip harmonization efforts on an ongoing basis, departing national restrictions with an enduring influence in patterns of trade in processed foods. Quality rules has impetus, in both equally more and significantly less developed countries, making maintaining very difficult pertaining to firms and cooperating countries.
For companies working below national-level top quality regulation, an extremely significant problem is that the control is dynamic, changing, and in some cases ratcheting up (Hooker & Caswell, 1996). In addition to the national-level quality regulation, many countries have applied labeling requirements for foods. Labeling supplies processor and retailers’ choice, not necessarily consumer choice. The decision of these intermediaries is central to the end result of virtually any food labeling policy. Buyers will be component to their labeling decision, mainly because retailers and processors will conduct marketing studies in consumer notion (Carter & Gruere, 2003).
However , the food label is a significant tool intended for improving people understanding of the benefits of following a nutritious diet plan. The Center intended for Food Safety and Used Nutrition (CFSAN) of the Fda (FDA) features continued to examine food labeling with its Food Label and Package Study (FLAPS). Info from the 2000″2001 FLAPS define various facets of the labeling of prepared, packaged foods, including nourishment labeling and various types of label statements. The final FLAPS database involves 1, two-hundred eighty-one foods. An estimated 98. % of FDA-regulated processed, manufactured foods sold annually include nutrition labeling, with yet another 1 . seven percent of products not impacted by nutrition labeling requirements. Wellness claims, composition or function claims, and nutrient articles claims had been identified on food labels. In addition to the useful resource this, review provides to CFSAN in assessing health insurance and nutrition information on the food label, registered dietitians and other medical researchers can use FLAPS data to assist consumers in choosing a even more nutritious diet to improve all their health and wellbeing (http://www. sciencedirect. com).
Food safety and Environmental Requirements in Intercontinental Market It is useful to distinguish between two varieties of food security and environmental requirements. Required requirements created by national or regional governments happen to be here called ‘regulations’, when voluntary requirements formulated by the private sector, NGOs or perhaps other organizations are referred to as ‘standards’. These category involves those non-reflex requirements drawn up by Countrywide Standards Companies and worldwide bodies (United Nations, 2007). Food-safety criteria and regulations tend to cover multiple problems.
Apart from meals safety, they cover issues such as herb and animal health, product quality, environmental protection and social well being. Government restrictions applied to imports of FFV sector generally focus on foodstuff safety, labeling and advertising requirements. Private-sector standards are likely to focus on food safety, environmental protection and social welfare (Geneva, 2006). A number of factors have led too more and more stringent foodstuff safety restrictions and requirements imposed by simply governments as well as the private sector, in particular: ¢ Recent food scares and scandals in developed countries, Demographic innovations in designed countries (i. e. ageing of inhabitants, which gives rise to be more risk-averse and quality-conscious client behavior), ¢ Risk minimization efforts simply by retailers, and ¢ Improved detection and testing strategies. Food protection standards and regulations tend to cover multiple aspects. Apart from food protection, they cover issues such as plant and animal overall health, product top quality, environmental safety and interpersonal welfare (United Nations, 2007). Requirements laid down in government rules are often transmitted to makers and exporters in developing countries throughout the supply cycle.
For example , EUROPEAN legislation will hold importers accountable for complying with its provisions with regard to brought in products. The need to take responsibility for the protection of the food they transfer into the EU market spots importers beneath an obligation to exercise research over supply chains (Geneva, 2006). Likely Implication for Developing Countries Developing countries face significant constraints in meeting food safety regulations and private-sector requirements because of weak institutions, lack of system, high compliance costs, lack of information, and also other factors.
Anybody can even proceed so far to talk about that the new mandatory and voluntary requirements act to boost other pros and cons at production unit and supply-chain levels, i. at the. in terms of technological or transportation infrastructure (Geneva, 2006). Re-homing of the HACCP approach to guaranteeing safety Created countries happen to be increasingly demanding adoption from the hazard analysis and crucial control stage (HACCP) approach to assuring foodstuff safety. In the EU, the usage of HACCP has become mandatory for all those food categories.
The use of HACCP is certainly not mandatory in the matter of primary development. However , the utilization of HACCP is mandatory in packinghouses in the case of semi-processed and processed meals, vegetables, and products which can be pre-packed inside the exporting region (United Nations around the world, 2007). Economic Environment of Bangladesh During the last number of years, Bangladesh manufactured considerable improvement in backing and liberalizing its overall economy. As a result, inflation was lower than previously, and common annual genuine GDP development was previously mentioned 5%, largely led by exports.
Without a doubt, one of the most dazzling features of Bangladesh’s trade is the fact textiles and particularly clothes dominate export products. This dramatic change in the composition of exports is a consequence of Bangladesh’s improved integration in to the multilateral trading system. Within the structural insurance plan front, the Government has continuing to go after, inter alia, trade liberalization, financial sector reform, and privatization (www. wto. org). Unfortunately, true annual GDP growth, averaging around 6th. 7% throughout the review period, has not been sufficient to make a great deal of dent inside the poverty that pervades Bangladesh.
Given Bangladesh’s high incidence of poverty, its dense population, and its particular vulnerability to natural problems, including routine flooding and cyclones, meals security can be described as major insurance plan objective of the Government. Control Policy Structure The Ministry of Commerce (MOC) is liable for coordinating operate policy things through the agencies, as well as in consultation with other Ministries and governmental physiques, national committees are produced to address certain issues about trade and industrial creation.
Private sector representatives, which includes business organizations and academics institutions, happen to be consulted inside the policy-making method through all their participation in the national committees. A major institutional change involves the changing of the Tariff Commission underneath the purview of the MOC, the Commission is now empowered to conduct anti-dumping and countervailing investigations (http://www. wto. org).
Local polices, standards and good farming practices (GAP) can assist developing countries in promoting safe and sustainable production systems and in supplying products for home, regional and international marketplaces that meet the quality, protection and environmental standards of these markets (United Nations, 2007). Trade Insurance plan Measures In an effort to encourage expense, the Government presents a wide range of open-ended tax incentives, notably duty holidays and accelerated downgrading.
However , the effectiveness of such incentives in appealing to investment can be doubtful, specifically in the absence of fiscal visibility, which could involve a detailed account of tax earnings forgone and systematic evaluation of the impact of these incentives in relation to forgone taxes. The presence of incentives complicates tax administration and taxpayer compliance, while increasing the scope pertaining to tax avoidance and forestalling, both of which are reflected in Bangladesh’s low overall degree of tax collection relative to GROSS DOMESTIC PRODUCT (http://www. wto. org). Iced Food Organization in Bangladesh
Bangladesh as being a third-world nation poses lower income, unstructured business environment, traditional social principles for living as a natural quality. Since this country has achieved independence, it did start to changing little by little and now their changing rapidly to cope with the modern and so referred to as western nation. Its business has got fresh dimensions plus the whole country economy is to play a great role in shaping the worlds upcoming to some expands. The involvement of growing countries in world trade is significantly lower than their participation on planet production, because the main manufacturers (China, India and Brazil) have enormous domestic market segments.
Although Customer the world’s largest producer, only a small amount of their production is exported, nevertheless exports will be increasing speedily (United Countries, 2007) GDP growth of extensive Industry sector was on the lookout for. 56% in FY 2005-06. The performance of the industrial sector was mainly based upon the growth in textile and wearing clothing, drugs and pharmaceuticals, fertilizer, petroleum goods, glass items, cement, electronics, footwear and food & beverage sectors. In addition to that, we can see that the total export earnings registered a 21. 3% increase during 2005-2006 and rose to US$ 10156 million (16. 03% of GDP) by US$ 8655 million (14. 18 of GDP) in 2004-2005. Export products increased chiefly due to higher demand in both created and expanding countries. Garments had the share (38. 86%), and then knitwear and hosiery (35. 43%), frozen foods (4. 43%), jute goods (3. 94%) household leather (2. 31%), chemical items (2. 52%) and uncooked jute (1. 03%) (Export Promotion Bureau Bangladesh, 2005-2006). Bangladesh is definitely not ready to address the newest requirements in international market segments.
Existing mechanisms for gathering, processing and disseminating details are not functioning properly and hardly any dexterity, follow-up and monitoring. Largely, stakeholders are generally unaware, oblivious and unconcerned. However , several private foundations and NGOs are raising awareness among producers of quality requirements and offering them with training. They are also exploring nontraditional markets (United Nations, 2007). The processing industries in the Region’s countries (Asia and Pacific cycles region) will be essentially agro-based enterprises.
We have a huge range of ethnic and traditional food products in each of the countries. The local food industry has become incredible around domestically available gardening raw materials, including maize or perhaps corn, paddy rice, fruits, vegetable, basic crops, sugarcane, coconuts, essential oil palm, seasonings, beverages (tea, coffee, cocoa) and honey. Modern foodstuff processing crops have been presented in expanding Region’s countries, initially centered on processed foods created from processed meats, wheat and flour goods, and dairy food. This has led to an increase in imported raw materials substances and the labels, for the roduction of the type of meals. In more the past few years, however , indigenous companies have set up, often in partnership with multinational corporations, to process local raw materials just like pineapples, cassava, fruits and vegetables being packed, labeled and released under the corporations’ brand names. These operations include food canning, carbonated beverages, frozen meals manufacture, and flour and starch development. The companies apply total quality assurance as well as thorough research and development techniques to ensure superior quality innovative goods (Hicks, 2001).
Bangladesh continues to be involved in frosty food business for a long period of your energy. During the 1972s, our freezing food sector started with rapid enlargement of seafoods processing and exporting. Right now, the market has come a considerable ways with the frozen foods foreign trade is the second largest foreign trade sector from the country. At present, many companies are involved in both equally import and export of frozen foodstuff. Imported products include different fruits, partial cooked meals, full grilled foods, whereas, exported products encompass frosty shrimp, lobster, crab, and various fruit and vegetables.
Although the market involves equally exports and imports, it is actually an export-oriented industry with an average twelve-monthly growth level of about 28% in the foreign trade area. In 1997, your fourth leading export item in Bangladesh was frozen prawn and fish, with a several. 3 percent share of the total export market (www. ifpri. org). The industry includes the following sub-sectors: Hatcheries, Sustainable aqua-culture technology, Supply meals crops, and processing unit to get value-added products. The iced food could possibly be categorized in ” (1) Fresh Food, (2) Semi Cooked/Processes Foodstuff, and (3) Full Cooked/Processes Foods (http://www. oi. gov. bd). ¢Fresh Foods: Refreshing foods are those that has not grilled or baked but has done some adjustments where important. For example , Sea Food, Beef, Chicken, Fishes, Beef etc . ¢Semi-Cooked/Processed Foods: Partial Cooked/processed foods are those which has made or formed or prepared in such a way that it might be eaten/use just by a simple preparing food process at home. That means, these types of foods are previously cooked for some extend to make ready to employ after a brief cook/bake. For example , Samucha, Singara, Noodles, Porota, etc . Full-Cooked/Processed Foods: Full Cooked/processes foods are those which has made or formed or prepared in such a way that it is usually eaten/use quickly at any time. Meaning, these types of foods are already cooked/processed to use instantly. For example , Ice-Cream, Juice, etc . The government of Bangladesh and many more national and international companies have been definitely participating to get the quality control over the market. Bangladesh Freezing Foods Exporters Association (BFFEA), a company with limited the liability, is the main corporation that is affiliated with this sector and set up in 1984.
Its key job is always to promote and protect the eye of Freezing Food processors, Packers and Exporters in Bangladesh. It also consists of in building and Promoting, contacts with foreign potential buyers, business connection and the Step of Trade and Sectors for developing export marketing and marketing of Frozen Food (http://www. bangladeshembassy). A Seafood and Fish Product Ordinance (Inspection and Quality Control) was created by the Bangladesh government and in 1985 upgraded the inspection lab and its personnel (www. ifpri. org).
Among the international companies, the Food and Agriculture Corporation of the United Nations (FAO) features helped this industry also. It has designed product standards, regulations, and fish inspection schemes. Based on the Threat Analysis Critical Control Level (HACCP) way, FAO initiated a mil novecentos e noventa e seis project to offer a hand in the planning of a seafood safety and quality control program pertaining to the sea food plants in Bangladesh, Intergovernmental Organization to get Marketing Details and Specialized Advisory Solutions for Fishery Products in the Asia Pacific cycles Region (INFOFISH) also helped the sector several times.
They have carried out tasks that dedicated to the foreign trade promotion of value-added products and their eco friendly development (http://www. ifpri. org). Another foreign organization, Worldwide Technology Development Group (ITDG), promotes foodstuff processing to assist the rural poor in expanding countries for getting sustainable livelihoods. This is component to ITDG’s aim to build the technical abilities of poor people in producing countries to further improve their lives (O. Yu, 2002).
ITDG links up with local organizations to provide teaching and support to food processors and internet marketers emphasizing on flexibility, tiny capital expense requirement, and operating in the house without the need pertaining to sophisticated or expensive tools. Among the assignments of will be cereal milling in Peru, snack food production in Bangladesh, and fruits and vegetable drying inside the Sudan (Halweil, 2002). ITDG began operating in Bangladesh in the early 1980s, but the ITDG”Bangladesh (ITDG-B) plan was not formally established till 1990.
ITDG-B provides technical assistance to small producers and local organizations, which include training, product research and development, disseminating information, networking and policy advocacy (O. YU, 2002). Food processing could help the agricultural poor in Bangladesh, especially women, who also are being among the most disadvantaged. Food processing often requires simply a little capital and can make use of local create. Many Bangladeshi women, ITDG-B found, had been already processing snack foods including home made samucha, singara and so forth Building independently know-how, females could increase their household cash flow by using neighborhood resources to process foodstuff.
Food finalizing can serve several expansion objectives for households and small business: elevated income, higher savings, foodstuff security and better nutrition (ITDG, 1999). Agro control in the wide sense is important to the nationwide economy, having shown a purported thirty-two per cent twelve-monthly growth in past years (Bangladesh Monetary Review, 1995). While large companies have now entered the snack food marketplace, small makers serve neighborhood markets and boost community economies. Conserving food expands the utility and output of farm produce, which can be often lost during peak seasons yet scarce during lean months.
Food control helps to generate food readily available during slim seasons helping to support household cash flow (O. Yu, 2002). The meals and Cultivation Organization (FAO) has remarked that the value noticed from control and promoting farm products can surpass main production (FAO, 1995). The present market for anyone products is known as a sellers’ marketplace dominated by a number of businesses. Consumers include choices of diverse quality and price. Manufacturers with appropriate marketing strategies are receiving marketplace acceptance in the domestic industry.
The market to get processed foods is becoming extremely sophisticated and consumers are becoming more quality conscious. Major local markets incorporate Dhaka and Chittagong urban centers. Apart from a growing domestic demand, the government is usually encouraging the export of processed foods, which can be important for this kind of sector. Refined food products in the local market approach from cpus to the customers through a sequence of bulk suppliers and suppliers. Distribution towards the export marketplace is through direct exporting or through trading companies (Hossain & Sheel, 2001). Constrains and Opportunity for Creation
While modest food finalizing offers quite a few opportunities intended for improving livelihoods, several constraints that hamper development have to be addressed. An important one is that large companies such as Bombay Mix, Aftab, Rich etc . have started producing multitude processed foods, including snacks, pickles, jelly and jam. Consequently , there is a rigid competition among the list of large and small scale manufacturers in the home market (Hossain & Sheel, 2001). According to the Bangladesh Country Development Table (BRDB), simply by April 2k approximately five large corporations were production it.
One other problem is that small makers have limited know-how in the technology of preparing food products, as mentioned by simply Azam Ali, coordinator of agro control programs at ITDG, lack of proper info and expertise seems to be a specific problem in the case of minor food control even though it could be a major source of jobs and extra income. Many other concerns that inhibit minor food digesting in Bangladesh (ITDG, 1998) need to be tackled: ¢There is a significant difference between having the ability to create for home intake and developing a small business depending on this product.
A number of abilities (both technical and business) is needed to make the transition from your home production to the running of any small-scale business. ¢Linked to this is the capability to locate and target market segments. This is a dynamic sector. Rural suppliers need to learn how to monitor transform, develop market segments and sell goods. Know-how to offer and finding wider market segments was a common limitation. ¢Consumer perception is an important issue faced by modest processors. There is a common belief that food produced by small-scale operators will be unhygienic and unsafe.
This can be somewhat authentic but is usually exaggerated. non-etheless, processors need to be more alert to hygiene, quality and uniformity in meals handling, including dangers of adulteration. ¢ Deficiency of access to recycleables, appropriate equipment and product packaging materials will be obstacles that small-scale processors frequently deal with. ¢Access to credit is lacking. Many of the small-scale processors belong to the most marginalized sector of the populace and do not possess disposable income. To enable them to set their abilities into practice, most need access to credit rating to purchase equipment and unprocessed trash. They also shortage access to ideal and well-timed information on a range of issues. To be competitive effectively, minor food processors want reliable scientific information and information on suppliers and prices of materials, tools and product packaging, and marketing information. ¢Recording transactions is actually a problem as a result of low literacy. In the nineties, only thirty four. 4 percent of Bangladesh’s population was literate. Literacy among women was 25. five per cent. In rural areas it was as little as 13 % (BBS, 1999). Most complications were marketplace related: competition with large companies, sporadic quality, poor packaging and labeling, marketing and selling, inadequate access to quality raw materials, and lack of assurance among customers in goods of minor producers (Azami et al., 1996, Azmi & Chowdhury, 1996). ¢The value-added tax imposed by government to the processed foodstuff industry and limited promotional activities for the small range business as a result of high cost of advertising campaign in advertising (Hossain & Sheel, 2001).
The changing role of multinational firms and demographic factors, plus more globalization of production and market probably enforce developing countries like Bangladesh to face increased competition emanating coming from liberal transact regimes, big MNCs taking pleasure in economies of scale due to their global operation, and lack of access to global market because of not any brand name and heavy expenditure of promoting for local firms (Hussain, 2002). As a result in case of Malaysian processed foodstuff, they have the technology as well as the means to nearby process food into higher-value products where there is ain competition from the other exporting countries such as Bangladesh (http://www. delmys. cec. european union. int). Furthermore, there is a insufficient modern facilities and gear for meals processing in many developing countries of the Location. Inadequate travel, poor distribution, inadequate frosty storage and freezer ability, lack of pasable water and unreliable power are the key shortcomings. There exists a shortage of trained, skilled labor and specialized competence in agriculture especially in the traditional meals industry sector.
This along with poor supervision, leads to ineffectiveness and poor competitiveness. Labor costs have risen markedly in newly industrialized countries, in the last decade. This ends in higher production costs, for labor-intensive operation. Moving the operation to lessen labor expense countries, or automation, is the response of modern food firms (Hicks, 2001). To contend with these issues developing countries should produce employment through economic creation and advertising technologies that suit the useful resource endowment.
A rustic like Bangladesh has large populations. Best way to achieve economic development utilizing the most abundant resource , labor. Expanding countries, consequently , have to product the R&D effort and modify systems to their edge, at least in industries where most of the population takes in its living such as cultivation, aquaculture, tourism, etc . Neighborhood business and enterprise creation is important intended for adding value to neighborhood resources, creating employment, and improving classic products for the global market.
Taiwan’s plant based teas, dried/pickled fruits, India-Pakistan cooking spices, pickles and chutneys, Malaysian ready-to-cook traditional foods and paratha, happen to be interesting improvements in business development. The potential for even more development is vast and should be exploited (Hussain, 2002). The local organization development offers huge economic opportunities. Expanding nations that emphasize better food self-sufficiency can thereby retain precious foreign exchange and steer clear of the whims of foreign markets. There may be strong evidence that community food typically costs less compared to the quivalent food bought within the international marketplace or via a supermarket, because travel costs happen to be lower in addition to fewer middlemen. In fact , repairing local foodstuff systems may possibly offer the initially genuine economic opportunity in farm region in years, a hitting need consideringg the huge numbers of money dripping out of rural residential areas. To the level that functions associated with food production and distribution happen to be relocated in the community under community ownership, more cash will move in the local community to generate even more jobs and income.
This is particularly the case if plants are not only produced locally, yet also highly processed locally or served in local restaurants. This sort of cha?non can help arrest the positive opinions loop that makes it harder and harder to get independent players to survive. Cornwall in England is an icon that link local foodstuff to local food organization: In Cornwall, the Cornwall County Council’s in-house meal service provider is definitely backing local food suppliers as part of a? 1 mil contract to provide school dishes to 32 county principal and supplementary schools pertaining to fresh meats, frozen food and fresh vegetables (Halweil, 2002).
A study in food processing in Bangladesh assessed industry and the potential of each activity (Chowdhury, Sarker, 1989). Their study regarded as snack foods since secondary meals processing. Several interesting findings included the following: ¢Many vegetation were produced throughout the year. However because the farms and development were small , and the volume of crops that may be processed was smaller than the capability of however, smallest equipment. In 1996, for example , 52. 85 percent of coalition were small , 0. 05 to installment payments on your 49 massive areas. Medium-sized farmville farm holdings, 2 . 5 to 7. 9 acres, made-up 11. sixty five per cent, and enormous holdings had been only 1. 67 per cent (BBS, 1999). ¢Most crops, other than jute and tea, were produced for the local industry, but creation was still below the country’s total require. Some plants, therefore , had been imported. ¢Crop processing may provide job for women as well as the rural poor. However , without appropriate gear, modern capital-intensive production can overrun the industry and displace women and landless personnel. Furthermore, snacks were referred to as a focus, along with grain and glucose cane products.
ITDG-B determined that there was a need to train fieldworkers approach make snack foods so that they can guide beneficiaries in working food control businesses. Post-workshop consultations with development organizations emphasized the need to train fieldworkers further in establishing eco friendly small-scale foodstuff processing businesses, particularly considering that the business alignment of these agencies and their personnel was not enough. When ITDG-B looked at existing suppliers of technology and training, this found the fact that existing training courses were focused towards large-scale operations (O.
Yu, 2002). The hunt for improved quality and stability of supply tends to create certain governance structures inside the private sector along the supply or benefit chain. Non-public sector requirements function as value chain governance tools: by specifying, connecting and improving compliance with key merchandise and process parameters along the value cycle, large customers and stores can benefit from control without title. Specific requirements on meals safety, quality, and environmental or interpersonal issues substitute, to some extent, to get direct monitoring and ownership by potential buyers.
These requirements transfer the direct costs of monitoring and control from the customers to the suppliers, who have to bear the costs of certification however are rarely paid for through higher prices (United Nations, 2007). Food Top quality and Regular in Bangladesh Quality of products is ensured through employing appropriate unprocessed trash, the right form of equipment and qualified technical personnel. Bangladesh Standard and Testing Company (BSTI) criteria and rules are implemented to ensure superior quality (Hossain, Sheel, 2001). The BSTI can easily play vital role to develop and balance food specifications for guaranteeing food quality and security in the country.
Additionally, they emphasized fixing a standard level to promote meals standards about international level and norms to assist in both the domestic and international trade for boosting the foreign trade earnings (http://www. newagebd. com). The BSTI, the nationwide standards body system, is a great autonomous business under the Ministry of Industrial sectors. BSTI executes the task of formulation of national requirements of industrial, food and chemical substance products. Quality control of these products is done according to Bangladesh Standards. Right up until date BSTI has come program over toll free national specifications of various items adopting more than 132 Worldwide Standards (i.. ISO) and food standards set by Food and Agriculture Organization (www. thedailystar. net). BSTI certifies the caliber of commodities which include food items for local consumption, which can be applied both pertaining to export as well as for import. Presently, 142 goods are under compulsory recognition marks structure of BSTI including 54 agricultural and food items (http://www. bsti. gov. bd). The needs food quality assessment facilities because big intercontinental corporate businesses cannot order many Bangladeshi food products inside the absence of these kinds of facilities.
One of the main issues that prevent the corporate businesses in the meals sector by purchasing from small and channel enterprises (SMEs) in Bangladesh is the not enough quality assessment facilities (http://www. sdnbd. org). BSTI made it necessary to mention 6 facts regarding the product around the package. This consists of the time of development, date of expiry (best before use), net items or weight, address with the producers or perhaps marketing businesses, maximum retail price (MRP) and the materials (http://www. bsti. gov. bd).
BSTI collects random examples from the production facilities and acquires products from the market to evaluate. If that they find lesser quality product they don’t have the power to take action up against the company or the industry. The BSTI Code 1985 have been amended to behave 2003 for consumers’ protection against low quality items (http://www. thedailystar. net). Only the government food testing clinical at IPH works on meals safety and water quality issues. The legal procedures to ensure correct quality control of food will be inadequate (world health organization, 2002).
The Institute of Public Health (IPH) organizes the activities of quality charge of drugs, meals and water, production of vaccines, 4 fluids, antisera and diagnostic reagents, diagnosis of infectious diseases and related research facilities. IPH is formed to assist the us government to prevent and control major health hazards caused by contaminated and adulterated foodstuff and normal water. Besides this, it organizes training applications in the field of diagnosis, control and prevention of infectious diseases and foodstuff and normal water safety.
It also conducts different research actions in related fields of public health, and to collaborate and co-operate to national, worldwide organizations and agencies inside the promotion of public health (http://www. thedailystar. net). It is therefore necessary to enhance awareness and understanding of the possible implications of quality, food safety and environmental requirements for the food sector in Bangladesh, also to carry out a great assessment in the compliance costs and the costs and advantages of a aggressive adjustment technique for the sector, including the impact on competition (United Nations, 2007).
Advice The new range of products of iced food has put forward the market for partial processed or perhaps processed foodstuff on the run. Since people are becoming more work-based, especially women, there is certainly very a fraction of the time for cooking food or setting up Tiffin for the children. It is a relive for doing work mothers and even easy for bachelor’s to prepare snacks or such items right away and with less inconvenience. The frosty food market has recently started in Bangladesh, concentrating in major metropolitan areas like Dhaka and Chittagong and directing towards just superstores.
The growing demand from and also the residing in cities previously to new era working moms and other employees has opened a huge chance for potential players to join in this kind of appealing market. Blooming companies are trying to gain awareness pertaining to market share at recent times. This benefits buyers in terms of top quality products and better customer service. Therefore, the industry has to create innovative tactics so as to entice and maintain more customers. Availability: To gain more customers the companies need to reach out to stores or department stores for various sides of the town.
Although the item needs to be held in special freezers, these businesses can make it happen. They can provide incentives to get retailers and even at potential customer bases can provide with freezers themselves! To be able to sustain from this competitive market, where large amount of frozen food imports happen to be pouring in, the market in Bangladesh needs to be strong in syndication. Export: Firms should distributed its boundaries to outside country to achieve more revenue. Things like shrimps and prawns and vegetables are already very good frozen export products and are generating good sum of income. So , transferring can be good option to broaden.
Science and Technology: Distribution and mass customized production may be in the form of acquiring fresh and advanced store gadgets. Such things will increase the tempo of goods shipped to customers. Specialised equipment for preserving frosty foods might be acquired. Equipment is being designed that will provide both visibility and attractiveness to both frozen meals, made possible by simply new advances in a fridge which permit visibility but retain low temperature. Modern equipment and technology can help in product web design and development, mass creation, standardization and quality control, packaging and transport.
Promo: At this point, the frozen food companies should do rigorous advertising activities in order to increase understanding level in probable clients. Different courses may include in-store demonstrations showing how easy the foodstuff is to prepare, leaflets with the items given to the parents when they wait for taking their kids from schools. Leaflets in magazines and multi-colored ads in the TV during drama period, 9: 00 pm to become shown in several satellite Bangladeshi channels can even be good starting. Another ground to show off is throughout the international operate fairs.
Placing: The towns are big and to build a place right now there one needs to become different. The people to be targeted are literate working people with white color jobs or students. Consequently to reach this mass an organization needs to set up somewhere from where circulation is easy to retailers. One other daring step can be to have got a forwards linkage or integration. Frankly to have a retail outlet of just company manufactured frozen foodstuff. This is company owned and will have a little cafe portion only snack foods out with their items. The shop needs to have people from your company who can answer to virtually any queries the individuals ay have. Innovation: Continuous rendering is required to have a very good hold on the market share. Beyond Bangladesh iced food features ranged from snack foods to complete meals. The frozen food companies will need to develop new releases through r and d to match with all the ever changing needs. They should often try to make ways to lower cost without hampering quality much to contend with the imports. Installment of Training Programs Time: Manipulative skills are available to the agro-industries in the Region.
However , insufficiency of complex technical understanding and not enough management skills in the labor force restricts advancement and constant performance. Therefore , government and also private sector should build a sound technical and professional base, recruiting in research, technology administration and management. Institutes to get research and development focusing on the requires of iced food industrial sectors should be set up at diverse levels of advancement. Infrastructure Development and Favorable Trade Policy: Both institutional and physical, is a element of most national development plans.
Establishment of basic system such as highways, distribution system, power supply, and favorable and supportive plan to have adequate cold storage area and refrigerator system is acknowledged as essential for the expansion of semi-processed food sectors. There should be a modern infrastructure and equipment for food finalizing. Conclusion It is quite much very clear that Bangladesh potential region to produce frosty food due to its resource endowment ” considerable labor force that is certainly suitable for the availability of frozen food. The essence with the frozen foodstuff business is that it becomes earnings source pertaining to the local and rural people.
There are huge organizations associated with this industry, and thus a wide array of workers are employed. That may be how this kind of industry is usually keeping a lot of contribution in removing lack of employment rate and creating even more employment chance, and, healthy diet its future. Furthermore, increasing require both in local and in abroad for the frozen food and tiny investment necessity make this business more attractive and profitable for small-scale and larger producers. Nevertheless , massive pressure from imported semi-processed food is affecting the area small-scale producers such as homemade foods.
Consequently , frozen meals businesses require achieving the quality standard and government will need to aid small-size business with tax reduction, and assist in more purchase. Here, the private industries or larger organization can play a significant role by simply facilitating the tiny producers in the value creation activities. Furthermore, consumer consciousness is also a large factor to develop the frosty food industry. Unless and until the uses are willing to buy locally made semi-processed meals and help the neighborhood producers produce quality goods, the development of frozen food organization country large might not take place.
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