7/23/2019 The Agricultural Sector of Bangladesh http://slidepdf.com/reader/full/the-agricultural-sector-of-bangladesh 1/20 “The Agricultural Sector of Bangladesh” Course: Fin470 Section: 01 Prepared for: M. Ahsanur Rahim (ARM) Prepared By Name Id Refa E Alam 1110884 030 Rahat Md shihab 112 092 030 Rahat Mustasin Ishaque 1110!0 030 Md. abir !ossain 112 0072030 Ramisa Mali"at 1110781 030 Shira# Sabina 112 0790 030 M$. Tuna%%in&'l&Arefin 111 071! 030 $ate of submission( )*+,)+-,*
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$his is a s-no/sis o# the /roect /ro/osa% carrie out in the /erio o# our
&no'%ee an an o,er,ie' o# our /roect /ro/osa% throuh the Aricu%ture Sector.
As an%aesh is an aricu%tura% countr- aout 70@ o# /eo/%e are irect%- an
inirect%- re%ate in this sector. n this reason that 'e are chosen this sector. ur
maor sector is Aricu%ture an this sector 'as contriute some su sector<
$his sector is a re/ute an ua%it- #ocuse the /art o#< cro/s %i,estoc& /ou%tr-
#isheries #oo e,erae an #armin. ,er the -ears this sector has e,e%o/e
an nurture a c%ose re%ationshi/ 'ith the #armers /ro,iin them inno,ati,e ancost e##ecti,e /roucts an ser,ices. Aricu%ture is a sin%e %arest /roucin sector
o# econom- since it com/rises aout 30@ o# the countr-Bs an em/%o-in
aroun 0@ o# the tota% %aor #orce. in aricu%ture an its /rice is ec%inin
ecause o# there is too man- /eo/%e has irect%- an inirect%- re%ate in this
sector. an%aesh has a /rimari%- ararian econom-. $he /er#ormance o# this
sector has an o,er'he%min im/act on maor macroeconomic oecti,es %i&e
em/%o-ment eneration /o,ert- a%%e,iation human resources e,e%o/ment an
an%aesh is /rimari%- an ararian econom-. Aricu%ture is the sin%e %arest /roucin sector
o# econom- since it com/rises aout 30@ o# the countr-Bs an em/%o-in aroun 0@ o#
the tota% %aor #orce. Aricu%ture /%a-s a /i,ota% ro%e in an%aeshDs econom- an in the %i,es o# the ,ast maorit- o# its /o/u%ation. $he situation is #urther ara,ate ue to %oa% 'armin
scenarios. $he share o# ini,iua% su sectors are aout 13@ #or cro/s 3@ #or %i,estoc&
!@ #or #isheries an 2@ #or #orestr- $houh 'e ma&e this o,er,ie' 'ithout the #orestr- sector.$he ra/i ro'th in /o/u%ation 'ith the ec%ine in cu%ti,a%e %an threatene to e a i /ro%em
#or an%aesh. At /resent an%aesh has a /o/u%ation o# aout 132 mi%%ion. $he tota%
eora/hica% area o# an%aesh is aout !000 suare mi%es (143998 suare >i%ometer) out o#
'hich aout 9 mi%%ion hectares are cu%ti,a%e %an. ?o'e,er e,er- -ear the cro/%an is shrin&in#or human sett%ement. t is estimatin that the ro'in /o/u%ation /ressure 'i%% use u/ !0 /ercent
o# the countr-Ds cu%ti,a%e %an - 202!. *,er- /erson 'or&in in the aricu%ture sector no'
o'ns on%- an a,erae o# 0.12 hectares o# cro/%an. Accorin to the c%assi#ication o# %an out o# the tota% area 3@ has use #or cu%ti,ation 'hi%e 4.38 /er cent #or rura% an uran housin an
the rest inc%ues #orest cu%ti,a%e 'aste%an. n an%aesh most o# the /eo/%e %i,in eneath
the /o,ert- %ine are #armers. $hese are the /eo/%e to ro' the #oo that #ees us ut the-themse%,es o hunr-. $his is most%- ecause natura% resource tens to an e+cessi,e amount o#
%aor in its e+traction. $his causes a misa%%ocation o# %aor so that there is a /roucti,it- %oss.
$he share o# in aricu%ture an its /rice is ec%inin ecause there is too man- /eo/%e an
in this sector. *,en thouh income is increasin #or /eo/%e 'or&in in ser,ice an inustries
sector the amount o# #oo the- consume is not increasin as much. ut their eman #or other oos is increasin hence creatin more o o//ortunities in the non<#arm sector.
Im/ortance of agriculture(
Aricu%tureDs share in ross omestic /rouct () has #a%%en o,er time urin the %ast ecae
#rom one<uarter to one<#i#th. 5e,erthe%ess aricu%ture remains e+treme%- im/ortant as it
/ro,ies the u%& o# em/%o-ment (ust !0 /ercent) as 'e%% as nationa% #oo securit-.
$!%& !n t'e a(r!cltral %ector:
7roduction or "ield ris9( %oss o# /rouction or %o'er -ie% o# cro/ ue to isaster or other causes. rice or mar&et ris&: re#errin to uncertainties aout /rices /roucers 'i%% recei,e #or
commoities or /rices the- must /a- #or in/uts<
Asset ris9 : re#errin to the /otentia% %oss or amae to /h-sica% ui%ins eui/ment ,ehic%es
an im/%ements ue to #ire the#t 'ater amae or accientsE.
Institutional ris9( re#errin to une+/ecte chanes in o,ernment reu%ations o,ernin ta+esEen,ironmenta% /rotection em/%o-ment ru%es 'or&/%ace conitions /rice or income su//orts
re/atriation o# /ro#its su//ort /a-ments other susiies /ro/ert- con#iscation an the %i&eE
:/erational ris9( re#errin to uncertainties in scheu%in or usin eui/ment at critica% timesma&in or recei,in shi/ments o# critica% in/utsout/uts an han%in o# %aor is/utesE
%iuiit- to meet %iai%ities %oss o# euit- an the /ros/ect o# %oans ein ca%%e - %enersE
7ersonal ris9( re#ers to uncertainties an ris&s connecte to hea%th an /ersona% re%ations such asaccients i%%ness eath an i,orce.
;ute
$o ienti#- ris&s an manae those in ute sector ris& manaement some s-stems are use.
an%aesh Gute Commoit- *+chane ris& manaement s-stems are esine to su//ort as/ot mar&et in#rastructure an manaement. an%aesh Gute Commoit- *+chane ris&
manaement strate- oes not on%- #ocus on ris& a,oiance ut a%so the ienti#ication an
manaement o# an acce/ta%e %e,e% o# ris&. t acce/ts ris& in a%most e,er- acti,it- it unerta&esin /ursuit o# its usiness oecti,es #rom memershi/ acuisition to #ina% e%i,er- o#
commoities an so senior manaement /erioica%%- e#ines its ris& a//etite aainst &e- ri,ers
o# success. $he ris&s #ace - the sector an the 'a- the- are manae are iscusse e%o'.
an%aesh Gute Commoit- *+chane ensures that c%earin memers ha,e ai%- a%%o'a%etrae %imits an the- can on%- trae 'ithin these %imits. an%aesh Gute Commoit-
*+chane has so#t'are in /%ace to ensure that a%% c%earin memersD transactions are assesse
aainst their re%e,ant %imit an re/ortin /rocesses #or %imit reaches. an%aesh Gute Commoit- *+chane o/erates at a ai%- /rice %imit to %imit %osses to in,estors #rom sini#icant
mar&et mo,ements.
<redit Ris9
Creit ris& arises 'hen a c%earin memer #ai%s to meet their /a-ment o%iation. an%aeshGute Commoit- *+chane has /o%icies reuirin memers to e a//ro,e e#ore the- traeE
ensurin that the- ha,e /re</ai into their train accounts. Creit ris& ue to short#a%% in
memers account is mitiate - nettin areements an cash e/osits in the #orm o# sett%ement
uarantee #un.
5iquidit" Ris9
an%aesh Gute Commoit- *+chane has strate- to measure an monitor the %iuiit- o#
sett%ement uarantee #un an to ensure that there are su##icient #uns to meet c%earin memerstransaction e+/osures. $his is one - /re/arin scenario ana%-sis o,er an a//ro/riate time#rame
o# %i&e%- in#%o's an out#%o's o# #uns.
Re/utation and image ris9
an%aesh Gute Commoit- *+chane has a /o%ic- o# o/enness trans/arenc- an #airness to
a%% sta&eho%ers to ensure that its re/utation or stanin in the communit- is not iminishe.an%aesh Gute Commoit- *+chane has stron communication an meia team seein to
that. $he se%ection o# an a//ro/riate ris& manaement strate- to aress each o# its omains is
ase on soun unerstanin o# the uner%-in ris& a#ter a com/rehensi,e assessment o# theris& an a oo sense o# an%aesh Gute Commoit- *+chane Ds a//etite #or ris&.
an%aesh Gute Commoit- *+chane Ds ris& a//etite is /erioica%%- re,ie'e e#ine an
rati#ie - senior manaement.
T=o ma#or ris9 factors of li>estoc9 and cro/s(
1) C%imate chane im/act an 2) Socio<economic im/act
auacu%ture. A%thouh a sini#icant numer o# #ish hatcheries e+ist these must ereu%ate an monitore #or ua%it- see /rouction. Access to ua%it- #ish #r- 'ou%
he%/ to e+/an auacu%ture in the ne' areas.
9. Moreo,er the e,e%o/ment o# sustaina%e auacu%ture is ensurin an aeuate su//%- o#
ua%it- #ish #ee. Farm<mae aua#ee an inustria%%- manu#acture /e%%et #ee can econsiere #or ro'<out o/eration.
10. n orer to increase income an #oo securit- o# #armin househo%s hih ,a%ue #ish such
as /ra'n an interate rice<#ish #armin cou% e incor/orate. A asic technica%&no'%ee o# interate #ish #armin shou% e /ro,ie to the #armers 'ith the he%/ o#
F an 5s. Future tarets cou% e to interate 'ith other aricu%tura% acti,ities
es/ecia%%- i&e cro//in o# #ruits an ,eeta%es.11. *+/ort mar&et /otentia% to e e+/%ore #or /anas an ti%a/ia.
an%aesh has a suita%e en,ironment #or catt%e. $here#ore the nee #or e,e%o/in the air-
inustr- es/ecia%%- in the rura% areas has een reconi;e. Some o# the ris&s are i,en e%o'an their /ossi%e manaement /rocess to ma&e the air- #arm inustr- more /ro#ita%e is i,en
e%o'.
Information 7roblems
$he a,ai%ai%it- o# re%e,ant in#ormation is essentia% #or so/histicate em/irica% an riorouseconomic ana%-sis to arri,e at the conc%usions #or /o%ic- #ormu%ation. o,ernment ecisions at
/resent are #reuent%- ominate - res/onses to the current situation 'ithout aeuate
&no'%ee o# the inustr- an mar&et. $he #uture e##ecti,eness o# o,ernment /o%icies e/enson /%ans that are ase on more aeuate ata aout the air- #arm sector.
5ac9 of $isease+7arasites <ontrol
iseases an /arasites are a maor /ro%em #or the air- inustr- in an%aesh. iseases cause
hih morta%it- an se,ere economic %oss. Mastitis is a anerous isease #or %actatin anima%san reuces mi%& /rouction. n aition the im/ro,e ,arieties o# co's nee /ro/er meica%
attention in the tro/ica% en,ironment. ?o'e,er the meica% #aci%ities are /oor at istrict an
thana %e,e% %i,estoc& o##ices. $he /rices o# essentia% anima% rus are hih. A 30@ increase incatt%e /rouction 'ou% e /ossi%e i# these iseases 'ere /ro/er%- contro%%e. $he ,accination
/roram o# the e/artment o# "i,estoc& is %imite ecause o# uetar- constraints. $he anima%
hea%th ser,ices nee to e im/ro,e at e,er- %e,e%. $here are urent emans in ,eterinar-
eucation to u/<rae an in some areas the ua%it- o# trainin /rorams. n%- in this 'a- 'i%%eucationists an research an e+tension 'or&ers reach an aeuate %e,e% o# com/etence #or their
im/ortant tas&. $houh e,er- e##ort is ein mae to im/ro,e the anima% hea%th ser,ice -
increasin the #ie% sta## an esta%ishin o# ,eterinar- centers there is a reat nee #or #urther strenthenin o# these centers an the esta%ishment o# aitiona% #aci%ities.
Shortage of ualit" Breeds$he main /ro%em o# air- e,e%o/ment %ies in its ,er- %o' /rouction an %o' /roucti,it-.
reein is the maor techno%oica% im/ro,ement /rocess in the air- inustr-. A cross<reein /roram #or catt%e 'as introuce in the countr- in 197 'ith a ,ie' to im/ro,in the mi%&
/rouction e##icienc- o# inienous co's. $he /roram ser,es 'ith a net'or& o# 847 arti#icia%insemination centers the resu%ts otaine so #ar on the orani;e #arms an research institutes isuite encourain. ?o'e,er no s-stematic stu- has een conucte in the countr- to
oecti,e%- e,a%uate the economic /er#ormance o# the cross<ree co's uner #ie% conitions.
$he ao/tion o# mi%ch crosse catt%e has rouht aout an immeiate u/'ar shi#t in the
thresho% %e,e% o# mi%& -ie% ena%in the #armers to et more mi%& at the e+istin %e,e% o# in/utuse. ?o'e,er the #armers #ai%e in conso%iatin such techno%oica% ain as the- 'ere una%e to
aust to the ne' reuirements o# the crossre techno%o-. $he arti#icia% insemination centers in
an%aesh %ac& reuire amenities an there are none e+/erts in these centers ham/erin
smooth #unctionin o# arti#icia% insemination /rorams. n aition to the techno%o- re%ate to
reein a numer o# other areas such as #eein e##icienc- /rocessin techno%o-trans/ortation iseases an mar&etin e##icienc- a%so reuire care#u% ana%-sis. Moreo,er
a%thouh a %are numer o# ,eterinar- centers an A centers e+ist in the countr- there seems to
e no s-stem to reach the #armers to a,ise them on ,arious as/ects o# anima% /rouction anhea%th. n orer to correct the e#icienc- o# the A #aci%ities it is im/ortant not on%- to /ro,ie
aeuate trainin to the /ersonne% in chare o# the A stations an the #armers ut a%so to
im/ro,e the ua%it- o# the in#rastructura% #aci%ities 'ith the A stations.
5ac9 of Research and Training
"i,estoc& in s/ite o# its im/ortance has een a ne%ecte area o# aricu%tura% research in
an%aesh. 5o ,isi%e im/ro,ements can e mae ecause o# the asence o# a sense o# urenc-
an %o' in,estment in research. Scienti#ic research stuies re%atin to economic as/ects o#
air-in an the air- inustr- are not aeuate%- a,ai%a%e. Moreo,er ue to a %ac& o# e##ecti,eness in its research an e+tension ser,ices it has not -et een emonstrate that
%i,estoc& #armin an /articu%ar%- air- #armin can e trans#orme into an attracti,e an /ro#ita%e usiness.
5ac9 of National Mil9 ?rid and 7rocessing 7lants
A mi%& ri is a s-stem uner o,ernment #or mo,in mi%& #rom the remote rura% mi%& shes touran mi%& consumin eman centers. $his has he%/e /roucers et a oo /rice an
simu%taneous%- in e,e%o/in a reu%ar mar&et #or their mi%&. $here#ore mi%& /rouction is
eare to meet #resh ai%- reuirements o# the /o/u%ation. ?o'e,er there is no nationa% mi%& ri. $he e,e%o/ment o# a mi%& ri 'ou% he%/ to increase mi%& /rouction an current %osses
in mi%& 'ou% e reuce. Attention shou% e i,en to their esta%ishment.
Inefficient Mar9eting
Mar&etin ma&es the e+chane /rocess more meanin#u% to the /arties in,o%,e in the e+chane.
ne /art- ains in term o# nees an 'ants satis#action an the other ains /ro#it - /romotinsatis#action. $he oa% o# an- mar&etin /roram is to mo,e the /rouct #rom the /roucer to the
consumers in an economica% an orer%- manner 'hich satis#ies the customers an /ro,ies areasona%e /ro#it to the /roucer an /rocessor. $here#ore 'ith a /ro/er /ers/ecti,e mar&etin
as an a//roach can /ro,ie a meanin#u% irection to the air- e,e%o/ment e##ort. i,en that97@ o# mi%& is /rouce in rura% areas 'hi%e the /ro#ita%e mar&et #or it e+ists %are%- in the
uran areas most o# the ai%- /rouction o# mi%& o# the #arms is rouht to i##erent mar&ets o#
the uran area #or sa%e. ue to the earth o# mar&etin #aci%ities the air- #arm o'ners arecom/e%%e to se%% the u%& o# their mi%& to the tea sta%%s at a chea/er /rice. Mar&etin channe%s #or
se,ere%- restricts /rouction an resu%ts in unmar&eta%e sur/%uses in some areas an shortaes
in main consum/tion areas.
!o= can be these ris9s managed(
Breeding /lan(
ros/ects #or increase eman #or mi%& in the countr- are ,er- hih as oser,e in the ear%ier
section. $his cou% e achie,e on%- i# inienous co's are re/%ace - hih -ie%in anima%s in
catt%e - cross<reein the %oca% co's 'ith e+otic rees. ith more nutritious #ee su//%- ana remunerati,e out%et #or mi%& cross<reein 'i%% ha,e a chance to succee.
eterinar" /rogram(
$he contro% an eraication o# isease on the %oca% an nationa% %e,e%s creates the o//ortunit- #or
the e,e%o/ment o# coo/eration et'een #armers. accination /rorams es/ecia%%- #or sma%%ho%ers are est carrie out at centra% /oints. $his creates man- o//ortunities #or s/reain the
messae o# anima% hea%th an nutrition. At such atherin /oints the #armersD anima%s shou% e
se/arate unti% the- ha,e een e+amine an associate isease shou% e /ointe out toini,iua% #armers an a,ice or treatment must e i,en.
Mar9eting structure(
$he u%& o# mi%& /rouction in an%aesh is in the hans o# a %are numer o# sma%% /roucers
scattere a%% o,er the countr-. For a%ance e,e%o/ment o# the air- inustr- the orani;e
mar&etin o# mi%& an mi%& /roucts is a /re<reuisite. As a resu%t much attention shou% ei,en to the ui%in u/ o# %iui mi%& /%ants mi%& schemes an mi%& /rouct #actories in maor
to'ns an cities. air- e,e%o/ment /rorams shou% e ao/te on an interate ,ie'
incor/oratin /rouction enhancement /rocurement /rocessin an mar&etin o# mi%&.
T'e $!%&% of Poltry far#!n( b%!ne%%:
*. Bird flu(
t is n#%uen;a or a ,irus 'hich is enemic to /ieons an some irs. $his is a%so harm#u% #or human o-. n%- one hen or chic&en 'hich a##ecte - ir<#%u can e cause #or eath o# a%%.
$hat can e resu%ts in mass estruction or %oss #or the #arm o'ner. $his ris& has no %imit.
An- sort o# accient ma- ha//en. Farm can e a##ecte - an- sort o# natura% ca%amities #or
e+am/%e: ,erheatin hea,- rain #a%% storm etc. An #or that reason in an%aesh #arm o'ner
are countin %oss in mi%%ions in e,er- -ear urin the summer an rain- season.
). 5ife has no guarantee(
As 'e &no' most o# the /eo/%e ea% 'ith oi%er in /ou%tr- inustr-. t is a matter o# #act that
an- unconsciousness sho'in - the su/er,isor urin their %oo& a#ter can e cause o# eath. As
this usiness is ea%in 'ith %i,e%- /rouct the- shou% e a'are o# this %oss an ris&.
. Mar9et Ris9(
6oods got <hromium:
Recent%- an artic%e aout chic&en sho's that the #oo is i,en to the oi%ers is mae -
unhea%th- com/onent an some o# these ha;arers to human o- an a%so #or oi%ers as 'e%%.
$he #oo contains a com/onent ca%%e chromium 'hich is the main reason #or cancer to human o- an reuces %one,it- o# chic&enDs %i#e.
!igh /rice of food (
ou%tr- #armer u- there ,itamins an #oos #or oi%ers at hih /rice. An #or that reason it has
ecome har to maintain the oi%ers as it 'as e#ore. So that the o'ners are not ma&in a oo /ro#it an some o# these are countin %osses.
An it has resu%te in hih mar&et /rice o# oi%ers an es.
ut oi%ers ha,e ecome a terror to man- /eo/%e #or the ir #%u an a%so #or containinchromium in their o- ('hich irect%- comes throuh #orm their #oos). eo/%e are no more
intereste as the- 'ere e#ore to eat oi%ers. So that /ou%tr- #armers ma- ha,e #ace 'ith %osses
as it has %osses its /o/u%arit- #or ir<#%u Chromium an hih mar&et /rice.
0. <redit Ris9(
Creit ris& arises 'hen a c%earin memer #ai%s to meet their /a-ment o%iation. Creit ris& ue
to short#a%% in memers account is mitiate - nettin areements an cash e/osits in the #orm
o# sett%ement uarantee #un. Most o# the /ou%tr- #armers o# an%aesh are sma%% an a usinesso# so%e /ro/rietorshi/. An o#ten the- start their usiness - the he%/ o# short %oan #rom an& on
5o' 'e iscuss our #oo an e,erae sector an o,er,ie' the current situation.
e,erae mar&et in an%aesh: A#ter ine/enence the #oo hait o# an%aeshi /eo/%e has
chane a %ot. esies our traitiona% #oo consumer o# an%aesh %i&e to ta&e 'estern #ooa%so a#ter 1980s. ecause o# %oa% mar&etin this 'as not too har #or the consumers.
5e' ris&s continue to emere #or com/anies in the Foo an e,erae sectors ecause o# reu%ator- chanes an an increasin%- %oa% usiness en,ironment. ssues such as #oo sa#et-
'armin an contamination can ha,e #inancia%%- e,astatin e##ects i# not /ro/er%- ienti#- an
aresse.
Mar9et entr"
u-ers 'ant to see the /rouct its co%or #ee% an taste e#ore the- can commit to u-in. So
'hen ma&in contact 'ith /otentia% istriutors it is a,isa%e to sen them sam/%es to he%/
them ma&e in#orme ecisions.
Some ma- 'ant to o a tria% shi/ment to test the mar&et an aue the interest %e,e% e#ore
consistent su//%- is esta%ishe.
Most e,erae manu#acturers are re/resents - aentsistriutors 'ith su##icient stoc& einho% #or short<term nees. Aentsistriutors re%- on su//%iers ein a%e to restoc& at short
Assurin #uture ro'th in aricu%ture 'i%% e a i##icu%t enea,or thouh it is not im/ossi%e. t
'i%% reuire actions an in,estments on man- #ronts. Since in,estment in aricu%tura% research is
hih%- re'arin an ene#icia% the o,ernment shou% raise the in,estment to at %east 2@ o# as recommene - or% an& an FA. $he increase in,estment 'i%% certain%-
encourae scientists to e,e%o/ techno%oies to co/e 'ith the ha;ars o# c%imate chane. $he
ec%ine o# #unin #or research in the /ast has ha e%eterious e##ects on its ai%it- to eneratean e,o%,e ne' techno%o-E these nees to e recti#ie urent%-. ther s/heres o# /u%ic%-
su//orte acti,it- %i&e mar&etin an e+tension ha,e a%so su##ere reuctions an increase
attention shou% i,e to these su//ort ser,ices. Fina%%- #or %oner<term ro'th 'e%%<esinemanaement o# the 'ater resources is essentia% an 'i%% e /articu%ar%- im/ortant #or aa/tation