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Agro-processed food exports keep up growth

Star Business Report
Export earnings from agroprocessed foods grew 77 percent to $40.65 million in fiscal 2007-08, rising from $22.94 million a year ago, buoyed mainly by a surge in the exports of dry foods, rice, fruit juice and biscuits.
The exporters' continuous innovation of finding new exportable products and their strong marketing efforts have enabled processed foods to win the hearts of Bangladeshis in the Middle East, Europe and other parts of the world.
"It's the result of all of our efforts. We really feel proud that we are adding as high as 70 percent value to various food items,” said Amjad Khan Chowdhury, chief executive of PRAN-RFL Group, the country's leading exporter of agroprocessed products.
Industry people said Bangladesh's agro-processed food items are being exported, in a bid to reach millions of expatriates working in various countries, mainly in the Middle East.
According to agro -processors, locally processed foods are also being sold in Australia and the US, although Saudi Arabia and other Gulf states, with hundreds of Bangladeshi workers, are the largest markets. Bangladeshi processed foods are being exported to about 70 countries, including some Africa nations, although the earnings from that segment remains negligible, compared to the country's total export income of $ 14,110 million for 2007-08.
"We have a lot of room for progress,” said Chowdhury. “In the past, Bangladeshi expatriates were our main consumers. But now, Indian and Pakistani people also like our products."
Statistics by Export Promotion Bureau show that Bangladesh's dry foods such as puffed rice, flattened rice and chanachur dominated half of the export basket for agro-processed foods, followed by aromatic rice, fruit j uice and spices.
Last year, export earnings from dry foods increased by more than double while earnings from biscuits went up three-folds. Fruit juice and rice exports also rose.
Industry people said that a 20 percent cash incentive offered by the government helped attain consistent growth.
"Continuous innovative ideas of ethnic food products results in rapid growth. And it will continue as long as
Bangladeshi people continue to go abroad," said ME Dowla, managing director of another leading exporter, Eurasia Food Processing (BD).
The MD of Eurasia, which exports mainly frozen vegetables and snacks mainly to the UK, however said many people are processing foods in an unhygienic manner, which could hurt exports in future.
A senior official of Square Consumer Products that registered over 60 percent growth in the January-June period of 2008 said a change in the attitude of expatriate Bangladeshis had helped exports grow.
Mozammel Huq, adviser of Bangladesh Agro-Processors Association, said improvement in areas such as packaging and supply chain is needed to make local products more competitive.
"Above all, an internationally recognised testing laboratory is essential to boost exports,” Huq said.