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Agribusiness bears highest potential among emerging sectors

Highlights Bida to Dutch investor delegation, says local sales to triple to $8b by 2025
STAR BUSINESS REPORT
Agribusiness in Bangladesh, including food processing and associated machinery production, has the highest potential among eight emerging sectors, with domestic market sales estimated to reach $8 billion by 2025, according to Bangladesh Investment Development Authority (Bida).
“In 2021, the country’s domestic market size was $3.2 billion and it is expected to be $8 billion by 2025,” said Shah Mohammad Mahboob, director general of an International Investment Promotion wing of Bida.
The immense potential of agribusiness is in the manufacture of processed foods, vegetable or fruit products, milk, dairy products, edible oil etc, he said.
“The manufacturing of agricultural tools and machinery as well as the upgrading of cold chain facilities also have potential,” he said.
Agricultural export from Bangladesh has grown 18 per cent over the last five years, he added.
The apex investment promotion agency’s official shared the statistics with a trade delegation of the Netherlands which arrived on a three-day visit yesterday to promote bilateral cooperation in the dairy and horticulture sectors.
The delegation was holding a meeting hosted by the Netherlands embassy in Dhaka with the agriculture ministry and Bida at Amari Dhaka.
The group comprised representatives from nine companies and institutions who are scheduled to hold talks with Bangladeshi businesspeople, entrepreneurs and experts to identify areas of investment and cooperation.
“Bangladesh has now been ranked among the top 10 countries in the world in the production of various crops. There’s a lot of potential here,” said Agriculture Minister Muhammad Abdur Razzaque at yesterday’s meeting.
Bangladesh is now one of the top countries in the production of 22 agricultural products including rice, potatoes, mangoes and vegetables, according to a recent Food and Agriculture Organization report, he said.
“But we are lagging far behind in agricultural processing and in the export of agricultural products,” he added.
Bangladesh needs technical cooperation and investment from the Netherlands in four priority sectors of agricultural processing, cold storage and post-harvest management, climate smart agriculture and irrigation management, said Razzaque.
He also acknowledged the contribution of the Netherlands in Bangladesh’s development.
“The trade mission will be an important step towards the future of the dairy and horticulture sector in Bangladesh and will open new frontiers in the trade relationship,” he said.
Bida’s one stop service centre and other services aim to meet the needs of foreign investors, said Lokman Hossain Miah, executive chairman of Bida.
“If you invest in Bangladesh, we are ready to give special incentives to you,” he said.
The private sector’s innovation and entrepreneurship help develop a country’s agriculture, said Frederik Vossenaar, special envoy of the Ministry of Agriculture, Nature and Food Quality in the Netherlands.
“Last year we have exported around €125 billion agricultural products, including €1.8 billion tomatoes,” he said.
Bangladesh also has a great opportunity in the agriculture sector, he said.
There are some challenges too for Bangladesh, pointed out Md Abdus Salam, principal scientific officer of Bangladesh Agricultural Research Council, in a presentation.
These include a decline of cropland, soil fertility, natural resources and groundwater, climate change and a lack of capacity in storage, agro-processing and commercialisation, he said.
Among others, Naser Ezaz Bijoy, president of the Foreign Investors’ Chamber of Commerce & Industry (FICCI) and chief executive officer of Standard Chartered Bangladesh, also spoke at the event.