CHAPTER # 1 – INTRODUCTION TO AGRI-BUSINESS AND

AGRICULTURAL MARKETING

DEFINING AGRI-BUSINESS AND AGRICULTURAL MARKETING

Literally speaking business means bushes. In simple words “business means the state of being busy”. Broadly, business
involves activities connected with the production of wealth. It is an organized and systematized human activity involving
and purchase of goods and service with the object of selling them at a profit. Business concerns with buying and selling
goods, manufacturing goods or providing services to earn profit. The word agriculture indicates plowing a field, planting
seed, harvesting a crop, milking cows, or feeding livestock. Until recently, this was a fairly accurate picture. But to days’
agriculture is radically different.
Agriculture has evolved in to agribusiness and has become a vast and complex system that reaches for beyond the
farm to include all those who are involved in bringing food and fiber to consumers.
Agri-business include not only those that farm the land but also the people and firms that provide the inputs (e.g.
seeds, chemicals, credit, etc.), process the output (e.g. milk, grain, meat, etc.), manufacturing of the food products
(e.g. ice-cream, bread, breakfast cereals, etc.), marketing of these products and to develop marketing chain for food
products to consumers (e.g. restaurants, supermarkets), advertisement, and transport, etc.
Agribusiness is the business of agricultural production. Within the agriculture industry, "agribusiness" is used simply
as a combination of agriculture and business, referring to the range of activities and disciplines encompassed by
modern food production.
Agribusiness includes all the activities within the agricultural food and natural resource industry involved in the
production of food and fiber. Individual agribusinesses may sell items to farmers for production; provide services to
other agricultural businesses; or be engaged in the marketing, transportation, processing, and distribution of
agricultural products. Agri-service is activities of value to the user or buyer. The activities are an intangible product.
Marketing is providing the products and services that people want when and where they want them.
The old agricultural practices include plowing a field, planting seed, harvesting a crop, milking cows, or feeding
livestock. Until recently, this was the picture of agriculture however in present scenario the meaning of agriculture is
radically different. Now agriculture evolved in to agribusiness and has vast and complex system that reaches for beyond
the farm to include all those who are involved in bringing food and fiber to consumers.
There is a rapid transformation of agricultural products and developments of new industries have given new dimensions
to traditional farming operations.
At present, agribusiness is defined as all business enterprises or sells to farmers/traders/consumers. The transaction
may involve either an input or a produce or service and encompasses items such as:
1. Productive resources (feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc.
2. Agricultural commodities (raw and processed commodities of food and fiber)
3. Facilitative services (credit, insurance, marketing, storage, processing, transportation, packing, distribution,
consultancy, soil testing, etc.)
Agricultural Marketing is the process which starts with a decision to produce a suitable farm commodity or product
& it involves all aspects of market structure or systems, both functional and institutional, based on technical and
economic considerations and include pre and post harvest operations like assembling, grading, storage, transportation,
and distribution.
Agriculture Marketing therefore comprises all activities involved in the supply of farm inputs to the farmers and
movements of agricultural products from the farms to the consumers.

Introduction to Agri-business and Agricultural Marketing 1

These are:
1. Assessing the disposable surpluses of agricultural production
2. Finding the markets to dispose of these surpluses
3. Collection of such items from individual farmers
4. Making necessary arrangements for transport to the nearest assembling center
5. Pooling the produce of all farmers
6. Cleaning, grading and standardization
7. Processing whenever needed
8. Packaging
9. Warehousing/storage
10. Transporting to the consumption centre
11. Negotiating with consumers/buyers
12. Exchange of the goods with the ultimate consumer
This list does not include such other activities as pricing, promotion efforts, making distribution arrangements, etc. It
also involves planning and organization of all activities and making arrangements for finance, manpower and other
resources and also risk-taking. Agricultural marketing, therefore, includes a variety of activities and is very complicated.

Evolution from traditional farming to agribusiness

Agrarian reform can refer either, narrowly, to government-initiated or government-backed redistribution

of agricultural land or, broadly, to an overall redirection of the agrarian system of the country, which often includes land
reform measures. Agrarian reform can include credit measures, training, extension, land consolidations, etc.

Agribusiness system has undergone a rapid transformation as new industries have evolved and traditional farming
operations have grown larger and more specialized. The transformation did not happen overnight, but came slowly as a
response to a variety of forces. Knowing something about how agribusiness came about makes it easier to understand
how this system operates today and how it is likely to change in the future.

Initially agriculture being the major venture it was easy to become a farmer, but productivity was low. Average farmer
produced enough food to feed just four people. As a consequence, most farmers were nearly totally self-sufficient.
They produced most of the inputs they needed for production, such as seed, draft animals, feed and simple farm
equipment. Farm families processed the commodities they grew to make their own food and clothing. They consumed
or used just about everything they produced. The small amount of output not consumed on the farm was sold for cash.
These items were used to feed and cloth the minor portion of the country’s population that lived-in villages and cities. A
few agricultural products made their way into the export market and were sold to buyers in other countries.

Farmers found it increasingly profitable to concentrate on production and began to purchase inputs they formerly made
themselves. This trend enabled others to build business that focused on meeting the need for inputs used in production
agriculture such as seed, fencing, machinery and so on. These farms involved into the industries that make up the
“agricultural inputs sector”. Input farms are major part of agribusiness and produce variety of technologically based
products that account for approximately 75 per cent of all the inputs used in production agriculture.

At the same time the agriculture input sector was evolving, a similar evaluation was taking place a commodity
processing and food manufacturing moved off the farm. The form of most commodities (wheat, rice, milk, livestock and
so on) must be changed to make them more useful and convenient for consumers. For example, consumers, would
rather buy flour than grind the wheat themselves before backing a cake. They are willing to pay extra for the
convenience of buying the processed commodity (flour) instead of the raw agriculture commodity (wheat).

During the same period, technological advance was being made in food preservation method. Up until this time
the perishable nature of most agriculture commodities meant that they were available only at harvest. Advance in food
processing have made it possible to get those commodities all throughout the year. Today even most farm families use
purchased food and fiber products rather than doing the processing themselves. The farms that meet the consumers

Introduction to Agri-business and Agricultural Marketing 2

demand for greater processing and convenience also constitute a major part of agribusiness and are referred to as the
processing manufacturing sector.

It is apparent that the definition of agriculture had to be expanded to include more than production. Farmers rely on
the input industries to provide the products and service they need to produce agricultural commodities. They also rely
on commodity processors, food manufactures, and ultimately food distributors and retailers to purchase their raw
agricultural commodities and to process and deliver them to the consumer for final sale. The result is the food and fiber
system.

The Role of Agriculture in the National Economy

Agribusiness in Bangladesh

Agriculture accounts for 17 percent of U.S. economic output, making it America’s largest industry. Globally, agribusiness
employs approximately half of the earth’s population. Bangladesh has maintained an impressive track record of growth
and development. In the past decade, the economy has grown at an average of 6% per year. The gross domestic
product is the value of goods and services our nation produces in a year. The country’s economy is largely agrarian as
it comprises of 18.6% of the GDP (comes from agriculture- related industries (e.g., feed mills and biotechnology firms).
These industries create value-added products from raw agricultural products. Value-added products are improved
through processing or manufacturing. Production efficiency is receiving optimum output from an input.

Bangladesh has been acclaimed by the World Bank's 2010 Report as being one of the top ten reformers, owing to
substantive regulatory reforms and enhancing the investment climate in the country. With Gross Domestic Product
(GDP) growing steadily by 6% per annum in the last decade, it has emerged as one of the promising countries to invest
in South Asia. The Foreign Direct Investment (FDI) inflows and the country exports have grown progressively over the

Introduction to Agri-business and Agricultural Marketing 3

years. The country produces a wide range of crops, given its favorable climate and resources. Although, Bangladesh’s
agriculture production and processing is gaining impetus, the country is an importer of many essential
agricultural commodities and processed food products. Progressive agricultural practices, improved marketing
technique and modern processing facilities would enable agriculture and the processing industry to improve the quality
of food produced, expand production levels significantly and enhance the food processing sector.

The Government of Bangladesh has identified agriculture as its thrust sector and provides wide range of unique
incentives to encourage and protect investments and establish profitable agri-business in Bangladesh. It has been
ranked by World Bank ahead of many South Asian countries for ‘starting a business’. With growing GDP, FDI and
exports, unique policy reforms, favorable agro-climatic conditions, industrious workforce, competitive human
resource and key geographic location near key markets like India and China, Bangladesh presents a profitable
offering for setting up an agro-based business.

WHY AGRICULTURAL MARKETING IS COMPLICATED?

Agricultural marketing has its own special characteristics, which make it very risky and complicated. Some of these are
as follows:
1) Most agricultural produce is perishable and therefore requires special processing, storage and timely disposal.
2) Agricultural produce is consumed throughout the year, but produced on a seasonal basis. Therefore, special
storage and stocking is needed.
3) A majority of agricultural produces are small-scale producers and their production also varies depending upon
rainfall, natural calamities, etc. There is no assured production.
4) Timely collection of agricultural produce from scattered small producers. Farmers is very difficult and costly.
5) Demand for the produce is spread throughout the country and throughout the year. Making available to
consumers what they want and when they want it needs considerable planning and investment.
6) Agricultural produce, unlike other products, loses weight and also suffers from quality deterioration. Very good
storing, maintenance and transportation are essential.
7) Producers/ farmers need continuous support, guidance and the latest technology to increase yields.
8) The illiteracy and ignorance of producers/farmers leads to their exploitation by middlemen. Farmers or
producers are not able to undertake any of the above activities and hence depend upon the middlemen.

Introduction to Agri-business and Agricultural Marketing 4

MARKETING OF AGRICULTURAL PRODUCTS
Agricultural marketing has two types: input marketing and output marketing.

AGRICULTURAL MARKETING

INPUT MARKETING OUTPUT MARKETING

INPUT MARKETING
This refers to marketing of products required for agricultural production. Unlike urban markets, rural areas are
production centers. To produce food-grains, vegetable, fruits, etc. a large number of inputs are needed. These include
seeds, fertilizers, pesticides, agricultural implements (tractors, pump sets, etc.), cattle feed, poultry feed. Input
marketing also includes marketing services such as diesel engine repair and health care.

OUTPUT MARKETING
This includes the marketing of food-grains, vegetables, milk, etc. Because of the high degree of fragmentation of
holdings, the producer finds it difficult to sell his product at a remunerative price. In order to overcome this problem,
the government provides support prices; enters the rural market to purchase agricultural produce at fixed minimum
price. The objective is to support the grower in marketing his produce.
The government provides subsidies in the case of agricultural input marketing, while in case outputs. It gives price
support.
AGRICULTURAL MARKETING PROCESS
The marketing of agricultural products has to pass through three main stages:
 Pre-harvest operations
 Harvesting operations
 Post-harvesting operations
Various functions are performed during each of the three stages, until the produce reaches the final consumer.

Introduction to Agri-business and Agricultural Marketing 5

AGRIBUSINESS CHAINS

The term agribusiness is a generic one that refers to the various businesses involved in food production. Businesses do
not exist in isolation - every business has suppliers of goods it needs, and buyers of the goods it makes/sells – each
having the same driving forces and critical responses.

The grouping of these businesses is called a chain of companies and tends to reflect the industry the businesses are
involved in. The agricultural industry sector is a large, multifaceted industry sector that exists worldwide, and involves a
range of businesses that create industry specific (e.g. grains, sugar cane, timber, dairy, cattle/meat, fruit and
vegetables, cotton, wool, to name a few). Agri-industry chains that that often exist across international boundaries.

Introduction to Agri-business and Agricultural Marketing 6

The Importance of agribusiness for the economy of Bangladesh

Introduction:

Farming is the ancient and the most common profession in Bangladesh. Most of the people of Bangladesh live in village
and most of the villagers (62% manpower in agriculture1) are involved in farming. One of the main reasons of having
common interest to farming is: the land is very fertile and most of the part of Bangladesh is plain. Another interesting
thing is Bangladeshi people naturally good in farming. Agricultural sector is the single largest contributor to GDP. The
crop sub-sector dominates the agriculture sector contributing about 72% of total production. Fisheries, livestock and
forestry sub-sectors are 10.33%, 0.11% and 7.33% respectively. Though government has many positive steps for that
sector but still agriculture has some present and future challenges.

Role and Contribution of Agriculture in the Economy of Bangladesh

In spite of having challenges in agribusiness, we are lucky to avail some significant outcome of this agro based sector.
Bangladesh is today self-dependent on rice production. Bangladesh imports a nominal amount of rice which is a very
positive side. Today because of agricultural awareness, technical advancement and government’s approach farmers
know how to use land throughout the year, that has increase the productivity.

Women Empowerment in Agriculture

On average, 43% of agricultural laborers in developing countries are women. In Bangladesh, women constitute about
46% of the total farming population. Women participate in wide range of agricultural activities including crop
cultivation, livestock and poultry rearing, homestead gardening and fisheries. Women carry out significant work around
plantation activities in the home garden, including watering, fertilizing, weeding, and fencing. Women also spend most
of their time in pre-harvesting activity with the average time in home gardening being 6-8 hours per week.

GDP Growth Rate and Share of Agriculture

With Gross Domestic Product (GDP) growing steadily by 6% per annum in the last decade, it has emerged as one of the
promising countries to invest in South Asia. The Foreign Direct Investment (FDI) inflows and the country exports
have grown progressively over the years.

With annual GDP growth rate of 6.2%, Bangladesh is one of the most promising economies in South Asia

Introduction to Agri-business and Agricultural Marketing 7

Agri Investment, employment and income
Most of the people of Bangladesh live in village and most of the villagers (62% manpower in agriculture1) are involved
in farming. Bangladesh has been ranked 16th out of 74 FDI recipient countries (World Bank). Although Bangladesh is
on course for Middle Income Country status by 2021, agriculture remains the largest employer in the country by far;
and 47.5% of the population is directly employed in agriculture and around 70% depends on agriculture in one form or
another for their livelihood.
Export and Import Scenario
Overall exports have risen by 11% while imports have declined by 2% during 2011-12 and 2012-13 in Bangladesh.
Vegetables and Fruits
More than100 fruits and vegetables are exported from Bangladesh. Export of fresh fruits and vegetables from
Bangladesh significantly increased from $ 46.41 million in 2004-05 to $182.2 million in 2012-13. Exports of fruits and
vegetables are targeted mainly for the ethnic market (of Bangladeshis living abroad).
Fish
After liberation Bangladesh started exporting fish and fisheries products in the international market. Initially it was
exporting fresh fish or chilled fish in neighboring countries and gradually entered the international market with value
added products with frozen fish (shrimp/prawn) and dried fish. Currently Bangladesh is exporting several items of fish
and fisheries product to EU, US, Russia, Asian and African markets.
Today we get seasonal fruits throughout the year like winter vegetable, mango etc. because of agricultural
development. Tea is a cash crop of Bangladesh that is produced in eastern hilly areas of the country. Bangladesh
earns a good amount of foreign currency from finest tea export. There are some revolutionary inventions in this
sector like: Drum Seeder (a machine), Leaf Color Chart System (a chart system with different color), Guti Urea (a
processed form of urea fertilizer) etc are going to have positive contribution to our national crop production.
Our agriculturists have invented such seeds those have high productivity, such as: IRRI. The hybrid seeds are used
in many parts of the nation. It’s a very positive approach from government that they fund a good fund for agro-
research. And the researches have glorious inventions in that sector.
Overview of agro-based products and agro-infrastructure in Bangladesh
Agrarian Land and land-holding pattern:
Following independence in 1971, agricultural production in Bangladesh increased at around the rate of 2% per year.
The growth rate accelerated during the 1990s and early 2000s to around 4% per year. Bangladesh, with varied agro
climatic zones has immense advantage in agriculture production.

Total Agrarian Land and land-holding pattern [source: www.boi.gov.bd]

Introduction to Agri-business and Agricultural Marketing 8

It is worth noting that livestock did better than the crop sector but equally could not sustain the momentum it had
gained during 2005-2010. This is an area in which special efforts should be made to ensure that public services
(veterinary, extension, insemination, etc.) are developed to the level required to realize the full potential of the sector.
In 2012-13, fisheries alone managed to perform in line with targets, with a GDP growth rate (6.2%) at a time when the
subsector has been marked by a radical structural transformation with the spread of organized and commercially-
oriented aquaculture.

Major agro-based products of Bangladesh [source: www.boi.gov.bd]

Wheat

 2012-13 saw the largest crop production in 10 years-1.26 mn

tonnes
 Government support prices raised by 4% in 2012-13
 Cultivation of high yielding varieties is growing rapidly

Rice

 Rice production is vital to economy in Bangladesh

 Current production is at 51 million tonnes; 2% growth during
Grains 2012-13
 Number of Rice Mills have increased three fold to 600+ in 2013

Maize

 Production has doubled during 2012-13 to 2.24 million tonnes

 Strong growth driven by the expansion of the poultry industry
 It is grown predominantly in the northern areas of the country

Jute

 Bangladesh accounts for 41% of Jute production in the World

 Jute production is 1.4 million tonnes in 2012
 Export by value Raw jute: US$ 230 million & Jute products: US$
800 million

Fibre
Cotton

 Production 108,000 bales in 2012, a growth of 25% yearly

 Cotton development plan is major growth driver in cotton
production
 Production meets 3% of demand of raw cotton used for textiles

Introduction to Agri-business and Agricultural Marketing 9

 Fruits and Vegetables

 Mango, Litchi, Pineapple Banana and Jackfruit are the major fruits
Horticultur  Total fruit production is 34 million metric tonnes (2011-12)
e  Tomato, Brinjal and Cabbage are main vegetables grown
 Vegetable production is growing rapidly; usually undertaken in
winter.

Potato

 Bangladesh ranks 8th in world for potato production

 Annual production exceeds 8 million tonnes due to favorable
Potato
climate and soil
 Per Capita Potato consumption is 23 kg (China: 35kg; India:
15kg)

Dairy
 Annual milk production is 3.46 million tonnes
 Milk production grew by 6.2% between 2005 and 2012
 95% of milk yield is accounted by Cows

Poultry
 Presence of up to 112,000 poultry firms and 30+ poultry feed
mills
Agri-allied
 Poultry output is estimated to rise by 1% in 2013 to 2,12,000
Sectors
tonnes
 Employs 5 million people

Fisheries

 Aquaculture sector worth more than US$1.5bn

 Growth rate of 5.5 % in 2012-13
 Accounted for US$ 437 million worth of exports

Introduction to Agri-business and Agricultural Marketing 10

List of agro-based industries
 Fruit based processed food manufacturing industries (Jam, Jelly, Juice, Pickles, Syrup, Sauce, etc.)
 Fruit (Tomato, Mango, Guava, Sugarcane, Jackfruit, Litchi, Pineapple, Coconut, etc.), vegetables, and lentils
processing industries.
 Bread, biscuit, vermicelli, chanachur, noodles, etc.production industries.
 Production of flour, maida, and semolina.
 Processing of mushrooms and spirulina.
 Starch, glucose, dextrose, and other starch products manufacturing industries.
 Milk processing industries (milk pasteurization, powdered milk, ice cream, condensed milk, sweets, cheese,
ghee, butter, chocolate, curd, etc.)
 Potato-based food manufacturing industries (potato chips, potato flakes, starch etc.)
 Spices manufacturing industries.
 Edible oil refining and hydrogenation industries.
 Salt processing industries.
 Processing and freezing of prawns and other fishes.
 Herbal and vestige medicine producing industries.
 Unani, Ayurvedic and Homeopathic medicine producing industries.
 Manufacturing industries of feed for duck, chickens, livestock and fish.
 Seed processing and preservation.
 Jute goods (thread, fabric, bag, carpet, sandal shoes etc.) producing industries.
 Silk fabrics and clothing manufacturing industries.
 Agro-based product processing machinery manufacturing industries.
 Rice, puffed rice, beaten rice, popped rice etc. processing industries.
 Aromatic rice processing industries.
 Tea processing industries.
 Coconut oil producing industries (if copra collected from local coconuts is used).
 Rubber tape and lakkha processing industries.
 Cold storage (processing and preservation of edible and seed potatoes, fruits, vegetables etc. produced by
farmers).
 Preparation of furniture made of wood, bamboo and cane (except cottage industries).
 Flower preservation and exporting enterprises.
 Meat processing industries.
 Production of organic and mixed fertilizer and guti urea etc.
 Production of bio-pesticide and neem pesticide.
 Bee-keeping and honey collecting enterprises.
 Rubber-based goods producing industries.
 Manufacturing of particle board.
 Mustard oil manufacturing industries (if local mustard is used)
 Production of bio-gas and electricity(produced from paddy shell, poultry and cattle wastes).
 Edible oil (rice bran) manufacturing industries.
 Poultry and dairy farming industries.

Availability of Post-harvest Infrastructure

 Cold Chains;
 Food Parks;
 Food Processing;
 Dairy Processing;
 Aqua; and
 Poultry.

Introduction to Agri-business and Agricultural Marketing 11

List of Agricultural Support Agencies in Bangladesh

 Department of Agricultural Extension (DAE);  Bangladesh Export Processing Zones Authority

 Bangladesh Agricultural Research Institute (BARI);
 Rural Development Academy (RDA);
 Bangladesh Standards & Testing Institution (BSTI);
 Bangladesh Krishi Bank (BKB);
(BEPZA);
 Bangladesh Fruits, Vegetables & Allied Products
Exporters Association (BFVAPEA);
 Bangladesh Agro-Processors’ Association (BAPA);
 Bangladesh Cold Storage Association (BCSA) etc.

Growing areas of the Major Agricultural products

Introduction to Agri-business and Agricultural Marketing 12

Major Crop Cultivation Areas in Bangladesh

Major Fruits Production Area in Bangladesh

Introduction to Agri-business and Agricultural Marketing 13

Agriculture and Agro-based Industries in Bangladesh

Introduction to Agri-business and Agricultural Marketing 14

  Agriculture is the largest employment sector in Bangladesh.
 As of 2016, it employs 47% of the total labor force and comprises 16% of the country's GDP.
 The performance of this sector has an overwhelming impact on major macroeconomic objectives like
employment generation, poverty alleviation, human resources development and food security.
 A plurality of Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops,
wheat is assuming greater importance.
 Tea is grown in the northeast. Because of Bangladesh's fertile soil and normally ample water supply, rice can be
grown and harvested three times a year in many areas.
 Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food
grain production despite the often unfavorable weather conditions. These include better flood control
and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural
credit networks. With 35.8 million metric tons produced in 2000, rice is Bangladesh's principal crop.
Bangladesh enjoys a big comparative advantage compared to many other countries in producing and exporting a wide
range of fruits and vegetables to the world’s markets where there is a huge and growing demand for the same.
The very fertile soil, favorable weather conditions and cheap labor, give the local producers a big edge in producing for
export markets. The government in recent years declared export-oriented agro-industries as a thrust area although this
has not been backed up by adequate supports to it.
The steady progression of exports in this sector is encouraging but a great deal more can be achieved both in the areas
of increasing export volumes and earnings from this sector.
For this to happen, all stakeholders need to be persuaded by the potentials of the sector and adopt and apply policies
with a vision.

Economy of Bangladesh at a Glance

The market-based economy of Bangladesh is the 41st largest in the world in nominal terms, and 29 th largest by
purchasing power parity; it is classified among the Next Eleven emerging market economies and a Frontier
market. According to the IMF, Bangladesh's economy is the second fastest growing major economy of 2016,
with a rate of 7.1%.
In the decade since 2004, Bangladesh averaged a GDP growth of 6.5%, that has been largely driven by its
exports of ready made garments, remittances and the domestic agricultural sector. The country has
pursued export-oriented industrialization, with its key export sectors which includes textiles, shipbuilding, fish
and seafood, jute and leather goods.
It has also developed self-sufficient industries in pharmaceuticals, steel and food processing.
Bangladesh is notable for its fertile land, including the Ganges delta, the Sylhet Division and the Chittagong Hill
Tracts. Agriculture is the single largest producing sector of the economy since it comprises about 18.6% (data
released on November 2010) of the country's GDP and employs around 45% of the total work force.
The performance of this sector has an overwhelming impact on major macroeconomic objectives like
employment generation, poverty alleviation, human resources development and food security. A plurality of
Bangladeshis earn their living from agriculture. The country ranks among the top producers
of rice (4th), potatoes (7th), tropical fruits (6th), jute (2nd), and farmed fish (5th).

Demography of Bangladesh at a Glance

Estimates of the Bangladeshi population vary but most recent data suggest 162 to 168 million people (2015).
However, the 2011 census estimated 142.3 million.
 Bangladesh is thus the 8th most populous nation in the world. In 1951, the population was only 44 million. It is
also the most densely populated large country in the world, and it ranks 11th in population density, when very
small countries and city-states are included.

The Role of Government in Agribusiness

Introduction to Agri-business and Agricultural Marketing 15

Introduction

The Government of Bangladesh has identified agribusiness as a thrust sector. Board of Investment (BOI), the apex
investment promotion and facilitation agency of Bangladesh under the Prime Minister’s Office (PMO), was established in
1989 to encourage and facilitate investment in private sector in Bangladesh. Services provided by BOI include
investment promotion and facilitation covering policy advocacy and aftercare support to the investors. BOI promotes
domestic and foreign investment to enhance competitiveness and contribute to socio-economic development of
Bangladesh.

This topic aims to provide some of the basic information required for investors when considering an agribusiness
investment. To ensure a business-friendly, open and thriving agribusiness industry in Bangladesh, the goal of the
government of Bangladesh is to collaborate with agri-investors in creating more value in the agribusiness sector,
generating more exports and ensuring job and food security for the country. We hope the information presented proves
to be useful guidance to the investors in exploiting investment opportunities highlighted.

Government Initiatives:

The Government has already adopted certain policies and initiated institutional reform such as:

 Rural Non-farm and Agribusiness Development;

 Development regarding Horticultural Crops (Fruits and Vegetables);
 Development concerning Agri-allied Sector (Dairy, Livestock, Fisheries);
 Development concerning Agro-processing;
 Development regarding Agro-industrial complexes (like AEZ, Food Parks etc.).

Introduction to Agri-business and Agricultural Marketing 16