1. Agri-business for inclusive growth:
prospects and challenges of Bangladesh
Nazneen Ahmed, PhD
Senior Research Fellow
Bangladesh Institute of Development
Studies
14 February 2018

2. Salient features of Bangladesh Agriculture:
Main production: Rice, Wheat, Jute, Oilseed, pulses, Vegetables, fisheries, livestock and so on.
Employment: 42.7%
Agricultural Output:
Rice production: increased to 34 million metric ton in 2016 from 14 million metric ton in FY 1981
Fishing sector : In FY , contributed 3.61% to the GDP and 24.43% of total agricultural products
Animal farming: contributed 1.60% to GDP FY which 11% of total agricultural GDP
Agriculture sector is the major contributor to self-sufficiency in food production, reduce rural poverty and foster sustainable economic development

3. Contribution of Agriculture in GDP- currently 15%
sub-sectors in GDP

4. Trend in sectorial distribution of employment
Growth rate of different broad sectors
Trend in sectorial distribution of employment

5. Export of Agricultural Products (mill USD)
The main agricultural export items of the country are Shrimp, other fishes, tea, tobacco, vegetables etc.
In FY , Bangladesh earned USD million by exporting agricultural products which was 3.1 percent of total export earnings

6. Inclusive business maximizes social and economic value
Characteristics:
Positive human development impacts
Commercial viability
Environmentally sustainable
Inclusive business leads to
Poverty reduction
Women participation in economy and empowerment
Value addition
Safe food/ food safety
Source: WBCSD

7. Inclusive growth by Inclusive Business
Commonly poverty alleviation : Social safety net programs of the government
Conventional approach: Micro-entrepreneurship through (NGOs)
Not integrating poor with the market
the poor could not become 'market agent‘
In a market economy, development models, those can ensure better integration of the poor in the production network and supply chain can go a long way to alleviate poverty.
Private sector's involvement: making market work for poor
Private sector’s involvement in poverty reduction:
supply of labour
collecting raw materials from poor, operating labour-intensive distribution
corporate social responsibility and social business
Limitations in terms of making poor self-reliant
Inclusive Business goes beyond above mentioned traditional 'business as usual' models to make poor people more integrated in the market so that they can attain sustainable economic development. --- Making markets work for the poor

8. Making Markets work for the poor
Information
Related services
Skills & capacity
R&D
Coordination
Infrastructure
Supporting functions
Rules
Standards
Informal rules & norms
Laws
Regulations
Private sector
Representative bodies
Membership organizations
Government
Informal networks
Not-for-profit sector
Supply
Demand
Core
market

9. Agribusiness and inclusive growth
Inclusive business in agriculture sector
Business in agriculture supply chain is observed in different forms-
contract farming,
management contracts,
tenant farming and sharecropping,
joint ventures,
farmer-owned business
upstream/down stream business links
All of these may not fit in the inclusive business model mentioned above.
Agribusiness includes various business involved in food and fiber production, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales
Huge scope for investment in backward and forward linkages in the agriculture sector.
Subsistence to Commercial agriculture
The market needs to work for inclusive growth in agriculture

10. Inclusive business in agriculture for inclusive growth
The ‘contract farming’ will remain a mainstream business model unless some additional elements of inclusivity are put in place to make it a ‘inclusive business’.
This model does not involve companies to do anything beyond their business motives.
Rather inclusive business is asking them to apply those skills to areas that happen to be pro-poor.

11. Benefits of Inclusive Business and Requirements for Companies
Benefits for companies
Benefits for communities (Mainly poor people)
Benefits for government
Requirements for companies
Higher profitability
Jobs and income
Increased tax revenues (SMEs)
Changed mindset: Open to collaborate with new markets
Wider market share
Increased market access
Improved social services
High understanding and knowledge of local / informal markets
Lower operating costs
Enhanced human dignity
Increased GDP
Market research, resources /investment
New consumers
Access, innovation and technology
Greater infrastructural support
Innovation and ‘thinking out of the box’
Better branding of products
Easier access to credit
Improved business climate
Proper calculation of return on investment (ROI )
Ease of doing business
Better living conditions as a result of the above points
 Better relations with business
Patience

12. Challenges of Inclusive Business Opportunities of Inclusive Business
Organizing and upgrading supply from a detached producer base and traceability and quality assurance of these products
Export competition
Maintaining a sustainable Supply chain
Opportunities of Inclusive Business
Surplus production
Export expansion
Import substitution
Local consumption

13. Making inclusive business successful in Agriculture
The success of an inclusive business model in agriculture depends on Identifying Opportunities, Analyzing the Market, Finding Solutions, Developing the product,, Engaging partners, Leveraging Local Capabilities, Testing the Model, Understanding the Impacts, Adapting the Model, Expanding locally.
The success of Inclusive Business requires that all parties to play a part.
Many examples of promoting inclusive business in Agriculture- Quality Seed in Mini-Packs, Maize contract farming, Integrated pest management (IPM), Women with easy access to information, services and finance enjoy greater economic opportunities and decision-making authority etc.

14. Concluding remarks!
SDG poverty reduction goal: No one to be left behind
We need inclusive growth
Inclusive business model is a sustainable way to achieve inclusive growth So market will work for poor in the supply chain (Both as entrepreneurs or as consumers poor will benefit)
Like other sectors inclusive business models in agriculture may bring positive change in the life of poor
We need to continue with inclusive business models in agriculture to a greater extent

15. Thank you

16. Facilitating Inclusive Business
Poor Men and Women
Impacts
Private Sector Orgs.
Knowledge
Info
Skill
Implements
Simultaneously provide rationale for this particular assignment
1. Explain systemic change of capitalisation here i.e. what we envision pvt sector will do and what public and NGO’s will do.
We want to see more business that includes (and impacts upon) the poor.
2.) This is widely known as inclusive business. 3.) Who currently implements
this?
4.) The three actors, who are interconnected.
5.) They all need K, I, and S in creating these models.
6.) While they develop K,I,S themselves, they also rely on others, who influence the development of their K,I,S
Example: Public sector - DAE
Reaches every corners of the country
Have mandate to serve marginal farmers
However they have lack of understanding (knowledge) of how private sector can assist marginal farmers.
Example: Influencing group - Think tank
Conducts of policy research
Undertake policy related lobbying activities
Public Sector Orgs.
NGOs
Universities
Media House
Think Tank
BMOs
Training Institutes
Civil Society
CSR Groups
Consultancy
Influence

17. 17

18. Export of Agricultural Products (million US$)
Export Performance
% Change of export performance
Over
All products
1.72
A. Primary Commodities (Chapter 1-24)
-4.61
(1) Frozen & Live Fish
535.77
526.45
-1.74
a) Live Fish
9.14
8.05
-11.93
b) Frozen Fish
47.07
44.04
-6.44
c) Shrimps
448.56
446.04
-0.56
d) Crabs
23.18
18.28
-21.14
e) Others
7.19
10.04
39.64
(2) Agricultural Products (04-24)
596.06
553.17
-7.20
a) Tea
1.83
4.47
144.26
b) Vegetables
104.34
81.03
-22.34
c) Tobacco
54.98
46.62
-15.21
d) Cut Flower & Foliage
4.73
0.08
-98.31
e) Fruits
20.23
2.69
-86.70
f) Spices
29.06
34.95
20.27
g) Dry Food
96.04
109.61
14.13
h) Others
284.85
273.72
-3.91

19. Concept of Inclusive Market Development or Inclusive Business
According to the inclusive market development hand book of UNDP (2010)-
“The Inclusive Markets Development (IMD) approach is based on the notion that different interventions at different places and times is necessary in order to ensure effective role of markets for the poor. This approach seeks to strengthen the whole market system according to the need, which may include enterprises, business relationships, market structures or the business environment. “
World Business Council for Sustainable Development,
“An inclusive business is one which seeks to contribute towards poverty alleviation by including lower-income communities within its value chain while not losing sight of ultimate goal of business, which is to generate profits. “