Unlocking potential of agro-food processing sector

Despite Bangladesh's impressive strides in agricultural production, its agro-food processing sector remains underdeveloped and far below its true potential. Successive governments have declared it a thrust sector, yet meaningful progress has been elusive. The enabling environment needed to drive growth, innovation, and export readiness has simply not materialised in the way it should have.

Agro-processed foods, marked by value addition, hold significant promise both domestically and globally. With rising global demand for processed food products, Bangladesh-home to millions of farmers and a wide range of agricultural outputs-is uniquely positioned to thrive in this area. The sector is not only crucial for economic growth but also directly linked to rural livelihoods, offering an unparalleled opportunity to uplift farming communities while contributing to the national economy.

Given its diverse agro-climatic conditions and year-round agricultural activity, Bangladesh has every reason to be a major producer of agro-processed foods for both domestic and export markets. However, despite commendable growth in agricultural production over the decades, the country has fallen short in leveraging this strength to capture export opportunities. Exporting processed foods is a complex endeavour, but the reluctance-or inability-to tap into international markets undermines the achievements made in primary agricultural output.

The domestic food processing industry has grown moderately, mainly serving rising local demand with limited engagement in exports. Yet a key obstacle to greater expansion, particularly in overseas markets, lies in the country's inadequate laboratory testing and quality compliance infrastructure. Globally, food exports face rigorous sanitary, phytosanitary, and quality standards. Without internationally accredited laboratory facilities capable of certifying compliance with these standards, Bangladesh's processed food exports remain constrained, unable to fully access high-potential markets.

This issue has become even more pressing as importing countries, especially in the developed world, enforce increasingly strict non-tariff barriers. Food safety, hygiene, and quality certifications are no longer optional-they are mandatory prerequisites for market entry. Unless Bangladeshi food exports are channeled through credible, internationally recognised testing protocols, their chances of penetrating these markets will remain limited. The consequence is a glaring mismatch between the sector's potential and its actual performance.

Agro-processors are acutely aware of this challenge. Industry stakeholders have long urged the government to establish an internationally accredited quality control laboratory to ensure that processed foods meet global standards. Such a facility would not only enhance product branding but more critically, enable market access. Without the ability to meet importing countries' compliance requirements, branding efforts alone are insufficient. Worse, a single embargo or quality rejection from a key market could have a damaging ripple effect across the entire industry.

Experts point to chronic underinvestment in the sector as another key constraint. Beyond financing, the lack of coordinated planning has also hindered growth. Many processing plants are located without consideration for proximity to raw material sources, making it difficult to efficiently channel agricultural produce into processing hubs. While more than 200 food processing firms operate in Bangladesh, only a few are actively exporting with modest export volumes.

Other structural challenges further inhibit growth. Heavy reliance on imported packaging materials, the absence of a central regulatory body to oversee the sector, and fragmented supply chains all contribute to limit competitiveness. Without a well-integrated ecosystem linking farmers, processors, logistics, quality control, and marketing, the sector struggles to achieve economies of scale or meet international benchmarks.

Nevertheless, Bangladeshi processed foods have found markets across the globe, from advanced economies to developing regions. Key destinations include the United Kingdom, the United States, Canada, Malaysia, and countries in the Middle East-primarily driven by the diaspora population. Popular export items range from spices, fruit juices, biscuits, and processed nuts to potato chips, flakes, and pickles. Bangladeshi migrants form the core consumer base for these products, and their preference for familiar, homegrown brands creates a steady demand. However, the market potential extends beyond the Bangladeshi diaspora. Other South Asian communities abroad share similar culinary preferences, offering a broader target market if products can be tailored to their tastes and meet necessary quality standards. Expanding beyond ethnic markets would require strategic product development, branding and compliance with international food safety regulations.

Domestically, demand for agro-processed products is also growing as consumers increasingly opt for ready-to-cook and ready-to-eat foods. While local demand has been the main driver of industries' growth so far, scaling up service to both domestic and global markets necessitates a stronger emphasis on quality assurance and compliance. Export destinations like the European Union have particularly stringent requirements, and meeting these standards can open doors not only to new markets but also to diversified product offerings.

To unlock the full potential of agro-food processing, Bangladesh needs a coordinated, multi-faceted approach. Investment in modern processing facilities, integration of supply chains, development of export-oriented infrastructure, and above all, establishment of internationally accredited quality control labs are critical steps. Ensuring compatibility with international testing and certification protocols is vital to gain global acceptance. Human, technical, and logistical resources alone are insufficient without the backing of officially recognised quality control mechanisms. Without these, the sector risks stagnating despite its natural advantages and growing global demand.

wasiahmed.bd@gmail.com