Professional Documents
Culture Documents
Course: Fin470
Section: 01
Prepared for:
M. Ahsanur Rahim (ARM)
Prepared By
Name
Refa E Alam
Rahat Md shihab
Rahat Mustasin Ishaque
Md. Kabir Hossain
Ramisa Maliyat
Shiraj Sabina
MD. Tunazzin-Ul-Arefin
Id
1110884 030
112 0962 030
1110650 030
112 0072030
1110781 030
112 0790 030
111 0715 030
Date of submission: 31/03/2014
Table of Content:
No
Description
1.
Letter of Transmittal
2.
Acknowledgement
3.
Executive Summary
4.
Introduction
Sector descriptions (In detail):
5.
6.
Crops
7.
Fisheries
Livestock
8.
Dairy farm
9.
Poultry
10.
11.
Conclusion
Letter of Transmittal
To
M. Ahsanur Rahim
Senior Lecturer, School of Business
North South University
Date: 5th May 2014
Sincerely yours,
MD. Tunazzin-Ul-Arefin
Ramisa Maliyat
Md. KabirHossain
Rahat Md. Sihab
Rahat Mustatasin Ishaque
Refa E Alam
Shiraj Sabina
ACKNOWLEDGEMENTS
The three of us would like to express our gratitude to our course instructor M.
Ahsanur Rahim for giving us the opportunity and guideline to conduct this
research, as well as for teaching us the definitions, theories and techniques that we
have used in writing this paper. First, I would like to thank Almighty Allah to bless
us with health and knowledge to complete the research overview.
The research overview would have been almost impossible to complete without the
help of my teacher, who helped us to do all the necessary things to complete the
research overview in time. He also gave us a favorable deadline to complete the
research. Therefore, we are truly grateful to him for helping us to do the research
overview.
Doing the research overview was indeed a very good experience, we have come to
know a great deal of things, and we hope to learn even more in the research part.
We have look forward to receive the same treatment from our teacher and would be
grateful to learn new things from him.
It was a great satisfaction working together in a group under a teacher who was
helping enough to let us do the project without any trouble.
Finally, I would like to thank all my classmates for giving me extraordinary help
in every step. I also thank all my friends at my university for giving me support. I
would also like to thank all seniors and juniors who assisted me time to time
Executive Summary
This is a synopsis of the project proposal carried out in the period of our
knowledge and an overview of our project proposal through the Agriculture Sector.
As, Bangladesh is an agricultural country about 70% of people are directly and
indirectly related in this sector. In this reason, that we are chosen this sector. Our
major sector is Agriculture and this sector was contributed some sub sectorThis sector is a reputed and quality focused the part of- crops, livestock, poultry,
fisheries, food & beverage and farming. Over the years, this sector has developed
and nurtured a close relationship with the farmers providing them innovative and
cost effective products and services. Agriculture is a single largest producing sector
of economy since it comprises about 30% of the country's GDP and employing
around 60% of the total labor force. GDP in agriculture and its price is declining
because of there is too many people has directly and indirectly related in this
sector. Bangladesh has a primarily agrarian economy. The performance of this
sector has an overwhelming impact on major macroeconomic objectives like
employment generation, poverty alleviation, human resources development and
food security.
Introduction:
Bangladesh is primarily an agrarian economy. Agriculture is the single largest producing sector
of economy since it comprises about 30% of the country's GDP and employing around 60% of
the total labor force. Agriculture plays a pivotal role in Bangladeshs economy and in the lives of
the vast majority of its population. The situation is further aggravated due to global warming
scenarios. The GDP share of individual sub sectors are about 13% for crops, 3% for livestock,
5% for fisheries and 2% for forestry, Though we make this overview without the forestry sector.
The rapid growth in population with the decline in cultivable land threatened to be a big problem
for Bangladesh. At present, Bangladesh has a population of about 132 million. The total
Geographical area of Bangladesh is about 56,000 square miles (143,998 square Kilometer) out of
which about 9 million hectares are cultivable land. However, every year the cropland is shrinking
for human settlement. It is estimating that the growing population pressure will use up 50 percent
of the countrys cultivable land by 2025. Every person working in the agriculture sector now
owns only an average of 0.12 hectares of cropland. According to the classification of land, out of
the total area, 63% has used for cultivation while 4.38 per cent for rural and urban housing and
the rest includes forest & cultivable wasteland. In Bangladesh, most of the people living beneath
the poverty line are farmers. These are the people to grow the food that feeds us, but they
themselves go hungry. This is mostly because natural resource tends to an excessive amount of
labor in its extraction. This causes a misallocation of labor so that there is a productivity loss.
The share of GDP in agriculture and its price is declining because there is too many people and
in this sector. Even though income is increasing for people working in service and industries
sector, the amount of food they consume is not increasing as much. But their demand for other
goods is increasing, hence creating more job opportunities in the non-farm sector.
Importance of agriculture:
Agricultures share in gross domestic product (GDP) has fallen over time during the last decade,
from one-quarter to one-fifth. Nevertheless, agriculture remains extremely important, as it
provides the bulk of employment (just 50 percent) as well as national food security.
Jute
To identify risks and manage those in jute sector risk management some systems are used.
Bangladesh Jute & Commodity Exchange risk management systems are designed to support a
spot market infrastructure and management. Bangladesh Jute & Commodity Exchange risk
management strategy does not only focus on risk avoidance but also the identification and
management of an acceptable level of risk. It accepts risk in almost every activity it undertakes
in pursuit of its business objectives, from membership acquisition to final delivery of
commodities, and so senior management periodically defines its risk appetite against key drivers
of success. The risks faced by the sector and the way they are managed are discussed below.
Market Risk
Bangladesh Jute & Commodity Exchange ensures that clearing members have daily allowable
trade limits and they can only trade within these limits. Bangladesh Jute & Commodity
Exchange has software in place to ensure that all clearing members transactions are assessed
against their relevant limit and reporting processes for limit breaches. Bangladesh Jute &
Commodity Exchange operates at a daily price limit to limit losses to investors from significant
market movements.
Credit Risk
Credit risk arises when a clearing member fails to meet their payment obligation. Bangladesh
Jute & Commodity Exchange has policies requiring members to be approved before they trade;
ensuring that they have pre-paid into their trading accounts. Credit risk due to shortfall in
members account is mitigated by netting agreements and cash deposits in the form of settlement
guarantee fund.
Liquidity Risk
Bangladesh Jute & Commodity Exchange has strategy to measure and monitor the liquidity of
settlement guarantee fund and to ensure that there are sufficient funds to meet clearing members
transaction exposures. This is done by preparing scenario analysis over an appropriate timeframe
of likely inflows and outflows of funds.
Reputation and image risk
Bangladesh Jute & Commodity Exchange has a policy of openness, transparency and fairness to
all stakeholders to ensure that its reputation or standing in the community is not diminished.
Bangladesh Jute & Commodity Exchange has strong communication and media team seeing to
that. The selection of an appropriate risk management strategy to address each of its domains is
based on sound understanding of the underlying risk after a comprehensive assessment of the
risk and a good sense of Bangladesh Jute & Commodity Exchange s appetite for risk.
Bangladesh Jute & Commodity Exchange s risk appetite is periodically reviewed, defined and
ratified by senior management.
High mortality due to direct physical influence of heat and cold. Because, the extreme
climatic condition disrupt the internal homeostasis of the animals which affects the normal
physiology of animals and birds.
High outbreak of emerging and remerging diseases.
Direct loss of animals due to natural hazards like flood, cyclone, storm surges, earthquake,
Tsunami, Tornado, Aila, Sidr etc.
Saline intrusion damaging the pasture land.
Scarcity of pure drinking water following Flood, Cyclone, Saline intrusion, Sidr/Aila
Loss of production due to high temperature/low temperature.
Huge mortality of poultry due abrupt fluctuation of temperature.
Outbreak of emerging diseases.
Socio-economic Impact:
Unemployment due to damage of poultry and dairy farms specially the small, medium and
marginal farmers. In rural and in peri-urban areas hundreds of thousands of youth are involved
in poultry and dairy farming and it is their only source of employment and means of
livelihood.
Malnutrition in a major section of the society.
Unemployment.
Increase vulnerability among women, marginal farmers due to loss of animals.
Problem is increasing in livelihood of rural and per urban livestock keepers.
Increasing the price of the product.
Decrease export.
Increase social unrest due to unemployment.
linked to expand nationwide outfit of DLS. The Government has approved the National
Livestock Policy which identifies ten critical policy areas. These areas are;
(i) Development of dairy and meat production;
(ii) Development of poultry;
(iii) Improvement of veterinary services and animal health;
(iv) Marketing of livestock products;
(v) Development of international trade in these sectors;
Risk Reduction:
The Secretary of Ministry will ensure following responsibilities in addition to his normal duties.
(a) Designate the Focal Point for Disaster in the Ministry.
(b) Conduct sectorial risk assessment with an especial emphasis on bird flu and other related
zoonotic diseases and prepare a sectorial risk reduction action plan.
(c) Ensure budgetary provision of the ministry to ensure implementation of the plan.
(d) Mainstream disaster management principles and practices within the national development
plan of the Ministry of Fisheries and Livestock.
(e) Develop program for research with regards to hazard analysis and its affect in fisheries and
livestock.
(f) Ensure budgetary provision of the ministry for its disaster management affairs.
(g) Implement the policy of undertaking risk assessment and risk reduction activities which
affect the services of the Ministry.
(h) Ensure prevention and control of emerging Zoonotic diseases with potential risk of human
health with specific focus to Avian Influenza
(i) Implement the policy of undertaking training, awareness and education programs with
livestock and fisheries industries concerning risk assessment and risk reduction activities.
(j) Manage emergency preparedness including the identification of high lands for livestock
shelter, and the stockpiling of animal and poultry emergency stocks of vaccines and medicines.
Internal barriers
of
fishing
grounds
Overfishing
(FCDI Destruction of immature fish
projects)
breeding fish )
Pollution
(ova, larvae,
Urbanization
Environmental degradation
Climate change
11. Here are some other Problems also which creates huge risks.
Constraint
Technical
Element
Low input farming systems
Inadequate technical knowledge on scientific fish farming
Poor water quality and fish disease
Social
Economic
Environmental
Dairy farming
Bangladesh has a suitable environment for cattle. Therefore, the need for developing the dairy
industry, especially, in the rural areas, has been recognized. Some of the risks are given below
and their possible management process to make the dairy farm industry more profitable is given
below.
Information Problems
The availability of relevant information is essential for sophisticated, empirical and rigorous
economic analysis to arrive at the conclusions for policy formulation. Government decisions at
present are frequently dominated by responses to the current situation without adequate
knowledge of the industry and market. The future effectiveness of government policies depends
on plans that are based on more adequate data about the dairy farm sector.
Bangladesh lack required amenities and there are none experts in these centers, hampering
smooth functioning of artificial insemination programs. In addition to the technology related to
breeding, a number of other areas such as feeding efficiency, processing technology,
transportation, diseases and marketing efficiency also require careful analysis. Moreover,
although a large number of veterinary centers and AI centers exist in the country, there seems to
be no system to reach the farmers to advise them on various aspects of animal production and
health. In order to correct the deficiency of the AI facilities, it is important not only to provide
adequate training to the personnel in charge of the AI stations and the farmers, but also to
improve the quality of the infrastructural facilities with the AI stations.
Inefficient Marketing
Marketing makes the exchange process more meaningful to the parties involved in the exchange.
One party gains in term of needs and wants satisfaction and the other gains profit by promoting
satisfaction. The goal of any marketing program is to move the product from the producer to the
consumers in an economical and orderly manner, which satisfies the customers and provides a
reasonable profit to the producer and processor. Therefore, with a proper perspective, marketing
as an approach can provide a meaningful direction to the dairy development effort. Given that
97% of milk is produced in rural areas while the profitable market for it exists largely in the
urban areas, most of the daily production of milk of the farms is brought to different markets of
the urban area for sale. Due to the dearth of marketing facilities, the dairy farm owners are
compelled to sell the bulk of their milk to the tea stalls at a cheaper price. Marketing channels for
livestock products are also very poor, particularly for perishable products of animal origin. This
severely restricts production and results in unmarketable surpluses in some areas and shortages
in main consumption areas.
Veterinary program:
The control and eradication of disease on the local and national levels creates the opportunity for
the development of cooperation between farmers. Vaccination programs especially for small
holders are best carried out at central points. This creates many opportunities for spreading the
message of animal health and nutrition. At such gathering points the farmers animals should be
separated until they have been examined and associated disease should be pointed out to
individual farmers and advice or treatment must be given.
Marketing structure:
The bulk of milk production in Bangladesh is in the hands of a large number of small producers
scattered all over the country. For balanced development of the dairy industry, the organized
marketing of milk and milk products is a pre-requisite. As a result much attention should be
given to the building up of liquid milk plants, milk schemes and milk product factories in major
towns and cities. Dairy development programs should be adopted on an integrated view,
incorporating production enhancement, procurement, processing and marketing of milk.
4. Market Risk:
Foods got Chromium:
Recently an article about chicken shows that the food is given to the boilers is made by
unhealthy component and some of these hazarders to human body and also for boilers as well.
The food contains a component called chromium which is the main reason for cancer to human
body and reduces longevity of chickens life.
5. Credit Risk:
Credit risk arises when a clearing member fails to meet their payment obligation. Credit risk due
to shortfall in members account is mitigated by netting agreements and cash deposits in the form
of settlement guarantee fund. Most of the poultry farmers of Bangladesh are small and a business
of sole proprietorship. And, often they start their business by the help of short loan from bank on
low interest.
New risks continue to emerge for companies in the Food and Beverage sectors because of
regulatory changes and an increasingly global business environment. Issues such as food safety,
supply chain risk management, bio-terrorism, security, genetically modified organisms, global
warming, and contamination can have financially devastating effects if not properly identify and
addressed.
Market entry
Buyers want to see the product, its color, feel and taste before they can commit to buying. So
when making contact with potential distributors, it is advisable to send them samples to help
them make informed decisions.
Some may want to do a trial shipment to test the market and gauge the interest level before
consistent supply is established.
Most beverage manufacturers are represents by agents/distributors with sufficient stock being
hold for short-term needs. Agents/distributors rely on suppliers being able to restock at short
notice.
Distribution channels
A number of food distributors are available to service either the supermarket/retail business or
the food service sector. Not all distributors have warehouses. At present, there are only a handful
of cold storage food distributors.
Functional food
Functional foods are any foods that provide inherent health benefits as well as those fortified
with concentrated ingredients, modified in a way that aims to promote health and wellbeing,
grown chemical-free, improve performance or reduce the risk of disease.
Commodity Hedging
Take commodity hedging, for example, which food and beverage executives ranked as their
number one financial issue. Commodity hedging is difficult for food and beverage companies
because there are rarely enough types of commodity contracts optimally offset a company's
various exposures.
Financing Inventory
Another financial issue of concern to food and beverage executives is inventory financing, which
was ranked third highest in the survey.
Capital Investment
Another important area of financing involves capital expenditures. Faced with the headwinds of
the current cycle, some food and beverage companies delayed capital expenditures to preserve
cash. However, repair and replacement costs can only be delay for so long. Outdated equipment
can hurt productivity, and with commodities that are more operations that are valuable need to be
as efficient as possible.
Innovation and Acquisitions
Food and Beverage Company is on innovation, a well-designed acquisition strategy is important
to capture growth opportunities. Here a specialty lender can be particularly valuable. The lender
can plan and supply flexible financing. For example, a dedicated food and beverage lender
knows the marketplace and the potential pool of acquisition candidates.
Talent - assess, build and deploy strong base of talent across business teams
Compliance - ensure audit readiness across compliance programs - FDA, MHRA, DEA,
EPA, OSHA etc.
Customer Focus - a customer centric process design, workforce education and programs
to advance satisfaction
Gap Analysis - lead comprehensive assessment of all controls, talent, systems and
process
Road Map - formalize project plans to close "gaps" and set the operation on a path to
World Class Operational Excellence.
Conclusion:
Assuring future growth in agriculture will be a difficult endeavor, though it is not impossible. It
will require actions and investments on many fronts. Since investment in agricultural research is
highly rewarding and beneficial, the government should raise the investment to at least 2% of
GDP as recommended by World Bank and FAO. The increased investment will certainly
encourage scientists to develop technologies to cope with the hazards of climate change. The
decline of funding for research in the past has had deleterious effects on its ability to generate
and evolve new technology; these needs to be rectified urgently. Other spheres of publicly
supported activity, like marketing and extension, have also suffered reductions, and increased
attention should give to these support services. Finally, for longer-term growth, well-designed
management of the water resources is essential, and will be particularly important for adaptation
to climate change.