P RESENTED BY:

IFFAT ARA AHMED NIKITA MASHIAT S.M. ABU RAYHAN FATEMA BINTE MANSUR

ID # 2007-1-10-038 ID # 2007-1-10-140 ID # 2006-1-10-068 ID # 2006-1-10-114

J UTE D IVERSIFIED P RODUCTS

O VERVIEW:
Introduction Major jute producing countries Portfolio of Bangladesh Bangladesh major jute producing Associations Average Production and Sales Trend Major Importers of jute products Market survey for jute diversified products Entry mode decision of Foreign Companies Bangladesh involving in different Economic Integration Declining trend and drawbacks Policy implication Recommendation and Conclusion

I NTRODUCTION
JUTE A NATURAL FIBRE

D IVERSIFIED P RODUCTS
Jute Yarn Jute Hessian
Jute bag

Jute Geotextile

Jute Floor covering

Jute Shopping bag

TOP JUTE PRODUCING

COUNTRIES
Top ten jute producers 11 June 2008 Country Production (Tonnes) India 2140000 Bangladesh 800000 People's Republic of China 99000 Thailand Myanmar Brazil Uzbekistan Nepal 31000 30000 26711 20000 16775

Vietnam World

11000 3225551

Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Division

P RODUCING C OUNTRIES
IN THOUSAND TONES
4500

4000
3500

3000
2500

2004-05

2005-06

2000
1500

2006-07

1000
500

0
India Bangladesh Myanmar Nepal

P ORTFOLIO OF B ANGLADESH

Bangladesh is the Home of Jute and World's Largest Producer. The best quality jute is found at the most competitive prices from Bangladesh.

B ANGLADESH MAJOR JUTE PRODUCING A SSOCIATIONS

BJMC (Bangladesh Jute Mills Corporation) BJMA (Bangladesh Jute Mills Association) BJSA (Bangladesh Jute Spinner Association)

AVERAGE P RODUCTION

S ALES T REND :

M AJOR J UTE I MPORTERS

Major Jute goods Importers in 2006-07

Saudi Arabia, Germany, 4% UAE, 3% 4% USA, 16% UK, 5% Belgium, 6%

Egypt, 7% Ghana, 11% Syria, 9% Turkey, 9%

Germany Saudi Arabia UK Belgium Egypt Turkey Syria Ghana USA UAE

J UTE P RODUCTS IN THE I NTERNATIONAL M ARKET:

M ARKET SURVEY FOR YARN

Trend in Export of Jute Yarn
140 120 100 80 '000 MT 60 40 20 0 1999- 2000-01 2001-02 2002-03 2003-04 2000

Other EU GERMANY UK USA Other World

M ARKET SURVEY FOR H ESSIAN

Export Trend of Jute Hessian
200 150 '000 MT 100 50 0 1999- 2000-01 2001-02 2002-03 2003-04 2000 Other EU GERMANY UK USA Other World

M ARKET S URVEY OF F OOD GRADE J UTE B AG

Projected growth in demand of Food grade Jute bags
500
INR Million

400 300 200 100 0 2002-03 2003-04 2004-05 2005-06 2006-07

M ARKET SURVEY FOR J UTE G EO T EXTILES

Consumption pattern of Geo-Textiles

Synthetic material other natural jute

M ARKET SURVEY FOR J UTE G EO T EXTILES

Trend in the consumption of jute geotextiles by European countries
1400 1200 1000

MTs

800 600 400 200 0 1997-98 1998-99 1999-2000 2000-01 2001-02

JUTE: P RODUCT S UPPLY

CHAIN

E NTRY D ECISION OF F OREIGN M ARKET

B ILATERAL TRADE : B ANGLADESH AND I NDIA

B ARRIERS :

B ILATERAL TRADE : B ANGLADESH AND PAKISTAN

B ILATERAL TRADE : B ANGLADESH AND C HINA

B ILATERAL TRADE : B ANGLADESH AND A MERICA

R EGIONAL I NTEGRATION : B ANGLADESH AND N AFTA

R EGIONAL I NTEGRATION : B ANGLADESH AND A SEAN

R EGIONAL I NTEGRATION : B ANGLADESH AND EU-27

R EGIONAL I NTEGRATION : B ANGLADESH AND M IDDLE E AST

DECLINING TREND OF BANGLADESH JUTE SECTOR

C HANGES IN E CONOMIC A SPECTS : FY2002-FY2007

M AJOR E CONOMIC D RAWBACKS OF B ANGLADESH J UTE S ECTOR :

Jute farmers getting no buyers despite bumper harvest

Bangladesh unhappy over tax on 'duty-free' garment Brazil moves to file anti-dumping case against Bangladesh jute yarn The Adamjee Jute mills closure Jute price decline worries farmers

P OLICY I MPLICATIONS

First, there is no reason to close any jute mill based on the argument that Bangladeshs jute sector had no prospect. Second, a rationalization of the size of jute mills, especially for those in the public sector, is urgently required. Third, rationalization of size of the workforce in BJMC mills is urgently required.

Fourth, marketing system of BJMC jute mills needs to be changed.

CHANGES IN ECONOMIC ASPECTS: FY2002-FY2007

M ARKET D EVELOPMENT I NITIATIVES

Explore possibility of re-capturing some part of the secondary carpet backing market in USA .

Market development of jute sacking

Development and promotion of jute geotextiles applications

R ECOMMENDATION

Lack of crop varieties for quality fibre production.

There is a strong need to develop jute genome for precise development of the crop to meet the quality attributes.

Lack of infrastructural facilities and administrative goodwill.

Lack of contingency plan to combat weather uncertainties as well as adverse situations.

C ONCLUSION

More surveys like CPDs recent study on jute sector would help to identify strengths and weaknesses. Such surveys would help us arrest the decline of jute industry in Bangladesh and once again to take steps to bolster the industry. International organizations like IJO if made stronger would help to make jute more popular across the globe.