STED: Initial Findings on the Agro-Processing Sector Tripartite - - PowerPoint PPT Presentation

STED: Initial Findings on the Agro-Processing Sector

Tripartite Workshop on Skills for Trade and Economic Diversification in Bangladesh Dhaka, September 8, 2011 Erik von Uexkull ILO Trade and Employment Programme Con Gregg ILO Skills Department

Outline of presentation

• Why Agro-Processing Sector?
• Sector Characteristics
• The Global Market and Trade Challenges:
• The Global Market and Trade Challenges:

Three Scenarios

Business as Usual More of the Same Upgrade

• Implications for Capability Needs and Skill

Demand

Why Agro-Processing Sector?

• Contribution to export diversification
• Strong potential for direct and indirect

employment creation employment creation

• Importance of skills and training of workers
• Linkages with existing ILO technical assistance

TVET project ETE project

Project Builds on 2010 TVET Study

• Focus on exporting agro processing sectors
• Covers all skill levels
• What comes next after initiatives following

TVET 2010 study are implemented?

Competence-based training for three priority occupations – Baker, Food Technician, Packaging Technician Industry Skills Council Centre of Excellence Management development Operations efficiency / Kaizen

Sector Characteristics Sector Characteristics

Note about Data

• Mostly quoting 2005/6 because that is date of

last Labour Force Survey

• 2010 Labour Force Survey under analysis by
• 2010 Labour Force Survey under analysis by

statistics office

Overall employment by sector Occupational composition of each sector

GDP Contribution...

Total GDP: 4.5 trln. Taka

Data Source: Bangladesh Bureau of Statistics, 2005/6

... Employment Contribution

Total Employment: 47 mln.

Data Source: Bangladesh Bureau of Statistics, 2005/6

Firm level characteristics ...

400 500 600 Domestic Exporter 100 200 300 400 # of companies in sample

• avg. Number of

permanent staff

• avg. Sales (mln.

Taka)

• avg. Wage ('000

Taka)

Data source: World Bank Enterprise Survey Bangladesh 2007

... Innovation ...

Data source: World Bank Enterprise Survey Bangladesh 2007

... and Skills Needs

Data source: World Bank Enterprise Survey Bangladesh 2007

Global Market and Export Challenges Global Market and Export Challenges

Exports

• Only small fraction of agro-processing products

destined for export (~3% of total output)

Data Source: COMTRADE

Total Agro- Processing Exports: 38 bln. Taka

Competitive Position in Export Markets

• Price
• Market positioning

Premium / mid-market / low end Low value added / high value added

• Product differentiation
• Regulatory approvals – standards and compliance
• Quality perceptions – safety etc.
• Trade rules – market access
• Access to sales and distribution channels
• Branding

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