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 ... 600 500 400 400 300 200 100 Domestic Exporter 0 # of companies in avg. Number of avg. Sales (mln. avg. Wage ('000 sample permanent staff Taka) 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) Total Agro- Processing Exports: 38 bln. Taka Data Source: COMTRADE
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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