Food imports from US on the rise

Bangladesh's agricultural imports from the US are on the rise thanks to the growing demand for processed food among the middle-class, the US Department of Agriculture said in a recent publication.

Between 2012 and 2015, Bangladesh imported $498 million worth of agricultural products from the US, placing it higher than Pakistan on the list.

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Baking inputs, mixes, puddings and condensed milk account for 79 percent of the imports from the US, the USDA said in its Global Agricultural Information Network Report, 'Exporter's Guide Bangladesh-2016'.

In 2015, Bangladesh imported processed food worth $15.8 million from the US.

“More opportunities for intermediary products and food ingredient imports may be found in Bangladesh's food manufacturing, modern retail, and hotel restaurants and institutions sectors.”

The report, citing Household Income and Expenditure Survey of Bangladesh Bureau of Statistics, said although rice is the major staple, demand for more expensive animal and plant proteins have grown for both rural and urban households.

The demand has grown for vegetable oil, chicken, eggs, fish and milk, said the USDA report, referring to the HIES.

“Higher incomes and healthier lifestyles influence these trends,” said the USDA.

It said the number of middle- to upper-class consumers in Bangladesh is slowly growing, now estimated at around 30 million.

The modern retail sector, including supermarkets and convenience stores, is growing as consumers attach more importance to appearance, ambience, comfort and the availability of a vast range of products.

“More middle to upper class consumers are shopping at modern retail outlets because of greater convenience, especially since more families have two working parents.”

The report said modern retail chains are striving to differentiate themselves from wet markets by offering more varied, high-quality products, as well as convenience, which they hope will attract more consumers.

However, they also have challenges, such as cold chain capacity, food preservation and packaging, and transportation in order to reduce food wastage and losses.

The USDA said consumer segments in higher income brackets prefer international brands, including products from a specific country of origin, which they believe provides an indication of safety and quality.

“However, reportedly, most consumers do not have much knowledge or experience with international brands.”

In addition, expansion of food processing companies in the country and the increase in the number of hotels and restaurants also offer prospects.

The USDA said food processing companies are growing in Bangladesh, manufacturing a variety of foods ranging from wheat noodles to dry rice snacks to mango-flavoured drinks.

It said the $2.2 billion food processing sector in Bangladesh grew on average 7.7 percent per year between fiscal 2004-05 and 2010-11. The beverage industry more than doubled during the same period to $29 million, showing an average growth rate exceeding 8 percent per year.

“The growing demand for processed foods and beverages primarily stems from Bangladesh's growing middle class population,” the USDA added.