Square carves niche in Japan food market

Square Consumer Products Ltd has entered the world's one of the biggest food markets -- Japan -- with its spices, puffed and aromatic rice, initially aiming to cater for the needs of Bangladeshi community there.
Although food-related laws are stringent in the world's second largest economy, the company expects to put on display its products in Japanese superstores in the coming days, an official of Square Consumer said yesterday.
“We are extremely happy for being able to enter the Japan's food market. I believe it's an achievement for Bangladesh's food industry,” said Khurshid Ahmad Farhad, manager (Export) of Square Consumer Products Ltd (SCPL).
“We bagged around $100,000 worth orders for exporting processed foods to Japan in the last two months,” he said. “Our endeavour to search for new markets has helped us enter Japan.”
Industry people said the entry of a local food company into Japan, where more than 10,000 Bangladeshis live, could pave the way for other companies to join its market, which imports around 60 percent of its foods worth US$44 billion a year.
SCPL, the country's one of the biggest processed foods manufacturers, has started to export its spices mainly chilli, puffed and aromatic rice a couple of months ago after its buyer got clearance from the Japanese authorities on compliance issues.
"We have been exporting to Japan for the last six months, but the export has got momentum two months ago and since then we are exporting on regular basis," Farhad said.
A sister concern of Square Group, SCPL, which stepped in the global processed food markets in 2002 by exporting to South Korea, now exports to 21 countries in the Middle East, Europe, North America and Pacific region.
The company is recording a steady growth in its export earnings. In 2007, SCPL's export earnings grew by almost 50 percent to around US$1.2 million from nearly $0.80 million a year ago. In the first nine months of the current year, SCPL earnings touched the $2-million mark, industry people said.
Bangladesh's processed foods are now being exported to around 70 countries.
While traditional items such as rice and potato flakes remain the country's largest processed food exports, drinks and snacks have now exceeded fresh vegetables as foreign currency earners, industry people said.
According to Export Promotion Bureau (EPB) data, exports of agro-processed foods grew by 77 percent to $40.65 million in 2007-08 fiscal year from $22.94 million a year ago.
Khalilur Rahman, director general of EPB, said food-related laws are very stringent in Japan. 'If any company can enter Japan's superstores, it's a big achievement.”
Pran, Eurasia Food Processing (BD), BD Foods, Arku and Square are the leading exporters of processed foods.
Farhad said his company recently entered Greece.
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