Agro-food sector plagued by skilled labour shortage
Kamrun Nahar | Saturday, 19 March 2011
Kamrun Nahar
Despite achieving more than 8.0 per cent growth, the agro-food processing industry in Bangladesh has been facing shortage of skilled manpower, industry insiders said. Food-processing alone represents over 22 per cent of all manufacturing jobs and employs about 20 per cent of labour forces. But the food-processing sector accounts for only 2 per cent of GDP. According to the BBS labor force survey, about 23.76 million people are employed in agriculture sector out of the country's total economically active population of about 49.5 million. Compared to other Asian countries the agro-food processing industry is small in Bangladesh. Most of these industries are small employing less than 50 workers. There are only about 246 medium-sized food-processing firms and 184 large firms (firms with more than 100 workers). Study also shows rural areas generate roughly 70 per cent of the jobs related to food processing where rice mills account for the largest share of employment in the industry, generating 40 per cent of the employment. Manufacture of bakery products accounts for another 14 per cent and processing of tea and coffee accounts for 19 per cent. Experts said Bangladesh can tap into this highly lucrative segment of food industries with proper motivation, training and follow up activities relevant to the forces working in this arena. In Bangladesh, the value added by manufacturing of agro-based industries is about 12 per cent of total value added from agricultural production. "Food-processing industry in Bangladesh lacks proper technical support and well- run proficiency. The industry has enormous development potential by creating forward and backward linkage through alliance, partnership and investments," Francis De Silva, ILO expert on workplace learning and productivity, told the FE Friday. Citing the examples of Malaysia, Singapore, Thailand, China, Netherlands, and Australia, Mr Silva said they meet the demands of skilled workforces through apprenticeship and demand-driven short term training courses. There are 32,911 manufacturing enterprises in the agro-food processing sector where 78 per cent is small industries, 8.0 per cent medium and 13 per cent large industries. Around 6,139 units are in agro-processing sector, of which the number of rural enterprise is 3,974, urban 2,165, manufacture of edible vegetable oil (except hydrogenated) 133, manufacture of dairy products 97, manufacture of grain mill products 226, rice millers 3,885, manufacture of bakery products 1,145, manufacture of cocoa, chocolate and sugar confectionery 100, processors of tea and coffee 97 and manufactures and processors of other food products 456.
Despite achieving more than 8.0 per cent growth, the agro-food processing industry in Bangladesh has been facing shortage of skilled manpower, industry insiders said. Food-processing alone represents over 22 per cent of all manufacturing jobs and employs about 20 per cent of labour forces. But the food-processing sector accounts for only 2 per cent of GDP. According to the BBS labor force survey, about 23.76 million people are employed in agriculture sector out of the country's total economically active population of about 49.5 million. Compared to other Asian countries the agro-food processing industry is small in Bangladesh. Most of these industries are small employing less than 50 workers. There are only about 246 medium-sized food-processing firms and 184 large firms (firms with more than 100 workers). Study also shows rural areas generate roughly 70 per cent of the jobs related to food processing where rice mills account for the largest share of employment in the industry, generating 40 per cent of the employment. Manufacture of bakery products accounts for another 14 per cent and processing of tea and coffee accounts for 19 per cent. Experts said Bangladesh can tap into this highly lucrative segment of food industries with proper motivation, training and follow up activities relevant to the forces working in this arena. In Bangladesh, the value added by manufacturing of agro-based industries is about 12 per cent of total value added from agricultural production. "Food-processing industry in Bangladesh lacks proper technical support and well- run proficiency. The industry has enormous development potential by creating forward and backward linkage through alliance, partnership and investments," Francis De Silva, ILO expert on workplace learning and productivity, told the FE Friday. Citing the examples of Malaysia, Singapore, Thailand, China, Netherlands, and Australia, Mr Silva said they meet the demands of skilled workforces through apprenticeship and demand-driven short term training courses. There are 32,911 manufacturing enterprises in the agro-food processing sector where 78 per cent is small industries, 8.0 per cent medium and 13 per cent large industries. Around 6,139 units are in agro-processing sector, of which the number of rural enterprise is 3,974, urban 2,165, manufacture of edible vegetable oil (except hydrogenated) 133, manufacture of dairy products 97, manufacture of grain mill products 226, rice millers 3,885, manufacture of bakery products 1,145, manufacture of cocoa, chocolate and sugar confectionery 100, processors of tea and coffee 97 and manufactures and processors of other food products 456.