Post on 07-Nov-2014
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PRESENTED BY:
JUTE DIVERSIFIED PRODUCTS
OVERVIEW:Introduction
Major jute producing countries
Portfolio of Bangladesh
Bangladesh major jute producing Associations
Average Production and Sales Trend
Major Importers of jute products
Market survey for jute diversified products
Entry mode decision of Foreign Companies
Bangladesh involving in different Economic Integration
Declining trend and drawbacks
Policy implication
Recommendation and Conclusion
INTRODUCTION
JUTE A NATURAL FIBRE
DIVERSIFIED PRODUCTS
Jute Yarn
Jute Hessian
Jute bag
Jute Geotextile
Jute Floor covering
Jute Shopping bag
TOP JUTE PRODUCING COUNTRIES
Top ten jute producers — 11 June 2008
Country Production (Tonnes)
India 2140000
Bangladesh 800000
People's Republic of China 99000
Thailand 31000
Myanmar 30000
Brazil 26711
Uzbekistan 20000
Nepal 16775
Vietnam 11000
World 3225551Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Division
IN THOUSAND TONES
PRODUCING COUNTRIES
PORTFOLIO OF BANGLADESH
Bangladesh is the Home of Jute and World's Largest Producer. The best quality jute is found at the most competitive prices from Bangladesh.
BANGLADESH MAJOR JUTE PRODUCING
ASSOCIATIONS
BJMC (Bangladesh Jute Mills Corporation)
BJMA (Bangladesh Jute Mills Association)
BJSA (Bangladesh Jute Spinner Association)
AVERAGE PRODUCTION
SALES TREND :
MAJOR JUTE IMPORTERS
Major Jute goods Importers in 2006-07
Germany, 4%Saudi Arabia,
4%
UK, 5%
Belgium, 6%
Egypt, 7%
Turkey, 9%Syria, 9%
Ghana, 11%
USA, 16%
UAE, 3% Germany
Saudi Arabia
UK
Belgium
Egypt
Turkey
Syria
Ghana
USA
UAE
JUTE PRODUCTS IN THE INTERNATIONAL
MARKET:
MARKET SURVEY FOR YARN
0
2040
60
80
100120
140
'000 MT
1999-2000
2000-01 2001-02 2002-03 2003-04
Trend in Export of Jute Yarn
Other EU
GERMANY
UK
USA
Other World
MARKET SURVEY FOR HESSIAN
0
50
100
150
200
'000 MT
1999-2000
2000-01 2001-02 2002-03 2003-04
Export Trend of Jute Hessian
Other EU
GERMANY
UK
USA
Other World
MARKET SURVEY OF FOOD GRADE JUTE BAG
0
100
200
300
400
500
INR
Milli
on
2002-03 2003-04 2004-05 2005-06 2006-07
Projected growth in demand of Food grade Jute bags
MARKET SURVEY FOR JUTE GEO TEXTILES
Consumption pattern of Geo-Textiles
Synthetic material
other natural
jute
MARKET SURVEY FOR JUTE GEO TEXTILES
0
200
400
600
800
1000
1200
1400
MTs
1997-98 1998-99 1999-2000 2000-01 2001-02
Trend in the consumption of jute geotextiles by European countries
JUTE: PRODUCT SUPPLY CHAIN
ENTRY DECISION OF FOREIGN MARKET
BILATERAL TRADE: BANGLADESH AND INDIA
BARRIERS:
BILATERAL TRADE: BANGLADESH AND
PAKISTAN
BILATERAL TRADE: BANGLADESH AND
CHINA
BILATERAL TRADE: BANGLADESH AND
AMERICA
REGIONAL INTEGRATION:
BANGLADESH AND NAFTA
REGIONAL INTEGRATION:
BANGLADESH AND ASEAN
REGIONAL INTEGRATION:
BANGLADESH AND EU-27
REGIONAL INTEGRATION: BANGLADESH AND
MIDDLE EAST
DECLINING TREND OF BANGLADESH JUTE SECTOR
CHANGES IN ECONOMIC ASPECTS:
FY2002-FY2007
MAJOR ECONOMIC DRAWBACKS OF
BANGLADESH JUTE SECTOR:
Jute farmers getting no buyers despite bumper harvest
Bangladesh unhappy over tax on 'duty-free' garment
Brazil moves to file anti-dumping case against Bangladesh jute yarn
The Adamjee Jute mills closure
Jute price decline worries farmers
POLICY IMPLICATIONS
First, there is no reason to close any jute mill based on the argument that Bangladesh’s jute sector had no prospect.
Second, a rationalization of the size of jute mills, especially for those in the public sector, is urgently required.
Third, rationalization of size of the workforce in BJMC mills is urgently required.
Fourth, marketing system of BJMC jute mills needs to be changed.
CHANGES IN ECONOMIC ASPECTS: FY2002-FY2007
MARKET DEVELOPMENT
INITIATIVES
Explore possibility of re-capturing some part of the secondary carpet backing market in USA .
Market development of jute sacking
Development and promotion of jute geotextiles applications
RECOMMENDATION
Lack of crop varieties for quality fibre production.
There is a strong need to develop jute genome for precise development of the crop to meet the quality attributes.
Lack of infrastructural facilities and administrative goodwill.
Lack of contingency plan to combat weather uncertainties as well as adverse situations.
CONCLUSION
More surveys like CPD’s recent study on jute sector would help to identify strengths and weaknesses.
Such surveys would help us arrest the decline of jute industry in Bangladesh and once again to take steps to bolster the industry.
International organizations like IJO if made stronger would help to make jute more popular across the globe.