The Agricultural Sector of Bangladesh

Course: Fin470

Section: 01

Prepared for:
M. Ahsanur Rahim (ARM)
Prepared By
Name

Refa E Alam
Rahat Md shihab
Rahat Mustasin Ishaque
Md. Kabir Hossain
Ramisa Maliyat
Shiraj Sabina
MD. Tunazzin-Ul-Arefin

Id

1110884 030
112 0962 030
1110650 030
112 0072030
1110781 030
112 0790 030
111 0715 030
Date of submission: 31/03/2014

Table of Content:

No

Description

1.

Letter of Transmittal

2.

Acknowledgement

3.

Executive Summary

4.

Introduction
Sector descriptions (In detail):

5.
6.

Crops

7.

Fisheries
Livestock

8.

Dairy farm

9.

Poultry

10.

Food & Beverage

11.

Conclusion

Letter of Transmittal
To
M. Ahsanur Rahim
Senior Lecturer, School of Business
North South University
Date: 5th May 2014

Subject: Submission of Fin470 Final Project.

Dear Sir
As part of our Financial Risk Management course, we have completed this project
proposal under your instructions. The topics you have assigned to us are relevant to
Financial Risk Management course (Follow Fin470 book respectively).
For our project proposal, we have chosen an Agricultural Sector in Bangladesh. We
have gathered the necessary information and tried our best to answer the questions
as required by this proposal in the context of this sector.
We humbly request your acceptance to our submission of this report.

Sincerely yours,

MD. Tunazzin-Ul-Arefin
Ramisa Maliyat
Md. KabirHossain
Rahat Md. Sihab
Rahat Mustatasin Ishaque
Refa E Alam
Shiraj Sabina

Id# 111 0715 030

Id# 111 0781 030
Id# 112 0072 030
Id# 112 0962 030
Id# 111 0650 030
Id# 111 0884 030
Id# 112 0790 030

ACKNOWLEDGEMENTS
The three of us would like to express our gratitude to our course instructor M.
Ahsanur Rahim for giving us the opportunity and guideline to conduct this
research, as well as for teaching us the definitions, theories and techniques that we
have used in writing this paper. First, I would like to thank Almighty Allah to bless
us with health and knowledge to complete the research overview.
The research overview would have been almost impossible to complete without the
help of my teacher, who helped us to do all the necessary things to complete the
research overview in time. He also gave us a favorable deadline to complete the
research. Therefore, we are truly grateful to him for helping us to do the research
overview.
Doing the research overview was indeed a very good experience, we have come to
know a great deal of things, and we hope to learn even more in the research part.
We have look forward to receive the same treatment from our teacher and would be
grateful to learn new things from him.
It was a great satisfaction working together in a group under a teacher who was
helping enough to let us do the project without any trouble.
Finally, I would like to thank all my classmates for giving me extraordinary help
in every step. I also thank all my friends at my university for giving me support. I
would also like to thank all seniors and juniors who assisted me time to time

Executive Summary
This is a synopsis of the project proposal carried out in the period of our
knowledge and an overview of our project proposal through the Agriculture Sector.
As, Bangladesh is an agricultural country about 70% of people are directly and
indirectly related in this sector. In this reason, that we are chosen this sector. Our
major sector is Agriculture and this sector was contributed some sub sectorThis sector is a reputed and quality focused the part of- crops, livestock, poultry,
fisheries, food & beverage and farming. Over the years, this sector has developed
and nurtured a close relationship with the farmers providing them innovative and
cost effective products and services. Agriculture is a single largest producing sector
of economy since it comprises about 30% of the country's GDP and employing
around 60% of the total labor force. GDP in agriculture and its price is declining
because of there is too many people has directly and indirectly related in this
sector. Bangladesh has a primarily agrarian economy. The performance of this
sector has an overwhelming impact on major macroeconomic objectives like
employment generation, poverty alleviation, human resources development and
food security.

Introduction:
Bangladesh is primarily an agrarian economy. Agriculture is the single largest producing sector
of economy since it comprises about 30% of the country's GDP and employing around 60% of
the total labor force. Agriculture plays a pivotal role in Bangladeshs economy and in the lives of
the vast majority of its population. The situation is further aggravated due to global warming
scenarios. The GDP share of individual sub sectors are about 13% for crops, 3% for livestock,
5% for fisheries and 2% for forestry, Though we make this overview without the forestry sector.
The rapid growth in population with the decline in cultivable land threatened to be a big problem
for Bangladesh. At present, Bangladesh has a population of about 132 million. The total
Geographical area of Bangladesh is about 56,000 square miles (143,998 square Kilometer) out of
which about 9 million hectares are cultivable land. However, every year the cropland is shrinking
for human settlement. It is estimating that the growing population pressure will use up 50 percent
of the countrys cultivable land by 2025. Every person working in the agriculture sector now
owns only an average of 0.12 hectares of cropland. According to the classification of land, out of
the total area, 63% has used for cultivation while 4.38 per cent for rural and urban housing and
the rest includes forest & cultivable wasteland. In Bangladesh, most of the people living beneath
the poverty line are farmers. These are the people to grow the food that feeds us, but they
themselves go hungry. This is mostly because natural resource tends to an excessive amount of
labor in its extraction. This causes a misallocation of labor so that there is a productivity loss.

The share of GDP in agriculture and its price is declining because there is too many people and
in this sector. Even though income is increasing for people working in service and industries
sector, the amount of food they consume is not increasing as much. But their demand for other
goods is increasing, hence creating more job opportunities in the non-farm sector.

Importance of agriculture:
Agricultures share in gross domestic product (GDP) has fallen over time during the last decade,
from one-quarter to one-fifth. Nevertheless, agriculture remains extremely important, as it
provides the bulk of employment (just 50 percent) as well as national food security.

Risk in the agricultural sector:

Production or yield risk: loss of production or lower yield of crop due to disaster or other
causes. Price or market risk: referring to uncertainties about prices producers will receive for
commodities or prices they must pay for inputsAsset risk: referring to the potential loss or damage to physical buildings, equipment, vehicles,
and implements due to fire, theft, water damage, or accidents;.
Institutional risk: referring to unexpected changes in government regulations governing taxes;
environmental protection, employment rules, workplace conditions, price or income supports,
repatriation of profits, support payments, other subsidies, property confiscation, and the like;
Operational risk: referring to uncertainties in scheduling or using equipment at critical times,
making or receiving shipments of critical inputs/outputs, and handling of labor disputes;
Financial risk: referring to rising costs of capital, exchange rate movements, insufficient
liquidity to meet liabilities, loss of equity, and the prospect of loans being called by lenders;
Personal risk: refers to uncertainties and risks connected to health and personal relations such as
accidents, illness, death, and divorce.

Jute
To identify risks and manage those in jute sector risk management some systems are used.
Bangladesh Jute & Commodity Exchange risk management systems are designed to support a
spot market infrastructure and management. Bangladesh Jute & Commodity Exchange risk
management strategy does not only focus on risk avoidance but also the identification and
management of an acceptable level of risk. It accepts risk in almost every activity it undertakes
in pursuit of its business objectives, from membership acquisition to final delivery of
commodities, and so senior management periodically defines its risk appetite against key drivers
of success. The risks faced by the sector and the way they are managed are discussed below.

Market Risk
Bangladesh Jute & Commodity Exchange ensures that clearing members have daily allowable
trade limits and they can only trade within these limits. Bangladesh Jute & Commodity
Exchange has software in place to ensure that all clearing members transactions are assessed
against their relevant limit and reporting processes for limit breaches. Bangladesh Jute &
Commodity Exchange operates at a daily price limit to limit losses to investors from significant
market movements.
Credit Risk
Credit risk arises when a clearing member fails to meet their payment obligation. Bangladesh
Jute & Commodity Exchange has policies requiring members to be approved before they trade;
ensuring that they have pre-paid into their trading accounts. Credit risk due to shortfall in
members account is mitigated by netting agreements and cash deposits in the form of settlement
guarantee fund.
Liquidity Risk
Bangladesh Jute & Commodity Exchange has strategy to measure and monitor the liquidity of
settlement guarantee fund and to ensure that there are sufficient funds to meet clearing members
transaction exposures. This is done by preparing scenario analysis over an appropriate timeframe
of likely inflows and outflows of funds.
Reputation and image risk
Bangladesh Jute & Commodity Exchange has a policy of openness, transparency and fairness to
all stakeholders to ensure that its reputation or standing in the community is not diminished.
Bangladesh Jute & Commodity Exchange has strong communication and media team seeing to
that. The selection of an appropriate risk management strategy to address each of its domains is
based on sound understanding of the underlying risk after a comprehensive assessment of the
risk and a good sense of Bangladesh Jute & Commodity Exchange s appetite for risk.
Bangladesh Jute & Commodity Exchange s risk appetite is periodically reviewed, defined and
ratified by senior management.

Two major risk factors of livestock and crops:

1) Climate change impact and 2) Socio-economic impact

IMPACT OF CLIMATE CHANGE:

 High mortality due to direct physical influence of heat and cold. Because, the extreme
climatic condition disrupt the internal homeostasis of the animals which affects the normal
physiology of animals and birds.
High outbreak of emerging and remerging diseases.
Direct loss of animals due to natural hazards like flood, cyclone, storm surges, earthquake,
Tsunami, Tornado, Aila, Sidr etc.
Saline intrusion damaging the pasture land.
Scarcity of pure drinking water following Flood, Cyclone, Saline intrusion, Sidr/Aila
Loss of production due to high temperature/low temperature.
Huge mortality of poultry due abrupt fluctuation of temperature.
Outbreak of emerging diseases.

Socio-economic Impact:
Unemployment due to damage of poultry and dairy farms specially the small, medium and
marginal farmers. In rural and in peri-urban areas hundreds of thousands of youth are involved
in poultry and dairy farming and it is their only source of employment and means of
livelihood.
Malnutrition in a major section of the society.
Unemployment.
Increase vulnerability among women, marginal farmers due to loss of animals.
Problem is increasing in livelihood of rural and per urban livestock keepers.
Increasing the price of the product.
Decrease export.
Increase social unrest due to unemployment.

Risk management policy

National livestock policy:
The Government budgetary provision for the livestock sub-sector will be increased to ensure
significant development in this sub-sector, and increased provision of trained manpower will be

linked to expand nationwide outfit of DLS. The Government has approved the National
Livestock Policy which identifies ten critical policy areas. These areas are;
(i) Development of dairy and meat production;
(ii) Development of poultry;
(iii) Improvement of veterinary services and animal health;
(iv) Marketing of livestock products;
(v) Development of international trade in these sectors;

Risk Reduction:
The Secretary of Ministry will ensure following responsibilities in addition to his normal duties.
(a) Designate the Focal Point for Disaster in the Ministry.
(b) Conduct sectorial risk assessment with an especial emphasis on bird flu and other related
zoonotic diseases and prepare a sectorial risk reduction action plan.
(c) Ensure budgetary provision of the ministry to ensure implementation of the plan.
(d) Mainstream disaster management principles and practices within the national development
plan of the Ministry of Fisheries and Livestock.
(e) Develop program for research with regards to hazard analysis and its affect in fisheries and
livestock.
(f) Ensure budgetary provision of the ministry for its disaster management affairs.
(g) Implement the policy of undertaking risk assessment and risk reduction activities which
affect the services of the Ministry.
(h) Ensure prevention and control of emerging Zoonotic diseases with potential risk of human
health with specific focus to Avian Influenza
(i) Implement the policy of undertaking training, awareness and education programs with
livestock and fisheries industries concerning risk assessment and risk reduction activities.
(j) Manage emergency preparedness including the identification of high lands for livestock
shelter, and the stockpiling of animal and poultry emergency stocks of vaccines and medicines.

Risks Associate with Fisheries Sector:

1.
2.
3.
4.

Local Conflict: Fisheries and livestock (5%)

The area under capture fisheries has been declining
Decrease of capture sector
Appropriation problems: the production relationship between yield and the level of inputs
is assumed to be given and the problem is how to allocate the yield.

5. Provision problems: Provision problems "concern the effects of various ways of

assigning responsibility for building, restoring, or maintaining the resource system over
time"
6. Technical, social, economic and environmental issues.
7. The demand for fish is high in markets but supply is limited.
8. In the fish marketing channel, farmers profit margins get reduce with the increase in
number of intermediaries.
9. Presence of intermediaries in different stages in the marketing channel due to lack of
government control over the trade.
10. Some Barriers are shown here.
External barriers

Internal barriers

Governance, regulation & management

Contraction

of

fishing

grounds

Overfishing
(FCDI Destruction of immature fish

projects)

breeding fish )

Pollution

Use of illegal gears

(ova, larvae,

Urbanization
Environmental degradation
Climate change

11. Here are some other Problems also which creates huge risks.
Constraint
Technical

Element
Low input farming systems
Inadequate technical knowledge on scientific fish farming
Poor water quality and fish disease

Social

Multiple ownership of ponds

Poisoning of fish farms
Poaching of fish

Economic

High production costs

Lack of financial support
Low market price of fish

Environmental

Unplanned conversion of rice fields to ponds

Impacts on ice field ecosystem and biodiversity
Climate change (flood, drought)

Risk Management Associate with Fisheries Sector:

1. Where appropriate community based fisheries management should be pursued.
2. Take a cautious approach to promoting Floodplain aquaculture (FPA). The
costs of FPA have to be weighed against the benefits. It may not be appropriate
in many hydrological contexts (say when the cost of enclosing the water body
is high and risky).
3. Public water bodies suitable for aquaculture should be leased on the basis of
efficiency and growth rather than equity/poverty reduction. They should be
leased to entrepreneurs with proven skills in aquaculture and access to finance.
4. Abolish Open Access Policies (1995) in open water fisheries. These water
bodies should be brought under community management.
5. Open water fisheries should be considered as bank of the poor or a safetynet or labour buffer resource system. The capture fisheries should not be
viewed as an opportunity to drastically increase catch. For that, aquaculture
should be promoted.
6. More resources should be invested in the development of capture fisheries.
7. Technical assistance with institutional and policy support are essential for sustainable
development of aquaculture in Bangladesh.
8. The availability of quality fish seed would ensure sustainable development of
aquaculture. Although a significant number of fish hatcheries exist, these must be
regulated and monitored for quality seed production. Access to quality fish fry would
help to expand aquaculture in the new areas.
9. Moreover, the development of sustainable aquaculture is ensuring an adequate supply of
quality fish feed. Farm-made aquafeed and industrially manufactured pellet feed can be
considered for grow-out operation.
10. In order to increase income and food security of farming households, high value fish such
as prawn and integrated rice-fish farming could be incorporated. A basic technical
knowledge of integrated fish farming should be provided to the farmers with the help of
DOF and NGOs. Future targets could be to integrate with other agricultural activities,
especially dike cropping of fruits and vegetables.
11. Export market potential to be explored for pangas and tilapia.

Dairy farming
Bangladesh has a suitable environment for cattle. Therefore, the need for developing the dairy
industry, especially, in the rural areas, has been recognized. Some of the risks are given below
and their possible management process to make the dairy farm industry more profitable is given
below.

Information Problems
The availability of relevant information is essential for sophisticated, empirical and rigorous
economic analysis to arrive at the conclusions for policy formulation. Government decisions at
present are frequently dominated by responses to the current situation without adequate
knowledge of the industry and market. The future effectiveness of government policies depends
on plans that are based on more adequate data about the dairy farm sector.

Lack of Disease/Parasites Control

Diseases and parasites are a major problem for the dairy industry in Bangladesh. Diseases cause
high mortality and severe economic loss. Mastitis is a dangerous disease for lactating animals,
and reduces milk production. In addition, the improved varieties of cows need proper medical
attention in the tropical environment. However, the medical facilities are poor at district and
thana level livestock offices. The prices of essential animal drugs are high. A 30% increase in
cattle production would be possible if these diseases were properly controlled. The vaccination
program of the Department of Livestock is limited because of budgetary constraints. The animal
health services need to be improved at every level. There are urgent demands in veterinary
education to up-grade and in some areas the quality of training programs. Only in this way will
educationists and research and extension workers reach an adequate level of competence for their
important task. Though every effort is being made to improve the animal health service by
increasing the field staff, and establishing of veterinary centers, there is a great need for further
strengthening of these centers and the establishment of additional facilities.

Shortage of Quality Breeds

The main problem of dairy development lies in its very low production and low productivity.
Breeding is the major technological improvement process in the dairy industry. A cross-breeding
program for cattle was introduced in the country in 1976 with a view to improving the milk
production efficiency of indigenous cows. The program serves with a network of 847 artificial
insemination centers the results obtained, so far, on the organized farms and research institutes, is
quite encouraging. However, no systematic study has been conducted in the country to
objectively evaluate the economic performance of the cross-breed cows under field conditions.
The adoption of milch crossed cattle has brought about an immediate upward shift in the
threshold level of milk yield, enabling the farmers to get more milk at the existing level of input
use. However, the farmers failed in consolidating such technological gain as they were unable to
adjust to the new requirements of the crossbred technology. The artificial insemination centers in

Bangladesh lack required amenities and there are none experts in these centers, hampering
smooth functioning of artificial insemination programs. In addition to the technology related to
breeding, a number of other areas such as feeding efficiency, processing technology,
transportation, diseases and marketing efficiency also require careful analysis. Moreover,
although a large number of veterinary centers and AI centers exist in the country, there seems to
be no system to reach the farmers to advise them on various aspects of animal production and
health. In order to correct the deficiency of the AI facilities, it is important not only to provide
adequate training to the personnel in charge of the AI stations and the farmers, but also to
improve the quality of the infrastructural facilities with the AI stations.

Lack of Research and Training

Livestock, in spite of its importance, has been a neglected area of agricultural research in
Bangladesh. No visible improvements can be made because of the absence of a sense of urgency
and low investment in research. Scientific research studies relating to economic aspects of
dairying and the dairy industry are not adequately available. Moreover, due to a lack of
effectiveness in its research and extension services, it has not yet been demonstrated that
livestock farming and particularly dairy farming, can be transformed into an attractive and
profitable business.

Lack of National Milk Grid and Processing Plants

A milk grid is a system under government for moving milk from the remote rural milk sheds to
urban milk consuming demand centers. This has helped producers get a good price and
simultaneously in developing a regular market for their milk. Therefore, milk production is
geared to meet fresh daily requirements of the population. However, there is no national milk
grid. The development of a milk grid would help to increase milk production, and current losses
in milk would be reduced. Attention should be given to their establishment.

Inefficient Marketing
Marketing makes the exchange process more meaningful to the parties involved in the exchange.
One party gains in term of needs and wants satisfaction and the other gains profit by promoting
satisfaction. The goal of any marketing program is to move the product from the producer to the
consumers in an economical and orderly manner, which satisfies the customers and provides a
reasonable profit to the producer and processor. Therefore, with a proper perspective, marketing
as an approach can provide a meaningful direction to the dairy development effort. Given that
97% of milk is produced in rural areas while the profitable market for it exists largely in the
urban areas, most of the daily production of milk of the farms is brought to different markets of
the urban area for sale. Due to the dearth of marketing facilities, the dairy farm owners are
compelled to sell the bulk of their milk to the tea stalls at a cheaper price. Marketing channels for
livestock products are also very poor, particularly for perishable products of animal origin. This

severely restricts production and results in unmarketable surpluses in some areas and shortages
in main consumption areas.

How can be these risks managed:

Breeding plan:
Prospects for increased demand for milk in the country are very high as observed in the earlier
section. This could be achieved only if indigenous cows are replaced by high yielding animals in
cattle by cross-breeding the local cows with exotic breeds. With more nutritious feed supply and
a remunerative outlet for milk, cross-breeding will have a chance to succeed.

Veterinary program:
The control and eradication of disease on the local and national levels creates the opportunity for
the development of cooperation between farmers. Vaccination programs especially for small
holders are best carried out at central points. This creates many opportunities for spreading the
message of animal health and nutrition. At such gathering points the farmers animals should be
separated until they have been examined and associated disease should be pointed out to
individual farmers and advice or treatment must be given.

Marketing structure:
The bulk of milk production in Bangladesh is in the hands of a large number of small producers
scattered all over the country. For balanced development of the dairy industry, the organized
marketing of milk and milk products is a pre-requisite. As a result much attention should be
given to the building up of liquid milk plants, milk schemes and milk product factories in major
towns and cities. Dairy development programs should be adopted on an integrated view,
incorporating production enhancement, procurement, processing and marketing of milk.

The Risks of Poultry farming business:

1. Bird flu:
It is Influenza or a virus, which is endemic to pigeons and some birds. This is also harmful for
human body. Only one hen or chicken which affected by bird-flu can be cause for death of all.
That can be results in mass destruction or loss for the farm owner. This risk has no limit.

2. Accidental aspects of natural calamities:

Any sort of accident may happen. Farm can be affected by any sort of natural calamities for
example: Overheating, heavy rain fall, storm etc. And for that reason in Bangladesh, farm owner
are counting loss in millions in every year during the summer and rainy season.

3. Life has no guarantee:

As we know, most of the people deal with boiler in poultry industry. It is a matter of fact that
any unconsciousness showing by the supervisor during their look after can be cause of death. As
this business is dealing with lively product, they should be aware of this loss and risk.

4. Market Risk:
Foods got Chromium:
Recently an article about chicken shows that the food is given to the boilers is made by
unhealthy component and some of these hazarders to human body and also for boilers as well.
The food contains a component called chromium which is the main reason for cancer to human
body and reduces longevity of chickens life.

High price of food :

Poultry farmer buy there vitamins and foods for boilers at high price. And for that reason it has
become hard to maintain the boilers as it was before. So that the owners are not making a good
profit and some of these are counting losses.
And, it has resulted in high market price of boilers and eggs.
But boilers have become a terror to many people for the bird flu and also for containing
chromium in their body (which directly comes through form their foods). People are no more
interested as they were before to eat boilers. So that, poultry farmers may have faced with losses
as it has losses its popularity for bird-flu, Chromium and high market price.

5. Credit Risk:
Credit risk arises when a clearing member fails to meet their payment obligation. Credit risk due
to shortfall in members account is mitigated by netting agreements and cash deposits in the form
of settlement guarantee fund. Most of the poultry farmers of Bangladesh are small and a business
of sole proprietorship. And, often they start their business by the help of short loan from bank on
low interest.

Food & Beverage sector:

Food wherever we go us always looks for delicious food. Bangladesh is a country where you can
find different types of food and beverage products. Mostly Bangladeshi people like to eat spicy
food. Bangladesh has largest searchable B2B Marketplace and Business Directory providing a
trading platform for Bangladeshi Food Products & Beverage Suppliers and Buyers. We have a
huge database of Bangladesh Food Products & Beverage Manufacturers Exporters and Suppliers.
Now we, discuss our food and beverage sector and overview the current situation.
Beverage market in Bangladesh: After independence, the food habit of Bangladeshi people has
changed a lot. Besides our traditional food consumer of Bangladesh like to take western food
also after 1980s. Because of global marketing, this was not too hard for the consumers.

New risks continue to emerge for companies in the Food and Beverage sectors because of
regulatory changes and an increasingly global business environment. Issues such as food safety,
supply chain risk management, bio-terrorism, security, genetically modified organisms, global
warming, and contamination can have financially devastating effects if not properly identify and
addressed.
Market entry
Buyers want to see the product, its color, feel and taste before they can commit to buying. So
when making contact with potential distributors, it is advisable to send them samples to help
them make informed decisions.
Some may want to do a trial shipment to test the market and gauge the interest level before
consistent supply is established.
Most beverage manufacturers are represents by agents/distributors with sufficient stock being
hold for short-term needs. Agents/distributors rely on suppliers being able to restock at short
notice.

Distribution channels
A number of food distributors are available to service either the supermarket/retail business or
the food service sector. Not all distributors have warehouses. At present, there are only a handful
of cold storage food distributors.
Functional food
Functional foods are any foods that provide inherent health benefits as well as those fortified
with concentrated ingredients, modified in a way that aims to promote health and wellbeing,
grown chemical-free, improve performance or reduce the risk of disease.
Commodity Hedging
Take commodity hedging, for example, which food and beverage executives ranked as their
number one financial issue. Commodity hedging is difficult for food and beverage companies
because there are rarely enough types of commodity contracts optimally offset a company's
various exposures.
Financing Inventory
Another financial issue of concern to food and beverage executives is inventory financing, which
was ranked third highest in the survey.

Capital Investment
Another important area of financing involves capital expenditures. Faced with the headwinds of
the current cycle, some food and beverage companies delayed capital expenditures to preserve
cash. However, repair and replacement costs can only be delay for so long. Outdated equipment
can hurt productivity, and with commodities that are more operations that are valuable need to be
as efficient as possible.
Innovation and Acquisitions
Food and Beverage Company is on innovation, a well-designed acquisition strategy is important
to capture growth opportunities. Here a specialty lender can be particularly valuable. The lender
can plan and supply flexible financing. For example, a dedicated food and beverage lender
knows the marketplace and the potential pool of acquisition candidates.

Finally, What We Do In This Sector:

Execution - skilled on site management to stabilize and focus all operations on

deliverables

Discipline - Urgency, Financial, Ultra-Clean/Organized, Injury Free Operations

Talent - assess, build and deploy strong base of talent across business teams

Compliance - ensure audit readiness across compliance programs - FDA, MHRA, DEA,
EPA, OSHA etc.

Customer Focus - a customer centric process design, workforce education and programs
to advance satisfaction

Gap Analysis - lead comprehensive assessment of all controls, talent, systems and
process

Restructure (as needed) - functional areas, reporting lines, facility consolidation or

expansion, product offerings

Certification - ensure audit compliance or obtain certification - ISO-9001, NSF, AIB,

Supplier Certification

Boost Performance - continuously blitz "Top Offenders" in operating and financial

performance across key metrics

Teams/Technical Competency - training & development programs to advance employee

skills and project teams

Lean/Six Sigma/World Class - expert integration of improvement tools and methods

across operations

(MOS) Management System - institutionalize a management system - KPI's, targets,

progress reviews, actions, recognition

Technology - Institutionalize new technology to advance competiveness and top line

growth

Road Map - formalize project plans to close "gaps" and set the operation on a path to
World Class Operational Excellence.

Conclusion:

Assuring future growth in agriculture will be a difficult endeavor, though it is not impossible. It
will require actions and investments on many fronts. Since investment in agricultural research is
highly rewarding and beneficial, the government should raise the investment to at least 2% of
GDP as recommended by World Bank and FAO. The increased investment will certainly
encourage scientists to develop technologies to cope with the hazards of climate change. The
decline of funding for research in the past has had deleterious effects on its ability to generate
and evolve new technology; these needs to be rectified urgently. Other spheres of publicly
supported activity, like marketing and extension, have also suffered reductions, and increased
attention should give to these support services. Finally, for longer-term growth, well-designed
management of the water resources is essential, and will be particularly important for adaptation
to climate change.