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.