STED: Findings on the Agro-Processing SectorTripartite Workshop on Skills for Trade and Economic Diversification in Bangladesh

Dhaka, December 8, 2011

Erik von Uexkull

ILO Trade and Employment Programme

Outline – the STED approach

STAGE 1: Sector

Position and Outlook

STAGE 2: Business

Capability Implications

STAGE 3: What Type of

Skills?

STAGE 4: How many Workers by Skill Type?

STAGE 5: Skills Supply

Gap

STAGE 6: Proposed Responses

Skills for Trade and Economic Diversification

STAGE 1: Sector Position and

Outlook

STAGE 2: Business

Capability Implications

STAGE 3: What Type of Skills?

STAGE 4: How many Workers by Skill Type?

STAGE 5: Skills Supply

Gap

STAGE 6: Proposed Responses

Project Builds on 2010 TVET Study

• Focus on exporting agro processing sectors

• Covers all skill levels

• What comes next after initiatives following

TVET 2010 study are implemented?� Competence-based training for three priority occupations – Baker,

Food Technician, Packaging Technician

� Industry Skills Council

� Centre of Excellence

� Management development

� Operations efficiency / Kaizen

GDP Contribution

Data Source: Bangladesh Bureau of Statistics, 2005/6

Food Products Exported

Data Source: COMTRADE, EPB

Shrimps:_World Demand

Frozen: +9%

Data Source: COMTRADE

Prepared: +51%

Shrimps: Global Competitors

Data Source: COMTRADE

Price Competition

Average import price reported by the EU for 100 kg of fozen Penaeus (left) and other (right) shrimps by exporter (in EUR)

Non-Shrimp Food Products Exported

Data Source: COMTRADE, EPB

Food Exports by Destination

Firm level characteristics ...

400

500

600

Domestic

Exporter

0

100

200

300

400

# of companies in

sample

avg. Number of

permanent staff

avg. Sales (mln.

Taka)

avg. Wage ('000

Taka)

Data source: World Bank Enterprise Survey Bangladesh 2007

... Innovation ...

Data source: World Bank Enterprise Survey Bangladesh 2007

... and Skills Needs

Data source: World Bank Enterprise Survey Bangladesh 2007

Growth Scenario

• Business as Usual� Shrimp: Back on track? More competition / lower prices?

� Other food: High growth, but limits to existing markets?

• More of the Same� Shrimp / other food: How much more can you do of what you’re

already doing?

• Upgrade� Shrimp: Higher quality / branding? New products / processing?

� Other food: New markets? Product adjustment / upgrading?

STAGE 1: Sector

Position and Outlook

STAGE 2: Business

Capability Implications

STAGE 3: What Type of Skills?

STAGE 4: How many Workers by Skill Type?

STAGE 5: Skills Supply

Gap

STAGE 6: Proposed Responses

Business Capability ImplicationsProduct Development

Operational Effectiveness and Food Safety

Regulatory Compliance

Logistics / Supply Chain / Cold Chain Management

Other capabilities?

Priorities?Export marketing: Product management

Export Marketing: Channel Management

Supplier Capability

Government: Effective Regulation

Priorities?

STAGE 1: Sector

Position and Outlook

STAGE 2: Business

Capability Implications

STAGE 3: What Type of Skills?

STAGE 4: How many Workers by Skill Type?

STAGE 5: Skills Supply

Gap

STAGE 6: Proposed Responses

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Product Development Graduates with skills relevant to

food product development

Bachelor degree courses in

food science, food engineering,

food business: Universities /

industry association / ISC /

firms

Educating existing managers,

marketers etc. in food product

development

Executive education courses in

food product development:

WHO WOULD OFFER THOSE?

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Operational effectiveness

and food safety

Extend skills on

All levels of manufacturing

operations:

• Operatives & technicians

• Production managers

• Food safety training and

certification for all in

operations (industry materials /

training provision)

• Training associated with • Production managers

• Food scientists

• Engineers

• Training associated with

Kaizen and similar initiatives

• Training in food testing

laboratory skills (industry

materials / training provision)

• Degree courses in industrial

engineering

• Degree courses in food

process engineering

• Executive education in

industrial and food process

engineering

Availability of qualified trainers WHAT DO WE DO ABOUT THIS?

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Regulatory Compliance Awareness of importance of

strict compliance across all

levels of manufacturing

operations

Industry association drive on

compliance (training materials /

provision?)

Skilled Quality Assurance

Managers

Training for new and existing

quality assurance managers(Industry Association / ISC / Food

Safety Authorities)

Business Capabilities Types of Skills / Workers by Skill

Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Logistics / Supply Chain /

Cold Chain Management

Logistics and supply chain

specialists

• Supply chain and logistics

centre of expertise, possibly

based at a university

• Degree / masters courses in

supply chain and logistics

• Need for economics of cold

chain to be studied

• Cold chain skills strategy

depends on what will work

economically

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Export marketing: Product

management

• Marketing managers and staff

• Sales staff

• High level international

business development staff

• Executive education for

managers (collaboration with

Int. Business School?)

• Attract diaspora

• Consider hiring internationally •to get people with existing

expertise in international sales

and marketing of generics for

key positions

• Possible placement of BD staff

downstream in distribution

channels to gain experience

• Languages

• ‘Call centre skills’

• Alliance-based marketing

networks?

Export Marketing: Channel

Management

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Supplier Capability Skills of farmers (and other

producers)• Short training courses

• Agricultural advisors

• Training skills for

intermediaries?

• Just-in-time information • Just-in-time information

by mobile/cell?

Business Capabilities Types of Skills / Workers

by Skill Type

Skills Supply Gap

Critical Gaps?

Priorities?

Possible Responses

Government: Effective

Regulation

primarily a matter of upgrading

regulation, but complementary

skills and cultural change

• Placements with other

regulators

• Training for inspectors and skills and cultural change

required too

• Training for inspectors and

others involved in regulation

•Design of incentive system