STED: Findings on the Agro-Processing Sector Tripartite Workshop on Skills for Trade and Economic Diversification in Bangladesh
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1 STED: Findings on the Agro-Processing Sector Tripartite Workshop on Skills for Trade and Economic Diversification in Bangladesh Dhaka, December 8, 2011 Erik von Uexkull ILO Trade and Employment Programme
2 Outline the STED approach 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
3 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
4 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
5 GDP Contribution Data Source: Bangladesh Bureau of Statistics, 2005/6
6 Food Products Exported Data Source: COMTRADE, EPB
7 Shrimps:_World Demand Frozen: +9% Prepared: +51% Data Source: COMTRADE
8 Shrimps: Global Competitors Data Source: COMTRADE
9 Price Competition Average import price reported by the EU for 100 kg of fozen Penaeus (left) and other (right) shrimps by exporter (in EUR)
10 Non-Shrimp Food Products Exported Data Source: COMTRADE, EPB
11 Food Exports by Destination
12 Firm level characteristics Domestic Exporter 0 # of companies in sample avg. Number of permanent staff avg. Sales (mln. Taka) Data source: World Bank Enterprise Survey Bangladesh 2007 avg. Wage ('000 Taka)
13 ... Innovation... Data source: World Bank Enterprise Survey Bangladesh 2007
14 ... and Skills Needs Data source: World Bank Enterprise Survey Bangladesh 2007
15 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?
16 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
17 Business Capability Implications Product Development Operational Effectiveness and Food Safety Regulatory Compliance Logistics / Supply Chain / Cold Chain Management Export marketing: Product management Export Marketing: Channel Management Supplier Capability Government: Effective Regulation Other capabilities? Priorities?
18 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
19 Business Capabilities Types of Skills / Workers by Skill Type Skills Supply Gap Possible Responses Critical Gaps? Priorities? 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?
20 Business Capabilities Types of Skills / Workers by Skill Type Skills Supply Gap Possible Responses Critical Gaps? Priorities? Operational effectiveness and food safety Extend skills on All levels of manufacturing operations: Operatives & technicians Production managers Food scientists Engineers Food safety training and certification for all in operations (industry materials / training provision) 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?
21 Business Capabilities Types of Skills / Workers by Skill Type Skills Supply Gap Possible Responses Critical Gaps? Priorities? 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)
22 Business Capabilities Types of Skills / Workers by Skill Type Logistics / Supply Chain / Cold Chain Management Logistics and supply chain specialists Skills Supply Gap Critical Gaps? Priorities? Possible Responses 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
23 Business Capabilities Types of Skills / Workers by Skill Type Export marketing: Product management Marketing managers and staff Sales staff High level international business development staff Export Marketing: Channel Management Skills Supply Gap Possible Responses Critical Gaps? Priorities? 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?
24 Business Capabilities Types of Skills / Workers by Skill Type Supplier Capability Skills of farmers (and other producers) Skills Supply Gap Possible Responses Critical Gaps? Priorities? Short training courses Agricultural advisors Training skills for intermediaries? Just-in-time information by mobile/cell?
25 Business Capabilities Types of Skills / Workers by Skill Type Government: Effective Regulation primarily a matter of upgrading regulation, but complementary skills and cultural change required too Skills Supply Gap Possible Responses Critical Gaps? Priorities? Placements with other regulators Training for inspectors and others involved in regulation Design of incentive system
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