Public-private partnerships key to reshaping agricultural landscape

FH Ansarey, a key figure in the private sector-led agricultural revolution in the country, believes that although livestock, rice, vegetable, and maize farming have made significant strides in recent years, thanks to advancements in mechanisation, seed production, breeding, and new varieties, Bangladesh still lags behind. 

He advocated for private-public partnerships (PPP) to bridge this gap. Ansarey shared these insights with The Business Standard, discussing achievements, challenges, and future strategies for the agricultural sector.

The managing director and CEO of ACI Agribusinesses also stressed the need for "Quick Harvest" and increasing crop cycles from two to three or four due to the high population. With low productivity relative to population, increasing research capacity becomes imperative to boost agricultural output, he added. 

Acknowledging the private sector's current research efforts, Ansarey highlighted the necessity of expanding their capacity and fostering innovation to address environmental challenges and meet demand. 

He advocated for private-public partnerships akin to the infrastructure sector, urging government involvement with private institutions. 

Regarding the need for research, Ansarey pointed out the impact of changing day-night temperatures and timing on plant and animal life cycles, leading to decreased milk production, slower chicken growth, and issues with egg production and paddy cultivation. He emphasised the urgent need for resources to develop new varieties and breeds.

"The government offers high-quality rice varieties, yet there is a significant delay in their adoption in the fields. For instance, BR-28 and BR-29 rice varieties cover approximately 40% of cultivated land. Although released in 1994-1995, their widespread adoption took nearly a decade. Despite the introduction of numerous new varieties, the slow pace of their implementation results in continued cultivation of older varieties," Ansarey said.

"In the present era, the private sector is rapidly advancing in seed supply. While excelling in various aspects, it falls short in research investment compared to its potential. Globally, the private sector contributes 75-80% to agricultural investment, emphasising the sale of knowledge and expertise alongside products. This facilitates access to germplasm and research outcomes," he said.

Ansarey highlighted that agriculture in Bangladesh is predominantly driven by the private sector, accounting for 90-95% of activity, with minimal government intervention at 5-10%. While entities like Bangladesh Agricultural Development Corporation (BADC) supply seeds, there is a notable absence of government involvement in research, innovation, policy, and administration, necessitating increased contributions in these areas.

He stressed the importance of not only conducting research but also swiftly implementing findings in the field. However, a significant challenge lies in convincing farmers, who typically require firsthand evidence to believe in new methods or technologies. 

Ansarey emphasised the need for comprehensive training for agriculture and livestock extension workers, along with the provision of equipment and transport, to facilitate rapid knowledge transfer and adoption.

There are approximately 100,000 extension workers in the private sector, encompassing both agriculture and livestock sectors, many of whom lack proper education. By providing training to these workers, and enabling them to understand technology, rapid transformations could occur. This presents an opportunity for government involvement.

Subsequently, emphasis should be placed on input management. Currently, most inputs in Bangladesh are sourced from the private sector, with the government primarily supplying fertilisers.

Encouraging the private sector's involvement in this realm is crucial. They could be incentivised through benefits such as low-interest capital or government-funded warehouse construction, subsequently managed by the private sector. Establishing warehouses at production sites would allow producers to store products immediately after harvesting.

Current challenges in agriculture

FH Ansarey considers climate change to be the biggest challenge for agriculture now.

He said elevated temperatures can hinder crop growth, emphasising the urgent need to develop and swiftly deploy technology to mitigate these effects in the fields.

Furthermore, Ansarey stressed the importance of reducing the time required to introduce new varieties. In the realm of hybrid rice, ACI has initiated collaboration with the Bangladesh Rice Research Institute (BRRI) to develop Brri-6 and Brri-7 varieties, which are now being disseminated in the fields. 

Highlighting the surge in the dollar's value as a significant challenge for the private sector, he said companies providing agricultural inputs are facing adversity. The exchange rate has escalated from Tk86 to Tk120, amplifying the costs of importing ingredients or inputs. 

With approximately 400 companies operating in the agricultural inputs sector, both large and small enterprises are affected. Initially, 4-5 major companies commanded 40% of the turnover, leaving the remaining 60% to smaller and medium-sized ones, many of which are struggling to sustain themselves.

When asked about ACI's resilience amidst these challenges, he mentioned that prices have been raised across various sectors, including seeds, fertilisers, agricultural machinery, animal health products, nutritional items, and vaccines, except organic fertilisers. Efforts to mitigate these increases include negotiation with suppliers for imported goods.

ACI's contribution to agriculture

For 30 years, ACI has upheld the slogan of enhancing people's quality of life by responsibly providing technological support. Our mission extends to elevating farmers' prosperity by supplying all necessary resources. Through innovation, we develop crop and animal varieties, ensuring comprehensive input provision. Our workforce of 10,000 extension officers is dedicated to these endeavours.

FH Ansarey discussed recent investments, stating that ACI has established a fruit juice factory through a joint venture with a Swedish company. Additionally, plans are in place to raise cows, which are expected to yield 40 litres of milk within 23 months. Furthermore, ACI has ventured into shrimp breeding and is expanding cattle rearing for meat production on a significant scale.

We have developed our unique rice variety. Farmers who cultivate this rice using our seeds can sell it to us for joint processing. We will handle packaging and branding for distribution to all retail chains. Our upcoming objective is to invest in cold storage facilities.