Wheat Export from Canada to Bangladesh

Executive Summary

Canada is good friend of Bangladesh from independence and all kind of relation and they can work together also we have seen is predicted that this relation is very important for these two friendly nations for their own prosperity. In this report explain about which problems accrue in exporting wheat and analysis of this report, product description and relation between Bangladesh and Canada.

Canada produce maximum amount of wheat. Canada is third rank in production of wheat. Canada produce different product of wheat. Canada selling wheat in Bangladesh many competitor create problems in process, such as W & W Grain Corporation, Supreme Seed Company LTD, this companies produce wheat in Bangladesh and take place of in this market.

By such analysis like PESTL, we can get information Bangladesh market and product possession in Bangladesh also cultural differences and political information moreover by SWOT analysis wheat market in globally and weakness and deices of product explain in this report.

Bangladesh economic growth has high rete experience. Good relation between two countries they working together and fulfill their vision. In current era what production boost because of technology of high breed of wheat and tactics of production. Wheat is leading sours of vegetal protein in human food. Canada is leading exporter of durum wheat in the word. Canada is third largest country in wheat production.

Introduction

Canada produce maximum amount of wheat, also Canada export wheat in many countries. In this report I want to explain about wheat production and analysis such as which problems accrued in exporting wheat from Canada to Bangladesh.

Wheat is one of the most important food plants in the world. It is used primarily to produce flour for bread. It is used widely in the production of many other baked goods. Wheat grain is also used in the manufacture of alcoholic beverages and alcohol. Wheat straw is used as an animal feed and in the manufacture of carpets, baskets, packing, bedding, and paper.

Canada produces many items of wheat like brad, cake, cookies, muffins, rolls, vodka, oat and doughnuts. Bangladesh import 3mt wheat from different countries (freelance grains trade, 2013). Bangladesh is Canada’s third-largest pulse export market and a major market for wheat and canola.

Agricultural commodities represent about 75 percent of Canadian exports to Bangladesh. I found this information on Canada wheat business line on trade official.

Identification of Problems

1. The payment method is very important when it comes to international trading. In Canada might not share the same fiscal system with Bangladesh. And Canada needs help and assistance when trading with Bangladesh. There are also some international forms of payment that will cover such situations, but they need to be present in both countries. There are several ways to reach one of these payment methods, and with proper research, you should identify them.
2. Despite the economic success of many of the Asian countries and the rising Asian economy Bangladesh currently finds itself on the outside looking in. Exporters are limited by Bangladesh’s lack of experience with Canada, and their lack of exposure to Canadian capability. It is quite difficult to obain timely and accurate market information. Although Bangladesh is in the process of reducing major trade barriers to attract more foreign investment, it is still saddled with one of the least liberal trade policies in the world. Liberalization of the Bangladesh’s service sector is badly needed, despite the fact that it makes up most of the country’s GDP. Bangladesh’s Tariffs Commission looks to promote interests of domestic industries and increase market access of domestic industries through bilateral$ regional and multilateral agreements. However, Bangladesh has more favorable market access in developed markets because of its Least Developed Country status (LDC).

Product Analysis

Wheat is a grass widely cultivated for its seed, a cereal grain of which is a worldwide staple food. Wheat is grown on more land area than any other food crop (240.4 million hectares, 2014). Wheat is an important source of carbohydrates. It is leading sours of vegetal protein in human food. Canada is leading exporter of durum wheat in the word. Canada is third largest country in wheat production.

SWOT analysis

Strengths

• Sugar cane and beet: highest yield of fermentable sugar per high land efficiency.
• Lower production cost.
• Protein reach by product.

Weaknesses

• Direct completion to food and feed market.
• Price level directly linked to food and feed prices; high price during the food crisis.
• High volatility of the raw material prices.
• Decreasing production would case shortage on animal feed market.
• Sensitive to drought and dry winter freeze.

Opportunities

• Easy to use for biotech processes.
• Fast implementation and growth of the Bio based Economy.
• Food security only possible with a globally growing volume of the crops.
• Economic security for the farmer due to more choices of selling his stock.

Threats

• Under high pressure from public, NGOs and politicians: claimed impact on food prices and food shortage.
• Simple strong populist messages like “No Food Crops for Industry”.
• During food crisis: High prices and no secure supply for the industry.
• Insecure political framework; very complex EU legislation concerning specific c food crops.

Pestle Analysis

S - Social and cultural Analysis

Health:

There were more legislative permanence and norms to the environment that need to be modified and updated. In 1989, a new Ministry of Environment and Forests was created. Several indicators demonstrate the serious health situation for the population in Bangladesh. Life expectancy is only around 60 years the government has concluded that only half of the populations have provided to basic health care.

Education:

The educational system in Bangladesh is three-tiered and highly subsidized. There are approximately 38,000 government primary schools and 24,000 non-government schools with a total of around 17-18 million pupils. At the higher level, there are around 13,000 secondary schools and 3,000 colleges.

NGO's:

Bangladeshi society at large seems to become more open to the empowerment of women in terms of education, work opportunities and through increased participation in the democratic process.

Competitors

There are mainly two rivalry companies of wheat producing in Bangladesh, which can affect our business in the Bangladesh. Which are as follows:

Supreme Seed Company LTD.: It is founded in the year 1978 by its chairman Mohammad Masum, who is agriculturist. It is specialize in Processing, Production, Marketing and breeding of field crop and vegetable seeds, which is located in southern Asia Dhaka, Bangladesh.

W & W Grain Corporation: This Company is doing trade from last two decades. This company has high reputation because it has over the years it drawing closer on a global basis producers, traders and consumers and providing service with high efficiency. It has major items such as Wheat, rice, sugar and oils, etc. Since liberation W & W Grains corp. is one of the highest suppliers of Agro-based commodities in Bangladesh. It is also located in southern Asia Dhaka, Bangladesh.

Conclusion

Canada is Bangladesh’s good friend. Bangladesh leaders should have responsibility to take challenges for maintain this relation. By working together we can fulfill our vision. Closer relationship and cooperation between Bangladesh and Canada will benefit the counties as well as the word.

There are several ways to reach one of these payment methods, and with proper research, Canada should identify them. An accountant will also help to make the best choice.

Recommendation

Bangladesh continues to experience high rates of economic growth. The recent explosive growth in some sectors, large population and demand for service present significant opportunities for Canadian investors. Business share common views on various international issues and work together in the UN, the commonwealth and in other international forums. They have maintained and developed and friendly relation in a wide range of field. So these two states should keep up these relations for their own prosperity.

Consider the different currencies and potential money loss along the way, so don’t waste funds. It is especially important if Canada is trading with a Bangladesh that doesn’t use euro or USD currencies! Keep in mind that exchange rates change on a daily basis, so time is an important factor when Canada or Bangladesh makes a payment. Good communication with a trusted importer will ease our job a lot and save from unexpected issues that might occur.