Present Status And Prospect Of Potato Processing And Export Potential In Bangladesh

A. Background and Introduction: About 10% of global potato is converted into consumer product in EU and North America with a share of about 90% (of world potato processed product) while India and China share about 6% of the processed potato in the world using about 2.6 million tons. The majority of processed potatoes are used as French fries and other pre-fried potato products (about 18.8 million tons, 62% of the processed potatoes). About 4% of the world potato crop is processed for starch (Keijbets,2008). Even in India, currently about 6% of total potato produce is being processed in organized and unorganized sector. India produced about 30 million MT of potatoes from 1.5 million hectares that made country the 3rd largest producer in the world after China (75mMT) and Russia Federation (37mMT). The utilization of raw materials by the organized potato processing industry in India has increased from 0.13 million ton to about 0.5 million ton which is about 6% of the total production. In India potato processing industries produce mainly Chips , French Fries, Flakes, powder and other products. Chips occupy about 85% market of the potato produced product. Only 4-5 companies are producing French Fries out of about 28 industries in India. There are national and some multinational processing companies in India (Kolkata, Assam, UP, Rajkot, Gujrat, Pune, Tamil Nadu, Moharastro). Use of CIPC (at 10-120 c) has changed the potato processing in India. Processing industries have been benefitted from the farmers to processors and consumers. India research has revolutionized the potato processing by improving low cost nonrefrigerated storage technology for storage of processing potatoes in the heaps and in pits for about 3 months , identifying varieties , developing simple technology for the production of chips, French fries, and starch& other dehydrated products. It may be mentioned here that India as started potato processing activity since 1995. Potato is no longer a vegetable crop, it has become an important industrial crop for processing as well. Potato based food and allied products such as Flakes, Starch, Chips & Crisps, Frozen French Fries and similar other items have a growing market in Bangladesh, Such food products have a huge international market also. Potato growing conditions are

favorable in this country due to its rich soil and environment. Bangladesh potatoes are of good quality and suitable in terms of table & processing purposes. The food habit of the people of Bangladesh is gradually changing from Rice to partly ready made food. Potato is also responding to this change. Beside conventional food items, various diversified processed products like Flakes, Starch, Chips & Crisps, Frozen French Fries, Rings, Crackers, etc. of Potato are being produced at industrial level while chips & sometimes French fries & sun-dried products are produced at home-scale level. Though there is no clear statistics of the demand of processed product of Potato in the country, it is estimated that there is an annual market need for about 2Lac-tons of chips, 1Lac tons of Frozen French Fry, and 2 Lac ton of Potato Flakes and 1 lac ton of potato flakes. Beside there is a scope of export of fresh and processed product of potato. If the country can utilize about one million tons of fresh potato for the above mentioned purposes it will bring a breakthrough. Present status of Processing Industry in Bangladesh Potato processing is a new and growing industry in the country. Though three flakes industries were established in 2008-09, but none was operative till 2010. Only Patwari Flakes sporadically produced some quantity of flakes for domestic as well as international market in 2009 & 2010. Others could not start the factory for production due to various reasons. In 2011, Younus group purchased Bikrampur Potato Flakes and started its operation from July 20th. About 50,000 metric tons used to produce about 8,000 MT flakes mainly for export and local market. Presently available table potatoes of Diamant Variety are used. Two chips processing industries namely QFPL and Elsa have been successfully producing chips using Lady Rosetta and Courage variety. Another company NAICOL has perfected the production technology of raw materials using the CFs. Both NAICOL and QFPL have perfected storage technology with CIPC. Now all the three companies are capable of producing chips of International standard. All three companies received technical assistance from AFE/ Katalyst. However, a list showing the processing companies of Bangladesh is shown at Table 1.

Table -1: List of potato processing companies in Bangladesh: Sl. No. 1 Name of potato processing company NAICOL Name of processed Status of Remarks Working to with products operation French Fries, Potato Operating Ring

AFE and wants establish chips factory by

Quasem Ltd.

Food

Products Potato Chips

Operating

2012 Working AFE,

with doing

Elsa Consumer Products Potato Chips, Potato Operating (BD) Ltd. Crackers

excellent job Working with AFE. Quantity of chips is good & marketing is no a problem

4 5

Patwary Potato Flakes Ltd. Potato Flakes Operating Bombay Sweets & Co. Ltd. Potato Crackers, Operating Potato Chips

Worked Katalyst, recently

with

launched a chips 6 7 8 9 Golden Harvest Agro French Fries Potato Crackers Potato Crackers Potato Flakes Operating Operating Operating factory Work with

Industries Ltd. Ispahani Foods Ltd. PRAN Bikrampur Potato

PRICE project Using imported raw materials Using imported

raw materials Closed ill June It is purchased 2011 by Yonus group & started operation 50,000 produce since MT about July 2011 about potatoes used to

Sl. No.

Name of potato processing company

Name of processed products

Status of operation

Remarks 8000 MT Flakes for export & local market

10 11

Europa

Potato

Flakes Potato Flakes Potato Starch

Closed Closed since Feb started It was running during season 2011s

Munshigonj Flamingo Agro-Tech Ltd.

2011and sporadically

12 13

Chowdhury & Company Rahman

Potato Chips, French Closed Running They are using Courage & Lady Rosetta during the this season Imported raw materials are used Wants to start chips and French fries

Fry Chemicals Starch

Kanchpur Sonagaon

14

Akij Group Motijheel

Potato Crackers, and Running O Potato Chips

15

Momen Limited

With the development of technologies different values are being added to potato in various phases. The following are some of the important possible interventional areas for potato production and export regarding raw material. B. Interventional areas: 1) Variety & raw Materials: List of potato varieties that are released for processing and other purposes is shown at Table-2. From Table 2, it is revealed that 2 varieties namely Courage and Lady Rosetta were released in 2009 and the two varieties are highly suitable for chips . Chips industry like QFPL and Elsa are producing quality chips using these varieties. Some more suitable chips varieties (Atlantic, Omega and Sassy) are in the pipe line for release by National Seed Board (NSB)

Almost all the existing potatoes with High Dry matter are suitable for making flakes. More suitable varieties with High Dry matter, high recovery percentage should be identified for quality production of flakes. In fact to produce quality French Fries, highly suitable varieties are not available. With some newly introduced varieties like Asterix, Sagitta, it may be possible to produce French Fries in BD for domestic use. More suitable processing varieties should be introduced for production of international standard for domestic & export market. To produce starch, there is no suitable varieties in Bangladesh. Some quantity of starch are produced mainly for export market using Lady Rosetta & Courage. Presently one starch factory, namely Flamingo was established without sufficient information about the availability of right type of raw materials. Both research and starch manufacturing company should try to introduce more suitable starch variety to run the starch industry economically. Processing activities will require at least 10 Lac tons of suitable processing varieties of potato annually as raw material in near future. Presently, the production of processing variety in the country is very insignificant which is estimated to be around 1 Lac tons. This indicates that there is a big gap between the future demand and the present production. Table -2: List of potato varieties released by NSB along with utilization:

Sl. No. 1.

Name of the Variety Asterix

year release 2008

of

Size shape

&

Dry matter % 20-21

Purpose

Temperature in the cold

c)

Market share MVP 2% of

Long oval 50-80 mm

French fry, Flakes

storage (0 10-120C with the sprout suppressant (CIPC) Do use of

2.

Cardinal

1979 (open variety) 1978 (open variety) 2009 (open variety) 2009 (open variety) 2009 2011 1996

Long oval 50-80 mm Long oval 50-80 mm Round 4070 mm Round 4070 mm Long oval Long oval Round

19-20

French fry, flakes and table potato Flakes, FF, table potato

10%

3.

Diamont

19-20

Do

50%

4.

Courage

21-22

Chips, Flakes, Starch Chips, flakes, Starch

Do

15000MT

5.

Lady Rosetta

22-23

Do

15000MT

6. 7. 8.

Laura Sagitta Granola

20-21 19-20 11-16

French fry, Flakes French fry, Flakes Fresh export & early table potato

Do Do

Newly introduce Newly introduce 20% (4050% coverage at greater Rangpur, Bogra Dinajpur &

9. 10. 11.

Red Fantasy Omega Atlantic

Long oval Round oval Round

18-19 20-21 21-22

Table potato Chips & Flakes Chips & Flakes May 2013 Do Do Do be

released by

12. 13. 14.

Sassy Daisy Atlas

Round oval Long oval Long oval

21-22 20-21 18-19

Chips & Flakes French fries French fries, fresh table potato for export

2)

Agro-Technique: Farmers are not aware about the production technologies of processing potatoes. It is somewhat different from that of seed potato and table potato production. Production technologies such as date of planting and harvesting, fertilizer management, irrigation, use of pesticides, haulm management, grading plant geometry etc. can be manipulated for better processing yield & quality of potatoes.

3)

Quality Assessment: Presence of virus and bacterial diseases, dry matter and reducing sugar content, glyco-alkaloids, phenols content, fertilizers and pesticide residues of the processing raw materials (Potato) are not assessed properly. This area needs special attention.

4)

Post Harvest Handling: The appropriate post harvest handling technologies are neither properly followed by the farmers nor the processors. The short period storage and sprouting behavior are important. Post-harvest grading, sorting, transporting, bagging, handling & storing (both normal & cold storage, CIPC treated), loses & other physiological disorders, rottage, chemical changes etc. are very important in case of processing potatoes.

5)

Technology Dissemination: a. Technical Bulletin: Handy technical Bulletin on different aspects of processing potatoes (production, storage, end products, quality, demonstration etc.) not yet available in the country for the players in the sector including farmers. The area deserves due attention. b. Skill development: Skill development of the farmers and staffs of the potato

processing industries and cold storage authorities are very much necessary in respect of field, storage and processing aspects of processing potato. They also need the hands on training.

C. Development of local market & export sector of Potato a. Fresh Potato: Along with the local consumption, fresh potatoes are being exported from Bangladesh. It is an expanding market and time of export reached to about

60,000 tons in 2011. For further expansion and sustenance, right variety & quality, competitiveness, trade barrier, transport & storage infrastructure are important aspects to be developed. Recently formed export association may be geared up to solve the problems associated with export. b. Seed Potatoes export: At present Bangladesh is producing considerable quantity high quality seed potatoes following both clonal & tissue culture system maintaining international standard & certification. There is a prospect of seed export in Sri-Lanka, Myanmar & Nepal. c. Processed product & potato starch: (i). Industrial Products: Various processed potato products on being exported from Bangladesh like chips, flakes, starch etc. Bombay sweets & PRAN are exporting potato based crisps to ethnic market of Europe, Middle East & Asia. While Younus Group & Patwary Flakes are exporting potato flakes to China, USA and other countries. Flamingo Agro Tech has started starch production for export. Rahman Chemicals are producing starch for glucose. (ii) Home scale & domestic product: A considerable amount of chips, French fry & other sun dried products are available in the local market for snakes & consumption. There is no organized regular production system of these items. Solar drier may be introduced to dry the potato products under hygienic condition. As the potato consumption market is shifting from fresh potato to value added processed product, there is a scope of both fresh potato & processed product export from Bangladesh. At the same time local consumption & market need to be expands & developed. Thrust may be given on the development of local market & export sectors both from private, public & international facilitators. AFE & Katalyst have already contributed much in this sector within shortest period of time.

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Pre-Harvest, Harvest & Post-Harvest Important Operations

Decision Decision Support System (DSS) for harvest & post-harvest operations are to be made considering, Crop age, Disease, Weather, Rain, Cropping pattern, Storing, Marketing etc. However, the following facts are among the important onces.

Pre-harvest Haulm pulling & remove form the field Stop irrigation Observation to the soil condition, temperature, tuber exposure etc. Determine maturity Use of skill laborer and workers Field inspection, sample collection & quality assessment

During-harvest Make a plan for harvesting Avoid tuber damage during furrow opening of the rows (Appropriate equipments) Avoid harvest at noon & strong sunlight Avoid too dry & too wet harvest Manually pick up the desired tubers (disease & defects free) directly form the soil separately than the rest of the tubers Avoid rough colleting & carrying containers (Jhuri etc.) Record the disease & defects and their magnitude Sample collection for analysis (chemical, disease & internal & external defects) Harvest should begin when the tuber pulp temperature is nearer to soil temperature

Post-harvest

Avoid over night of harvested tubers in heaps in the field Bagging, transporting & handling be done softly without hurting the tubers Avoid tight & big bagging and higher heap for curing Keep the harvested tubers in shady, windy & cooler places Check for internal defects by cutting at least 5suspected tubers/ton Check the grading, disease & defects, if not graded in the field do it after curing to avoid skinning Prepare for neno-bagging (50 kg), weighing, labeling & delivery Avoid free water on tuber surface

Procurement
A. Considerable 1. Crop maturity 2. Location 3. Weather conditions 4. Total acreage 5. Harvesting method 6. Time of harvest 7. Grading 8. Temporary curing shed 9. Transport facilities 10. 11. 12. 13. 14. 15. 16. Starting of the cold storage Time of utilization for processing Manpower Recording of activities Payment system Security Quality retention & assessment

In general the quality of the Seed of processing variety is not up to the mark, no question of the quality of the end products. There is a scope of improving quality of the potato like production of higher percentage of processed grade potato with high dry matter content and

less reducing sugar. The other considerations like size, shape & defects stresses, disease etc. are also there. 1. 2. Procurement Target: 36000 tons/year. Varieties: Preferably processing varieties like Asterix with high DM (above 20%) & expected flakes production ration is about 1:5 or 1:4.5. If requisite quantities of Asterix is not available other varieties like Diamante, Cardinal etc. may be used at the higher cost of flakes production (1:6-7). Program development. 3. Method of Farmer selection. Production: Contract farming and supplemented by free market purchase. Land selection. Management of required manpower. 4. Program implementation: Contracting and appointing one facilitating potato related Initial stage: Initial workshop with the stakeholders. company, like Blue-Moon International (BMI) which will facilitate all the technical Procurement of the varieties/germplasm. activities (production, transport, seed, logistics. Management of imputes & procurement quality etc.) on the basis of an agreement toPlanting under contract farming. be made between BPFL & BMI. 5. Farmer training (1st phase). Development of management for processing potatoes & demonstration set Cost: All cost involved in contract farming & procurement program will be borne by up. BPFL. The contractor company (BMI) will get management charges from BPFL as per agreement. Monitoring supervision and intercultural operation. Production 6. The important activities of (2nd phase). below in flow chart. Farmer training BMI is given stage - 1 Data collection. Quality analysis. The Main Activity Flow-Chain Crop health care.

Production stage - 2

Production stage - 2 Field days. Farmer training (3rd phase). Technical team evaluation (public & private). Harvesting. Grading

Post-harvest stage

Storage & processing training. Monitoring & lesson learnt. Farmer opinion. Report preparation & future planning. Help the rest required potato purchase open market.

Suggested Work plan

The following activities in full, part, some or part of some may be followed as per the management decision of BPFL, aims & objectives of the program to be developed. 1. Program development: a.Detailed program: Detailed program & work plan should be developed as per objectives and the articles of the agreement between implementer & the industry.

2.

Production target & raw material requirement: a. BPFL requires about 7.5 tons of potatoes (raw material) per hour (2 shift each

of 8 hours/day & 300 days/year) & 120 tons/day & 36000 tons/year. b. c. Annual flakes production is about 7200 ton (at 5:1 ratio). It will require about 3600 acre of land (@ 10 tons/acre) to produce 36000 tons

of raw materials.

d.

It will require about 3600 tons of seeds potatoes (@ 1000 kg/acre) to plant.

3.

Staff Selection: Required number of staff & technical personnel should be recruited before starting the project activities in consultation (1 field staff for 50 acre, 1 zone incharge, 1 production agronomist/1000 acre, 1 production co-coordinator, 2 consultants/expert). However, if all the CF activities are executed through a selected facilitating company, no staff will be necessary.

4.

Selection of Consultant/Expert: Two consultants having long practical experience on potato production, quality, post-harvest handling, storing, processing etc. may be appointed full time or part-time for programming, monitoring, trouble shooting, disease, pest & stress management, post-harvest technology and guiding the program in right direction in corporation with the company staff, management and the facilitating company.

5.

Selection of Facilitating Company: A company dealing with potato starting from variety, production, post-harvest handling, contract farming management & processing knowledge may be selected (like BMI) for performing among others the following important activities. a. b. c. d. e. Supply of quality seed. Sourcing of consultant and other technical manpower. Helping farmers & land selection. Manage soil test & seed quality assessment. Corporate in developing agreement between farmer, BPFL, the bank

and cold storages. f. g. h. i. j. Sourcing of inputs, logistics and other facilities. Quality assessment of the crop and the raw materials. Impart training to the farmers & staff. Provide all types of information needed to implement the program. Support all possible management aspects of the program.

k. abroad. l. m. player. n. o.

Maintain liaison with related players/organization both home &

Help organize field days, workshop, review, meetings etc. Negotiate the technical aspects with the stakeholders and market

Sourcing of donors for supporting some of the activities. Development of different schedule (input distribution, planting,

project area mapping, farmers particulars, different data, irrigation, pesticide application, haulm pulling, harvest, transport, procurement, training schedule, module etc. p. parties. An agreement between BPFL and the facilitating company (like

BMI) will be signed highlighting condition & terms on discussion of both the

6.

Site for production: Six districts may be selected for the production activities (Munshigonj, Comilla, Rangpur, Bogra, Dinajpur & Rajshahi).

7.

Selection of potato verities: Potato varieties with processing quality need to be selected Asterix & Sagitta (for Starch, Flakes, Frozen French fry) and Courage (for Crisps & Chips) and other varieties to the selected in consultation with the consultants.

8.

Selection of contract farmers: Motivating & awareness creating meeting/workshop should be organized with the farmers & interested farmers will be selected under definite condition (facilitating company may develop agreement and terms in consultation with BPFL).

9.

Linkage & understanding: Working understanding with the Farmers, Processing Industries and storage authorities will be made based on agreed upon terms & conditions. Linkage facilities between farmers, processors, cold storage authority will be facilitated, by the facilitating company (like Blue-Moon International (BMI).

10.

Organize farmers group: In each selected district farmer may be organized into group like co-operative centering the production program for better communication & working relationship.

11.

Quality seed supply: Seed of the desired varieties with high qualities may be supplied by BMI to BPFL to the farmers on payment of Cash / Pay order / Bank Draft/Credit.

12.

Manual preparation: Manual/ Booklet /Poster for production of processing potato varieties and post harvest handling & storage including up how to set up as good may be developed in appropriate line so that the farmers and the post harvest dealing persons can be benefited & follow the manual.

13.

Farmers training: Farmers will be trained on production & post harvest handling systems of processing potatoes. All of the selected farmers will be trained in batch at 3 times per year. (Planting, before harvest & post harvest stages.) Logistic supports & resources person will be arranged for the quality training.

14.

Training of the processing staff: Processing personnel will be given practical training on perseveration and processing and post harvest handling of potatoes.

15.

Training of the production staff: Field staff of the BPFL should be trained on different aspects of production & post-harvest handling of processing potatoes.

16.

Training of the post-harvest handling & storage staff: Post-harvest handling & storage need special attention. Cold storage & BPFL staff should be made skilled through training.

17.

Management: Processing potatoes varieties production (seed, land preparation, planting, fertilization, inter cultural operations, pesticide use, disease control, quality, aphids, harvesting, inspection etc.) may be monitored and ensured by the consultant and

the facilitating company. Management of logistics, input support service etc. are also important.

18.

Field days: Field days should be organized with the farmers, local elite farmers, administrative officials, media personnel etc in all districts (one in each).

19.

Reviews workshop: There may be one annual review workshop at BPFL participated by selected players to review the activities & future programming potato.

20.

Quality assessment: Field quality and post harvest quality of processing potatoes should be assessed with due method & authority. ELISA for virus & chemical test for Dry matter, reducing sugar, phenol & alkaloids may be determined during production handling & storage for better processed products.

21.

Supporting services:

Necessary field and post harvest technical services during

production period, handling & post harvest operation may be provided preferably by the facilitating company and consultant. Sorting, grading, bagging, transportation, diseases and quality etc. should also be facilitated.

22.

Maintenance of data: All operational data including cost should be maintained.

23.

Schedule & modules: All program schedule and training modules should be developed by the consultants & followed by the respective prayers.

24.

Report maintenance: All activities & operational reports should be kept as far as possible.

25.

Contract development: Contract with the farmers, consultants, cold storage authority, input suppliers and the facilitation company are to be developed & implemented.

26.

Others: Other related activities should be addressed as and when necessary (depending on the situation & program activities).

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