Transcript Improving the performance of the marketing system for

Improving the Marketing System Performance of
Fruits and Vegetables in Bangladesh
Professor Dr. Md. Kamrul Hassan
Department of Horticulture
Bangladesh Agricultural University
Research Team
Research Team
Principal Investigator
Professor Dr. Md. Kamrul Hassan
Department of Horticulture, BAU, Mymensingh
Co-Investigator
Professor Dr. Shankar Kumar Raha
Department of Agribusiness & Marketing
Bangladesh Agricultural University, Mymensingh
Research Assistant
Nasrin Akhther
Research Fellows
Five Research Fellows
57
65
71
75
94
100
106
124
157
159
159
176
182
Bangladesh
Cambodia
Sudan
Sri Lanka
Myanmar
Pakistan
Nepal
India
Malaysia
Vietnam
Japan
China
Indonesia
Thailand
Saudia Arabia
Australia
New Zealand
Philippines
USA
UK
Maldives
Canada
Italy
Sudan
UK
Italy
USA
Canada
New Zealand
Australia
Saudia Arabia
Maldives
Japan
India
Malaysia
China
249
Nepal
288
Sri Lanka
293
Thailand
302
Indonesia
303
Philippines
304
Pakistan
348
Cambodia
370
Myanmar
392
Bangladesh
426
Vietnam
300
400
500
Research Background
5
15
16
23
25
25
28
Fruits
0
100
200
Rice
85
119
155
194
210
210
214
267
282
345
353
405
417
430
438
452
0
100
200
300
400
 Fruits & vegetables requirement: 400 g
 Fruits & vegetables availability: 281 g day-1capita-1
 Postharvest loss: 24-44% (34420 million BDT = 490 million US$)
(Hassan 2010)
day-1capita-1
APPERENT CONSUMPTION OF FRUITS AND RICE
500
Research Background
UNHYGENIC MARKET CONDITIONS (KARWAN BAZAR, DHAKA)
Selected Commodities and Objectives
1
To describe actors, commodity flows and price formation in the marketing
chain in Bangladesh, from main producing areas to Dhaka retail markets
2
To evaluate performance of marketing system by calculating gross and net
margins for each of the five foods studied
To Assess the critical factors affecting market performance and to propose policy
recommendations for enhancing market performance
3
Watergourd
Tomato
Cauliflower
Pumpkin
Cabbage
Arum
Pointed Snake gourd
Beans Cucumber
gourd
Ribbed goud Okra 2%
Pineapple
Watermelon
Papaya
Citrus
Ber
Litchi
Mango
Coconut
14%
1
Banana
Brinjal 7%
2
Radish
3
Potato
24%
Jackfruit
65%
Vegetable area (2010)
Fruit area (2010)
OBJECTIVES AND SELECTED FRUITS AND VEGETABLES
Approaches and Methodology
Approaches & methodologies
 Secondary data
 Primary survey
Secondary data collection
Secondary data on acreage, production, prices of the
selected commodity (potato, brinjal, okra, banana
and mango) and important cereals (rice, wheat and
maize) were collected.
Time Series Analysis was used to examine changes
in acreage, production and prices (nominal and real)
Seasonal price variation was calculated using
Moving Average Method
SELECTED DISTRICTS FOR PRIMARY SURVEY
Primary data collection
 Primary data were collected from market actors
using FGD and questionnaire interview.
 Data were collected by trained enumerators and
Research Fellows
Data collection from growers
 Stratified random sampling were followed
 Leading 1-2 Districts for each commodity were
selected
 Selected growers (N=100 per commodity) were
interviewed using structured questionnaires
Methodology (Data Collection)
Data collection from intermediaries
 Respondents were Faria, Bepari, Aratdar, wholesalers, retailers
 Faria & Bepari were interviewed from assemble markets
(N=100)
 Aratdar & wholesalers were interviewed from wholesale
markets (N=100)
 Retailers were interviewed from retail markets in Dhaka and
also in production area (N=100)
 Data collection mainly concentrated on personal information,
trade volume, marketing costs, purchase & sale prices, price
formation, constraints, etc.
Results-Potato (Primary)
DATA COLLECTION & TRAINING OF ENUMERATOR
LOCATION OF PRIMARY SURVEY
Commodities
Respondents
Growers, Faria, Bepari
Survey areas
Munshigonj, Bogra
Brinjal
Growers, Faria, Bepari
Norshingdi, Jessore
Okra
Growers, Faria, Bepari
Comilla, Chittagong
Mango
Growers, Faria, Bepari
Banana
Growers, Faria, Bepari
Chapai Nowabgonj,
Rajshahi
Tangail, Kushtia
Potato, brinjal, okra,
mango, banana
Aratdar, wholesalers,
retailers
Potato
Dhaka
Methodology-Marketing Performance
Parameters investigated
At growers’ level
 Data were mainly collected on age, education, land,
cultivated varieties, production factors, production and
marketing costs, sale price, price formation,
constraints, etc.
At intermediary level
 Marketing channels, market actor, marketing costs and
margins, price determination, postharvest handling
status, marketing constraints, etc.
 Marketing performance was evaluated using different
measures of marketing efficiency
Methodology-Marketing Performance
a. Price spread
= (Price paid by consumers – Price received by
growers)
b. Growers’ share
= (Price received by the growers/Consumers price)*100
c. Marketing efficiency using Acharya’s formula
= FP/(MC+MM)
 Total Marketing Cost (MC)
 Net Marketing Margin (MM)
 Prices Received by the Farmers (FP)
d. Return on investment, ROC (%)
= (Net margin/Total investment)
Total investment = (Purchase price + marketing cost)
Results: Rice (Only Secondary Data)
200
45
180
40
35
30
140
20
Retail medium (nominal)
Retail medium (deflated)
5
2010-11
2009-10
2008-09
2007-08
2006-07
0
2005-06
40
10
2004-05
60
15
2003-04
80
20
2002-03
100
25
2001-02
120
Price (Tk/kg)
Production (million mt)
160
PRICE VARIATION IN BANGLADESH
0
GLOBAL RANKING IN RICE PRODUCTION
108
104
102
105
104 103
CV: 2.96%
103
102
100
99
98
96
96
101 100
99
99
96
CV: 1.22%
102
101
101
101
100
101
101
100
100
100
100
94
92
y = 0.0712x2 - 1.0584x + 103.03
R² = 0.5712
102
97
99
Wholesale price
99
98
98
90
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Seasonal price index
106
Results: Rice (Only Secondary Data)
y = 0.1746x2 - 2.6774x + 107.95
R² = 0.6674
98
97
96
Retail price
95
Jan
Mar
May
Jul
Sep
SEASONALITY IN RICE PRICE (2000-01 to 2010-11)
Nov
Results: Rice (Only Secondary Data)
Chart Title
1600
40
35
1200
30
108
25
106
1000
20
800
15
600
10
400
5
200
0
0
Area (000 ha)
Nominal harvest price (TK/kg)
Real harvest price (Tk/kg)
Production (000 MT)
Nominal wholesale price (TK/kg)
Real wholesale price (Tk/kg)
PRODUCTION & PRICE
104
102
100
98
96
94
y = 0.2637x2 - 3.3453x + 107.46
R² = 0.6284
104
CV=3.68%
104
102 103
103
102
101
99
CV: 3.68%
95
95 96
96
92
90
88
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1400
Seasonal price index (Wholesale)
1800
SEASONALITY
SEASONALITY
PRODUCTION AND PRICE RELATIONSHIP & SEASONALITY
China
India
Russia
Ukraine
USA
Germany
Poland
Bangladesh
Belarus
Netherlands
France
UK
Malawi
Turkey
Canada
Iran
Peru
Egypt
Brazil
Belgium
Production (million mt)
80
Results: Potato (Secondary Data)
70
60
50
40
30
20
10
0
GLOBAL RANKING IN POTATO PRODUCTION
Results: Potato (Secondary Data)
9000
30
8000
25
7000
Production
6000
20
5000
15
4000
3000
10
2000
5
1000
0
0
 Results partially support
cobweb model
 High production in one
year causes less price in
following year
 Potato price did not
change over the last
decade in real term
 Export of potato and
potato products
 Limitation- absence of
HACCP & standards
(GAP)
Production (000 MT)
Nominal retail price (Tk/kg)
Real retail price (Tk/kg)
PRODUCTION & PRICE RELATIONSHIP (POTATO)
90
60
60
85
50
0.5968x 2
80
y=
- 3.2717x + 88.942
R² = 0.5049 CV: 24.75%
40
Jan
Mar May Jul Sep
Months (2004-09)
Nov
85
75
84
RETAIL
74
70
Dec
WHOLESALE
93
91
Nov
69
95
Oct
73
70
102
100
82
80
112
110
Sep
89
105
Aug
90
106
110
Jul
100
CV: 14.13%
110
107
Jun
106
115
May
110
120
Apr
Seasonal Price Indicies
116
y = -0.015x2 + 3.6458x + 77.114
117
R² = 0.7759
115
Mar
118
120
126
Feb
130
Results: Potato (Secondary Data)
128
Jan
128
 Results on seasonal price variation underlined vital role of
potato as a source of macro nutrients because the peak prices
of rice & wheat are fairly synchronized but potato is counter
synchronized. So, there are scopes to popularize potato and
potato products as alternatives to main staples rice and wheat.
SEASONALITY IN POTATO WHOLESALE AND RETAIL PRICES
Results: Potato (Primary Survey)
Potato marketing channel (Bogra-Dhaka)
Farmer (conventional
storage) Feb-May
Farmer (early crop, net
income 4.87 Tk/kg)
Farmer (cold store) AugustJan (net income: 8.76 Tk/kg)
Faria
Net margin: 9.81%
Bepari
Net margin: 23.92%
Aratdar
Net margin: 3.35%
Processing unit
Wholesalers
Net margin: 18.66%
Retailers
Net margin: 44.26%
Consumers
POTATO MARKETING CHANNEL (BOGRA-DHAKA)
Results: Potato (Primary Survey)
Retailers receive the highest net margins. However, it is
worth to mention that for perishables, retailers assume
more risk and their per unit marketing as well as operating
costs are higher
MARKETING COSTS & MARGINS
Results: Potato (Primary Survey)
Marketing channels
Price spread
(Tk. kg-1)
Growers’
share (%)
Marketing
efficiency
Bogra-Dhaka Channel
Shibgonj-Karwan Bazar
Shibgonj-Jatrabari
Shibgonj-Mohakhali Kacha Bazar
Shibgonj-Gulshan D.C.C. Market
Shibgonj-Badda Kacha Bazar
Kahalu-Karwan Bazar
Kahalu-Jatrabari
Kahalu-Mohakhali Kacha Bazar
Kahalu-Gulshan D.C.C. Market
Kahalu-Badda Kacha Bazar
6.30
7.50
7.50
13.50
5.75
6.30
7.50
7.50
13.50
5.75
54.35
50.00
50.00
35.71
56.60
54.35
50.00
50.00
35.71
56.60
0.816
0.794
0.727
0.695
0.824
0.819
0.807
0.776
0.709
0.842
Mean
8.11
49.33
0.781
Munshigonj-Dhaka Channel
Munshigonj Sadar-Karwan Bazar
Munshigonj Sadar-Jatrabari
Munshigonj Sadar-Mohakhali Kacha Bazar
Munshigonj Sadar-Gulshan D.C.C. Market
Munshigonj Sadar-Badda Kacha Bazar
Tongibari-Karwan Bazar
Tongibari-Jatrabari
Tongibari-Mohakhali Kacha Bazar
Tongibari-Gulshan D.C.C. Market
Tongibari-Badda Kacha Bazar
2.12
3.32
3.32
9.32
1.57
4.03
5.23
5.23
11.23
3.48
84.64
77.87
77.87
55.62
88.15
70.80
65.13
65.13
46.52
73.74
1.094
1.161
1.004
0.996
1.190
1.260
1.300
1.190
1.160
1.210
Mean
4.89
70.55
1.157
Results: Potato (Primary Survey)
760
750
665
690
600
620
715
665
625
650
Potato price (Tk/mound)
715
620
560
550
475
500
450
465
400
350
475
475
380
300
300
500
300
300
250
200
150
Jan
Feb
Mar
Apr
May
June
Jul
Aug
Month (2012)
Lal Pakhri
Cardinal
Granula
FARMERS’ PRICE OF DIFFERENT VARIETIES OF POTATO (2012)
Results-Potato (Primary)
POSTHARVEST OPERATION: WASHING (EARLY CROP)
Results-Potato (Primary)
POSTHARVEST OPERATION: LOADING (80 kg )
Results: Potato (Primary Survey)
Sequential steps of storing of potatoes in commercial cold storage
Growers
(Field cured potato
tubers)
Private cold store
Pre-cooling
(10-12oC 24-48 h or
no pre-cooling but
held under shade for
24 h and store
Storing
Normal (For table
purposes (AugJanuary)
Pre-heating (48 h
at 10-12oC for 2448 h before
delivery; Aug-Jan)
Marketing
(Table potato: AugJan & Seed potato:
October)
(2.2-2.8oC and 8590% RH; Mar-Jan)
Sorting shade (8 h
drying under fan at
normal condition
before delivery;
June-January)
Traditional storage
BADC Cold store
SEQUENTIAL STEPS OF STORING POTATOES IN COMMERCIAL COLD STORES
Results: Potato (Primary Survey)
Shortfalls in potato cold stores
1. Erratic supply of electricity: For table potato, temperature
and RH should be 35-37oF and 85-95%. Machine should
operate for 17-18 h day-1 but present electricity supply is for
10-12 h day-1. For rest of the day, generator is used at a cost of
approx. 100 L diesel h-1. To avoid this cost, often generator is
not run or run for shorter duration that results in degraded
quality.
2. Physiological disorders: Ventilation or flushing with fresh air is
required. This helps reduce carbon dioxide build up inside cold
store and inhibit sprouting. This is practiced in the dawn or
early morning. Sometimes this is not done to save labour.
3. Less turn over: Another important practice in cold store is
change in position of potato sacks (turn over or “Palat”)
every 21-28 days. Again this practice is not properly followed
to save cost.
Results: Potato (Primary Survey)
Improving cold storage facilities in Bangladesh
1.
2.
3.
4.
5.
Improving the conditions of electric supply
Safeguarding the interests of the growers and traders
Capacity strengthening of the growers
Capacity strengthening of the staff of cold storage
Maintenance of multi-chambered cold storage
Ideal conditions for table & seeds potatoes are 6-10oC and 85-90%
and 2-4oC and 85-90% relative humidity, respectively. Therefore,
commercial cold store should have different chambers with
different temperature & RH conditions.
6. Increasing number of BADC cold storage
Growers have strong demands for more BADC cold stores so that
they can store their own seeds for at least 1-2 seasons, and
thereby import of potato seed tubers is reduced and hard-earned
foreign currencies are saved. The growers also have demand to
introduce at least one chamber in each private cold stores
specifically for seeds.
Results: Brinjal (Primary Survey)
35
Harvest (nominal) price (TK/kg)
Harvest (real) price (Tk/kg)
Retail (nominal) price (TK/kg)
Retail (real) price (Tk/kg)
30
CV = 35.75
Seasonal price indices (Wholesale)
25
20
15
10
5
0
200
180
160
140
120
y = 61.496e0.0663x
R² = 0.4878
CV: 35.75%
100
80
60
40
20
0
PRICE VARIATION
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Months (2004-2009)
SEASONALITY
PRICE VARIATION AND SEASONALITY IN BRINJAL
Results: Brinjal (Primary Survey)
Norshingdi-Dhaka
Jessore (Chougacha)-Dhaka
Farmer
Farmer
Faria
Net margin: 10.07%
Faria
Bepari
Net margin: 16.77%
Bepari
Aratdar
Net margin: 14.73%
Aratdar (Dhaka)
Wholesalers
Net margin: 8.50%
Wholesalers
Retailers
Net margin: 49.64%
Retailers
Consumers
Consumers
Aratdar (Jessore)
MARKETING CHANNELS OF BRINJAL
Results: Brinjal (Primary Survey)
Retailer (Badda Kancha Bazar)
Retailer (Gulshan DCC Market)
Retailer (Mahakhali Kancha Bazar)
1.4
0.9
1.1
Wholesaler (Jatrabari Bazar)
1.2
Aratdar (Karwan Bazar)
Bepari (Norshingdi)
3.7
1.3
Retailer (Karwan Bazar)
Wholesaler (Karwan Bazar)
2.7
1.7
3.6
1.6
0.6
1.8
1.3
1.1
1.1
1.2
Faria 0.4 0.7
1
0
Marketing cost (Tk/kg)
5
4
3
2
Net marketing margin (Tk/kg)
6
MARKETING COST AND MARGINS OF BRINJAL INTERMEDIARIES
Results: Brinjal (Primary Survey)
Marketing channels
Norshingdi-Dhaka
Belabo-Karwan Bazar
Belabo-Jatrabari
Belabo-Mohakhali Kacha Bazar
Belabo-Gulshan D.C.C .Market
Belabo-Badda Kacha Bazar
Raipura-Karwan Bazar
Raipura-Jatrabari
Raipura-Mohakhali Kacha Bazar
Raipura-Gulshan D.C.C . Market
Raipura-Badda Kacha Bazar
Mean
Jessore-Dhaka
Chougacha-Karwan Bazar
Chougacha-Jatrabari
Chougacha-Mohakhali Kacha Bazar
Chougacha-Gulshan D.C.C. Market
Chougacha-Badda Kacha Bazar
Mean
Price spread (Tk. Kg-1)
Growers’ share (%)
11.40
12.95
12.95
11.60
17.20
9.76
11.31
11.31
9.96
15.56
64.60
61.63
61.63
64.20
54.74
69.69
66.49
66.49
69.26
59.05
12.40
63.78
24.13
25.68
25.68
24.33
29.93
25.06
23.91
23.91
24.91
21.24
25.95
23.81
Results: Brinjal (Primary Survey)
Marketing channels
Marketing efficiency
Stdev
Norshingdi-Karwan Bazar
0.94
0.34
Norshingdi-Jatrabari
0.98
0.71
Norshingdi-Mohakhali Kacha Bazar
0.98
0.38
Norshingdi-Gulshan D.C.C. Market
0.92
0.51
Narshingdi-Badda Kacha Bazar
0.98
0.72
0.96
0.53
Chougacha-Karwan Bazar
0.89
0.33
Chougacha-Jatrabari
0.89
0.17
Chougacha-Mohakhali Kacha Bazar
0.83
0.53
Chougacha-Gulshan D.C.C. Market
0.80
0.13
Chougacha-Badda Kacha Bazar
0.84
0.26
0.69
0.28
Norshingdi-Dhaka
Mean
Jessore-Dhaka
Mean
Results: Okra (Primary Survey)
45
40
35
35
30
30
25
25
CV = 19.90
20
20
15
15
10
10
5
Area (000 ha)
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
0
5
0
Production (000 MT)
Harvest (nominal) price (Tk/kg)
Retail (nominal) price (Tk/kg)
Harvest (real) price (Tk/kg)
Retail (real) price (Tk/kg)
AREA, PRODUCTION AND PRICE VARIATION OF OKRA
Results: Okra (Primary Survey)
CV: 35.75%
 Seasonal price variation in
potato is lower due to
sufficient cold stores
 To reduce seasonal price
variation for highly
perishables brinjal and okra
specialized storage facilities
are required
 Also refrigerated transport &
technologies for shelf life
extension are needed.
SEASONALITY IN OKRA
Channel (Comilla-Dhaka)
Results: Okra (Primary Survey)
Marketing costs and margins
Farmer
Retailer (Badda Kancha Bazar)
Faria
Net margin 8.97%
Bepari
Net margin: 12.75%
Retailer (Gulshan DCC
Market)
Retailer (Mahakhali Kancha
Bazar)
Retailer (Karwan Bazar)
Wholesaler (Jatrabari Bazar)
Aratdar
Net margin: 7.21%
Wholesalers
Net margin: 31.28%
Retailers
Net margin: 39.80%
Consumers
Wholesaler (Karwan Bazar)
1.2
2.3
1.7
3.3
1.3
3.5
1.1
3.6
1.3
2.8
1.6
2.8
Aratdar (Jatrabari Bazar)
1.1
0.7
Aratdar (Karwan Bazar)
1.2
0.6
Bepari (Nimshar, Comilla)
1.3
1.1
Faria (Comilla) 0.3 0.8
0.0
2.0
4.0
6.0
Marketing cost (Tk/kg)
Net marketing margin (Tk/kg)
MARKETING CHANNEL & MARKETING COST AND MARGINS (OKRA)
Colombia
Madagascar
Dom. Rep.
Tanzania
Yemen
Peru
Mali
Egypt
Kenya
Viet Nam
Nigeria
Philippines
Bangladesh
Brazil
Indonesia
Mexico
Pakistan
Thailand
China
India
Production 000 mt)
18000
Results-Mango (Secondary)
16000
14000
12000
10000
8000
6000
4000
2000
0
GLOBAL RANKING IN MANGO PRODUCTION IN 2010 (FAOSTAT 2012)
1000
60
900
50
800
700
40
Production
600
500
30
400
20
300
200
10
100
0
0
Area (000 ha)
Production (000 MT)
Harvest (nominal) price (Tk/kg)
Harvest (real) price (Tk/kg)
Relationship between area, production and price (nominal and real price of
mango in Bangladesh during 2004-05 to 2010-11 (BBS)
Results-Mango (Primary)
HARVESTING TOOLS AND METHODS (BANGLADESH & THAILAND)
Results-Mango (Primary)
Improved packaging (plastic crates) is used for
long distance transportation of mango (from
assemble market (Kansat, Shibgonj, Chapai
Nowabgonj) to city wholesale market (Karwan
Bazar, Dhaka). Still, some traders use bamboo
basket (bamboo basket with gunny bag top)
Results: Mango (Primary Survey)
Owners (Give their orchard lease to
other trader group or produce by
themselves and subsequently sell to Faria
or Bepari
Producers (Produces on leased
property as growers and sells
mangoes to Faria or Bepari)
Faria (18.95%)
Bepari (25.13%)
Aratdar (6.45%)
Processing
Wholesaler (11.86)
Retailer (37.61)
Consumers
MARKETING CHANNEL OF MANGO
Results: Mango (Primary Survey)
160
140
Price of mango (Tk/kg)
120
100
80
60
40
20
0
May Jun Jul Aug Sep May Jun Jul Aug Sep
Farmers' price
Retail price
Khirshapat 35 45
45 50
Gopalbhog 35 40
40 45
Himsagar 35 40
50 60
Langra
40 45
75 80
Fazli
55 60 90
70 80 150
Bombai
35 30
60 55
Ashwini
30 60 90
50 100 150
MONTHLY PRICE VARIATION (2012)
Results: Mango (Primary Survey)
Retailer, Shambazar, Dhaka
0.7
Retailer, Gulshan, Dhaka
4.6
2.8
2.7
Retailer, Mahakhalia, Dhaka
Retailer, Badamtali, Dhaka 0.6
Retailer, Jatrabari, Dhaka
4.9
4.5
3.6
1.4
Retailer, Karwan Bazar, Dhaka
4.3
2.6
Wholesaler, Badamtali, Dhaka
3.8
1.4
1.1
1.6
1.6
1.8
1.7
2.2
0.6
1.9
2.6
1.9
2.6
2.2
2.4
2.8
1.6
1.6
1.8
2.1
1.9
Wholesaler, Jatrabari, Dhaka
Wholesaler, Karwan Bazar, Dhaka
Aratdar, Badamtali, Dhaka
Aratdar, Jatrabari, Dhaka
Aratdar, Karwan Bazar, Dhaka
Bepari, C. Nowabgonj
Bepari, Rajshahi
Faria, C. Nowabgonj
Faria, Rajshahi
0
2
4
Marketing cost (Tk/kg)
6
Net margin (Tk/kg)
8
10
Results: Mango (Primary Survey)
Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)
Marketing channel
Price received by
Price paid by
grower (Tk. Kg-1) consumers (Tk. Kg-1)
Chapai Nowabgonj-Dhaka
Bholahat-Karwan Bazar
Bholahat-Jatrabari Bazar
Bholahat-Badamtali
Bholahat-Shambazar
Mean
Rajshahi-Dhaka
Bagha-Karwan Bazar
Bagha-Jatrabari Bazar
Bagha-Badamtali
Bagha-Shambazar
Mean
PREVIOUS PACKAGING
Price spread
(Tk. Kg-1)
Growers’
share (%)
37.72
37.72
37.72
37.72
54.00
51.00
48.00
60.00
16.28
13.28
10.28
22.28
69.85
73.96
78.58
62.87
37.72
53.25
15.53
71.32
43.40
43.40
43.40
43.40
54.00
51.00
48.00
60.00
10.60
7.60
4.60
16.60
80.37
85.10
90.42
72.33
43.40
53.25
9.85
82.05
PRESENT PACKAGING
Results: Mango (Primary Survey)
Acharya’s marketing efficiency of various channels in mango trade
(Chapai Nowabgonj-Dhaka and Rajshahi-Dhaka)
Marketing channels
Chapai Nowabgonj-Dhaka
Bholahat-Badamtoli
Bholahat-Shambazar
Mean
Rajshahi-Dhaka
Bagha-Badamtoli
Bagha-Shambazar
Mean
Marketing
efficiency
Stdev
4.08
4.14
4.11
1.31
1.04
1.18
4.35
4.21
4.28
1.28
1.31
1.30
1200
70
1000
60
Results-Banana (Secondary)
16
50
14
40
30
400
20
200
10
Production (000 MT)
Area (000 ha)
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
0
2001-02
0
12
Harvest and retail price
600
2000-01
Production
800
10
8
6
4
2
0
Yield (MT/ha)
Harvest (nominal) price (Tk/Hali)
Harvest (real) price (Tk/Hali)
Retail (nominal) price (Tk/Hali)
Retail (real) price Tk/Hali
Results-Banana (Secondary)
 Seasonal price variation is
pronounced in banana.
 Indicates the need to
introduce winter fruit species
to reduce monthly price
variation.
 Research is needed for
developing fruit varieties for
winter season
Seasonality in banana prices (wholesale-Tangail) as a ratio to moving
average (Sources: DAM).
Results-Banana (Primary Survey)
Farmer (sells to Faria or Bepari); net
profit: Tk. 187.09 bunch-1 of Sabri
Farm
Madhupur
Faria (sells to Bepari);
Net margin: 6.79%
Bepari (sells to wholesalers via Aratdar);
Net margin: 15.21%
Aratdar Karwan Bazar (commission agent);
Net margin: 17.52%
Dhaka
Wholesaler Karwan Bazar (sells to retailers or
consumers); Net margin: 27.13%
Retailer Karwan Bazar (sells to consumer);
Net margin: 33.33%
Dhaka
Consumers
Results-Banana (Primary Survey)
Results-Banana (Primary Survey)
Marketing channels
Kushtia-Dhaka
Kushtia-Karwan Bazar
Kushtia-Jatrabari Bazar
Kushtia-Mahakhali
Kushtia-Gulshan D.C.C.
Mean
Tangail-Dhaka
Kushtia-Karwan Bazar
Kushtia-Jatrabari Bazar
Kushtia-Mahakhali
Kushtia-Gulshan D.C.C.
Mean
Farmers'
Retail price Price spread Growers Acharya’a
price (Tk. (Tk. bunch-1) (Tk. bunch-1) share (%) efficiency
bunch-1)
306.36
306.36
306.36
306.36
424.00
430.00
388.00
420.00
117.64
123.64
81.64
113.64
72.25
71.25
78.96
72.94
2.93
3.13
2.85
2.66
306.36
415.50
109.14
73.85
2.89
248.00
248.00
248.00
248.00
424.00
430.00
388.00
420.00
176.00
182.00
140.00
172.00
58.49
57.67
63.92
59.05
3.17
3.08
2.91
2.86
248.00
415.50
167.50
59.78
3.01
Price spread and growers’ share in marketing channel of banana starting
from Tangail and Kushtia to Dhaka city (Variety: Sabri; Price: May 2012)
Policy Implications and Recommendations
1. SAFEGURDING GROWERS’ INTEREST
Encourage contract farming to increase growers’ income:
Growers’ shares particularly for vegetables are less (Okra: 39.3843.72%; Brinjal: 23.81-63.78%; Potato: 49.33-70.55). Growers’
shares in fruit marketing are high (Mango: 71.32-82.09%; Banana:
59.78-73.85%). Hence, to elevate growers’ share in vegetables
supply chain, contract farming should be encouraged & facilitated
as a means of reducing costs of intermediation.
Policy Implications and Recommendations
2. MONITORING INTERMEDIARIES IN SUPPLY CHAIN
Unusually high marketing margins of retailers: Results revealed
that net margins of retailers are consistently and unusually higher
(33-54% of the total net margins of intermediaries) regardless of
the crop. So, regular monitoring and more competition at the
retail level, especially in Dhaka city are required.
Price control by organized traders: Control of commodity price is
a much-talked issue in marketing. Public perception is that there
exists syndicate in market which actually controls prices. Our study
revealed that even though there is no visible syndicate but there
exists indirect price control mechanism.
Policy Implications and Recommendations
3. MAINTENANCE OF QUALITY AND SAFETY IN SUPPLY CHAIN
Quality and grade standard: Bangladesh lacks standardized quality
assurance systems for horticultural produce. Proper arrangement
should be made to develop national quality management system
to train, and ultimately to accredit, growers and traders in the
major international certifications, HACCP, ISO, GAP, GMP.
Safe use of chemicals: Delivery of high quality and safe produce to
customers is the ultimate goal of efficient marketing. There is
public outcry on food safety due to perceived health risk.
Therefore, use of recommended pesticides, plant growth
regulators & ripening agents must be ensured. Research, training,
motivation and strong media campaign are needed to improve the
situation.
Policy Implications and Recommendations
4. CAPACITY STRENGTHENING IN POSTHARVEST TECHNOLOGY
Dissemination of appropriate technology: Government may assist
disseminate technical information, e.g. cauliflower, broccoli,
apples, grapes, etc. can be stored with potato due to compatibility
while mango, papaya, banana can’t. This is probably more
important than providing improved access to capital.
Optimization of traditional storage technology: Bangladesh is
facing tremendous crisis in power sector, and hence different
traditional storage methods of perishable fruits and vegetables s
would be researched, refined, optimized and extended.
Policy Implications and Recommendations
5. IMPROVEMENT OF TRANSPORTATION SYSTEM
Relocation of wholesale markets from Dhaka city: Huge wastage
occurred due to restricted movement of trucks into Dhaka city.
Currently, the trucks are not allowed to enter into Dhaka after 6:00
AM. If a vehicle gets late due to some unforeseen reasons, the
entire products are spoiled. Smooth movement of perishables
carrying trucks should be ensured to reduce wastage. Therefore,
relocation of wholesale markets from the centre of Dhaka city to
the nearby places would be considered.
Policy Implications and Recommendations
6. IMPROVEMENT OF PACKAGING SYSTEM
Introduction of affordable plastic package: For long-distance
transportation, voluminous package made of bamboo baskets &
gunny sacks are predominantly used, which result in high spoilage
due to impact, vibration & heat generation. Recently, mango
traders adopted plastic crates & postharvest loss greatly
minimized. It can be used for other high value fruits & vegetables.
Introduction of 50-kg net bags for potato storage: There is strong
demand from cold stores to introduce 50-kg plastic net bags
replacing 84-kg jute bags to facilitate handling. The presently used
84-kg jute bags are hard to carry by individual labourer, and would
be hazardous to their health in longer term.
Policy Implications and Recommendations
7. ESTABLISHMENT OF IMPROVED STORAGE FACILITIES
Pronounced seasonality in fruits & vegetables than cereals:
Seasonal price indices are lower in rice (CV 2.96%) and wheat (CV
3.68%) as compared to potato (CV 24.57%), brinjal (CV 35.75%)
and okra (CV 32.71%). Lower price variation of rice and wheat is
due to less perishability. By contrast, higher price variation of fruits
and vegetables is due to high perishability and lack of storage. To
reduce seasonal price variation, storage facilities for perishables
should be created.
Policy Implications and Recommendations
Improvement of power supply: The most important problem in
potato cold stores is the paucity of uninterrupted supply of
electricity. Uninterrupted electricity supply is required, especially
during loading period (March-May). Research to produce
alternative energy (conversion of agro-waste to power) should also
be given the top priority.
Increase the number of BADC cold stores: There is high demands
of BADC cold stores, especially for seeds. Presently, there are 18
BADC cold stores and 5 under construction. There are scopes to
further increase the number of BADC cold stores. BADC potato
seed programme is one of the very few profitable programmes of
the Government of Bangladesh. Since, 80% of the potato seeds are
farmers own seeds that are held in commercial cold stores the
BADC staff may monitor private cold stores and issue certificates
of good storage practices.
Policy Implications and Recommendations
8. ADOPTION OF MODERN MARKETING
Adoption of modern marketing facilities is required: Adoption of
modern facilities in agricultural marketing is important. However,
there is a debate on this issue whether modernization can curtail
jobs. Trade-off would be a very useful alternative where the extra
work force can find better option and contribute to the overall
economic development of the country.
Introduction of modern loading/unloading equipments: Loading
and unloading by manual labour is time consuming, costly and
health hazardous. Forklifts can be introduced in the local assemble
and big wholesale markets. However, the economic feasibility of
the new facility needs to be carefully examined prior to its
introduction into Bangladesh.
Policy Implications and Recommendations
9. VALUE ADDITION FOR DIVERSIFIED USE
Value addition of agro-produce: Use of potatoes could be
diversified to safeguard growers’ interest. Various value added
products like potato flakes, dried chips, French fries, potato
powder, etc. could be produced and used for domestic and
international marketing. However, to access mainstream export
markets the food enterprises must comply with the application of
GMP, GHP and HACCP.
Alternative of rice and wheat during peak price months: Result
on seasonal price variation underlined the vital role of potato as a
source of macro nutrients because the peak prices of rice and
wheat were fairly synchronized but potato is counter synchronized
to rice and wheat. So, there are ample scope to popularize potato
and potato products as the alternatives of rice and wheat.
Policy Implications and Recommendations
11. RAPID ACCESS TO MARKET INFORMATION
Easy access to market information: Access to right information on
market price and trend in market price is very important. The
farmer must be aware about the prevailing prices of commodities.
In this regard, board may be used to display daily prices of
agricultural commodities in the market. Also DAM can send price
information to farmers by SMS.
Upgrading the price data in BBS & DAM: Results of primary survey
demonstrated that there exists wide price variation among
varieties. However, in the BBS and DAM reports, there are paucity
of such valuable details. Therefore, in the BBS & DAM reports
harvest, wholesale and retail prices of important varieties should
be included. This could ensure better use of market information by
the growers, intermediaries, researchers, extension workers and
policy makers.
THANK YOU