Improving the Marketing System Performance of Fruits and Vegetables in Bangladesh
Department of HorticultureBangladesh Agricultural University
Professor Dr. Md. Kamrul Hassan
Research TeamPrincipal 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
Research Team
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SudanCambodia
Bangladesh Research Background
Fruits Rice
APPERENT CONSUMPTION OF FRUITS AND RICE
Fruits & vegetables requirement: 400 g day-1capita-1
Fruits & vegetables availability: 281 g day-1capita-1
Postharvest loss: 24-44% (34420 million BDT = 490 million US$) (Hassan 2010)
Mango
Jackfruit
Banana
Coconut
Watermelon
Pineapple
Citrus
Papaya Ber Litchi
PotatoBrinjal
Radish
ArumCabbage
PumpkinCauliflower
TomatoWatergourd
BeansPointed gourd
Snake gourdCucumber
Ribbed goudOkra
Selected Commodities and Objectives
Vegetable area (2010) Fruit area (2010)
1
2
3
OBJECTIVES AND SELECTED FRUITS AND VEGETABLES
65%
7% 24%
14%
2%
1
2
3
Approaches and Methodology
Approaches & methodologies Secondary data Primary survey
SELECTED DISTRICTS FOR PRIMARY SURVEY
Secondary data collectionSecondary 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
Primary data collectionPrimary data were collected from market actors
using FGD and questionnaire interview.Data were collected by trained enumerators and
Research FellowsData collection from growersStratified random sampling were followed Leading 1-2 Districts for each commodity were
selected Selected growers (N=100 per commodity) were
interviewed using structured questionnaires
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.
Methodology (Data Collection)
DATA COLLECTION & TRAINING OF ENUMERATORDATA COLLECTION & TRAINING OF ENUMERATOR
Results-Potato (Primary)
Commodities Respondents Survey areas
Potato Growers, Faria, Bepari Munshigonj, Bogra
Brinjal Growers, Faria, Bepari Norshingdi, Jessore
Okra Growers, Faria, Bepari Comilla, Chittagong
Mango Growers, Faria, Bepari Chapai Nowabgonj, Rajshahi
Banana Growers, Faria, Bepari Tangail, Kushtia
Potato, brinjal, okra, mango, banana
Aratdar, wholesalers, retailers Dhaka
LOCATION OF PRIMARY SURVEY
At growers’ levelData were mainly collected on age, education, land,
cultivated varieties, production factors, production and marketing costs, sale price, price formation, constraints, etc.
At intermediary levelMarketing 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
Parameters investigated
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)
Methodology-Marketing Performance
Results: Rice (Only Secondary Data)
GLOBAL RANKING IN RICE PRODUCTION
0
5
10
15
20
25
30
35
40
45
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
Pric
e (T
k/kg
)
Retail medium (nominal)Retail medium (deflated)
PRICE VARIATION IN BANGLADESH
104105
103
102
9696
97
99 99
101
99100
y = 0.1746x2 - 2.6774x + 107.95R² = 0.6674
90
92
94
96
98
100
102
104
106
108
Jan
Feb
Mar
Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
Seas
onal
pric
e in
dex
CV: 2.96%
SEASONALITY IN RICE PRICE (2000-01 to 2010-11)
102
101
101
101
100100
98
99
98
100101
100
y = 0.0712x2 - 1.0584x + 103.03R² = 0.5712
95
96
97
98
99
100
101
102
103
Jan Mar May Jul Sep Nov
CV: 1.22%
Wholesale price
Retail price
Results: Rice (Only Secondary Data)
SEASONALITY
PRODUCTION & PRICE
CV: 3.68%
104104
101
9595 96
96
99
102 103103102
y = 0.2637x2 - 3.3453x + 107.46R² = 0.6284
88
90
92
94
96
98
100
102
104
106
108
Jan
Feb
Mar
Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
Seas
onal
pric
e in
dex
(Who
lesa
le)
CV=3.68%
PRODUCTION AND PRICE RELATIONSHIP & SEASONALITY
0
5
10
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30
35
40
0
200
400
600
800
1000
1200
1400
1600
1800 Chart Title
Area (000 ha) Production (000 MT)Nominal harvest price (TK/kg) Nominal wholesale price (TK/kg)Real harvest price (Tk/kg) Real wholesale price (Tk/kg)
SEASONALITY
Results: Rice (Only Secondary Data)
0
5
10
15
20
25
30
0
1000
2000
3000
4000
5000
6000
7000
8000
9000Pr
oduc
tion
Production (000 MT)Nominal retail price (Tk/kg)Real retail price (Tk/kg)
PRODUCTION & PRICE RELATIONSHIP (POTATO)
Results: Potato (Secondary Data)
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)
106
89
73
60
69
82
118116
128126
106
128
y = 0.5968x2 - 3.2717x + 88.942R² = 0.5049
40
50
60
70
80
90
100
110
120
130
Jan Mar May Jul Sep Nov
Seas
onal
Pric
e In
dici
es
Months (2004-09)
Results: Potato (Secondary Data)
CV: 24.75%
SEASONALITY IN POTATO WHOLESALE AND RETAIL PRICES
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.
91
85
74
84
93
102
107110
110
115 117
112
y = -0.015x2 + 3.6458x + 77.114R² = 0.7759
70
75
80
85
90
95
100
105
110
115
120
Jan
Feb
Mar
Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
CV: 14.13%
WHOLESALE
RETAIL
Farmer (early crop, net income 4.87 Tk/kg)
Faria Net margin: 9.81%
Farmer (conventional storage) Feb-May
Farmer (cold store) August-Jan (net income: 8.76 Tk/kg)
Aratdar Net margin: 3.35%
Wholesalers Net margin: 18.66%
Retailers Net margin: 44.26%
Consumers
Processing unit
BepariNet margin: 23.92%
Potato marketing channel (Bogra-Dhaka)Results: Potato (Primary Survey)
POTATO MARKETING CHANNEL (BOGRA-DHAKA)
Results: Potato (Primary Survey)
MARKETING COSTS & MARGINS
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 channels Price spread(Tk. kg-1)
Growers’ share (%)
Marketing efficiency
Bogra-Dhaka ChannelShibgonj-Karwan Bazar 6.30 54.35 0.816Shibgonj-Jatrabari 7.50 50.00 0.794Shibgonj-Mohakhali Kacha Bazar 7.50 50.00 0.727Shibgonj-Gulshan D.C.C. Market 13.50 35.71 0.695Shibgonj-Badda Kacha Bazar 5.75 56.60 0.824Kahalu-Karwan Bazar 6.30 54.35 0.819Kahalu-Jatrabari 7.50 50.00 0.807Kahalu-Mohakhali Kacha Bazar 7.50 50.00 0.776Kahalu-Gulshan D.C.C. Market 13.50 35.71 0.709Kahalu-Badda Kacha Bazar 5.75 56.60 0.842
Mean 8.11 49.33 0.781Munshigonj-Dhaka ChannelMunshigonj Sadar-Karwan Bazar 2.12 84.64 1.094Munshigonj Sadar-Jatrabari 3.32 77.87 1.161Munshigonj Sadar-Mohakhali Kacha Bazar 3.32 77.87 1.004Munshigonj Sadar-Gulshan D.C.C. Market 9.32 55.62 0.996Munshigonj Sadar-Badda Kacha Bazar 1.57 88.15 1.190Tongibari-Karwan Bazar 4.03 70.80 1.260Tongibari-Jatrabari 5.23 65.13 1.300Tongibari-Mohakhali Kacha Bazar 5.23 65.13 1.190Tongibari-Gulshan D.C.C. Market 11.23 46.52 1.160Tongibari-Badda Kacha Bazar 3.48 73.74 1.210
Mean 4.89 70.55 1.157
Results: Potato (Primary Survey)
Month (2012)
Results: Potato (Primary Survey)
FARMERS’ PRICE OF DIFFERENT VARIETIES OF POTATO (2012)
Sequential steps of storing of potatoes in commercial cold storageSequential steps of storing of potatoes in commercial cold storage
Pre-cooling(10-12oC 24-48 h or no pre-cooling but held under shade for 24 h and store
Storing
(2.2-2.8oC and 85-90% RH; Mar-Jan)
Pre-heating (48 h at 10-12oC for 24-48 h before delivery; Aug-Jan)
Normal (For table purposes (Aug-January)
Sorting shade (8 h drying under fan at normal condition before delivery; June-January)
Marketing(Table potato: Aug-Jan & Seed potato: October)
Growers(Field cured potato tubers)
Results: Potato (Primary Survey)
Private cold store
BADC Cold store
Traditional storage
SEQUENTIAL STEPS OF STORING POTATOES IN COMMERCIAL COLD STORES
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 Bangladesh1. Improving the conditions of electric supply 2. Safeguarding the interests of the growers and traders3. Capacity strengthening of the growers4. Capacity strengthening of the staff of cold storage5. 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 storageGrowers 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: Potato (Primary Survey)
y = 61.496e0.0663x
R² = 0.4878
0
20
40
60
80
100
120
140
160
180
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sea
sona
l pric
e in
dice
s (W
hole
sale
)
Months (2004-2009)
CV = 35.75
0
5
10
15
20
25
30
35
Harvest (nominal) price (TK/kg)Harvest (real) price (Tk/kg)Retail (nominal) price (TK/kg)Retail (real) price (Tk/kg)
SEASONALITY
PRICE VARIATION
CV: 35.75%
Results: Brinjal (Primary Survey)
PRICE VARIATION AND SEASONALITY IN BRINJALPRICE VARIATION AND SEASONALITY IN BRINJAL
Norshingdi-Dhaka
Farmer
BepariNet margin: 16.77%
Faria Net margin: 10.07%
Aratdar Net margin: 14.73%
Wholesalers Net margin: 8.50%
RetailersNet margin: 49.64%
Consumers
Farmer
Bepari
Faria
Aratdar (Dhaka)
Wholesalers
Consumers
Aratdar (Jessore)
Jessore (Chougacha)-Dhaka
Results: Brinjal (Primary Survey)
MARKETING CHANNELS OF BRINJALMARKETING CHANNELS OF BRINJAL
Retailers
0.4
1.1
1.3
1.8
1.2
1.1
1.3
1.7
0.9
0.7
1.2
1.1
0.6
1.6
3.6
3.7
2.7
1.4
0 1 2 3 4 5 6
Faria
Bepari (Norshingdi)
Aratdar (Karwan Bazar)
Wholesaler (Karwan Bazar)
Wholesaler (Jatrabari Bazar)
Retailer (Karwan Bazar)
Retailer (Mahakhali Kancha Bazar)
Retailer (Gulshan DCC Market)
Retailer (Badda Kancha Bazar)
Marketing cost (Tk/kg) Net marketing margin (Tk/kg)
MARKETING COST AND MARGINS OF BRINJAL INTERMEDIARIES
Results: Brinjal (Primary Survey)
Marketing channels Price spread (Tk. Kg-1) Growers’ share (%)
Norshingdi-DhakaBelabo-Karwan Bazar 11.40 64.60Belabo-Jatrabari 12.95 61.63Belabo-Mohakhali Kacha Bazar 12.95 61.63Belabo-Gulshan D.C.C .Market 11.60 64.20Belabo-Badda Kacha Bazar 17.20 54.74Raipura-Karwan Bazar 9.76 69.69Raipura-Jatrabari 11.31 66.49Raipura-Mohakhali Kacha Bazar 11.31 66.49Raipura-Gulshan D.C.C . Market 9.96 69.26Raipura-Badda Kacha Bazar 15.56 59.05
Mean 12.40 63.78Jessore-DhakaChougacha-Karwan Bazar 24.13 25.06Chougacha-Jatrabari 25.68 23.91Chougacha-Mohakhali Kacha Bazar 25.68 23.91Chougacha-Gulshan D.C.C. Market 24.33 24.91Chougacha-Badda Kacha Bazar 29.93 21.24
Mean 25.95 23.81
Results: Brinjal (Primary Survey)
Results: Brinjal (Primary Survey)
Marketing channels Marketing efficiency Stdev
Norshingdi-Dhaka
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
Mean 0.96 0.53Jessore-Dhaka
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
Mean 0.69 0.28
CV = 19.90
0
5
10
15
20
25
30
35
Harvest (nominal) price (Tk/kg) Harvest (real) price (Tk/kg)Retail (nominal) price (Tk/kg) Retail (real) price (Tk/kg)
Results: Okra (Primary Survey)
AREA, PRODUCTION AND PRICE VARIATION OF OKRAAREA, PRODUCTION AND PRICE VARIATION OF OKRA
0
5
10
15
20
25
30
35
40
45
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
Area (000 ha) Production (000 MT)
CV: 35.75%
Results: Okra (Primary Survey)
SEASONALITY IN OKRASEASONALITY IN OKRA
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.
0.3
1.3
1.2
1.1
1.6
1.3
1.1
1.3
1.7
1.2
0.8
1.1
0.6
0.7
2.8
2.8
3.6
3.5
3.3
2.3
0.0 2.0 4.0 6.0
Faria (Comilla)
Bepari (Nimshar, Comilla)
Aratdar (Karwan Bazar)
Aratdar (Jatrabari Bazar)
Wholesaler (Karwan Bazar)
Wholesaler (Jatrabari Bazar)
Retailer (Karwan Bazar)
Retailer (Mahakhali Kancha Bazar)
Retailer (Gulshan DCC Market)
Retailer (Badda Kancha Bazar)
Marketing cost (Tk/kg) Net marketing margin (Tk/kg)
Channel (Comilla-Dhaka)
Farmer
Bepari Net margin: 12.75%
Faria Net margin 8.97%
AratdarNet margin: 7.21%
Wholesalers Net margin: 31.28%
Retailers Net margin: 39.80%
Consumers
Marketing costs and marginsResults: Okra (Primary Survey)
MARKETING CHANNEL & MARKETING COST AND MARGINS (OKRA)MARKETING CHANNEL & MARKETING COST AND MARGINS (OKRA)
Results-Mango (Secondary)
GLOBAL RANKING IN MANGO PRODUCTION IN 2010 (FAOSTAT 2012)GLOBAL RANKING IN MANGO PRODUCTION IN 2010 (FAOSTAT 2012)
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60
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700
800
900
1000
Prod
ucti
on
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)
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)
Processing
Owners (Give their orchard lease to other trader group or produce by
themselves and subsequently sell to Faria or Bepari
Bepari (25.13%)
Faria (18.95%)
Consumers
Retailer (37.61)
Wholesaler (11.86)
Aratdar (6.45%)
Producers (Produces on leased property as growers and sells mangoes to Faria or Bepari)
Results: Mango (Primary Survey)
MARKETING CHANNEL OF MANGOMARKETING CHANNEL OF MANGO
May Jun Jul Aug Sep May Jun Jul Aug SepFarmers' price Retail price
Khirshapat 35 45 45 50Gopalbhog 35 40 40 45Himsagar 35 40 50 60Langra 40 45 75 80Fazli 55 60 90 70 80 150Bombai 35 30 60 55Ashwini 30 60 90 50 100 150
0
20
40
60
80
100
120
140
160
Pric
e of
man
go (T
k/kg
)
Results: Mango (Primary Survey)
MONTHLY PRICE VARIATION (2012)MONTHLY PRICE VARIATION (2012)
2.11.6
2.82.2
1.91.92.2
1.81.6
1.42.6
1.40.6
2.72.8
0.7
1.91.8
1.62.4
2.62.6
0.61.7
1.61.1
3.84.3
3.64.5
4.94.6
0 2 4 6 8 10
Faria, Rajshahi
Faria, C. Nowabgonj
Bepari, Rajshahi
Bepari, C. Nowabgonj
Aratdar, Karwan Bazar, Dhaka
Aratdar, Jatrabari, Dhaka
Aratdar, Badamtali, Dhaka
Wholesaler, Karwan Bazar, Dhaka
Wholesaler, Jatrabari, Dhaka
Wholesaler, Badamtali, Dhaka
Retailer, Karwan Bazar, Dhaka
Retailer, Jatrabari, Dhaka
Retailer, Badamtali, Dhaka
Retailer, Mahakhalia, Dhaka
Retailer, Gulshan, Dhaka
Retailer, Shambazar, Dhaka
Marketing cost (Tk/kg) Net margin (Tk/kg)
Results: Mango (Primary Survey)
Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Results: Mango (Primary Survey)
PRESENT PACKAGINGPREVIOUS PACKAGING
Marketing channel Price received by grower (Tk. Kg-1)
Price paid by consumers (Tk. Kg-1)
Price spread (Tk. Kg-1)
Growers’ share (%)
Chapai Nowabgonj-DhakaBholahat-Karwan Bazar 37.72 54.00 16.28 69.85Bholahat-Jatrabari Bazar 37.72 51.00 13.28 73.96Bholahat-Badamtali 37.72 48.00 10.28 78.58Bholahat-Shambazar 37.72 60.00 22.28 62.87Mean 37.72 53.25 15.53 71.32Rajshahi-DhakaBagha-Karwan Bazar 43.40 54.00 10.60 80.37Bagha-Jatrabari Bazar 43.40 51.00 7.60 85.10Bagha-Badamtali 43.40 48.00 4.60 90.42Bagha-Shambazar 43.40 60.00 16.60 72.33Mean 43.40 53.25 9.85 82.05
Marketing channels Marketing efficiency
Stdev
Chapai Nowabgonj-DhakaBholahat-Badamtoli 4.08 1.31Bholahat-Shambazar 4.14 1.04Mean 4.11 1.18Rajshahi-DhakaBagha-Badamtoli 4.35 1.28Bagha-Shambazar 4.21 1.31Mean 4.28 1.30
Acharya’s marketing efficiency of various channels in mango trade (Chapai Nowabgonj-Dhaka and Rajshahi-Dhaka)
Results: Mango (Primary Survey)
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70
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1200
2000
-01
2001
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Prod
uctio
n
Production (000 MT) Area (000 ha) Yield (MT/ha)
0
2
4
6
8
10
12
14
16
Har
vest
and
reta
il pr
ice
Harvest (nominal) price (Tk/Hali)Harvest (real) price (Tk/Hali)Retail (nominal) price (Tk/Hali)Retail (real) price Tk/Hali
Results-Banana (Secondary)
Seasonality in banana prices (wholesale-Tangail) as a ratio to moving average (Sources: DAM).
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
Results-Banana (Secondary)
FarmMadhupur
Dhaka
Dhaka
Farmer (sells to Faria or Bepari); net profit: Tk. 187.09 bunch-1 of Sabri
Faria (sells to Bepari);Net margin: 6.79%
Consumers
Retailer Karwan Bazar (sells to consumer); Net margin: 33.33%
Wholesaler Karwan Bazar (sells to retailers or consumers); Net margin: 27.13%
Aratdar Karwan Bazar (commission agent);Net margin: 17.52%
Bepari (sells to wholesalers via Aratdar);Net margin: 15.21%
Results-Banana (Primary Survey)
Marketing channels Farmers' price (Tk. bunch-1)
Retail price (Tk. bunch-1)
Price spread (Tk. bunch-1)
Growers share (%)
Acharya’a efficiency
Kushtia-DhakaKushtia-Karwan Bazar 306.36 424.00 117.64 72.25 2.93Kushtia-Jatrabari Bazar 306.36 430.00 123.64 71.25 3.13Kushtia-Mahakhali 306.36 388.00 81.64 78.96 2.85Kushtia-Gulshan D.C.C. 306.36 420.00 113.64 72.94 2.66Mean 306.36 415.50 109.14 73.85 2.89Tangail-DhakaKushtia-Karwan Bazar 248.00 424.00 176.00 58.49 3.17Kushtia-Jatrabari Bazar 248.00 430.00 182.00 57.67 3.08Kushtia-Mahakhali 248.00 388.00 140.00 63.92 2.91Kushtia-Gulshan D.C.C. 248.00 420.00 172.00 59.05 2.86Mean 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)
Results-Banana (Primary Survey)
Policy Implications and Recommendations
1. SAFEGURDING GROWERS’ INTERESTEncourage contract farming to increase growers’ income: Growers’ shares particularly for vegetables are less (Okra: 39.38-43.72%; 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 CHAINUnusually 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 CHAINQuality 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 TECHNOLOGYDissemination 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 SYSTEMRelocation 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 SYSTEMIntroduction 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 FACILITIESPronounced 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 MARKETINGAdoption 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 USEValue 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 INFORMATIONEasy 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.