improvement of marketing system of fruits and vegetables in bangladesh department of horticulture...
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Improvement of Marketing Systemof Fruits and Vegetables in Bangladesh
Department of HorticultureBangladesh Agricultural University
Professor Dr. Md. Kamrul Hassan
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VietnamBangladesh
MyanmarCambodia
PakistanPhilippinesIndonesia
ThailandSri Lanka
NepalChina
MalaysiaIndia
JapanMaldives
Saudia ArabiaAustralia
New ZealandCanada
USAItaly
UKSudan
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ItalyCanada
MaldivesUK
USAPhilippines
New ZealandAustralia
Saudia ArabiaThailand
IndonesiaChinaJapan
VietnamMalaysia
IndiaNepal
PakistanMyanmarSri Lanka
SudanCambodia
Bangladesh
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ChinaMaldives
ItalyNew Zealand
USACanada
JapanSaudia Arabia
AustraliaUK
VietnamNepal
MyanmarIndia
PhilippinesMalaysia
SudanThailandSri Lanka
IndonesiaCambodia
PakistanBangladesh
Research Background
FruitsVegetables
Rice RequirementsFruits & vegetables: 400 g day-1capita-1
AvailabilityFruits & vegetables: 211 g day-1capita-1
Rice: 416 g day-1capita-1
Postharvest loss 24-44% in Bangladesh
Selected commodities: Potato, brinjal, okra, mango and banana Selected Commodities and Objectives
Potato65%
Brinjal7%
Radish4%
Arum4%
Cabbage2%
Pumpkin2%
Cauliflower2%
Tomato4%
Watergourd1%Beans
2%
Pointed gourd
2%Snake gourd
1%
Cucumber1%
Ribbed goud1%
Okra2%
Mango14%
Jackfruit 46%
Banana 24%
Coconut1%
Watermelon6%
Pineapple
7%Citrus
1%
Papaya0%
Ber0%
Litchi1%
Vegetable area (2010) Fruit area (2010)
1
2
3
Secondary data collection Secondary data on area, production and prices were collected Time Series Analysis was used to examine changes Seasonality was calculated using Moving Average MethodPrimary data collection Primary data were collected from market actors using FGD and
questionnaires. 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 selected Selected growers (N=100 per commodity) were interviewed using
structured questionnaire Data were collected on age, education, land, cultivated varieties,
production and marketing costs, sale price, price formation, net income and constraints
Methodology (Data Collection)
Data collection from intermediaries Main intermediaries are Faria, Bepari, Aratdar, wholesalers, retailers Faria and Bepari were interviewed from assemble markets (N=100) Aratdar and wholesalers were interviewed from wholesale markets
(N=100) Retailers were interviewed from retail markets (N=100) Data were collected on trade volume, marketing costs, purchase and
sale prices, price formation, gross and net margins and constraints Price spread, growers share, return on investment, marketing
efficiency (Acharya and Agarwal 2004) were investigated
Methodology (Data Collection)
y = 0.1746x2 - 2.6774x + 107.95R² = 0.6674
90
92
94
96
98
100
102
104
106
108
Jan
Feb
Mar Ap
rM
ay Jun Jul
Aug
Sep
Oct
Nov Dec
Seas
onal
pric
e in
dex
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)
GLOBAL RANKING
PRICE VARIATION
SEASONALITY
Results: Rice (Secondary Data)
RICE
CV: 2.96%
y = 0.5968x2 - 3.2717x + 88.942R² = 0.5049
40
50
60
70
80
90
100
110
120
130
Jan
Feb
Mar
Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
Seas
onal
Pric
e In
dici
es
Months (2004-09)
0
5
10
15
20
25
30
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Prod
uctio
n
Production (000 MT)Nominal retail price (Tk/kg)Real retail price (Tk/kg)
GLOBAL RANKING
PRODUCTION & PRICE
SEASONALITY
Results: Potato (Secondary Data)
CV: 24.75%
Pakhri, Cardinal, Granula Wash Long channel (Faria) Early harvest
Pakhri, Cardinal, Granula Wash Long channel (Faria) Early harvest
Farmer (early crop, net income 1.99 Tk/kg)
Faria Net margin: 12.15%
Farmer (conventional storage) Feb-May
Farmer (cold store) August-Jan (net income: 8.76 Tk/kg)
Aratdar Net margin: 29.50%
Wholesalers Net margin: 23.16%
Retailers Net margin: 31.10%
Consumers
Processing unit
BepariNet margin: 29.50%
Potato marketing channel (Bogra-Dhaka)Results: Potato (Primary Survey)
Marketing cost and margins of potato intermediariesMarketing cost and margins of potato intermediaries
0.6
1.1
1.0
0.9
0.8
1.3
1.2
1.4
1.2
1.5
0.9
0.9
0.4
1.0
0.6
0.1
0.2
0.8
0.7
1.1
1.2
0.8
0.8
1.2
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Faria (Shibgonj, Bogra)
Bepari (Shibgonj, Bogra)
Bepari (Munshigon Sadar)
Aratdar (Karwan Bazar, Dhaka)
Aratdar (Jatrabari Bazar, Dhaka)
Wholesaler (Karwan Bazar, Dhaka)
Wholesaler (Jatrabari Bazar, Dhaka)
Retailer (Karwan Bazar, Dhaka)
Retailer (Mahakhali Kancha Bazar, Dhaka)
Retrailer (Gulshan D.C.C. Market, Dhaka)
Retailer (Mahasthan Bazar, Bogra)
Retailer (Munshigonj Sadar)
Marketing cost (Tk/kg) Net marketing margin (Tk/kg)
Faria, N=25; Bepari, N=25; Aratdar, N=25, Wholesalers, N=25; Retailers , N=5
Faria, N=25; Bepari, N=25; Aratdar, N=25, Wholesalers, N=25; Retailers , N=5
Results: Potato (Primary Survey)
Channels Marketing Efficiency (Acharya)
Price Spread (TK/kg)
Growers’ share (%)
Shibgonj-Karwan Bazar 0.82 (CV: 14.29%) 4.30 (CV: 31.11%) 18.69 (CV: 10.03%)
Shibgonj-Jatrabari 0.85 (CV: 11.72%) 4.10 (CV: 33.41%) 18.72 (CV: 10.34%)
Kahalu-Karwan Bazar 0.83 (CV: 14.50%) 4.30 (CV: 31.68%) 18.72 (CV: 10.21%)
Kahalu-Jatrabari 0.86 (CV: 12.07%) 4.27 (CV: 32.47%) 18.81 (CV: 12.34%)
Munshigonj-Karwan Bazar 1.09 (CV: 6.35%) 3.90 (CV: 54.66%) 24.53 (CV: 21.74%)
Munshigonj -Jatrabari 1.16 (CV: 6.71%) 3.72 (CV: 52.34%) 24.81 (CV: 9.72%)
Tongibari-Karwan Bazar 1.05 (CV 6.03%) 4.07 (CV: 51.24%) 23.74 (CV: 9.74%)
Tongibari-Jatrabari 1.08 (CV: 6.44) 4.02 (CV: 53.98%) 24.02 (CV: 1025%)
Performance of potato markets (Bogra & Munshigonj-Dhaka City)Performance of potato markets (Bogra & Munshigonj-Dhaka City)
Price 2012
Results: Potato (Primary Survey)
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 Cold store
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)
Norshingdi-DhakaNorshingdi-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
Retailers
Consumers
Aratdar (Jessore)
Jessore (Chougacha)-DhakaJessore (Chougacha)-Dhaka
Results: Brinjal (Primary Survey)
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
0.0 1.0 2.0 3.0 4.0 5.0 6.0
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 intermediariesMarketing cost and margins of brinjal intermediaries
Results: Brinjal (Primary Survey)
CV = 19.90
0
5
10
15
20
25
30
35
40
4520
00-0
120
01-0
220
02-0
320
03-0
420
04-0
520
05-0
620
06-0
720
07-0
820
08-0
920
09-1
0
Area (000 ha)Production (000 MT)
05
101520253035
Harvest (nominal) price (Tk/kg)Harvest (real) price (Tk/kg)Retail (nominal) price (Tk/kg)Retail (real) price (Tk/kg)
CV: 35.75%
Results: Okra (Primary Survey)
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 …
Retailer (Gulshan DCC Market)
Retailer (Badda Kancha Bazar)
Marketing cost (Tk/kg) Net marketing margin (Tk/kg)
Channel (Comilla-Dhaka)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 marginsMarketing costs and margins
Results: Okra (Primary Survey)
Processing Processing
Owners
Bepari (25.13%)
Faria (18.95%)
Consumers
Retailer (37.61)
Wholesaler (11.86)
Aratdar (6.45%)
Producers (leased orchard)
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: Okra (Primary Survey)
Channels Marketing Efficiency (Acharya)
Price Spread (TK/kg)
Growers’ share (%)
Bagha-Karwan Bazar 1.59 (CV: 10.84%) 20.75 (CV: 14.36%) 17.97 (CV: 10.03%)
Bagha-Badamtali 2.18 (CV: 11.72%) 16.14 (CV: 11.51%) 18.70 (CV: 11.47%)
Bagha-Jatrabari 1.48 (CV: 10.31%) 18.71 (CV: 16.34%) 18.28 (CV: 10.21%)
Bholahat-Karwan Bazar 1.56 (CV: 10.73%) 19.75 (CV: 16.31%) 18.51 (CV: 9.74%)
Bholahat-Badamtali 2.09 (CV: 10.77%) 15.14 (CV: 11.87%) 19.35 (CV: 10.34%)
Bholahat-Jatrabari 1.44 (CV: 10.09%) 17.71 (CV: 10.95%) 18.92 (CV: 10.67%)
Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Results: Mango (Primary Survey)
Previous packaging
Present packaging
Farmers
Tk 19.09/bunch
Bepari (32.85%)
Aratdar (6.26%)
Faria (9.38%)
Wholesalers (12.38%)
Retailers (38.69)
Consumers (Dhaka)
Mdahupur-Dhaka ChannelMdahupur-Dhaka Channel
Costs and margins of intermediariesCosts and margins of intermediaries
Results: Banana (Primary Survey)
SAFEGURDING GROWERS’ INTEREST Conduct farmers training to produce quality products Contract farming should be encouraged to reduce costs of
intermediation and integrate producers into supply chainMONITORING INTERMEDIARIES IN SUPPLY CHAIN Net margins of retailers are consistently and unusually higher than
other intermediaries regardless of the crop So, monitoring should be strengthened at the retail and also
wholesale levels, especially in Dhaka city Public perception is that there exists syndicate in market which
controls prices. Our study revealed that even though there is no official or visible syndicate but there exists some sort of indirect price control in supply chain, especially in assemble markets
CREATING STORAGE FACILITIES FOR PERISHABLES Specialized storage facilities should be created for high value fruits
and vegetables
Policy Implications and Recommendations
IMPROVING STORAGE FACILITIES FOR POTATOES Appreciable number of cold stores (393 cold stores) have been
created for potatoes The most important constraint in cold storage is the lack of
uninterrupted supply of electricity during loading period of March-April
Research to produce alternative energy should be given top priority (conversion organic waste to energy)
Increasing BADC cold stores for seed purposes. There are 18 BADC cold stores are operating with profitable seed programme
BADC staff may monitor private cold stores and issue certificates of good storage practices like adequate turn over (‘Pallat’) and intake fresh air
Awareness should be created so that growers use BADC seeds Incentives and government policies would be required so that
more private cold firms springs up
Policy Implications and Recommendations
MAINTAINING QUALITY AND SAFETY IN SUPPLY CHAIN Bangladesh lacks standardized quality assurance systems for
horticultural produce. Proper arrangement should be made to train, and ultimately to accredit, growers and traders in major international certifications such as HACCP, ISO and GAP
STRENTHENING PUBLIC-PRIVATE PARTNERSHIP Public private partnership is urgent to introduce technologies like
low temperature storage, refrigerated transport vehicle, ethylene-induced ripening, plastic packaging value addition. The government could start one or two in order to encourage the private sectors to do more (multi-chambered storage and ripening chamber)
DISSEMINATION OF APPROPRIATE TECHNOLOGY Government can help disseminate technical information (e.g.
apples, grapes, dates, broccoli, etc. can be stored with potato while mango cannot be). This is probably more important than providing improved access to capital
Traditional storage technology should be refined and disseminated
Policy Implications and Recommendations
IMPROVEMENT OF TRANSPORTATION SYSTEM Roads and highways are the most important factors in rapid and
timely transportation of perishables. Quantitative and qualitative losses are enormous due to delay, impacts and vibration.
Wastage occurs due to restricted movement of trucks into Dhaka. The trucks are not allowed to enter into Dhaka after 6:00 AM. Relocation of wholesale markets at vicinity of Dhaka would be considered
IMPROVEMENT OF PACKAGING SYSTEM Introduction of affordable plastic package is necessary. For long-
distance transportation, still voluminous package made of bamboo baskets and gunny sacks are predominantly used, which result in high spoilage due to impact, vibration and heat generation
Recently, mango traders adopted plastic crates in transportation which has created positive impacts in minimizing loss and maintain quality.
Policy Implications and Recommendations
ADOPTION OF MODERN MARKETING Adoption of modern technology (weighing machine, fork lift) is
important in agricultural marketing. However, there is debate on this issue whether modernization can curtail jobs.
But trade-off would be a useful alternative and extra work force can find better option and contribute to the overall economic development of the country. The low level of income and lack of awareness are assigned as the big causes
RAPID ACCESS TO MARKET INFORMATION Access to right information on market price is very important. In this
regard, DAM can send price information of important agricultural commodities to the farmers by SMS.
MINIMIZE MALPRACTICE IN MARKETING Though there are government departments to monitor activities in the
markets. But still due to certain compulsions of the farmers and lack of retention of power, they are being exploited by the middlemen through their malpractices. Sometimes, the undue deductions are made. In this regard, taking ‘Dholta’ can be mentioned. Generally, traders take five kilograms more per mound.
Policy Implications and Recommendations
THANK YOU FOR PATIENT HEARING