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Vegetable Export from Bangladesh-an Analysis in the Light of Exporter

Md. Rezaul Karim
Senior Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

M.A. Monayem Miah
Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

Mohd. Nazrul Islam
Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

Abstract/ Executive Summary:

The present study was confined mainly on the process of vegetable export marketing in Bangladesh for focusing export performance of vegetables and highlight the problems of the same. The study was conducted at Dhaka, Comilla, Jessore districts and Sham Bazar areas of Dhaka city. Vegetable export from Bangladesh is declining since 1997-98. A large number of vegetable items are being exported from Bangladesh in various countries, specially in Middle Eastern countries and United Kingdom. Marketing costs of vegetable export in these two countries differ mainly for higher air freight charge and phyto sanitary cost, especially in UK. The profit per quintal of vegetables export was Tk 929.95 and 2590.66 for Middle East and UK, respectively. Higher sales price received from UK was the main cause of higher profit. Scarcity of cargo space capacity, flight delays, lack of proper co-ordination between the exporters and the importers etc. were the major problems in the export trade of vegetables from Bangladesh.

Keywords: Vegetable export, Marketing, vegetables

Location: Shayam Bazar areas of Dhaka city

Start Date: 01-09-2003

End Date: 30-07-2004

Program Area: Socio-economic and Policy

Non-commodity: Price behavior

Objectives:

1. To know the existing system and facilities of vegetable up to the export point 2. To estimate the cost and profit of the vegetable exporters and 3. To identify the problems of vegetables export from Bangladesh

Methodology:

The present study was conducted at Shayam Bazar areas of Dhaka city. In order to fulfill the objective of the study, data were collected from key informant group using a pre-designed checklist. A key informant group comprised 2-3 exporters, 2-3 vegetable suppliers, 3-4 workers involved in grading and packaging, and transporters. This study was confined mainly on the process of vegetable export marketing in Bangladesh. Interactive flow diagram was constructed to highlight the present export marketing system of Bangladesh. Marketing cost, margin and profit were calculated as per quintal. Mostly, tabular and simple calculations were used for understanding the objectives.

Source of Information: Annual Research Report, Agricultural Economics Division, BARI

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

It was observed that vegetable export from Bangladesh declined in 1997-98 annual vegetable export was 23.597 tons but in 2000-2001 it was 9509 tons. The price of vegetable in the export market was also declined. Exportable vegetables marketing channels started from the farmers. In the export marketing channels the vegetables farmers sell their vegetables to Farias, Paikers and Beparies/selected agents. As the exporter had invested less, (one fifth of the exporter of UK), the total annual export were also lower for exporter of Middle East than the exporter of UK. The annual quantity of Off-route was also found higher for less investor. It implies that big exporter dominated in the export over comparatively smaller exporter. Airport formalities costs differed for Middle East to UK, mainly to higher air freight cost and photo sanitary certificate cost, especially for export in UK. Miscellaneous cost for export in Middle East was found higher than export in UK. It might be as because, the exporter of middle East dealt with less quantity than the exporter of UK. On the other hand, office expense was found higher for UK than the export of Middle East. It might be due to the comparatively big importer had to spend more for his office expenses. From the study it was found that profit per quintal of vegetable export were Tk 346.56 and 590.91 for Middle East and UK, respectively. Higher sales price received from UK was the main cause or higher profit. Simultaneously, investment for UK also found higher for UK due to high air freight. But profit over total investment was found almost same both for Middle East and UK.

Knowledge Management: Report/Proceedings