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Production, Post Harvest Handling and Marketing of Cut-flowers in Bangladesh: an Agribusiness Study

Hasneen Jahan
Corresponding Author
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.

Abstract/ Executive Summary:

The present field survey was an attempt to examine the production and marketing cost structure and profitability of some selected flowers such as tuberose, rose, gladiolus and marigold. Primary data were collected through stratified random sampling technique. The study covered primary market (Jessore), wholesale market (Dhaka city) and retail market (Dhaka city) for flower business. Data were collected from 20 farmers of two selected unions under Jhikargacha upazilla of Jessore district. Besides, 30 local traders, 10 wholesalers cum retailers and 20 retailers were interviewed from the selected markets. The highest net return was earned from rose (Tk. 353927) followed by tuberose (Tk. 176941), gladiolus (Tk. 133069) and marigold (Tk. 84643). Total marketing cost per hundred flowers was highest for retailer (Tk. 41.14) because of their diverse activities and lowest for wholesaler cum retailer (Tk. 5.66) due to their limited functions. On an average, the net marketing margin was highest for retailers (Tk. 28.10) and lowest for wholesaler (Tk. 9.03). The flower farmers and intermediaries faced various production and marketing problems in the study areas. Based on the findings, some recommendations were made to overcome the problems that include development of storage facility, provision for scientific knowledge and training facility and establishment of permanent flower wholesale and local markets, etc.

Keywords: Agribusiness, Cut-flower, Marketing, Production

Location: Jhikargacha upazilla of Jessore district, Dhaka city.

Start Date: 01-01-2006

End Date: 28-02-2006

Program Area: Socio-economic and Policy

Commodity: Flower

Objectives:

To analyze the costs and returns structures of cut-flowers production, post harvest handling and marketing in Bangladesh.

Methodology:

In Bangladesh flowers are cultivated commercially in few areas only. On the basis of high concentration, Jessore district is considered as one of the leading cut-flowers producing zone in Bangladesh. ‘Godkhali flower market’, is popularly known as the centre of floriculture of Bangladesh, under Jhikargacha upazilla of Jessore district where there is an annual sale of Tk. 15 crore worth of flowers that covers 70 percent of the county’s total flowers for both domestic use and exportation (Khan, 2008). Therefore, the Jhikargacha upazilla of Jessore district was selected as the study area for primary market data. Furthermore, Shahbag area of Dhaka city was also selected as the study area to collect data for the wholesale market, because Shahbag flower market is the only wholesale flower market in capital Dhaka which was established in 1990 (Qamruzzaman, 2009). Primary data were gathered by field survey using a questionnaire. A pilot survey was used which was conducted with 10 respondents flower farmers, local traders, wholesaler cum retailers and retailers are included. The draft questionnaire was then modified and improved. From the pilot survey the present study were selected through stratified random sampling. For this sampling method a database of flower farmers, , local traders, wholesaler and retailers were selected from Upazilla Agriculture Offices, Gadkhali Farmers and Traders Welfare Association and Bangladesh Flower Small Business Association. Based on their information the respondents were classified into four groups (1) flower farmers, (2) local traders, (3) wholesaler cum retailers and (4) retailers. A total of 90 samples which include 30 local traders, 10 wholesaler cum retailers, 20 retailers and 20 farmers were selected randomly and consequently interviewed at their work site. The survey was conducted during the period of January-February, 2006. Data from questionnaire interviews were checked, coded and entered into a database system using Microsoft Excel Software. Economic analysis was carried out to determine production cost and return. The analysis was based on farm-gate prices of harvested flowers and current market prices of all other items, expressed in Bangladesh currency, Taka (Tk.).

Source of Information: SAARC JOURNAL OF AGRICULTURE, Vol. 7, Issue 2, 2009, pp. 01-14, ISSN 1682-8348, SAARC Agricultural Information Centre.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The findings of the present study indicate that production of flowers is a profitable business for farmers. The return over cost is almost double, which indicates high profitability. Also, trading of flower is a profitable venture for different intermediaries. It can be said that flower cultivation and marketing has wide scope in Bangladesh, so the farmers and intermediaries could certainly be benefited financially if performance of marketing system of flower becomes well developed. The growing demand of cut-flowers in the domestic as well as in the private entrepreneurs to develop floriculture industry on scientific lines. On the basis of the findings of the study, the flowering recommendations were made for the improvement of existing production and marketing system of flower.

1. Storage facilities should be established both in public and private sectors.

2. Farmers need to be trained in the scientific production practices and technology related to this new enterprise.

3. Traders need scientific knowledge and training on handling, grading, processing and displaying flower in attractive way for sale.

4. Market information should be made available to the farmers and intermediaries regularly.

5. Government and local government may take necessary steps to establish permanent wholesale and local market.

6. The floriculture sector should be patronized by the Government to harmonize the public-private partnership (PPP).

Knowledge Management: Journal