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Value Addition in Vegetables Production, Processing and Export from Bangladesh

M. S. HOQ
Scientific Officer
Agricultural Economics Division, Bangladesh Agricultural Research Institute (BARl), Gazipur, Bangladesh.

S. K. RAHA
Professor
Dept of Agri-business & Marketing, Bangladesh, Agricultural University (BAU), Mymensingh, Bangladesh.

N. SULTANA
Assistant Director
Dept. of Agricultural Marketing, Khamarbari, Dhaka, Bangladesh.

Abstract/ Executive Summary:

Bangladesh has immense prospect for exporting vegetables to the world market and it has also produced high quality exportable fresh vegetable. Although the share of export earning in vegetables increasing day by day but export is constrained by several issues. Thus the present study was undertaken to determine the value addition, cost and return of vegetables production and export at different levels and also suggest some policy implication for improving the present system. The study was based on both primary and secondary data. The sample included vegetables producer, suppliers, and exporters. Vegetable producers and suppliers were selected from Ulokhola of Kaligonj Upazila and exporters were selected from Dhaka city (Motijheel, Kakrail, Shantinagar, Khilgaon, and Sham Bazar). Appling conventional profitability analysis the study revealed that per hectare production cost for cowpea, snake gourd, and bitter gourd were estimated at Tk. 73838, Tk.72029 and Tk. 104644 respectively and value addition for cowpea, snake groud, and bitter gourd were calculated at Tk. 86162, Tk. 152611 and Tk. 237356 respectively by farmers. The average estimated marketing costs incurred by suppliers were Tk. 2906 per ton. The value addition by suppliers were Tk. 3094 per ton. The average estimated marketing cost incurred by different exporters for UK, Saudi Arabia, Kuwait, and Qatar were Tk. 169442, Tk. 98429, Tk. 103499, and Tk. 85324 per ton, respectively. The value addition by different exporters for UK, Saudi Arabia, Kuwait, and Qatar were Tk. 55778, Tk. 16661, Tk.16902, and Tk. 23754 per ton respectively. Among all the cost items, airfreight charge was the highest. It was revealed from the study that bitter gourd cultivation is more profitable and BCR is also highest (3.27) and UK market was more profitable for vegetables export.

Keywords: Vegetables, Value addition, Supplier, Exporter, Export

Location: Kaligonj upazila of Gazipur and Motijheel, Kakrail, Shantinagar, Khilgaon, Shambazar of Dhaka

Start Date:

End Date:

Program Area: Postharvest and Agro-processing

Commodity: Vegetables

Objectives:

1. To determine the value addition at different levels of vegetables export

2. To determine cost and return at different levels of vegetables export

3. To derive policy implication from the above study.

Methodology:

Considering the high intensity of vegetable production and availability of suppliers and also as closer to the Hazrat Shahjalal International Airport, Ulokhola under Kaligonj Upazila of Gazipur district was selected as a study area for the selection of exportable vegetable growers and traders. Ulokhola export villages was consisting 17 incentive exportable vegetable producing village under pubail and Nagari union. On the basis of collection of exportable items and the presence of export oriented trading firms, Motijheel, Kakrail, Shantinagar, Khilgaon, and Shambazar of Dhaka city were selected for the study. The vegetable growers, suppliers and exporters were considered as the population for this study. The samples of the study included vegetable producers, suppliers and exporting firms of vegetables. First a list of 80 vegetable growers, 30 suppliers were made from 17 villages under Ulokhola export village with the help BADC personnel residing the area and the list of 40 exporters were made with the help of Export Promotion Bureau by the researcher. Then a sample size of 20 vegetables producers, 12 suppliers and 12 exporters were randomly selected from the above list for the present study. Data were collected from both primary and secondary sources. Primary data were collected through direct interview with the respondents. The secondary data were collected from renowned national and international organization, viz. Bangladesh Bureau of Statistics (BBS), Export Promotion Bureau of Bangladesh (EPB), Directorate of Agricultural Marketing (DAM), Food and Agricultural Organization (FAa), Statistics Department of Bangladesh Bank, The Bangladesh Journal of Agricultural Economics, The Indian Journal of Agricultural Economics, Bangladesh Economic Review, Hortex Foundation, Asian Vegetables Research Development Center (AVRDC), Newspapers and Internet Files. Value addition or costs and returns analysis were done on both variable and total cost basis. To achieve the objective of the study a simple tabular analysis was done. Per hectare profitability of growing vegetables from the view points of individual farmers was measured in terms of gross return, gross margin and value addition. Gross return was calculated by simply multiplying the total volume of output by its per unit of price in the harvesting period. On the other hand, Gross margin was calculated by deducting total variable costs from gross return. The analysis considered fixed cost. Value addition was calculated by deducting all costs (Variable and Fixed) from gross return.

Source of Information: BANGLADESH JOURNAL OF AGRICULTURAL RESEARCH, Vol-37 (3), pp. 377-388, September 2012, ISSN 0258-7122.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

This is a clear indication of the above study that Bangladesh seemed to have high' prospects for export of vegetables for its high demand to the foreign ethnic market. The export of fresh vegetables is more profitable due to high value addition. Bangladeshi vegetables were still not well known to the foreign consumers. To familiarize Bangladeshi vegetables to the foreigners and foreign super markets, quality of those vegetables has to be improved by different value addition activities like upgrading the packaging, Processing, handling, grading and transportation system. These kind of activities added value among to the vegetable producers, suppliers and exporters. Export expansion and demand from super market is constrained by poor quality of produces and imposition of different sanitary and phyto-sanitary criteria by implementing the following recommendation covering the above constraints.

Knowledge Management: Journal