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Price Spreads in Cut-flower Marketing: Some Evidence from Bangladesh

S. K. Raha
Professor
Professor Department of Cooperation and Marketing,Bangladesh Agricultural University Mymensingh -2202.

Masuma Siddika
Ex-graduate student,
Ex-graduate student, Department of Cooperation and Marketing,Bangladesh Agricultural University Mymensingh -2202.

Abstract/ Executive Summary:

Flower marketing has been expanding rapidly but in an unorganized way. The present study has examined the existing marketing system, estimated marketing cost, margins of different flowers of different marketing channels. Flower growers received 30.75% to 60.42% of the consumer's taka while 24.71% to 58.5% were spent as the marketing cost. The net marketing margin varied from 3.0% to 37.83% of consumer's taka. Growers used channel I most though it involved highest cost of all the channels. Adoption of proper measures for the solution of the current problems would improve the efficiency of the marketing system which will in turn increase grower's share in consumer's taka.

Keywords: Price spreads,, Cut flower marketing

Location: Gadkhali and Panisara of Jhikargachha Upazila

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Flower

Objectives:

TO EXAMINE THE PRICE SPREADS IN CUT-FLOWER MARKETING: SOME EVIDENCE FROM BANGLADESH

Methodology:

Existing Literature and Database: There are a few studies on flower marketing in Bangladesh. Hossain and Rahman(1994) analysed the marketing system of flowers in Dhaka city. The study showed an increasing trends in production of flowers like tuberose, rose, Gendha and dalia, number of flower shops and capital investment. Merchandising patterns were also changing. In 1995 Sultana conducted a study on flower marketing in Dhaka city. She has estimated marketing cost and margins of flower shops, identified their major problems. Shopkeepers' opinion about the probable solutions was also included in this study. Hasan (1996) has addressed the production and marketing of tuberose only. All the above studies were concentrated mainly in Dhaka city. Marketing cost, margins etc. were estimated on average basis. But the present study considered selected three flowers (tuberose, rose and gladiolus) separately and also examined the whole marketing channels from the flower growers to ultimate flower consumers. Study area and database Considering the concentration of flower cultivation Jessore district was selected as the supply hinterland. Then, two unions namely Gadkhali and Panisara of Jhikargachha Upazila were selected. As a consuming centre Dhaka city was also included as a study area. Twenty flower growers from selected area, 15 traders from Gadkhali Bazar in Jessore district, while 5 wholesaler-cumretailers and 20 retailers from Dhaka city were selected randomly. Thus the sample size was 60. Data were collected in March 2004. Primary data were collected from the selected sample by using two sets of pre tested interview schedules. Some additional information was also collected from flower market in Dhaka city in November 2004. Secondary data were gathered from different Government documents, offices and other published and unpublished records. Estimation procedure Grower's net share in consumer's taka is calculated in the following way: Gs=(Pf ÷ Pr )x100, Pf = Pa - Cp Where, Gs = Grower's net share in consumer's taka Pf = Grower's net price Pr = Retail price i.e. price paid by the consumer.

Source of Information: Bangladesh J. Agric. Econs XXVII, 2 (2004) 87-97

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Flower growers received 30.75% to 60.42% of the consumer's taka while 24.71% to 58.5% were spent as the marketing cost. The net marketing margin varied from 3.0% to 37.83% of consumer's taka. Growers used channel I most though it involved highest cost of all the channels. Adoption of proper measures for the solution of the current problems would improve the efficiency of the marketing system which will in turn increase grower's share in consumer's taka.

Knowledge Management: Journal