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Profitability and Problems of Exporting Fresh Vegetable from Bangladesh

S. A. Sabur
Professor
Professor,Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh.

M. S. Palash
Lecturer Department
Lecturer Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh

Khairunnahar
Ex-postgraduate student
Ex-postgraduate student, Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh.

Abstract/ Executive Summary:

The study was undertaken to examine the profitability of producers, margin of traders and problems encountered by exporters of fresh vegetables. In the export marketing chain the vegetables farmer sold three fourth of vegetables to the Bepari/ Selected agents. Vegetable producers received average profit of Tk. 32 by spending Tk. 100 as production cost. The agents received Tk. 12 to 13 by investing Tk. 100 within very short period of time. The study reveals that it is more profitable to export vegetables to Asian countries compared to Middle East countries. The scarcity of cargo space, high cost of airfreight, plane delay and lengthy custom procedure, low quality of packaging, poor quality of vegetables, seasonality of production and high domestic prices, lack of domestic transportation, lack of insufficient storage management, inadequate market information and off load were the major problems faced by vegetable exporters.

Keywords: Profitability, Fresh vegetables,Export

Location: Kawaranbazar and Shambazar of Dhaka city and two vegetable producing areas namely Munshigonj Sadar and Belabo of Narsingdi district.

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Vegetables

Objectives:

To examine the profitability of producers, margin of traders and problems encountered by exporters of fresh vegetables.

Methodology:

For conducting this study both primary and secondary data were used. Both survey and observational methods were followed to collect primary data. Some of the information on structural and the organizational characteristics of the marketing systems were obtained by observational method. The study areas were selected purposively considering the presence of export-oriented firms and the collection areas of exportable vegetables. Primary data were collected from two markets namely Kawaranbazar and Shambazar of Dhaka city and two vegetable producing areas namely Munshigonj Sadar and Belabo of Narsingdi district. Twenty-five intermediaries and twenty different vegetable producers were chosen purposively from the selected markets and areas respectively. Besides, fifteen different types of vegetable exporters were selected from Dhaka city for this study . Secondary data were collected from different sources like EPB, DAM, FAO, Hortex Foundation, BRAC center and from various journals and reports.

Source of Information: Bangladesh J. Agric. Econs XXVII, 2 (2004) 99-106

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study reveals that it is more profitable to export vegetables to Asian countries compared to Middle East countries. The scarcity of cargo space, high cost of airfreight, plane delay and lengthy custom procedure, low quality of packaging, poor quality of vegetables, seasonality of production and high domestic prices, lack of domestic transportation, lack of insufficient storage management, inadequate market information and off load were the major problems faced by vegetable exporters.

Knowledge Management: Journal