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Marketing of Agroforestry Products in Bangladesh: a Value Chain Analysis

Kazi Kamrul Islam
Department of agroforestry, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh Forest Policy Laboratory, Faculty of Agriculture, Kyushu University, Fukuoka, Japan

Takahiro Fujiwara
Forest Policy Laboratory, Faculty of Agriculture, Kyushu University, Fukuoka, Japan.

Masakazu Tani
Faculty of Design, Kyushu University, Fukuoka, Japan

Noriko Sato
Forest Policy Laboratory, Faculty of Agriculture, Kyushu University, Fukuoka, Japan

Abstract/ Executive Summary:

Bangladesh agriculture, including agro forestry, is dominated by small-scale subsistence farming; however, farmers do not get proper prices for their products due to the involvement of many intermediaries in its value chain. Therefore, the objectives of this study are to analyze the value chain of main agro forestry products a nd the position of the various intermediaries within it, and to determine the extent of value addition in terms of costs in successive stages of products movements. The study was conducted in Madhupur Sal forests area of Bangladesh and data were collected through questionnaire interviews, focus group discussion, observation and literature review. In analyzing network structures of value chain, the study found that both agro forestry crops and timber marketing have regulated a number of intermediaries which enhanced value addition and created high marketing margins of products. Moreover, farmers had possessed strong negative relationship with intermediaries and that the lack of a farmer organization severely affected farmers’ free and fair access to local markets to s ell their products. So, there is an immediate need to establish farmers’ cooperatives in order to reduce unexpected intermediaries from value chain to get fair prices of their products, and to harmonize and execute marketing legislations.

Keywords: Agroforestry, Value Chain, Intermediaries, Marketing Margin, Sal Forests, Bangladesh

Location: Madhupur Sal forests are situated in Tangail and Mymensingh Districts

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Sal

Objectives:

1.To analyze the value chain of main agro forestry products and the position of the various intermediaries within it, and

2.To determine the extent of value addition in terms of costs in successive stages of products movements..

Methodology:

Sal forests of Bangladesh cover an area of 0.12 mil lion ha [40] and Madhupur Sal forests are situated in Tangail and Mymensingh Districts possess the majority of the Bangladesh Sal forests [24, 27, 28]. The study was conducted in Madhupur Sal forests area of Bangladesh where the agroforestry systems were very famous and well established. About 3,327 participants were involved in FD run Agroforestry programs in Madhupur Sal forests, and a majority of the participants were poor. So, this study included all types of agroforestry production systems in Madhupur Sal forests area, an d in total 110 respondents were randomly selected for interviews. Of them, 80 respondents were from FD run programs, and 30 from other agroforestry programs. The participants were living in and around the Sal forests. Though the participants were already certified as poor by FD [28] but for the purposes of this study, only the small scale farmers having less than two hectare farmland were selected for interviews. This study covered a local market (Jalsatropur) and another two important urban markets in Mymensingh and Dhaka city, for selecting intermediaries of phoria, bepary, paiker/arathdar, and retailer (see description in Results section). In agroforestry firewood marketing includes some other intermediaries, such as auctioneers, local traders, local saw-mills, brickfields and wholesalers. This study also conducted two focus group discussions (10 farmer in each discussion) and asked farmer to identify 5 intermediaries (next to the farmer link in the value chain). Another 5 intermediaries were sampled randomly in t he markets area and along the side of the road where t hey were buying and selling agroforestry products. This process of sampling was continuing up to the last level of intermediaries. Finally, the study selected 10 intermediaries for each category and 20 consumers for data collect ion. Data were collected in different months of 2009 to 2014 through practical observations, questionnaire inter views, focus group discussion, FD staff interview and literature review.

Source of Information: American Journal of Agriculture and Forestry 2014; 2(4): 135-145 Published online July 10, 2014

Article Link (Online Journal): (http://www.sciencep ublishinggroup.com/j/ajaf)

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study found that both agroforestry crops and timber marketing have regulated a number of intermediaries which enhanced value addition and created high marketing margins of products. Moreover, farmers had possessed strong negative relationship with intermediaries and that the lack of a farmer organization severely affected farmers’ free and fair access to local markets to sell their products. So, there is an immediate need to establish farmers’ cooperatives in order to reduce unexpected intermediaries from value chain to get fair prices of their products, and to harmonize and execute marketing legislations.

Knowledge Management: Journal