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Contribution of Small Scale Agro-processing to Rural Income Generation: a Project Experience in Bangladesh

M. A. Ghani
Self employed, House S/A/3, Road 13, Dhanmondi, Dhaka.

M. Z. Abedin
Coordinator
FoSHoL Project and IRRI Representative for Bangladesh.

M. Ali
Former Team Leaders
Livelihoods, Practical Action-Bangladesh.

Abstract/ Executive Summary:

Bangladesh is almost self sufficient in food grains and is deficit only to the extent of seed requirements for the major grain crops and for maintaining stock for emergency. Studies show that even this deficiency levels are less than the annual post-harvest losses. Whatever is produced, a bulk of it is lost after harvesting and the country incur huge loss. Therefore, saving/minimizing of post harvest losses are required to make agriculture cost effective in Bangladesh. It is revealed from an exercise that by reducing post harvest losses of selected crops, the country can make significant saving. This huge national loss can easily be minimized investing a negligible fraction of the loss for developing an effective working force engaging agricultural engineers up to upazila level. Bangladesh produces varieties of fruits and vegetables and exports some of these in selected markets in Asia and Europe. Extent of post-harvest losses of fruits and vegetables varies from 25 to 50 percent in developing countries and 5 to 25 percent in developed countries. Post-harvest losses of fruits and vegetables varies from 20 to 30 percent in Bangladesh and the country incurs annual loss of Tk 9040 and 3345 crores respectively. Annual post-harvest loss of major food items worth about Tk 29668 crore. Post-harvest loses of major food grain crops like rice, wheat, maize, pulses and oil seeds vary from 5 to 15 percent and that for sugarcane varies from 15 to 25%. If part of these losses can be saved, the country may be self-sufficient in food grains and farmers will be better off. Processing and preservation of fruits, vegetables and cereals at village level can increase income, provide job opportunities for unemployed youths and ensure availability of low cost nutritious food items at local level. After receiving training for about two weeks, on different agro- processing practices, unskilled villagers, on an average earned Tk 1000 to 15000. Practical Action-Bangladesh implemented general food-processing training course for 15 days and provided equipment worth Tk 4100 at the conclusion of the course. After receiving training, farmers preferred to concentrate ago-processing activities on selected 15 products of which, 8 gained popularity. Farmers are practicing these since May 2006. Some of them are maintaining their families with earnings from agro-processing business. This can be a model for employment generation in rural Bangladesh.

Keywords: Post-harvest, Processing, Preservation, Foods

Location: Sharishabari, Jamalpur district, Bangladesh

Start Date: 00-05-2006

End Date: 00-05-2009

Program Area: Postharvest and Agro-processing

Non-commodity: Price behavior

Objectives:

1. To generate employment of women and thereby increasing their sideline income and improve status in the family and community

2. To reduce post harvest losses and ensure better utilization of seasonal agricultural produces

3. To organize the community to add value to local produces through processing

4. Kindle entrepreneurial Spirit in the community and change food habit

5. Gain access to urban and foreign markets through producing consumer preferred quality products.

Methodology:

Practical Action-Bangladesh planned actions on agro-processing prior to FoSHoL project. Opinion survey of farmers was conducted during second half of October 2004. Farmers especially women showed their interest in agro-processing and planned to adopt it for income generating activity and save post harvest loss of fruits and vegetables. Questionnaire survey was conducted among farmers in Sharishabari, Jamalpur and subsequently discussed. Based on the information gathered through questionnaire survey and focus group discussions (FGD), Practical Action concluded that value addition to the produces will financially benefit the producers. Agro-processing can playa vital role in creating jobs especially for women and value addition will increase income of producers in remote areas. It was concluded by Practical Action that agro-processing program can be undertaken to attain the following objectives: 1. Generate employment of women and thereby increasing their sideline income and improve status in the family and community 2. Reduce post harvest losses and ensure better utilization of seasonal agricultural produces 3. Organize the community to add value to local produces through processing 4. Kindle entrepreneurial Spirit in the community and change food habit 5. Gain access to urban and foreign markets through producing consumer preferred quality products. Scope of processing seasonal agricultural produces is Paddy, maize, millet, potato, sweet potato, ground nut and mustard. Brinjal, green papaya, gourd, sweet gourd, and tomato. Mango, olive, banana, jujube, tamarind, lemon, date juice. Onion, garlic, chili, coriander, black cumin, mouri, saila saj and other condiments and Fresh milk. Practical Action prioritized implementation of agro-processing work as part of FoSHoL program and updated list of crops to be included in agro-processing activities as part of FoSHoL program. Agro-processing was the sector where training was offered to use locally available fruits, vegetables and spices to create employment and add value. This was the only sector where the FoSHoL staff operated without government input. Their efforts were directed to develop specialist Rural Technology Extension personnel at village level. The main general food-processing course lasted for 15 days and covered; the basic principles of processing chutney, pickle, sauce and jam, personal hygiene and sanitation, quality assurance, forming a producers' association, obtaining operating certificates from the Bangladesh Standards and Testing Institution, conducting a demand survey, retailing and wholesale marketing, and product promotion. Sixty four men and 35 women took part and each participant received equipment worth Tk 4100 at the conclusion of the course. Two more focused two-day RTE courses were also offered. The first one dealt with olive, tomato and green mango selection and preservation, whilst the second one taught chanachur and banana chip production and packing. The main activities were olive and tomato pulp preparation and green mango preservation. After both courses, trainees were given food grade plastic containers worth Tk 600. In addition, a small and similar training programme was offered to resource poor farmers (RPFs), most of them were women. A handful of people were also trained in yoghurt and puffed-rice making. After receiving training, farmers preferred to concentrate ago-processing activities in selected 15 products. Out of these 15 commodities, 6 gained popularity and farmers are practicing these since May 2006 and are continuing after closing of FoSHoL in May 2009.

Source of Information: Journal of Agricultural Engineering, Dec. 2010, Vol.38/AE (2), pp:1-9, ISSN:0379-4318.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Bangladesh products such as aromatic rice, selected fresh fruits and vegetables have better prospect for export market in Asia and Europe. The country can earn sizable amount of foreign currency and provide increased income opportunities to the producers. However, Bangladesh will have to improve its quality of products through better processing, storage and packaging facilities. The country will have to develop policy guidelines favorable to export' promotion including cargo handling, shipment of goods by air and waterways and custom clearances. Establishment of joint ventures may be another alternative to facilitate popularizing Bangladesh products and getting access to international markets. Development of post-harvest facilities will reduce wastages and promote processing of the products, which will enhance export of the saved commodities. The country will be benefited in two ways: save wastage and earn extra income through export of selected commodities. Producers will be benefited through increased income and wiII contribute to social development and poverty alleviation through creating jobs for more workers. An effective chain of production, reduction of post-harvest losses, processing of products and market development in home super stores and abroad will be required to achieve the desired target. FoSHoL project introduced processing and storage of rice and rice seed at farmer level and saved post harvest loss significantly. The country can easily increase export volume and can capture super markets by saving the wastages and improving processing, storage and packaging quality. FoSHoL has demonstrated how fruits can be processed at rural area, improve its storage period and convert to more nutritious products. It can also be income generating activity at village level. Potential fruits for processing and value addition may be banana, mango, pineapple, jackfruit, papaya, lichi, and guava. A family can practice several agro-processing products in the village and can earn handsome profit through agro-processing. It can help in creating job opportunities for educated youths and can contribute to poverty reduction. It wiII also minimize post harvest loss of the products. These products are hygienic and nutritious, therefore assist practicing farmers to take these products to demanding consumers and for self consumption and improve their health condition. Since producers cannot afford to buy more expensive nuromous items with their limited income, it assisted them in taking nutritious food.

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