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Value Chain Analysis of Badc Contract Farm Rice Seed in Selected Areas of Mymensingh District

M. Soren
Former MS students, Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, Bangladesh.

M. I. A. Mia
Professor
Dept. of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh , Bangladesh.

M. J. Alam
Associate Professor
Dept. of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh , Bangladesh.

A. K. M. G. Kausar
Former MS students, Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, Bangladesh.

M. R. Hossain
Former MS student, Dept. of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.

Abstract/ Executive Summary:

The purpose of the study was to examine value chain of BADC contract farm rice seed and activities of the actors involved in value chain of rice seed in Mymensingh district. Necessary data were collected from 20 contract farmers in Mymensingh sadar, 3 BADC stations (BADC seed production centre, Balashpur, Mymensingh, BADC seed production centre, Netrakona, BADC seed sales centre, Dholadia, Mymensingh) and 20 rice seed dealers from sadar Upazila and Phulpur Upazila of Mymensingh district by using a structured interview schedule through direct interview method during the months of March and April, 2013. Simple arithmetic techniques were used for required calculations. The findings indicated that the BADC as the main value chain actor. The contract growers produced foundation rice seed by applying BADC supplied breeder seed. For Aman and Boro season, total cost of producing rice seed for contract farmer was Tk.1452.24/quintal and Tk.1587.96/quintal, respectively. In the case of BADC total cost of producing rice seed was about Tk.2685.56/quintal and Tk.2680.79/quintal for Aman and Boro season, respectively. BADC sold the seed by its registered dealers to the farmers. The registered dealers earned 7% to 10% commission based on distance covered and amount of seed for distribution. The study also figured out the contract farmers facing lack of capital problem, the seed processing centers facing lower quality seed supply by contract grower zone (CGZ) problem and the registered seed dealers are confronting lack of credit and warehousing facility problems.

Keywords: Rice seed production, Value chain, Contract farming, BADC.

Location: Mymensingh area.

Start Date: 00-03-2013

End Date: 00-04-2013

Program Area: Socio-economic and Policy

Commodity: Impact

Objectives:

To estimate the value addition of rice seed by the actors, examine the activities of the actors and identify the constraints of rice seed value chain in the study area.

Methodology:

The present study was conducted in Mymensingh district. Data were collected from 20 contract farmers in Mymensingh sadar, 3 BADC stations (BADC seed production centre, Balashpur, Mymensingh, BADC seed production centre, Netrakona, BADC seed sales centre, Dholadia, Mymensingh) and 20 rice seed dealers from Sadar Upazila and Phulpur Upazila of Mymensingh district by using a structured interview schedule through direct interview method during the months of March and April, 2013. Simple arithmetic techniques were used for required calculations.Gross return was calculated by multiplying the total volume of output of an enterprise by the average price of the product. It consisted of sum of the volume of main product and by product. The following equation was used to estimate gross return: GR=ΣQ_P.P_{P +}ΣQ_s.P_sWhere, GR = Gross return from rice seed (Tk./acre) Q_P= Quantity of rice seed (quintal/acre) P_P=Average price of rice seed (Tk./quintal) Q_s= Quantity of straw (quintal/acre) P_s=Average price of straw (Tk./quintal) Net return was calculated by deducting all costs (variable and fixed) from gross return. π = Gross return - (variable cost + fixed cost) Here, π = Net return (profit) Gross return = Total production × per unit price, Marketing margin is the difference between the producers and consumers prices. Marketing margins and net margins of different actors were estimated by using the following formula: Gross marketing margin (Tk./quintal) = Sale price (Tk. /quintal) - Purchase price (Tk./quintal), Net margin (Tk./quintal) =Gross margin (Tk./Quintal) - Marketing cost (Tk./quintal) Value addition (%) = (Marketing margin/Purchase price) × 100

Source of Information: Bangladesh J. Seed Sci. & Tech. 16 (1 &2): 133-140 (2012),ISSN 1029 - 8800

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The findings of the study lead to conclude that three marketing actors exist in BADC contact farm rice seed marketing as contact farmer, BADC and authorized seed dealer. Contact farmers get higher return compare to BADC for per hectare rice seed production in both Aman and Boro rice seed. Compare to contact farmer BADC adds three times higher value addition by drying (Tk. 9) activity. On the other hand due to marketing activities BADC adds Tk. 11, where contact farmers add no value addition. The seed dealers earns 7% to 10% profit margin covering marketing cost. Thus by effective implementation of the idea of value chain rice seed contract farmers could receive the expected return. Market information is very essential for effective rice seed value chain.

Knowledge Management: Journal