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Economics of Mushroom (agaricus Bisporus) Production in a Selected Upazila of Bangladesh

Basanta K. Barmon
Department of Economics, East West University, Dhaka, Bangladesh

Imrana Sharmin
Department of Economics, East West University, Dhaka, Bangladesh

Parvez K. Abbasi
Department of Economics, East West University, Dhaka, Bangladesh

Al Mamun
Department of Economics, East West University, Dhaka, Bangladesh

Abstract/ Executive Summary:

A study was conducted during 2011 to estimate profit, benefit cost ratio (BCR) and household income of mushroom production and also to explore the problems of producing mushroom and its marketing channels in Bangladesh. Thirty samples were randomly selected and information on mushroom production was collected using comprehensive questionnaire from Savar Upazila in Dhaka district. Mushroom was found to be a profitable agricultural enterprise (22,888 taka per farm). The benefit cost ratio (BCR) was 1.55. The average family household income was about Tk. 43,731. Usually, three intermediaries (mushroom office, wholesalers and retailers) are involved in the marketing channels of mushroom. The marketing margin of mushroom for farm-gate to wholesalers and wholesalers to retailers were taka 50 and 70 per kg, respectively. It was revealed that rich and middle income group people were the main mushroom customers. Even though mushroom is a profitable enterprise, the producers faced numerous problems regarding mushroom production and marketing.

Keywords: Mushroom production, Profit, Benefit cost ratio (BCR), Marketing channel, Problems, Bangladesh

Location: Savar upazila in Dhaka district.

Start Date: 00-00-2011

End Date: 00-00-2011

Program Area: Socio-economic and Policy

Commodity: Mushroom

Objectives:

i) To estimate and explore profit, benefit-cost ratio (BCR), marketing channels and problems and constraints of mushroom production in Bangladesh.

ii) To provide suggestions and recommendations to generate policy implications for the further development of mushroom production in Bangladesh.

Methodology:

The study was conducted during 2011. Based on the objectives of the study, primary data were used in the present study. Savar upazila in Dhaka district was purposively selected because a large number of households are engaged in mushroom production in this upazila for their daily livelihood. Thirty (30) sample households were randomly selected and information was collected on inputs and outputs, problems and constraints of mushroom production and the socio-economic characteristics of mushroom producers through a comprehensive pre-scheduled questionnaire. Data were analysed following both tabular and statistical methods. Gross revenue was calculated by multiplying the total volume of production of enterprises by the farm gate price. Net profit was calculated by subtracting total production cost (fixed and variable cost) from gross revenue. Total agricultural income from mushroom farming included net profit from mushroom farming (3 months), opportunity cost of family labor, opportunity cost of rent, and agricultural income without mushroom cultivation (3 months).

Source of Information: The Agriculturists 10 (2): 77-89 (2012), ISSN-1729-5211

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Mushroom is an economically profitable and promising agricultural enterprise in Bangladesh. Usually, small, marginal and landless farmers are engaged in mushroom cultivation mainly because small piece of land, and little amount of money are required as capital. Average production cost of mushroom per farm was Taka 41,948 and revenue was Taka 64,826. Therefore, the average profit and gross margin (GM) per farm were Taka 22,888 and Taka 38,790, respectively. The benefit cost ratio (BCR) was about 1.55. Marketing costs and margins are relatively higher than those of other agricultural products in Bangladesh. The marketing margins of mushroom from farm-gate to wholesalers and wholesalers to retailers were Tk. 50 and 70 per kilogram, respectively. Smooth marketing channels are required for optimal mushroom production. Three intermediaries - mushroom office, wholesalers and retailers are involved in the mushroom marketing channels. Mushroom producers are facing many problems relating to productions, which are high price of spawn, infestation of fly and cockroaches, and high temperature, marketing, technical and awareness problems. Economically solvent, rich and middle income group people are the main customers of mushroom in Bangladesh. A large number of small, marginal and landless poor farmers as well as women can earn a significant amount of money from mushroom cultivation that can help reduce poverty and create employment opportunity in Bangladesh.

Knowledge Management: Journal