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Marketing and Value Chain Analysis of Ginger: a Study in Selected Areas of Bangladesh

Mr. M. K. HASAN
Senior Scientific Officer, SRC, Bogra.

B. K. GOSWAMI
Director, SRC, Bogra.

Abstract/ Executive Summary:

The study was undertaken to determine marketing system, marketing cost, margin, efficiencies and to examine the value chain of ginger aiming to determine the value addition in different steps of ginger marketing. Primary data were collected from Nilphamari and Lalmonirhat depending upon the concentration of production and commercially marketing of ginger and consuming area Dhaka and Rajshahi. Data were analyzed using marketing margin, profit and efficiency ratio, and value addition. Four major marketing channels were identified for domestic produced ginger marketing. Channel-3 was the most important supply chain through which 48% domestic produced ginger reaches to consumers. Marketing costs for each 100 kg of ginger were estimated from Tk. 86.92 to 339.77 and marketing margin Tk. 674.00 to 1820.00, respectively for different intermediaries. Marketing margin and profit were the highest in retailer than those of other intermediaries. Out of four marketing channel, Channel-4 was more efficient than those of other channels. Six actors like; farmer, local trader, beparies, commission agent, wholesaler, retailer and consumer are identified who are involved in the ginger value chain. The study revealed that farmer added the highest amount of value Tk. 2062.00 per 100 kg ginger followed by retailers (Tk. 1820.00), Beparies (Tk. 835.00), local trader (Tk. 690.00) and wholesalers (Tk. 674.00) respectively. Eleven marketing problem were identified, among them price fluctuation, high transport cost and lack of loan facilities were the major problem. It is therefore, recommended that loan facilities should be provided to the intermediaries, IT service should be developed up to village level and transportation cost should be keep reasonable.

Keywords: Marketing, Value chain, Ginger

Location: Nilphamari and Lalmonirhat districts. Also city markets of Dhaka and Rajshahi

Start Date: 00-00-2014

End Date: 00-00-2015

Program Area: Socio-economic and Policy

Commodity: Ginger

Objectives:

To examine the existing marketing system of ginger.
To determine the marketing cost and margin of different intermediaries
To estimate the marketing efficiency of different marketing channel
To examine the value chain and value addition of ginger in different steps of marketing channel

Methodology:

Primary data were collected by survey method where in various market intermediaries were interviewed for eliciting information at various stages of ginger marketing. Apart from these, formal interview with ginger producers, concerned traders and buyers were conducted to have detailed information from the stakeholders involved in supply and value chain system of ginger marketing.The study areas were purposively selected in Nilphamari and Lalmonirhat districts depending on the concentration of production and commercial marketing of ginger. In those areas.Three types of market, such as primary, secondary and consumer market were selected to examine the value chain of ginger aiming to determine the value added to marketed ginger in different steps of marketing channel. In addition, city markets of Dhaka and Rajshahi were selected to examine the price variation of ginger in secondary and consumer market and compared with ginger market in production areas of Bangladesh.A total of 80 farmers from two areas taking 40 from each area were selected purposively. Ten input suppliers, 24 local traders (faria), 30 traders (bepari), 10 commission agents (aratdar), 20 wholesalers (paiker) and 30 retailers were selected from the above selected areas including major consuming area Dhaka and Rajshahi. Two sets of pre-tasted interview schedule, one for farmers and other for intermediaries were used for the collection of data/information using survey method. Primary data were collected by face-to-face interview during 2014-15 cropping season. The collected data and information were reduced to tabular form which included classification of tables into meaningful results by using arithmetic mean, percentage and ratio. For ginger marketing, intermediaries involved in marketing channel were identified and marketing costs and margins, and profits of intermediaries were determined by using tables and flow diagrams. Except this the following analytical techniques were used for the study.

Source of Information: Annual Research Report,AGRICULTURAL ECONOMICS DIVISION, Bangladesh Agricultural Research Institute Joydebpur, Gazipur-1701, August, 2015.

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Four major marketing channels were identified for domestically produced ginger marketing. Channel-3 was the most important supply chain of which through 48% domestic produced ginger reaches to consumers. Marketing costs per 100 kg of ginger were estimated to range from Tk 86.92 to 339.72 and marketing margin Tk 674.00 to 1820.00, respectively for different intermediaries. Marketing margin and profit were the highest in retailer than those of other intermediaries. Out of four marketing channel, Channel-4 was more efficient than those of other channels. Six actors like; farmer, local trader, bepari, commission agent, wholesaler, retailer and consumer are identified who are involved in the ginger value chain. The study revealed that farmer added highest amount of value Tk 2062.00 per 100 kg ginger followed by retailer (Tk 1820.00), bepari (Tk 835.00), local trader (Tk 690.00) and wholesalers (Tk 674.00) respectively. Eleven marketing problem were identified, among them price fluctuation, high transport cost and lack of loan facilities were the major and common problem for all kinds of intermediaries involved in ginger marketing in Bangladesh.

Knowledge Management: Report/Proceedings