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Product Commercialization and Income Generation at Different Agricultural Farms in Bogra District of Bangladesh

Md. Hashmi Sakib
Department of Agricultural Extension and Rural Development, EXIM Bank Agricultural University, Bangladesh.

Md. Safiul Islam Afrad
Department of Agricultural Extension and Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, Bangladesh.

Hossain Md. Ferdous
Department of Agronomy, EXIM Bank Agricultural University, Bangladesh.

Abstract/ Executive Summary:

Bangladesh is a land of agriculture, forestry and fishery due to the fact that she abounds with many arable lands, rivers in her esteem deltaic plain. This is because the total economy more or less relies on the agriculture. The main objective of this study was to bring out the scenario of income and commercialization of agricultural products in the study area. By considering this, an interview schedule was made to collect data from the study area through random sampling. Kahaloo and Sherpur upazilas of Bogra were the study area. The collected data were analyzed by Statistical Packages for the Social Sciences (SPSS). Statistical tools, Gini coefficient and regression were employed for transforming data into summarized information. Through the entire investigation, it became clear that aquaculture dominates other income sources in the study area, besides the commercialization of the fishery product found greater than others. Not only was income inequality found at the lowest extent in the aquaculture sector, it was also found at the highest extent in the crops sector. Moreover, socio-demographic characters namely “farm size”, “knowledge” and “commercialization” have significant relationship with income of respondents, in which “farm size” has enormous contribution to the explained total variation of income generation of respondents. Furthermore, in the case of commercialization, “income”, “knowledge” and “education” have significant relationship. Among these factors, income of respondents played a vital role in contributing to the explained total variation in commercialization as a major factor. It is visualized that commercialization was provoked by income, besides, income provoked by farm size, but there is a scanty provision to get greater size farm for per person in this country because of land utilization for different purposes. In this regard, technological improvement as well as innovations might be one of the solutions.

Keywords: Commercialization, Income, Agriculture, Farm size.

Location: Kahaloo and Sherpur upazilas of Bogra

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Income generation

Objectives:

To know about the present income share, commercialization of agricultural subsectors and income inequality; and
To ascertain the affiliation among different socio-demographic factors to both income and commercialization of farmers.

Methodology:

Kahaloo and Sherpur, two esteem upazilas of Bogra district were considered as the locale of the present study. Kahaloo is located at the western part of Bogra, whereas Sherpur is located at the southern part of it. For this survey study, the researcher planned to prepare a list of farmers with the help of government officials affiliated with the agricultural sectors. Total number of farmers of these areas were 366. Only 366 fish farmers, having other agricultural activities of this area constituted the population. By using simple random technique, 110 fish farmers were taken as sample of this study. In order to collect valid and reliable information from the farmers, an interview schedule was developed in which both open and closed form questions were taken into account with a view to considering the objectives of the study. To ascertain the inequality of income from various agricultural sources such as fisheries, crops and other income sources, Gini coefficient was computed as discussed by Anonymous (2005). The Gini coefficient is a measure of inequality developed by the Italian statistician Corrado Gini and published in 1912. The Gini coefficient is calculated as a ratio of the areas on the Lorenz curve diagram. If the area between the line of perfect equality and Lorenz curve is A, and the area underneath the Lorenz curve is B, then the Gini coefficient is A/(A+B). This ratio is expressed as a percentage or as the numerical equivalent of that percentage, which is always a number between 0 and 1 (Anonymous, 2005). On the other hand, regression was employed to bring out the information about the contribution of socio-economical factors towards income and commercialization of farmers. In this study, firstly age, education, family size, farm size, use of information sources, annual family income, social participation, innovativeness and knowledge on farming were the independent variables, whereas commercialization of agricultural products was the dependent variable. Secondly age, education, family size, farm size, use of information sources, commercialization of agricultural products, social participation, innovativeness and knowledge on farming were the independent variables, whereas annual family income was the dependent variable. To carry out this study, commercialization index is needed for calculation. That is why commercialization was calculated (Agwu et. al., 2013) by using the following formula for both the fisheries and crops sectors:

HCL_i = (Gross value of crop sales hh_i year_j/Gross value of crop production hh_i year_j)X 100

The household commercialization index (HCI) was used to determine household specific level of commercialization (Govereh et al., 1999; Strasberg et al., 1999). The index measures the ratio of the gross value of crop sales by household i in year j to the gross value of all crops produced by the same household i in the same year j expressed as a percentage. The value of commercialization lies between 0 and 100. Zero indicates the lower extent of commercialization, while hundred indicates higher extent. Collected data were analyzed by both Microsoft XL and SPSS version 20 software.

Article Link (Online Journal): http://academeresearchjournals.org/viewhtml.php?id=56b9d227eb7b8

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Aquaculture dominates on other income sources in the study area, moreover commercialization of the fisheries product is found to be greater than that of any other products. Not only income inequality was found at the lowest extent in aquaculture sector, it was also found at the highest extent in the crops sector. On the other hand, socio-demographic characters namely “farm size”, “knowledge” and “commercialization” have significant relationship with income of respondents, in which “farm size” has enormous contribution to the explained total variation of income generation of respondents. Besides, in the case of commercialization, “income”, “knowledge” and “education” have significant relationship. Among these factors, income played a vital role in contribution as a major factor to the explained total variation in commercialization. It is visualized that commercialization was provoked by income and income was provoked by farm size, but there is a scanty provision to get a greater size of farm for each person in this country because of land utilization for different purposes. In this connection, technological improvement as well as innovations might be one of the solutions.

Knowledge Management: Journal