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Marketing System of Vermicompost in Fulbaria Upazila of Mymensingh District

AKM Ashfaq
Student, Dept. of Agribusiness & Marketing, Bangladesh Agricultural University (BAU)

DC Acharjee
Assistant Professor, Dept. of Agribusiness, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur

FA Mila
Assistant Professor, Dept. of Agribusiness, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur

MI Hossain
Professor, Dept. of Agribusiness & Marketing, BAU, Mymensingh

Abstract/ Executive Summary:

The present study was carried out during 2016 in Fulbaria Upazila, Mymensingh District. Both primary and secondary data were analyzed to achieve the objectives of the study. Primary data were collected from 30 intermediaries in the supply chain of vermicompost marketing. A specialized market for vermicompost was not observed in the study area. The major portion of vermicompost i.e. 90% was found to be marketed directly from producers to the users. The users were farmers, Bangladesh army, Tea garden and research institution. Maximum volume was marketed to the farmers i.e. 75%. Some users were found to buy vermicompost from cooperatives. Particular vermicompost trader was not found to be involved in the process of marketing within the study area. Most of the produced vermicompost was utilized within the district and only a very small amount was sent for usages to other districts. Head load/shoulder load, van, rickshaw and auto rickshaw were the common modes of transportation. Market information was collected through the internet, mobile phone and personal visit to the producers. Price was commonly determined through rapid interaction of the supply and demand. For fixing the buying and selling price, open bargaining, going market price and prefixed prices methods were followed. Cooperatives average purchase price was Tk. 82.67, average sale price Tk. 105, Marketing cost Tk. 8.62 per kg. Marketing margin and net marketing margin of cooperatives was found to be Tk. 22.33 and Tk. 13.71 per kg. In the study area, producers share at consumer’s taka for vermicompost 78.73% and marketing efficiency of vermicompost 2.68 in channel II. More than 90% farmers expressed that lack of market information and lack of marketplace are major constraints toward vermicompost marketing.

Keywords: Vermicompost participants, Marketing channel, Marketing function, Marketing cost, Constraints

Location: Fulbaria Upazila, Mymensingh District.

Start Date: 00-00-2016

End Date: 00-00-2016

Program Area: Socio-economic and Policy

Non-commodity: Performance

Objectives:

To identify the existing marketing system of vermicompost intermediaries
To estimate the Marketing cost, marketing margin, producer's share and marketing efficiency for vermicompost.
To identify the constraints of vermicompost Marketing

Methodology:

Mymensingh district is one of the major production area of vermicompost in Bangladesh. In the recent year, this district occupies the top position in vermicompost production. That is why Mymensingh district was selected as the study area. Based on concentration of vermicompost production, Koiyarchola and Bakta villages under Bakta Union of Fulbaria Upazila was chosen for the present study. An easy communication system to this Upazila influenced the researcher to select this study area purposively. In the study area, total thirty (30) intermediaries including producers and cooperatives had to bear various costs at different stages in the marketing of vermicompost. Specialized market for vermicompost was not observed in the study area. Market participants are defined by what they play, by the nature of their financing activities and their responsibility to ownership. Producers, cooperatives and users were the market participants in the study area. Marketing system is the social network that permits interaction of buyers and sellers. It includes all the rules and regulations, the reputation and credentials of the companies and individuals involved. This system plays two important roles in the industry. The role of physical distribution, which is concerned with the physical handling and transfer of products as they move from producers to consumers and the role of adding value to the farm commodities and facilities the exchange process between buyers and sellers ( Kohls and Uhl, 1980). A marketing system is comprised of a number of elements: the particular products and their characteristics being transferred from producer to consumer; the characteristics of participants (e.g. the producers, the cooperative and the users); the functions or roles that each participant performs in the market; and the locations, stages, timetable and physical infrastructures involved (FAO,1995). Marketing margin is the difference between retailer's price and farm gate price which was calculated as follows: Marketing margin = Retailer price (Pr) – Farm gate price (Pf ) Similarly, producer's share is the ratio of price received by producer to price paid by consumer expressed in percentage which was calculated using the formula: Producer's share = (Pf/ Pr) ×100% Where, Pf= Price received by producer or farm gate price (Tk.) Pr = Price received by retailer or price paid by the consumer (Tk.) The marketing efficiency was measured empirically with the help of Acharya's Modified Approach for Marketing Efficiency (Acharya and Agrawal, 1999). MME = FP/ (MC + MM) Where, MME = Modified measure of marketing efficiency FP = Price received by the producer (Tk.) MC = Marketing cost (Tk.) MM = Marketing margin (Tk.)

Source of Information: Eco-friendly Agril. J. 12(07):54-59, 2019 (July)

Article Link (Online Journal): www.efaj-international.com

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Study on marketing system of vermicompost intermediaries stipulated that direct marketing of vermicompost from producer to consumer was found to be the effective and strongest marketing channel. However, marketing through cooperatives was also found in a few instances. Marketing through cooperative was found to be more efficient because both producers share and marketing efficiency index was better. The appropriate supply chain of cow dung and organic waste can attract people to produce vermicompost on a large scale. More than 90% expressed that lack of market information and lack of marketplace as major constraints of vermicompost marketing, faced the problems of low demand, lack of credit facilities storage problems and high transportation cost. At present demand for vermicompost is increasing day by day and government is also giving subsidy which is admiring. Based on the findings, the following suggestions are made:

Cooperative marketing should be remarkably promoted.
There should be provision for better market information and marketplace.

Knowledge Management: Journal