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Profitability Analysis of Mango Cultivation and Its Impact on Farmer’s Livelihood in Some Areas of Bangladesh

M. S. Rahman
Scientific Officer
Agricultural Economics Division, Bangladesh Agricultural Research Institute (BARI), Joydebpur, Gazipur-1701

M. Khatun
Assistant Professor
Department of Agricultural Finance, Bangladesh Agricultural University (BAU), Mymensingh-2202, Bangladesh

M. A. Monayem Miah
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur-1701, Bangladesh.

Abstract/ Executive Summary:

The study was carried out to investigate profitability of mango farming and to assess the impact of BARI Aam-3 mango variety production on the farmer’s livelihood in four mango growing districts namely Khagrachori, Bandorban, Naogaon, and Satkhira of Bangladesh during February to March, 2018. A total of 128 BARI Aam-3 growers were selected using multi-stage random sampling technique. Descriptive statistics and financial profitability analysis were used to analyze data. The net return for one hectare of mango orchard was Tk. 730233 for 6-7 years of BARI Aam-3 mango orchard. Net present value was estimated to Tk. 444397 for BARI Aam-3 which indicates that mango cultivation fetches higher returns. The estimated benefit cost ratio was 2.01 for BARI Aam-3 which ensures that investment in BARI Aam-3 is feasible for the mango farmers. The BARI Aam-3 mango cultivation was also found to be a profitable enterprise since internal rate of return was very high (83.075%). The results also reveal that human capital increased by 54.34%, 68% and 60.54%; physical capital increased by 48.17%, 58% and 50% as well as social capital increased by 28.50%, 43% and 45.95% of the small, medium and large farmers respectively due to cultivation of BARI Aam-3 mango variety. Therefore, it is highly recommended to spread the information of BARI Aam-3 cultivation as a profitable enterprise among the mango growers throughout the country.

Keywords: Mango, Profitability, Assets, Livelihood, Bangladesh

Location: Sadar Upazila of Khagrachori district

Start Date: 00-01-2018

End Date: 00-03-2018

Program Area: Socio-economic and Policy

Non-commodity: Analysis and interpretations

Objectives:

i. To evaluate the economic profile of mango growers and
ii. To assess the assets of livelihood strategies of mango growers

Methodology:

Study area selection
A preliminary survey was conducted in Sadar Upazila of Khagrachori district for pre-testing the survey schedule. Based on the preliminary survey, four BARI Aam-3 growing districts namely Khagrachori, Satkhira, Bandarban, and Naogaon were selected and two major BARI Aam-3 growing Upazilas from each district were purposively selected for selecting sample orchards. All the mango growers were randomly stratified into small (≤40 trees), medium (41-≤79 trees) and large (≥80 trees).

Sampling technique adopted and way of sample selection
Multi-stage random sampling technique was used to select the required mango growers. A total of 128 mango orchards were randomly selected for the study.

Study period
Primary data were collected from the respondents by using interview schedule during the month of January to March, 2018.

Analytical Technique Descriptive Statistics
Descriptive statistics were used to analyze the data by sum, average and percentages.

Statistical technique
Growing fruit trees represent long term investment. Production of mango can be considered as a function of various inputs employed in the process of production. The farmers had to incur cost for different inputs such as human labor, machinery, fertilizer, insecticides etc. for cultivating mango in the orchard. The profitability of mango production was measured on the basis of Gross Return, Gross Margin and Net Return. At the same time capital budgeting was also done by calculating Net Present Value, Benefit Cost Ratio and Internal Rate of Return of the mango orchard. The discount rate was specified by assuming the opportunity cost of capital which is 12% for most of the developing countries (Gittinger, 1984).

Livelihood analytical technique
Livelihood pattern was measured by presenting the five types of capitals namely human capital, social capital, natural capital, physical capital and financial capital (DFID, 2000) which is known as assets pentagon. A sustainable livelihood is the outcome of inter and intra relationship between the components of these five livelihood assets/capitals. In this study, an attempt was made to measure the changes in assets position of the mango farmers for one year due to cultivation of BARI Aam-3 mango variety.

Source of Information: Bangladesh J. Agril. Res. 44(1): 139-152, March 2019 ISSN 0258-7122 (Print), 2408-8293 (Online)

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Cultivation of BARI Aam-3 mango is profitable because it gives substantial higher gross return and net return. Human labor, cost of saplings, insecticides were the major cost items for mango production in the study areas. The rate of returns (i.e. BCR, NPV and IRR) indicated that BARI Aam-3 cultivation is profitable for the farmers. After adopting this variety all types of farmer are able to change their livelihood. They are able to increase their human, physical and social capital significantly. It signifies that, BARI Aam-3 mango production has a good potentiality in Bangladesh. So, to sustain the yield of BARI Aam-3, the combined efforts of concerned authorities are essential at the level of policy formulation. Besides, a proper initiative should be taken to record the information on cost and return and to disseminate this information throughout the country.

Knowledge Management: Journal