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Value Chain Analysis of Sunflower in Coastal Areas of Amtali Upazila of Barguna District

Mohammad Ismail Hossain
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Shaon Afroz
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Mahanambrota Das
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Md. Mojammel Haque
Graduate Training Institute, Bangladesh Agricultural University, Mymensingh2202, Bangladesh,

M. Serajul Islam
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202 and

Lilly Lim-Camacho
Climate Smart Agriculture and Value Chain Analytics, Agriculture and Global Change, CSIRO Agriculture and Food , Australia

Abstract/ Executive Summary:

Sunflower is an important oil seed crop which is well fitted in Robi season of the coastal areas of Bangladesh. This study focused on sunflower value chain map, value addition, value chain governance and institutional linkages, and stakeholders and their roles and responsibilities in value adding process of sunflower. A total of 60 respondents were interviewed by using pretested questionnaire. A combination of purposive and snowball sampling techniques was used to select the respondents. Descriptive analytical technique was used to achieve the objectives. The study found that farmers were hardly engaged in sunflower marketing activities. The value chain map comprised of collectors/assemblers, processors, wholesalers and retailers. On an average, total costs (production and marketing) incurred by the farmers were Tk. 1,986.30/acre (100 decimals) of sunflower. Assemblers received a total gross margin of Tk. 588/100 kg of sunflower seeds. At wholesale node the total gross margin was found to be Tk. 209/100kg of sunflower seeds. It was observed that processor received gross margin of Tk. 878. The processors were the pivotal point for the sunflower oil in the study area. The findings revealed that 40% of the total sunflower seed productions were sold by farmers to chain actors in while the remaining 60% was left for own consumption. It was also found that there was certain arrangements of producers and traders in case of production and marketing of sunflower. The main business challenge in sunflower production is scarcity of quality seed and the marketing challenge is fluctuation of prices. Thus, policy should be guided to supply quality seeds and maintain the stable price of sunflower.

Keywords: Marketing decision, Value chain, Stakeholders, Sunflower, Coastal areas

Location: Sekendarkhali and its surrounding villages under Amtali Upazila of Barguna district

Start Date: 00-02-2018

End Date: 00-03-2018

Program Area: Socio-economic and Policy

Commodity: Sunflower

Objectives:

This study focuses value chain analysis of sunflower to investigate the market dynamic, actors’ roles and functions and production and marketing arrangements which will be helpful for policy makers as well.

Methodology:

Selection of the study area Sekendarkhali and its surrounding villages under Amtali Upazila of Barguna district were selected purposively for this study. Because in the selected areas farmers were introduced new crop (sunflower) as other crops are not produced due to salinity. Sekendarkhali village is located in Amtali Sadar Upazila of Sadar Union in Polder 43/1. Sample size Data were collected from farmers, assemblers/collectors, wholesalers, local processors and retailers. A combination of purposive and snowball sampling techniques was used to select the respondents. The sample size comprised of 60 respondents, where farmers were 20, assemblers/collectors/wholesalers were 12, processors were 3 and remaining 25 were the retailers. Data collection methods The study used both qualitative and quantitative methods to collect the data. The collected data were validated with Shushilan (NGO who are working in the village) data. Both interview and survey techniques were used. The period of data collection was February to March 2018. Farmers and traders’ data were collected through two separate types of questionnaire. Questions included farm type, crop choice, input use, cost of input and output, labour use, marketing activities, value addition and cost of value addition. Checklist was used during the FGD which is mainly focus on the broad questions and sequence of questions. Data were analysed through descriptive statistics. Data validation and triangulation were done through checking and rechecking the data. At production level farmers were identified by physical visits to the sunflower fields. The information of where farmers were located was obtained from Shushilan, who operates in the area and is SIAGI’s NGO partner in Bangladesh. Assemblers were identified by physical visits to the farmers at which transaction between farmers and assemblers took place. Wholesalers were identified by physical visits to the markets. Retailers were identified through physical visits to their marketing places.

Source of Information: J Bangladesh Agril Univ 17(2): 244–250, 2019 ISSN 1810-3030 (Print) 2408-8684 (Online)

Article Link (Online Journal): https://doi.org/10.3329/jbau.v17i2.41989

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Sunflower as a cash crop, can significantly contribute to increase household income and food security and thus raising the standard of living of rural people. The study found that the common marketing system used involved many links with no value addition within the channels which increased the total cost by double handling. The findings revealed that 40% of the total productions were sold by farmers to chain actors in 2017/2018 cropping season while the remaining 60% was left for domestic consumption. Most of the farmers collected seeds for planting from the nearby local market from the local seed traders. Some also used the seed of their own cultivated during last season. This was because of scarcity of seeds. Farmers in the study area were in good communication with the traders specifically the collectors for selling their produce. Most of the collectors were there known person. In this case, the farmers described about the credibility of making sale with the collectors. Farmers were not engaged with the marketing activities in the study area. Thus, the whole channel mainly comprised of collectors, processors, wholesalers, retailers. Every actor in his own stream was advanced with the fact of making profit. Sunflower oil production is profitable as farmers (those who converted their seed into oil) received Tk. 225/kg. The main business challenge in sunflower production was scarcity of quality seed and the marketing challenge was fluctuation of prices.

Knowledge Management: Journal