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Comparative and Competitive Advantage of Soybean Cultivation in Noakhali and Laxmipur District of Bangladesh

M. A. Salam*
Department of Agricultural Economics, Bangabandhu Sheikh Mujibur Rahman Agricultural University (BSMRAU), Gazipur, Bangladesh

M. Kamruzzaman
Department of Agricultural Economics, Bangabandhu Sheikh Mujibur Rahman Agricultural University (BSMRAU), Gazipur, Bangladesh

Abstract/ Executive Summary:

The study highlighted different socio-economic aspects of soybean cultivation in Noakhali and Laxmipur district of Bangladesh. The issues were: cost and return of soybean and its competing crops cultivation, competitive and comparative advantage of soybean production, constraints to higher production, and farmers’ attitudes towards soybean cultivation in Bangladesh. The average yield of soybean, groundnut, cowpea and grasspea were 1813kg/ha, 1473kg/ha, 871kg/ha and 1076kg/ha, respectively. The net return received from soybean, groundnut, cowpea and grasspea cultivation were estimated at Tk. 25599/ha, Tk. 17047/ha 11805 and Tk. 8825/ha, respectively. The average benefits cost ratios of soybean, groundnut, cowpea and grasspea production were 1.43, 1.26, 1.28 and 1.29 over full cost, respectively. The estimated DRC value for soybean production was found 0.55 which clearly indicate that the production of soybean in Bangladesh has comparative advantage rather than import. Functional analysis showed that TSP, MP, gypsum and pesticide use had positive significant impact on soybean cultivation. Although the cultivation of soybean was found to be profitable, many farmers showed negative attitudes toward its production. Scarcity of chemical fertilizers with its peak price, lack of HYV seed availability, lack of technical knowledge and natural calamities were found as the barriers of soybean crops expansion in Noakhali and Laxmipur district of Bangladesh.

Keywords: Soybean, Competitive and Comparative advantage, Profitability, Bangladesh

Location: Oilseed Research Centre of Bangladesh Agricultural Research Institute.

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Soybean

Objectives:

The specific objectives of the study are: (i) to identify the socio-economic characteristics of soybean farmers; (ii) to analyze production and profitability of soybean farmers; (iii) to analyze the interrelationship between inputs and outputs of soybean production and (iv) to measure the comparative and competitive advantage of soybean farmer.

Methodology:

Data and survey The required primary data was collected through a farm level survey. Multi-stage sampling technique was applied for this purpose. At the first stage, the country’s two major soybean producing districts namely, Noakhali and Laxmipur of Bangladesh were purposively selected through consultation with the extension personnel and local scientists worked in the Oilseed Research Centre of Bangladesh Agricultural Research Institute. Then, from each district, the highest soybean producing upazila and from each upazila the top two soybean producing villages were purposively selected. Finally, 30 soybean growers, 15 cowpea growers, 20 groundnut growers and 15 grasspea growers were selected randomly from each village using the list of soybean, cowpea, groundnut and grasspea growers available with the local agricultural extension office. Primary data were collected from sample farmers with the help of a pre-designed and pre-tested interview schedules during the period of January to June 2013. Thus, the survey interviewed 320 farmers belonging to four villages of Noakhali and Laxmipur district of Bangladesh. Analytical technique The analysis of data was based on tabular and descriptive techniques. In this research, tabular technique was applied for the analysis of data using simple statistical tools like averages and percentages. Higher production and profit are the two most important factors to motivate farmers towards any new technology. A detailed cost-benefit analysis was done for soybean farmers using tabular analyses techniques. The soybean production is likely to be influenced by different factors, such as, human labour, seed, and chemical fertilizer, etc. To determine the contribution of some important input on soybean production, the Cobb-Douglas multiple regression model was estimated because of the best fit of the sample data.

Source of Information: J. Bangladesh Agril. Univ. 13(2): 265–272, 2015 ISSN 1810-3030

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

This study assesses the competitive and comparative advantage of soybean cultivation at farm level. The study concludes that the agronomic practice is very encouraging because most of the farmers followed agronomic practices more or less to the recommendation except irrigation. Although some feed company gave advance cash to cultivate soybean but they did not utilize their cash properly. Soybean cultivation at farm level is found to be profitable since the average benefit cost ratio (BCR) on investment is 1.43 on full cost basis for soybean which indicates at farm level soybean production is more profitable. The farm level cultivation of soybean and its competing crops is remunerative to the farmers as the BCR of all crops are higher than one. Even though the cost of cultivation of soybean was higher than that of cowpea and grasspea except groundnut, its gross returns as well as net returns were also correspondingly higher than cowpea and grasspea. Soybean crop is gaining popularity in the country very quickly due to its high yield potential. A good opinion came out from the sample farmers that higher yield and income encourage them for continuing soybean cultivation, although many farmers have showed negative attitude toward its production because of various setbacks. They have experienced different socio-economic constraints to soybean production such as scarcity of fertilizers with its peak price, infestation of insects, and natural calamities. Lack of HYV seed availability is also found to be a barrier to the adoption of soybean. Information like proper sowing time, seed rate, fertilizer dose need to be provided to the farmers in order to increase the production. The government should encourage private seed companies to come forward for producing HYV seed production; strong extension programme and proper monitoring by the field staff need to ensure to increase area under soybean production as soybean is more profitable compared to its competing crops; credit should be supplied to the poor farmers with cover interest and easier terms; finally, attempts will also be made to introduce modern variety replacing the low yielding local varieties by motivating farmers through training, demonstration trials and motivation.

Knowledge Management: Journal