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Socioeconomic Analysis of Hydroponic Fodder Production in Selected Areas of Bangladesh: Prospects and Challenges

M.T. Uddin*
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh-2202, Bangladesh

A.R. Dhar
Department of Agricultural Economics, Bangladesh Agricultural University Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The study was conducted to assess the prospects and challenges of hydroponic fodder production in Bangladesh. A total of 40 farmers were selected purposively from Kishoregonj and Jashore districts as sample for the study. A combination of descriptive, mathematical and statistical techniques was used to analyze the data. The findings of the study revealed that average household and farm size of the farmers were 5.0 persons and 0.48 hectare, respectively. Average annual income of the farmers was Tk. 92312, of which 56.1% income was from farming activities and 43.9% income was from non-farming activities. Majority of the technology adopting farmers (35.8% farmers) were within the late majority group. Profitability analysis showed that net return and benefit cost ratio of hydroponic fodder production were Tk. 5400 per decimal and 1.82, respectively. Farm size, farming experience, training and extension contact had significant impact on farmers’ adoption of hydroponic fodder production technology. Nutritional quality of fodder, high installation cost, medicinal value for human consumption and sensitivity to temperature were the major strength, weakness, opportunity and threat of hydroponic fodder, respectively. This fodder production technology is sustainable from the perspectives of energy use, environmental safety, economic viability and social/political equity. The study recommended that input support (especially seed), motivation, training programmes and extension services by different government and non-government organizations should be properly organized and implemented in town and water logging areas to raise the farmers’ awareness for the adoption of hydroponic fodder production technology.

Keywords: Adoption, Hydroponic fodder, Profitability, Prospects and challenges, Sustainability

Location: At different villages of Kishoregonj and Jashore districts

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Fodder

Objectives:

The specific objectives of the study are: i) to document the socioeconomic status of hydroponic fodder producers in Bangladesh; ii) to estimate the profitability of hydroponic fodder production in the study area; iii) to examine the factors affecting adoption of hydroponic fodder technology by the farmers; and iv) to address the prospects and challenges as well as suggest policy recommendations for sustainable hydroponic fodder production in Bangladesh.

Methodology:

Study area, sample size and data acquisition methods The study was conducted at different villages of Kishoregonj and Jashore districts. A total of 40 sample farmers were interviewed using pre-tested questionnaire. Purposive random sampling technique was followed to select the sample farmers. Moreover, key informant interviews (KII) were also performed in Dhaka, Gazipur and Narayangonj for collecting the necessary information. Secondary data sources like reports, publications, handouts, etc. relevant with this study were also consulted. Analytical techniques For analyzing the data, a combination of descriptive (sum, averages, percentages, etc.), mathematical and statistical techniques were used to achieve the objectives and to get the meaningful result. Profitability analysis Profitability of hydroponic fodder production was measured in terms of gross return, gross margin, net return, and benefit cost ratio (undiscounted). The formula needed for the calculation of profitability is discussed as follows: Gross return (GR) Gross return was calculated by multiplying the total volume of output by the price in the harvesting period (Dillon and Hardaker, 1993). The equation was as follows: GR = XmpPmp + XbpPbp Where, Xmp = Yield of main product (kg decimal^-1); Pmp = Price of main product (Tk. kg^-1); Xbp = Yield of by-product (kg decimal^-1); and Pbp = Price of by-product (Tk. kg^-1). Gross margin (GM) Gross margin was calculated by the difference between gross return and total variable cost. The following equation was used to calculate GM: GM = GR − ?Cv Where, GR = Gross return (Tk. decimal^-1); and ?Cv = Total variable cost (Tk. decimal^-1). Net return (NR) Net return was calculated by deducting all costs (variable and fixed) from the gross return. The following algebraic form of NR was used for estimation: NR = GR – ?Cv ? ?Cf Where, GR = Gross return (Tk. decimal^-1); ?Cv = Total variable cost (Tk. decimal^-1); and ?Cf = Total fixed cost (Tk. decimal^-1). Benefit cost ratio (BCR) Benefit cost ratio (BCR) is a relative measure which is used to compare the return per unit of cost. BCR was estimated as a ratio of gross return to gross cost. The formula used for calculating BCR (undiscounted) was as follows: BCR = GR ÷ GC Where, GR = Gross return (Tk. decimal^-1); and GC = Gross cost (i.e. ?Cv + ?Cf) (Tk. decimal^-1). Logit model In order to identify the factors influencing adoption of hydroponic fodder technology by the farmers, the following logistic regression analysis (i.e. Logit model) was used (Gujarati, 2003): Ki = ln [Pi ÷ (1 − Pi)] = β0 + β1X1 + β2X2 + β3X3 + β4X4 +β5X5 + β6X6 + β7X7 + β8X8 + Ei Where, Pi is the probability of adoption and non-adoption of hydroponic fodder production technology, Pi = 1 indicates adoption and Pi = 0 indicates non-adoption. Dependent variable: Adoption of hydroponic fodder production technology (Adopters = 1, otherwise 0) Ki = Probability of adoption of hydroponic fodder technology. Independent variables: X1 = Household size (no.); X2 = Educational level of household head (years of schooling); X3 = Age of household head (years); X4 = Farm size (ha); X5 = Annual income (Tk.); X6 = Farming experience (years of farming); X7 = Training (Pi=1 indicates having training on hydroponic fodder production and Pi = 0 indicates having no training on hydroponic fodder production); X8 = Extension contact (Pi = 1 indicates having extension contact and Pi = 0 indicates having no extension contact); β0 = Intercept; β1 to β8 = Regression coefficients of the independent variables; and Ei = Error term. The marginal probabilities of the key determinants of adopting hydroponic fodder technology were estimated based on expressions derived from the marginal effect of the Logit model which was as follows: dK/dX = βi {Pi (1 − Pi)} Where, βi = Estimated Logit regression coefficient with respect to the ith factor; and Pi = Estimated probability of farmers’ adoption status. SWOT analysis SWOT analysis was done to identify the problems and potentials of hydroponic fodder technology. The SWOT analysis guided to identify the positives and negatives inside of the organization (S-W) and outside of it in the external environment (O-T) (Gürel and Tat, 2017). Sustainability perspective of hydroponic fodder production technology Sustainability describes a condition in which natural systems and social systems survive and thrive together indefinitely. A sustainable condition allows people to meet the needs of the present without compromising the ability of future generations to meet their own needs (IISD, 2015). 4E sustainability framework analysis uses perspectives from energy, environment, economics and equity in social/political aspects to explain how hydroponic fodder production technology contributes to maintain sustainability (Braun, 2017).

Source of Information: SAARC J. Agri., 16(1): 233-247 (2018)

Article Link (Online Journal): DOI: http://dx.doi.org/10.3329/sja.v16i1.37438

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study comes to an end with a conclusion that hydroponic fodder production technology as a new fodder production system was cherished highly and adopted successfully by the farmers. The production of hydroponic fodder was highly profitable in the study areas. Farm size, farming experience, training and extension contact had significant impact on adoption of hydroponic fodder production technology by the farmers. The nutritional quality of fodder, high start up cost, medicinal value for human consumption and less digestive capability as the major strength, weakness, opportunity and threat of hydroponic fodder. Hydroponic fodder production technology is sustainable from the perspectives of energy, environment, economics and equity. Considering the findings of the study, some policy recommendations have been arisen which are: input support (especially seed), motivation and extension services of government as well as non-government organizations should be properly implemented to raise farmers’ awareness about adopting hydroponic fodder production technology. This technology of fodder production is considerably appropriate in town areas and in water logging areas. So, initiative for scientific and technical training programmes should be arranged so that farmers’ can get inspiration for moving into this new dimension of fodder production technology.

Knowledge Management: Journal