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Profitability Analysis of Strawberry Cultivation in Selected Areas of Bangladesh

M. Khatun
Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur

M. A. Rashid
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur

Abstract/ Executive Summary:

The study was conducted in Joypurhat and Rajshahi districts to assess the profitability of strawberry cultivation in Bangladesh. A total of 100 strawberry cultivating farmers, taking 50 farmers from each district, were randomly selected for this study. Descriptive statistics was used to analyze data. The Cobb-Douglass production function was used to estimate the coefficients of the various variables analysed. MPP, MVP and resource use efficiency were also used to estimate the efficiency of resources used in strawberry cultivation.Per hectare cost of producing strawberry was estimated as Tk. 8, 65,590. Per hectare net return and BCR from strawberry cultivation were found Tk. 13, 31,362.17 and 2.63 respectively which indicates strawberry cultivation is highly profitable. Farmers in the study areas performed different value addition activities like cleaning, grading, packaging, labeling and transportation to increase their product price. Efficiency ratio of the inputs indicates, farmers of the study area were not efficient in using inputs and they need training to be efficient. Total estimated postharvest loss at the farmers’ level was 12.40% of total production which was 2579.33 kg per hectare. A large number of farmers (65%) mentioned disease infection as a remarkable cause of postharvest loss. About 54% farmers mentioned transportation facilities should be improved to reduce postharvest losses. Highest 37% farmers reported that strawberry plants were invaded by many more diseases. Highest 48% farmers reported that transportation facilities of the study areas were poor. If the shortcomings are overcome, Bangladesh can move towards mass production and cultivation of the fruit, thereby achieving economies of scale and making it a more profitable venture.

Keywords: Post-harvest; Strawberry; Financial profitability

Location: Joypurhat and Rajshahi districts of Bangladesh

Start Date: 00-00-2017

End Date: 00-00-2017

Program Area: Socio-economic and Policy

Commodity: Strawberry

Objectives:

i. To assess the financial profitability andresource use efficiency of strawberry growers;

ii. To estimate post-harvest loss and value addition at the farmers field;

iii. To identify the production problems, and marketing constraints of strawberry cultivation and

iv. To assess the potentialities of strawberry cultivation in Bangladesh

Methodology:

Multistage sampling technique was followed to collect sample farmers for this study. At first, two districts namely Joypurhat and Rajshahi were selected on the basis of availability of strawberry farmer. In the second stage, concentrated strawberry growing upazila from each district were selected on the basis of area and production of strawberry. Thirdly, 2-3 agricultural Blocks were selected in consultation with DAE personnel for selecting sample farmers. Finally, the samples were randomly selected from the complete list of strawberry farmers for interview. A total of 100 strawberry growers taking 50 farmers from each district were selected for the study. The study was mainly based on primary data that were collected through face to face interview using a pre-tested interview schedule which was conducted through field survey during the month of December to March, 2017. The collected data were first edited and tabulated for analysis to fulfill the objectives of the study. Descriptive statistics such as averages and percentages were used in this study. SWOT analysis was also used to assess the potentialities of strawberry cultivation in Bangladesh. Cobb-Douglas production function model was used to estimate the Resource Use Efficiency of strawberry producer.

Source of Information: Annual Research Report, 2017, Agricultural Economics Division, Bangladesh Agricultural Research Institute,Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

A large number of people, mostly unemployed youths, were engaged on strawberry farming. There was no specific market for it and the youths were supplying strawberries to only the market of Karwanbazzar, Dhaka. Two varieties of strawberry, namely American Festival and Rabi-3 were found to cultivate in the study areas. They planted in mid-November to mid-December. The farmers in the study areas performed some intercultural operations like weeding, spraying, and irrigating the crop. The harvesting time of strawberry started in the month of January and continued up to the month of March. Strawberry is highly perishable and hence a great deal of care is needed in handling as well as its marketing. So for its careful handling more labour is required. Comparatively high cost involved in its cultivation but yield more return and it is highly profitable crop. Farmers in the study areas performed different value addition activities like cleaning, grading, packaging, labeling and transportation to increase their product price. Efficiency ratio of the inputs indicates, farmers of the study area were not efficient in using inputs and they need training to be efficient. Due to its perishable nature, a huge amount of losses is associated with postharvest handling. Though strawberry has a good potentialities, farmers in the study area faced some problems to produce strawberry because they have no training on strawberry cultivation. If the shortcomings in terms of advanced technology, resources, and an effective storage system to maintain the quality of strawberries are overcome, Bangladesh can move towards mass production and cultivation of the fruit, thereby achieving economies of scale and making it a more profitable venture.

Knowledge Management: Report/Proceedings