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Production, Marketing and Postharvest Loss Assessment of Litchi in Bangladesh

S. Khandoker
Agricultural Economics Division, BARI, Joydebpur, Gazipur-1701.

M.A Matin
Agricultural Economics Division, BARI, Joydebpur, Gazipur

Abstract/ Executive Summary:

The study was conducted in four districts namely Dinajpur, Pabna, Narayanganj and Khagrachhari during 2016-2017 to estimate profitability, supply chain and postharvest loss of litchi and explore related problems of in the study areas. A total of 160 farmers and 124 traders were selected randomly for the study. Per hectare average cost of litchi cultivation was Tk. 1, 47,746. Per hectare average yield of litchi was 5.0 ton. Per hectare gross return of litchi was Tk. 4,99,853. Per hectare net return from litchi cultivation was Tk. 2, 03, 583. Litchi cultivation was found to be a profitable enterprise in the study areas since the (BCR 2.38), net present value (Tk. 16, 49,648) and internal rate of return (43%) was very high. Five major marketing chains were identified. Marketing costs and marketing margin of Bepari were highest among the intermediaries. The average postharvest losses were estimated to be 11.48% and 9.81% at the farmers’ and traders level, respectively. Losses due to disease, insect and bat invasion and harvesting loss were main reason for postharvest losses at farm level. On the other hand, the losses of litchi were found highest for urban retailers (2.85%) followed by Beparis (2.43%) and rural retailers (1.95%). At traders’ level, these losses occurred due to transportation, sorting and grading, spoilage and delay selling. Total production and distance to the market were positively significant whereas sale price, transportation dummy and packaging dummy were negatively significant to postharvest losses at farm level. Disease and insect infestation, damage of litchi due to sunburn and storm, invasion of bird and bat were major production problem for litchi. However, lack of efficient transport and higher cost of transportation were the major marketing problem for litchi. Area expansion under high yielding variety, shifting of area for litchi cultivation and establishing of agro processing industry were the major opportunities for litchi.

Keywords: Production, Marketing, Postharvest, Litchi

Location: Dinajpur, Pabna, Narayanganj and Khagrachhari of Bangladesh

Start Date: 00-00-2016

End Date: 00-00-2017

Program Area: Postharvest and Agro-processing

Commodity:

Objectives:

i. To estimate the profitability of litchi cultivation; ii. To analyse the supply chain of litchi in the study areas; iii. To examine the post-harvest loss of litchi at farmers and traders level ; iv. To find out factors affecting postharvest losses at farm level; and v. To identify the constraints and opportunities of litchi supply chain and to recommend measure for further improvement.

Methodology:

The study was conducted in four major litchi growing areas namely Dinajpur, Pabna, Narayanganj and Khagrachhari. Sadar upazila from Dinajpur district, Isshardi upazila from Pabna, Sonargaon upazila from Narayanganj and Sadar upazila from Khagrachhari district were selected for administering questionnaire survey. A multistage stratified random sampling design was followed to collect sample farmers for this study. At first stage, four districts were selected according to the highest concentration of litchi production. In the second stage, one upazila from each three districts and two blocks from each upazila were selected according to the above mentioned criteria. Finally, a total of 160 farmers taking 40 farmers from each district were randomly selected for interview. Again 100 traders from different primary and secondary market out of which 25 (8 Faria, 8 Bepari, 4 Arathdar and 5 retailers) from each district was selected. Dhaka and Gazipur were selected as urban market because these are major consuming areas. A total of 24 traders (8 Arathdar and 16 retailers) were selected from urban market. Finally, total sample size was 284 out of which 160 were farmers and 124 were traders. In farmers’ level, data were catagorized according to year of cultivation. The age of litchi trees were classified as 1^st year, 2^nd year, 3^rd year, 4^th year, 5^th year, 6-10^th year, 11-15^th year, 16-20^th year, 20-25^th year and above. The study was mainly based on primary data collected through face to face interview during the month of January to June 2017. Field investigators under the direct supervision of the researcher collected field level cross-sectional data using pre-tested interview schedule. Necessary information regarding this study was collected based on input costs, price, yields etc. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. Descriptive statistics using different statistical tools like averages, percentages and ratios were used in presenting the results of the study. The profitability of litchi production was examined on the basis of gross return, gross margin and benefit cost ratio analysis. Besides, the opportunity cost of family supplied labour was taken into consideration in estimating total cost. Land use cost was calculated on the basis of per year lease value of land. Project analysis and sensitivity analysis were done. SWOT analysis was carried out to find out strengths, weaknesses, opportunities and threats of litchi.

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

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study assessed the details of litchi production, marketing and postharvest losses. Although litchi cultivation required slightly higher cost it received the higher net return as well as BCR. The rate of returns (i.e. BCR, NPV and IRR) indicated that litchi cultivation is highly profitable for the farmers. Sensitivity analysis suggests that litchi cultivation can earn profit under changing situation. Five major marketing chains have been identified. Among these chains, Farmer> Bepari> Arathdar (Urban) > Retailer (Urban)> consumer is the dominant chain in the study areas. The marketing cost and margin of Bepari was the highest among the intermediaries involved in litchi marketing. Marketing margin of different intermediaries in litchi supply chain is good. Postharvest loss of litchi was higher in farmers’ level than traders’ level. Loss due to bird, bat and insect invasion and harvesting losses were the major reasons of loss at farm level. On the other hand, in traders’ level, transportation loss occupied major portion of total losses. Multiple linear regression model showed that total production and distance to the market were positively significant which indicates that with the increase of production of litchi and distance to the market postharvest loss would be increased. On the other hand, sale price, transportation dummy and packaging dummy were negatively significant indicates that if sale price of litchi, transport facilities and packaging facilities were increased postharvest loss would be decreased. Although litchi is a profitable crop in the study areas, due to some setbacks few farmers have showed negative attitudes toward its production. They have experienced different problems to its cultivation such as disease and insect and infestation, damage of litchi due to sunburn and storm, invasion of bird, bat and squirrel etc. However, lack of efficient transport and higher cost of transportation were the major marketing problem for litchi. Respondent farmers in the study areas also wanted some facilities such as litchi harvester, storage facilities, timely supply of quality insecticides etc. for cultivating litchi.

Knowledge Management: Report/Proceedings