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Adoption of Agricultural Marketing Technologies by Farmers of Northern Bangladesh: a BINAry LoGIStic Analysis to Determine the Factors Influencing Farmers' Decision

Md. Ziaul Haque
PhD Fellow, Institute of Bangladesh Studies (IBS), Rajshahi University, Rajshahi, BANGLADESH

Abstract/ Executive Summary:

The low adoption of agricultural marketing technologies in the field of agricultural commodities marketing is one of the main reasons for the profit loss of the farmers in Bangladesh. This paper examines the factors that influence farmers' decision of modern agricultural marketing technologies adoption in Northern Bangladesh. By using questionnaire survey the researcher collect data from 216 farmers in Dinajpur and Naogaon district in Northern Bangladesh and the binary logistic regression model was estimated to find out the factors influence farmers decision. Seven independent variables i.e. age of the farmer, formal education of the farmer, farm size, level of expected benefits, off-farm income-generating activities, access to institutional credit and training about use of marketing technologies are statistically significant factors that influence the decision of farmers to adopt modern agricultural marketing technologies in Northern Bangladesh. So it is concluded that the farmers' decision to adopt modern agricultural marketing technologies depends on their socio-economic status and organizational effectiveness. We recommend that such policies should be made so that the positive impact factors on technologies adoption are properly utilized and negative issues are reduced.

Keywords: Agricultural Marketing, Binary Logistic Regression, Marketing Technologies, Farmers' Decision

Location: Rajshahi and Rangpur division of Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Adoption of technology, Market/Marketing

Objectives:

This paper, therefore, examines the different factors that influence the adoption of modern agricultural marketing technologies among farmers in Northern Bangladesh.

Methodology:

The survey Northern Bangladesh is selected for this study. Because of this region has produces surplus agricultural commodities. Marketing of these commodities is a vital issue for this region. Northern Bangladesh is the northwestern part of the country. It consists of 16 districts of Rajshahi and Rangpur division. Two districts namely Naogaon and Dinajpur have been selected purposively from two divisions as they possess same sub-tropical climate and agricultural activities. After that one upazilla from each district has been selected i.e., Mohadevpur from Naogaon, out of 11 upazillas and Hakimpur from Dinajpur, out of 13 upazillas following Simple Random Sampling (SRS) lottery method. Again as each upazilla has some unions; therefore, one union from each upazilla has been selected in the same manner. Finally, four villages were selected in the same technique i.e., two villages from each union (Baghdob from Chandas union of Mohadevpur Upazilla and Ghonashampur from Khatta Madhabpara union of Hakimpur Upazilla).

The population of the study is the number of households engaged in production and marketing of agricultural commodities and living permanently in the selected village. Total number of households in selected two upazillas is 98984 (Population and Housing Senses, BBS, 2011). Total number of households engaged in agricultural commodities production and marketing in selected two upazillas is 80177 (Upazila Agriculture Office). Therefore, 81% of total households are engaged in agricultural commodities production and marketing in the study area. Total number of households in selected two villages is (575 + 204) = 779 and (466 + 165) = 631households are engaged in agricultural commodities production and marketing (Population and Housing Senses, BBS, 2011). Therefore, size of the study population (N) is 631. By using the following formula we can determine the sample size.

The analytical Framework Using the logit model, the factors that influence farm households’ decisions to adopt modern agricultural marketing technologies were estimated. The use of the logit model for this analysis is consistent with the literature on adoption which describes the process of adoption as compelling on a logistic nature. The study used the beginning decision-making theory proposed by Hill and Kau (1973), and Pindyck and Rubinfeld (1998). The theory points out the fact that when farmers are faced with a decision to adopt or not to adopt a technology, there is a reaction beginning that is dependent on a certain set of factors. As such, at a certain value of stimulus below the beginning, no adoption is observed while at the critical beginning value, a reaction is stimulated. Such phenomena are generally modeled using the relationship.

Source of Information: Asian Business Review -Volume 9 -Number 3/2019

Article Link (Online Journal): DOI: https://doi.org/10.18034/abr.v9i3.338

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

We have taken nine explanatory variables in our model which influences the farmers' decision to adopt modern agricultural marketing technologies. We have found three explanatory variables i.e. age of the farmer, formal education of the farmer and cost of technologies negatively influence the farmers' decision to adopt modern agricultural marketing technologies in Northern Bangladesh. The remaining six explanatory variables i.e. farm size, level of expected benefits, off-farm income-generating activities, the profitability of using technology, access to institutional credit and training about use of marketing technologies positively influences the farmers' decision to adopt modern agricultural marketing technologies in Northern Bangladesh. Seven independent variables i.e. age of the farmer, formal education of the farmer, farm size, and level of expected benefits, off-farm income-generating activities, access to institutional credit and training about use of marketing technologies are statistically significant factors that influence the decision of farmers to adopt modern agricultural marketing technologies in Northern Bangladesh. Only two independent variables i.e. cost of technologies and profitability of using technology are statistically insignificant factors that influence the decision of farmers to adopt modern agricultural marketing technologies in Northern Bangladesh. So it is concluded that the farmers’ decision to adopt modern agricultural marketing technologies depends on their socio-economic status and organizational effectiveness. We recommend that such policies should be made so that the positive impact factors on technologies adoption are properly utilized and negative issues are reduced.

Knowledge Management: Journal