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Value Chain Analysis of Exportable Okra (abelmoschus Esculentus L.) from Bangladesh

Md. Saikul Islam
Department of Labour, Ministry of Labour and Employment, GoB

A. N. Faruq
Department of Plant Pathology, Sher-e-Bangia Agricultural University, Dhaka-1207

M. A. H. Chowdhury
The City Bank Limited

Mohammad Shahjahan
Department of Horticulture, Sher-e-Bangla Agricultural University, Dhaka-1207, Bangladesh

K. Kabir
Department of Horticulture, Sher-e-Bangla Agricultural University, Dhaka-1207, Bangladesh

Abstract/ Executive Summary:

A survey was conducted to assess the export supply and value chain analyses of okra (Abelmoschus esculentus L.) in Bangladesh. The survey was consisted of primary and secondary data from semi- structured interview of key persons involved in the supply chains of export market of okra and from the review of relevant reports and literature. Primary data were collected from 40 middlemen (from Ulokhola-10, Kawranbazar-7, Shambazar-8, Jatrabaribazar-5, Chandina-10), 5 service providers and 20 okra exporters of Dhaka city. It was found that the supply chain was fragmented and complex. The middlemen predominantly controlled the supply chains. Post-harvest management was poor, resulting low quality of the produce and low prices in the export market. The supply chain indicated that, the growers consumed 7.8% of their own product while 92.2% was sold out. About 28% farmers sold their okra at the field/farm-gates and 72% was sold in the local markets. The value chain analyses (VCA) revealed that, the net profit margin was 15.77 Tk/kg for both the UK and the Middle East markets whereas the net profit was 5.86 Tk/kg in local markets. The cost of airfreight was highest (63.97%) of all costs followed by the production cost of okra (16.85%) and the cost of packing (13.40%).

Keywords: Okra, Export supply, Value chain analyses, Bangladesh

Location: Dhaka, Comilla, and Gazipur area.

Start Date: 00-00-0000

End Date: 00-00-0000

Program Area: Socio-economic and Policy

Commodity: Okra

Objectives:

a) Identify export supply chain and analyze value chain of exporting okra;

b) Estimate the marketing costs and margins of its export from Bangladesh.

Methodology:

The study was based on the primary and secondary data. To collect information of the primary data, questionnaire and observational methods were followed. Some of the information on the structural and the organizational characteristics of the marketing systems were obtained by the observational method. Both the qualitative and quantitative investigations were made using the participatory techniques to identify the thrust areas for interventions. Information/data gathered through those methods were supplemented and verified using the secondary sources like various study reports, official documents, proceeding of meetings and related information available in the country. Six locations from Dhaka, Comilla, and Gazipur districts were selected for the study. The exporters, beparies and retailers were considered as the population for the study. The samples of the study included were okra exporting firms, beparies and retailers. A combination of both the non-probabilistic stratified random sampling and cluster-sampling techniques were followed. The samples were drawn using a systematic pattern (i.e. every fourth enterprise on the left hand side) from an arbitrarily designated 'point within each sample area (block, ward, road etc.). For collecting relevant data from the respondents, specific questions were included in the interview schedules about the existing procurement systems, existing systems of okra export, transportation systems, domestic and export prices of okra, average transaction per shipment, spoilage of bought okra, marketing cost, margin of their exported okra, availability of cargo space, airfreight charges, information about foreign buyers, government export services, growth of export sales, export distributions, types of exportable vegetable, marketing problems as well as suggestion for improving the existing situations of exporting okra. The interview schedules was pre-tested and after necessary modifications, the schedules was finalized. The primary data relating to export marketing were collected from the respondents (okra growers, exporters. middlemen and retailers) using the interview schedule. Interviewing respondents, observation method and informal discussion were held to obtain relevant data. Primary data were collected over two years. The secondary data were collected from various national and international organizations, viz. the published materials of Bangladesh Bureau of Statistics (BBS), Export Promotion Bureau of Bangladesh (EPB), Department of Agricultural Marketing (DAM), Food and Agricultural Organization (FAO) of the United Nations Reports, Ministry of Agriculture of Bangladesh, Bangladesh Planning Commission, consultancy reports of Bangladesh Agricultural Research Institute (BARI), Bangladesh Agricultural Development Corporation (BADC), Hortex Foundation and printing and electronic media. The processing of data was started with coding of questionnaires. The MS excel software packages were used for processing the collected information in the light of the scope of the study. Logical steps for processing of the data and analyses depicted.

Source of Information: The Agriculturists 13(1): 133-139 (2015) ISSN 2304-7321 (Online), ISSN 1729-5211 (Print)

Article Link (Online Journal):

Funding Source:

1. Bangladesh Agricultural Research Council

Budget: 1187000

Total Budget (Tk.) :

Achievement/Findings:

The findings indicate that okra export was highly remunerative for both farmers and exporters. The country as a whole was also benefited in terms of earning foreign exchange from exporting okra. Quality improvement of produce and packaging may increase the export value, which needs urgent intervention to exporting by organizing quality production through the contract farmers. The success of okra export may act as an eye- opener to producers, exporters and built confidence among all agencies that Bangladesh can also successfully export a variety of other high valued horticultural produces. The growth potential okra was higher than any other horticultural crops at that time. However, the development was still very slow and exporters were operating at the low efficiency levels due to the di versified nature of problems associated with okra export markets. The findings of the present study will provide basic information for the supply chain along with costs and margins of okra exports from Bangladesh and it would be helpful for vegetable growers, traders, exporters, policy makers, researchers; and to build a foundation for further research and development of this aspect.

Knowledge Management: Journal