Profitability of Mango Marketing in Different Supply Chains in Selected Areas of Chapai Nawabganj District
Profitability of Mango Marketing in Different Supply Chains in Selected Areas of Chapai Nawabganj District
Profitability of Mango Marketing in Different Supply Chains in Selected Areas of Chapai Nawabganj District
Introduction
The fruit nutrients are vital for maintaining good health. They are naturally low
in calories, fat, sodium, and cholesterol. Fruits are rich in fiber, which is essential
for the smooth movement of food in the body’s digestive system. It can reduce
the risk of many illnesses, including heart disease and stroke
(www.healthyeating.org/Healthy-Eating). The per capita consumption of fruits in
Bangladesh is 44.8 gm. However, sharp increase (58.02%) was taken place in the
1&2
Respectively Principal Scientific Officer and Scientific Officer, Agricultural
Economics Division, Bangladesh Agricultural Research Institute (BARI), Joydebpur,
Gazipur-1701, 3Chief Scientific Officer, Pomology Division, Horticulture Research
Centre (HRC), BARI, Gazipur, Bangladesh.
DOI: http://
472 MIAH et al.
per capita consumption of fruits in the country over the period from 2000 to 2010
(HIES, 2010).
Mango (Mangifera indica) is one of the important fruits of Bangladesh. It
occupies a total area of land 30.80 thousand hectares with a total production of
956.87 thousand tons having an average yield of 31.07 ton/ha (BBS, 2013). In
the last couple of years, mango production is increasing due to the introduction of
improved varieties and production techniques as well as increased market
demand (Fig 1). The area and production of mango are increasing at the rate of
1.5% and 5.3% in the last ten years, respectively.
Methodology
Study area selection: Mango is an important fruit of Bangladesh. It grows more
or less every parts of the country. However, Chapai Nawabganj, an intensive
mango growing district, was purposively selected for this study. The district was
selected in consultation with the personnel of Department of Agricultural
Extension (DAE) and the fruits scientists of Bangladesh Agricultural Research
Institute for administering field and market survey. Again, two suitable Upazilas
Shibgonj and Bholahat were selected in terms of the availability of data,
convenience of data collection, and easy accessibility.
Sampling procedure and sample size: At first, a complete list of mango farmers
was prepared with the help of DAE personnel. A total of 30 mango farmers (15
from each Upazila) were randomly selected from the list for interview to collect
primary data. It was planned that in total 75 key actors in the mango supply chain
(i.e. 15 each for Faria, Bepari, retailer, Arathdar and consumer) will be selected
and interviewed, but due to the unavailability of some key actors the actual
number of sample size was 68. All the actors were randomly selected and
interviewed from different assemble, wholesale, and retail markets levels (i.e.
Upazila/district/Dhaka City).
Period of study: Primary data were collected by interviewing mango farmers and
traders using two structured and pre-tested interview schedules during August-
September, 2015. The researcher himself along with trained enumerators
collected data and information for this study.
474 MIAH et al.
Analytical technique: The collected data were edited, tabulated and analyzed
applying simple descriptive methods. However, marketing margins of the key
actors were calculated by the following equations.
……………………………….…………...……….. (1)
Where,
GMi= Gross margin (Tk/ton) for ith intermediary
PRi = Price received (Tk/ton) for ith intermediary
PPi = Price paid (Tk/ton) by ith intermediary
- ………………….…....………………… (2)
Where,
NMi = Net margin (Tk/ton) for ith intermediary
MCi = Marketing cost incurred (Tk/ton) by ith intermediary
CPLi = Cost of postharvest loss incurred (Tk/ton) by ith intermediary
……....………..………. (3)
Where,
CPL = Cost of postharvest loss (Tk/ton)
= Quantity damaged completely (ton)
= Average purchase price (Tk/ton)
= Quantity damaged partially that could not be sold (ton)
= Quantity damaged partially that could be sold with less price (ton)
distance. Farias traded volume was much lower than Bepari. Usually they do not
store mangoes for even one night. Arathdar simply plays their role as a
commission agent. Retailer traded in the consuming areas and their traded
quantity was small. They purchase small quantity, hold long period and sell small
quantity according to the consumer demand. Some institutional buyers such as
PRAN Agro, Akij group, Agro Food Industries, Agro Food & Beverage,
Technoprime Inc. BD. Ltd., Seazon, etc also good buyers (through Bepari) of
mango in the study areas.
The following channels were identified in the study areas for mango marketing:
%
1. Farmer/advance buyer >Bepari>Urban Arathdar>Urban Retailer>Urban 85.1
Consumer
2. Farmer/ advance buyer >Faria>Local Arathdar>Bepari>Urban 4.8
Arathdar>Urban Retailer>Urban consumer
3. Farmer/ advance buyer >Faria>Bepari>Urban Arathdar>Urban 4.2
Retailer>Urban Consumer
4. Farmer/ advance buyer >Faria>Local Arathdar>Local Retailer>Local 4.0
consumer
5. Farmer/ advance buyer >Local Retailer>Local consumer 1.0
6. Farmer/ advance buyer >Faria>Local Retailer>Local consumer 0.5
7. Farmer/ advance buyer >Faria>Institutional buyer 0.2
8. Farmer/ advance buyer >Bepari >Institutional buyer 0.2
*
The peak and lean seasons are ranged from Mid June-Mid August and Mid August to
Mid September for Chapai Nawabganj district
PROFITABILITY OF MANGO MARKETING IN DIFFERENT SUPPLY CHAINS 477
purchase. On the contrary, the volume of transaction was the highest for Beparis,
but their net margin was the lowest (Tk. 5,393.47/ton) due to higher marketing
cost. Generally, retailers receive highest net margin in other business, but in mango
marketing retailers were found to receive a reasonable net margin (Tk.
6,601.36/ton) due to higher postharvest loss (Table 6).
Table 6. Marketing margin and profit of different intermediaries
Average Gross Average Average
Trader Average
purchase margin marketing postharve Net profit
type sale price
price (Tk/ton) cost st loss (Tk/ton)
(Tk/ton)
(Tk/ton) (Tk/ton) (Tk/ton)
I II III IV=(III-II) V VI VII=(IV-V-VI)
Faria 37905.75 46867.24 8961.49 738.20 155.53 8067.76
Bepari 38303.92 51853.15 13549.23 7337.90 817.86 5393.47
Retailer 43146.83 52124.99 8978.16 1217.90 1158.90 6601.36
Source: Field survey, 2015.
Mode of Transportation
The key actors in the supply chain used different types of vehicles to transport
mango. The use of vehicles varied from traders to traders and the length of
destination markets. Farmers transported mango by using different local low-cost
carriers like bicycle, rickshaw, van, and push cart. Trucks and vans were mostly
used for mango transportation from the assemble markets to the destination
wholesale markets. Majority of the Farias and retailers used rickshaw/van and
Nosimon (5 wheeler local vehicle) to transport their mangoes. Table 8 revealed
that 60% of Farias used rickshaw/van and the rest of them used bicycle to carry
mangoes from garden to assemble markets. All the Beparis used truck to
transport mangoes from assembles market to distant wholesale markets. Beparis
also used rickshaw or van to transport purchased mangoes from assembles place
to local Arath or near to truck. The highest percentage of retailers used rickshaw
or van followed by bicycle for transporting mangoes from purchase place to their
permanent shops.
Table 8. Mode of transportation of the traders
% of responses by traders
Mode of transport
Faria (n=15) Bepari (n=10) Retailer (n=13)
1. Truck/pick up -- 100.0 7.7
2. Rickshaw/van 60.0 -- 76.9
3. Bicycle 40.0 -- 15.4
Source: Field survey, 2015.
used plastic crates to transport mango from assemble market to distant wholesale
market that ensure lower transportation loss in the study areas.
Table 10. Total postharvest losses of mango at traders’ level
Complete damage Partial damage Total damage
Key Total % of Total Loss % of
players Loss Loss % of total Total loss
loss total loss (kg/ total
(kg/ ton) (kg/ ton) purchase (ton)
(ton) purchase (ton) ton) purchase
Faria 0.44 0.55 0.05 8.24 9.69 0.97 8.68 10.24 1.02
Bepari 131.12 13.00 1.30 217.72 26.54 2.65 348.84 39.54 3.95
Retailer 2.12 16.87 1.69 3.56 29.48 2.95 5.68 46.35 4.64
Total 133.68 30.42 3.04 229.52 65.71 6.57 363.2 96.13 9.61
Source: Field survey, 2015.
All the intermediaries stated that the loss incurred in the supply chain due to
spoilage (not suitable for marketing) caused by short-time storage (1-2 days),
improper handling during sorting & grading, transportation, and delayed sell. The
percentage shares of postharvest losses at different stages in the supply chain are
shown in Fig 4. It was revealed that Faria had no postharvest loss at storage level
because they did not need storage at all. The highest loss at transportation level
(2.91%) was incurred for Bepari due to unsuitable transportation. In the case of
Faria, the highest loss (0.73%) incurred during sorting and grading due to
inappropriate handling. The postharvest loss due to delayed sell (2.82%) was
found to be the highest for retailer. Irrespective of traders, the highest loss was
due to transportation (3.19%) followed by delayed sell (3.12%) and sorting &
grading (1.85%).
level. Major marketing problems in the supply chain are delayed sale and lack of
buyers.
Recommendations
Based on the findings of the study, the following recommendations are required
to reduce postharvest losses, increase profitability and improve marketing system
of mango.
1. Donor agency and the government would make arrangement for funding to
perform the pilot project establishing pack house and cool chain management
system for fresh fruits in order to reduce postharvest spoilage.
2. Technical know-how and technology related to postharvest management and
nutrition should be disseminated by Bangladesh Agricultural Research
Institute (BARI) and other related agencies through TV, radio, billboard,
video, brochure, and mobile phone apps etc., which would have much impact
on the reduction of postharvest losses.
3. The concerned authority may undertake pilot projects to establish limited
number of low temperature storage facilities in production catchment areas
and wholesale markets for high-value crops including mango.
4. Entrepreneurs should come forward to establish more small-scale processing
plants in the intensive growing areas to minimize wastage of mango.
5. BARI and Agricultural Universities in Bangladesh should strengthen their
existing capacity in terms of postharvest research and development.
End Note:
Advance buyer: Selling mango garden in advance during flouring stage by its
owner is a common and dominant system in the study areas. Sometimes first
advance buyer hands over the garden to second buyer with desired profit just
after one or two months later. Finally, advance buyer looks after the garden
throughout the season.
Faria: Faria is a small scale businessman that purchases produces from the
farmers at village or local assemble market, and offer the same to the Bepari or
Arathdar. Sometimes, he sells his produces directly to the local retailers or
consumers. Their volume of purchase is generally low and use small local
vehicle for transporting produces from field to assemble market.
Bepari: Bepari is a professional wholesale trader who makes his purchase from
producer or Faria at the local assemble market, bring their consignment to the
urban wholesale market and sell them to Paikar and retailer through Arathdar.
Their volume of purchase is generally high and use truck for transporting
produces from assembles market to distant wholesale markets.
PROFITABILITY OF MANGO MARKETING IN DIFFERENT SUPPLY CHAINS 487
References
BBS. 2013. Yearbook of Agricultural Statistics, Bangladesh Bureau of Statistics.
Ministry of Planning, Dhaka, Bangladesh.
HIES. 2010. Household income and expenditure survey. Bangladesh Bureau of Statistics.
Ministry of Planning, Dhaka, Bangladesh.
Hasan, M. K., B. L. D. Chowdhury, N. Akter. 2014. Postharvest loss assessment: a study
to formulate policy for loss reduction of fruits and vegetables and socioeconomic
uplift of the stakeholders, National Food Policy Capacity Strengthening Programme,
FAO, Rome, Italy.
Matin, M. A., M. A. Baset, Q.M. Alam, M. R. Karim and M. R. Hasan. 2008. Mango
marketing system in selected areas of Bangladesh, Bangladesh Journal of
Agricultural Research, 33(3): 427-438.
www.healthyeating.org/Healthy-Eating.
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