Government of the People s Republic of Bangladesh

Transcription

1 Government of the People s Republic of Bangladesh Department of Agricultural Extension Second Crop Diversification Project (SCDP) Middle Building (6 th Floor) Khamarbari, Farmgate, Dhaka-1215 FINAL REPORT Consulting Services for Floriculture Study Relevant Areas in Country under Second Crop Diversification Project (SCDP) Package No.: DAE/SCDP/CS-03 Conducted by: DTCL Development Technical Consultants Ltd. (DTCL) Niketon, Gulshan-1, Dhaka-1212

2 Executive Summary Second Crop Diversification Project (SCDP) is a follow-up project of North-west Crop Diversification Project which is jointly sponsored by the Asian Development Bank and the Government of Bangladesh. The project is being implemented under the Ministry of Agriculture (MOA). The Department of Agricultural Extension (DAE) is the lead agency for overall project and Bangladesh Bank is the lead agency for credit component. The project was started for a period of five years from July 2010 to June 2016 but extended until 31 December The general objectives of the project are to: (i) add more value to agricultural gross domestic product (GDP) compared to Boro rice, (ii) increase incomes of farmers producing HVC, (iii) create employment opportunities and increase incomes of poor households and disadvantaged women in the locality, (iv) provide opportunities to HVC growers for adding value to their produce through cleaning, grading, packaging, storage, transportation, and marketing and (v) provide credit access to farmers. This Final Report is a contractual requirement of the Development Technical Consultants Pvt. Limited (DTCL) and report on results and findings against the Floriculture Study Relevant Areas in Country under Second Crop Diversification Project (SCDP). The Final Report is being submitted before completion of the assignment. This was discussed with PD/PMU and national level workshop to receive feedback on results and recommendations. It is anticipated the Final Report is submitted by incorporating comments and suggestions of the PMU and other stakeholders at the workshop. Flower area and production The total flower area devoted to flower production in Bangladesh is 2526 hectare for whole Bangladesh and the number of total flower production was estimated at 294 million pieces. The top five dominant flowers in terms of area are rose, marigold, gladiolus, tuberose and dalia accounting for 89% of the total flower area in Bangladesh. In terms of production, most important flowers are marigold, rose, tuberose and Gladiolus accounting for 98% of all flowers produced in Bangladesh. The highest flower producing districts in Bangladesh are Jessore, Jhenaidaha, Dhaka and Chittagong accounting for 94% of total flower production in Bangladesh. The other 60 districts produce only about 6% of all flowers produced in Bangladesh These 8 sample districts account for 68.56% of total area and 97.58% of all flowers produced in Bangladesh. Jessore, Jhenaidaha and Dhaka are 1st, 2nd and 3rd in order of importance of flower are and production. Area for rose was 51.8% of total area in Dhaka followed by Jessore, Cox's Bazar and Chittagong. About 70.78% of marigold (ganda) producing area is in Jhenaidah district followed by Jessore and Chittagong. Other districts are very minor in marigold production. Major tuberose producing districts are Jessore (69.33%), Chuadanga (15.92%) and Jhenaidaha (8.98%). Jessore, Chittagong and Dhaka and Cox's bazar are important gladiolus producing area accounting for 66.23%, 14.72%, 11.97% and 4.89% respectively. Baganbilash is produced only in Dhaka (66% of all area) and Chittagong (34% of all area). Joba, Cosmos, Dolonchapa, Nayantara, Morogjhuti and Kolaboti are produced only in Dhaka district. Gerbera is produced only in Jessore and Jhenaidaha. About 77% of all flower producing area are in three districts namely Jessore, Jhenaidah and Dhaka. The 8 sample districts contribute significantly in flower production. SCDP has certainly contributed to to the area and production expansion of flowers. But area as well as flower production concentration has taken place in these 8 districts. The other districts provide very little both in terms of production and area. It is thus suggested that for expansion of flower area and production, efforts are to be taken to bring more areas under flower in other districts of Bangladesh. i

3 Value chain in flower production and marketing Value chain in flower comprises several agents and activities. Seed supplier/ local plantlets supplier are the agents who supply seeds to the farmers for flower production. Inputs suppliers such as fertilizer. cow dung, insecticides/pesticides, irrigation, credit are necessary components required during the flower production process. During production process various cultural and inter cultural activities takes place for which farmers and or family or hired labours provide services to the farmers. Then harvesting is made by farmers and labours (hired or family). After harvest, flowers are carried to the assembling centers by head load and van pullers. From the assembling centers, flowers are purchased by the local agents and agent cum traders. Some portion of the flowers directly goes to nearby markets by petty traders cum Farias. Flower traders then collects flowers from the assembling centers and arranges for transportation to distant markets. Two marketing channels have been identified, which are as follows: I. Channel1: Grower - Local trader - Wholesalers cum retailer- retailer. II. Grower - Local trader- Retailer - Consumer Value addition per hundred of rose was Tk and the rate of return was 20.23%. The ROI of the wholesalers for rose was 21.47% while the value addition was Tk32.5. For retailers the ROI and value additions were. Value additions was Tk 127 while the ROI was 44.87% for the retailers. Value addition of marigold was very low Tk 14 for local traders, TK for wholesalers and Tk 49 for retailers. ROIs were 48.27%, 56/3% and 59.03%. Value addition of gladiolus were Tk 175 for local traders, Tk and Tk329. Tuberose value addition varied between Tk25.88 to Tk103. The above discussion shows that value addition keeps improving when the product moves from producers to traders and consumers. The high quality flowers receive more value addition and rate of returns compared to the inferior flowers. The flower farmers should produce high quality flower to reap the benefits of value addition and ROI. Farmers' income also can be increased y adding high value flowers in the production portfolio. Production and production dynamics The different activities required for production of flowers are use of human labours. Farmer, family members and hired labours are usually used in the flower. expenditure for human labour constitutes an important part (26% to 40%) of the total cost of flower production. For preparation of land for flower production, use of ploughs and power tiller are required. In the samples area, only 4% framers were found to have used ploughs. Almost all used power tillers for land preparation. Plantlets (small seedlings) are used for production of rose, marigold and gladiolus. Plantlet cost ranged between 23% to about 30% of total cost. There are use of inorganic fertilizers like urea, TSP, MP, Boron and Zink that cost about 10-14% of the total cost. Organic manure i.e., cow dung is used in the production of flowers which costs 2 to 3% of all costs. Irrigation costs ranged about 5-8% while insecticides cost was reported to be about 5% to 8% depending on extent of infestation. In general, flower appears to be more profitable than rice crops. Rose provided a benefit cost ratio of 2.89 indicating that a one Taka investment in rose cultivation provides a gross return of taka 2.89 or a net return of taka Tuberose had the highest BCR (1.92) indicating that a one taka investment in tuberose results in a net return of taka Similarly, the BCRs were 2.71 for Gladiolus and 1.62 for marigold Inputs supply Of the total sample of 400 flower farer farmers, male and female constituted 83% and 17% respectively. The average family size was found to be 4.95 comprising 2.64 male and 2.31 female. This family size of 4.95 is higher than the family size of the nation as a whole, which is 4.4. Little less than one-fifth (19%) of the flower sample respondents were illiterate in the ii

4 sense that they do not have any familiarity with Bangla alphabets, incapable of reading news papers and putting signatures. Average age of the flower farmers was 42 years. Cent percent farmers were directly involved in flower. Farmers dealing simultaneously with crop cultivation, dairy rearing, poultry rearing and service were 80%, 22%. 35% and 44% respectively. The overall average experience of the flower farmers was 8.2 years. Average annual income of the flower farmers were estimated at average taka in per hectare land comprising taka from Rose, taka from Gladiolus, taka from Tuber rose and Taka from Marigold. However annual income of the other farming estimated were taka 9500 from poultry rearing (single) followed by taka 19,200 per cow rearing and taka 40,000 from crop farming. Flower farmers obtained seeds/saplings from three different sources namely, SCDP/NGO/BADC (29.5%), market (66.25%) and other places (49.5%). SCDP remained the main source of seed supply for the flower farmers. Flower farmers rating the seed quality as very good, good, normal and poor constitute respectively 28%, 38.50%, 18% and 15.5%. Average price of flower seed was Taka 118 per kg while per piece of sapling/plantlet was priced at Taka Cent percent of the flower farmers reported that seed saplings are available in the market. Cent percent of the flower farmers had made use of cow dung in flower. Price of cow dung was found to be Taka 2.60 per kg. Farmers responding for cow dung quality were: very good, good, normal and poor constituted respectively 17.60%, 53%. 18.5% and 11%. Farmers receiving cow dung were from SCDP (21%), Market (28%), own farm delivery (53.25%) and others (15.25%). Cent percent farmers used fertilizer and chemicals in flower and their average use was estimated at kg. Three sources of fertilizer and chemical supply: SCDP (17%), Market (59%), and other places like nurseries and vendors (50%). Cent percent of the flower farmers indicated that organic manures and insecticides are easily available in the market and their quality was rated good (95%). The three different sources identified for organic manure and insecticides were SCDP (14%). Market (58%) and others (45%). Price of insecticides was Tk 125/kg while the prices of cow dung were between Tk/kg. Quality of organic manures and insecticides was reported to be good, as indicated by cent percent of the respondents. Plant protection materials are available in the market and their quality is good for 95 percent cases. Only 40% of the flower farmers received loans from SCDP. Te average amount received from SCDP was Tk14200 with n interest of 14%. NGO provided Tk with the same rate of interest. However, the farmers obtained an average of Tk from the village money lenders. The interest rate for the non-formal loan was 25% per annum. Post harvest loss Average post harvest loss was estimated at 18.37%. Post harvest losses were 21% for chrysanthemum, 20% each for rose, gerbera and gladiolus, and 17% for each of the rajanigandha and zypsovia. Marigold was reported to have the least (15%) post harvest loss. Harvesting and assembling loss was estimated at 1.71% while loss with local traders and trading was found to be 2.0%. Loss during transportation was the second highest and estimated at 5.0%. Losses occurred during wholesaling was timated at 2.43% but highest post-harvest loss were estimated in retailing which is 7.43%. The different activities following flower harvest are i. bringing flower home, ii. Sorting of flower, bundling, iii. Packing, iv. Storing and v. transporting and selling. Ninety percent farmers sort flowers depending on size, colour, freshness, maturity in order to get good price in the market. Farmers making contract sale do not themselves sort where the buyers make the harvest and do the necessary activities. Bundling is a common activity for flowers like rose, tuberose, gladiolus etc. About 85% reported that they make bundle of their flowers. Only 37% of the flower farmers made packing of the products before transporting. In some cases, representatives of flower farmers do the necessary packing and marketing on behalf of some flower farmers because of reducing cost of marketing. 75% reported to have been iii

5 directly involved in marketing and selling. However, most are involved in local marketing, if not in distant marketing. Marketers/flower farmers use different activities to reduce post harvest loss such as usage of good packages, reasonable size of boxes/baskets, different species in different box, use of some medicines before t8ransport and spraying waters. Conclusions: Flower practice is very important for improvement in household income, women empowerment and generation of foreign exchanges. All impediments on its way of expansion need to be wiped out. Facilities need to be developed for improvement of marketing. Some extension or framing of a different phase of SCDP may be considered taking into account the lessons of the study. The following recommendation have been put forward for improvement of the Flower area and production need to be expanded in other districts than the 8 district studied. Farmers should be encouraged to produce high grade flowers in order to export thus improve their income. Value addition can be increased by reducing marketing cost. Post harvest loss of flower needs to be further reduced. Provision for chilling room needs to be provided at least in flower hubs. Losses occurred on its way to market destination by mastans and others while transporting needs to be reduced. Necessary infrastructures for wholesaling of flower needs to be provided in most major wholesaling centers. In this regards, whole sale permanent markets with storage facilities need to be constructed at Dhaka. Necessary efforts need to be taken to reduce undesirable existence of intermediaries in the flower marketing channel to reduce market channels and improve benefits of intermediaries. The price difference between major markets such as Dhaka and local producing markets is enormous, which is due mainly to lack of infrastructure facility like cold storage. Due to lack of preservation facility, unsold flowers are often required to sell at whatever prices are offered in the market. Syndicate exists in flower markets at all levels that results in unfair price for the farmers. Institutional measures should be taken to inactivate syndicalism. Flower sector lacks investment initiatives.. Investment in storage warehouse, transportation and R&D for new production is some of the priorities to improve the quality of production. 8. Long-term strategy for flower and other crops production and its importance based on extensive research highlighting local and foreign market demand need to be done immediately. iv

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