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Usaid/Dai Banana Agricultural Value Chains (Avc) Project: Bangladesh and India

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Usaid/Dai Banana Agricultural Value Chains (Avc) Project: Bangladesh and India USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT: BANGLADESH AND INDIA (VALUE CHAIN REPORT, END MARKETS AND VALUE CHAIN ANALYSIS) BY DR. ESENDUGUE GREG FONSAH, PHD PROFESSOR AND AGRIBUSINESS EXTENSION ECONOMIST FRUITS AND VEGETABLES DEPARTMENT OF AGRICULTURE AND APPLIED ECONOMICS UNIVERSITY OF GEORGIA TIFTON, GA 31793 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 1 CONTENTS ACKNOWLEDGEMENT 7 1. INTRODUCTION 8 2. CURRENT BANANA PRODUCTION TRENDS, SITUATIONS 8 AND OUTLOOK IN BANGLADESH 2.1 PLANTING PERIOD 9 2.2 PLANTING PATTERN 10 2.3 HARVESTING 10 2.4 PLANTED BANANA CULTIVAR 10 2.5 IRRIGATION SYSTEM 10 2.6 PESTS AND DISEASES 11 2.7 PEEL-FEEDING CATERPILLAR 11 3 SUSTAINABLE BANANA PRODUCTION IN BANGLADESH 11 (SUPPLY) 4 SUSTAINABLE MARKETING AND TRADE OF BANANAS IN 12 BANGLADESH (DEMAND) 5. COST OF PRODUCTION ANALYSIS 13 5.1 DEMAND FOR BANANAS 14 5.2 FARM GATE PRICES 14 5.3 WHOLESALE PRICES 15 5.4 RETAIL PRICES 16 6 AGRICULTURAL VALUE CHAIN (AVC) SURVEY 17 METHODOLOGY 6.1 SAMPLING PLAN 17 6.2 DATA COLLECTION 18 6.3 DATA ANALYSIS 18 7 AGRICULTURAL VALUE CHAIN (AVC) SURVEY RESULTS 18 7.1 PRODUCTION SURVEY RESULTS AND ANALYSIS 18 7.2 INTERMEDIARIES SURVEY RESULTS 29 7.3 CONSUMER SURVEY RESULTS 33 8 MARKET AND DISTRIBUTION CHANNELS 37 8.1 EXISTING MARKET CHANNELS 37 8.2 ONE-LEVEL-CHANNEL 37 8.3 TWO-LEVEL-CHANNELS 37 8.4 FOUR- LEVEL-CHANNELS 38 9 DOMESTIC MARKET STRUCTURE 38 9.1 WHOLESALERS/DISTRIBUTORS IN DHAKA 38 9.2 POST-HARVEST TREATMENT 38 9.3 TRANSPORTATION SERVICES 39 9.4 RIPENING CHAMBERS 39 9.5 PACKING SHED/HOUSE 40 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 2 10 INTERNATIONAL TRADE 40 10.1 EXPORT MARKET 40 10.2 EXPORT CERTIFICATE 41 10.3 MEGA INTERNATIONAL TRADING COMPANY 41 10.4 BANGLADESH HORTICULTURAL EXPORT DEVELOPMENT FOUNDATION 41 (HORTEX FOUNDATION) 10.5 BANGLADESH FRUIT, VEGETABLES & ALLIED PRODUCTS EXPORTER’S 42 ASSOCIATION (BFVAPEA) 11 CONCLUSION 42 11.1 RECOMMENDATION 43 11.2 FIELD/PLANTATION MANAGEMENT 43 11.3 HARVESTING MANAGEMENT 44 11.4 PACKING SHED/HOUSE AND POST-HARVEST MANAGEMENT 44 11.5 RURAL DISTRIBUTION CENTER AND RIPENING CHAMBER 45 12 AGRICULTURAL VALUE CHAIN (AVC), INDIA 46 12.1 PURPOSE 46 12.2 KEVENTER AGRO LIMITED 46 13 BANANA SUPPLY VC MODEL 47 13.1 MARKET SHARE AND PROFIT MARGINS 47 13.2 IMPORT/EXPORT 48 13.3 BUSINESS MODEL 48 14 MARKET AND DISTRIBUTION CHANNELS 49 14.1 EXISTING MARKET-LEVEL-CHANNELS 49 14.2 SUCCESS STORIES 49 14.3 BANANA PRODUCTION 50 14.4 PRODUCTION COSTS 50 14.5 GOOD AGRICULTURAL PRACTICES (GAP) AND QUALITY 50 14.6 DISEASE PROBLEMS 51 15 SUPER MARKET, KOLKATA 51 15.1 BANANA RETAIL PRICES 51 16 WORLD BANANA PRODUCTION OUTLOOK 52 16.1 WORLD BANANA SUPPLIERS 52 16.2 WORLD BANANA EXPORT COUNTRIES 53 16.3 WORLD BANANA IMPORT COUNTRIES 54 16.4 WORLD BANANA EXPORT BY REGIONS 54 17 CONCLUSION 55 17.1 RECOMMENDATION 55 REFERENCES AND RECOMMENDED READING 56 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 3 TABLE OF FIGURES 2.1A PLANT INFESTED BY BBTV 11 2.1B SIGATOKA INFESTATION 11 2.1C PEEL-FEEDING DAMAGE 11 5.1 PROJECTED BANGLADESH POPULATION, 1950-2100 14 5.2 GROWER AVERAGE PRICE FOR SHABRI-KOLA, 2005-2015 15 5.3A GROWER AVERAGE PRICES FOR SHAGOR-KOLA, 2005-2015 15 5.3B GROWERS AVERAGE PRICES FOR CHAMPA-KOLA, 2005-2015 15 5.4A ORDINARY-SHAGOR-KOLA AVE. WHOLESALE PRICES, 1986-2015 16 5.4B SHAGOR-HIGH QUALITY AVERAGE WHOLESALE PRICE, 2006-2015 16 5.5A SHABRI-KOLA AVERAGE WHOLESALE PRICES, 1986-2015 16 5.5B CHAMPA-KOLA AVERAGE WHOLESALE PRICES, 1986-2015 16 5.6A SHAGOR-KOLA ORDINARY AVERAGE RETAIL PRICES, 2005-2015 17 5.6B SHAGOR-KOLA HIGH QUALITY AVERAGE RETAIL PRICES, 2005-2015 17 5.7A CHAMPA-KOLA AVERAGE RETAIL PRICES, 2005-2015 17 5.7B SHABRI-KOLA AVERAGE RETAIL PRICES, 2005-2015 17 7.1 WHAT IS YOUR PROFESSION? 18 7.2 WHAT IS THE SIZE OF YOUR FARM? 19 7.3 WHAT ELSE DO YOU CULTIVATE BESIDES BANANAS? 19 7.4 HOW MANY YEARS HAVE YOU BEEN PRODUCING BANANAS? 20 7.5 HOW OFTEN DO YOU PRODUCE AND/OR CULTIVATE BANANAS? 20 7.6 WHAT VARIETY OF BANANAS DO YOU CULTIVATE? 21 7.7 WHY DO YOU PREFER THE SELECTED VARIETY? 21 7.8 IS BANANA PRODUCTION INCREASING OR DECREASING? 22 7.9 WHY DO YOU THINK BANANA PRODUCTION IS INCREASING OR 22 DECREASING? 7.10 HOW MUCH DO YOU SELL A BUNCH OF BANANAS ON THE AVERAGE? 23 7.11 IS THE QUALITY OF ANY KIND OF BANANAS IMPORTANT TO YOU? 23 7.12 DO YOUR BUYERS COMPLAIN ABOUT QUALITY? 24 7.13 DO YOU USE FERTILIZERS 24 7.14 DO YOU DO SOIL AND TISSUE ANALYSIS BEFORE, DURING AND AFTER 25 PLANTING? 7.15 WHAT FERTILIZERS DO YOU USE? 25 7.16 HAVE YOU EVER SEEN BANANAS PACKAGED IN BOXES BEFORE? 26 7.17 IF YOUR CUSTOMERS WANT PACKED BANANAS, WOULD YOU ACCEPT TO 26 ADOPT THE CHANGES? 7.18 WHAT WOULD YOUR PACKAGING PREFERENCES BE? 27 7.19 WHAT IS YOUR MONTHLY HOUSEHOLD INCOME? 27 7.20 HOW OLD ARE YOU? 28 7.21 WHERE DO YOU BELONG IN THE BANANA VC? 29 7.22 WHERE IS YOUR BUSINESS LOCATION? 29 7.23 WHAT ARE THE VARIETIES OF BANANAS YOU BUY? 30 7.24 HOW DO YOU BUY YOUR BANANAS? 30 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 4 7.25 HOW MUCH ARE YOU WILLING TO PAY FOR A GOOD QUALITY BUNCH OF 31 ANY VARIETY OF BANANAS? 7.26 WOULD YOU PAY PREMIUM PRICE FOR ANY QUALITY BANANAS? 32 7.27 WHAT ARE THE QUALITY ATTRIBUTES THAT INFLUENCE YOUR PURCHASING 32 DECISIONS? 7.28 HOW MUCH WILL YOU BE WILLING TO PAY FOR ONE BUNCH OF GOOD 33 QUALITY LOCAL AND CAVENDISH BANANA VARIETY 7.29 WHICH OF THE LOCALLY GROWN BANANAS DO YOU PREFER TO BUY? 34 7.30 HOW OFTEN DO YOU EAT BANANAS? 34 7.31 WHY DO YOU PREFER THE SELECTED LOCAL VARIETY? 35 7.32 HOW MUCH ARE YOU WILLING TO PAY FOR 1 KG OF BANANAS? 35 7.33 WHAT IS YOUR MONTHLY HOUSEHOLD INCOME? 36 8.1 EXISTING BANANA MARKET CHANNELS IN RURAL AND URBAN AREAS 37 8.2A JATRABARI KALAPATTI URBAN WHOLESALE MARKET, DHAKA CITY 38 8.2B POBAHATI URBAN WHOLESALE MARKET 38 8.3A HORTEX FOUNDATION REEFER TRUCK EXTERIOR 39 8.3B INTERIOR OF REEFER CONTAINER 39 8.3C BANGLADESH AIRFREIGHT AT THE INTERNATIONAL AIRPORT, DHAKA 39 10.1 BANGLADESH BANANA EXPORT, 2014 40 11.1A FARMER’S COOPERATIVE DEMARCATION ZONES 44 11.1B REEFER CONTAINER’S INTERIOR 44 11.2A MR. RAHMAN – A LOCAL MANGO ENTREPRENEUR, WHOLESALER AND 45 DISTRIBUTOR 11.2B COLD STORAGE WAREHOUSE, HAZRAT SHAHJALAL INTERNATIONAL 45 AIRPORT, DHAKA. 12.1 KEVENTER OFFICE, CONFERENCE ROOM AND TEAM OF EXPERTS 46 12.2 MR. CHOUDHURI ON THE LEFT, DISPLAY OF QUALITY BANANAS IN MIDDLE 47 AND DELIVERY EXTREME RIGHT 12.3 COLOR CRATES ON THE LEFT, RIPENING CHAMBERS (MIDDLE) AND INTERIOR 47 OF RIPENING CHAMBER (EXTREME RIGHT) 13.1 KEVENTER AGRO LTD BUSINESS MODEL 48 14.1 EXISTING MARKET CHANNELS IN KOLKATA, INDIA, WEST BENGAL REGION 49 14.2 NEWLY HARVESTED GRAND NAIN BUNCHES OF BANANAS 50 14.3 FIELD CONDITIONS THAT CONTRIBUTE TO QUALITY AND POST-HARVEST 51 DEFECTS 14.4 VISIT OF BANANA ORCHARD IN KARIMPOR, NADIA DISTRICT, KOLKATA, 51 INDIA 15.1 PRICES OF DIFFERENT BANANA VARIETIES IN SUPER MARKET IN KOLKATA, 52 INDIA 15.2 FRESH BANANA BLOSSOM SOLD IN SUPERMARKET, KOLKATA, INDIA 52 16.1 TOP 10 BANANA PRODUCING COUNTRIES COMPARED TO THE UNITED 53 STATES 16.2 TOP BANANA EXPORTING COUNTRIES 53 16.3 WORLD BANANA IMPORTING COUNTRIES 54 16.4 BANANA EXPORT BY REGIONS 55 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 5 LIST OF TABLES 2.1 ACREAGE, PRODUCTION AND YIELD RATE OF BANANAS, 2003-2012 8 5.1 ECONOMIC RISK-RATED RETURNS OVER TOTAL COST OF PRODUCING 13 BANANAS FOR TWO CYCLES IN ALOMPUR VILLAGE OF MEHERPUR DISTRICT, 2015 5.2 RISK-RATED SENSITIVITY RETURNS OVER TOTAL COSTS OF PRODUCING 13 BANANAS FOR TWOCYCLES IN ALOMPUR VILLAGE OF MEHERPUR DISTRICT, 2015. 10.1 BANGLADESH BANANA EXPORT, 2014 40 USAID/DAI BANANA AGRICULTURAL VALUE CHAINS (AVC) PROJECT USAID.GOV | 6 ACKNOWLEDGEMENTS This study was funded by USAID/DAI for which the author is truly indebted. I wish to express gratitude towards the following individuals within USAID/DAI Bangladesh who assisted in one way the other in making this research a success: Dr. William (Bill) Levine (Chief of Party), Bani Amin (Deputy Chief of Party), Anup (Tutul) Toy, Arshad Hussain, Mahbuh Khan, Masud Ahmed, Mohammad Saiful Islam, Mohammad Soeb Iftekhar, Sadequl Amin, Somashree (Soma) Chattapadhya, Tanvir Manower, Shamia Chowdhury, Serajul Isam, Rekha Lal, Bithika Das Hazra, Md. Sazzad Hossain, Rashed Reza Chowdhury and Abdul Mannan Sarkar. More-so, my gratitude goes to the following private sector individuals who provided valuable information that strengthened the depth of this research: Mr. Mitul K. Saha (Assistant General Manager - Supply & Value Chain, Marketing, R&D) and Md. Rafiqul Islam (Assistant General Manager Production) at Hortex Foundation; Mr. Kbd. Md. Hafizur Rahman (Deputy Director), and Mr. Abdul Aziz (Sub-Assist. Agriculture Officer), Plant Quarantine Station, Hazrat Shahjalal International Airport, Dhaka, Mr. Monjurul Islam (Adviser, Bangladesh Fruits Vegetables & Allied Products Exporters Association), Mr. Md. Moshin (Manager, Dhali Super Store) and Syed Salim Uddin Ahamed (Floor Manager, Lavender Super Store Ltd.) My special thanks goes to Mr. Aniruddha Hom Roy (Private Sector Advisor, Economic Growth office, US Embassy Bangladesh) for taking time off his busy schedule to attend my debriefing presentation, Meg Karchner and her team for effectively using her soft diplomacy to provide assistance that contributed to the success of the assignment, and providing the logistics to facilitate travel and documentation.
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