Marketing System and Price Behaviour of Pond Fish in .Some Selected Areas of Mymensingh

Home , Mymensingh, Phulpur Upazila

J. Bangladesh Agril. Univ. 4(1): 173-182, 2006 ISSN 1810-3030 Marketing system and price behaviour of pond fish in .some selected areas of Mymensingh

M.R. Islam', M.A. Feardous2, M.R. Hasan3 1 2 & Department of Rural Sociology, Bangladesh Agricultural University, Mymensingh 3 Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh Abstract

This paper attempts to analyze the marketing system, cost and margins and price behaviour of cultured fish in Mymensingh district. Through purposive sampling technique data were collected from 50 Pondfish farmers, 20 Aratder, 20 .Paiker and 18 Retailer under Trisha! and Phulpur upazilps of Mymensingh district. Price data were collected from secondary source of weekly statistical bulletin of Department of Agriculture Marketing. The study demonstrated that most of the pondfish farmers and intermediaries were illiterate or had little education. Per acre variable cost, gross return and gross margin of the selected pondfish farmers were Tk. 86842.66, Tk.147e08.99 and Tk. 60766.33 respectively. The total marketing cost of Aratder, Paiker and Retailer were Tk. 96.96, Tk. 242.8 and Tk. 75.39 per quintal of fish respectively, while species wise average net margin were Tk. 321.81, Tk. 441.28 and Tk. 598.44 per quintal respectively and Retailer earned the highest margin for common fishes, particularly for Rui, Katla, Kalbaus and Tilapia fishes. The seasonal price variation was not so high and it ranged from maximum 10 to 15 taka. The pondfish farmers and different intermediaries identified some problems and constraints and they also suggested possible steps and measures to make the fish production and business more profitable and sustainable.

Keywords: Marketing System, Cost and Margin and Price Behavior Introduction

Fish and rice are the principal food items of the people of Bangladesh. Most of the people in the country depend on fish as the main source of protein. Fish, which is rich in high quality protein and essential minerals, is nutritionally equivalent to meat. The minimum per capita per day protein requirement, as per climatic condition of Bangladesh, has been estimated at 45.3 gm of which 15 gm should be animal origin and fish constitutes about 80 per cent of the total protein intake (Rahman et at1992, p.1). Fish alone, supplies about 60 per cent of animal protein (FFYP, 1998, P.248). The fisheries sector is also very important in the economy of Bangladesh and it plays a vital role in terms of providing nutrition, employment and foreigh exchange earnings. It has been estimated that about 1.3 million people are directly employed in this sector as well as about 12 million people indirectly earn their livelihood from fisheries related activities (Islam, 2000,p-69).

Realizing the importance of fisheries. sector, steps are being taken in Bangladesh to increase production, but little emphasis has been given to improve the existing fish marketing system. During .the fishing season, a huge quantity of fish is not marketed and is wasted due to inadequate transportation facilities, lack of proper storage and preservation facilities on a large scale. So, the study of marketing of .cultured fishes is of crying need to identify the marketing problem. Therefore, the present study would be able to identify, particularly the marketing system, channels, functions and basic problems in the marketing of pond fish or cultured fish in Mymensingh. The study. will also make recommendations and suggestions to improve the organization and operation of cultured fish marketing system. On the basis of the forgoing discussions, the present study was undertaken with the objectives of determining: 174 Marketing system, cost, margin and price behaviour of pond fish

• the socioeconomic characteristics of pond fish producers and intermediaries; .• the existing marketing system and the cost and margin at different stages of cultured fish marketing; and • the seasonal price behavior of cultured fish.

Finally, this study will also provide *some useful information to fish farmers, traders, consumers and policy makers to formulate programs and policies related to the pond fish production and marketing.

Materials and Methods

The study was conducted in Trisha! and Phulpur upazila of Mymensingh district. Initially, purposive sampling technique was used to meet the objective of the study; the total sample size was 108 where fish farmers, aratdar, paiker and retailer were included. Then, the primary. data were collected from 50 pond fish farmers, 20 aratdar, 20 paiker and 18 retailers of both Trisha! and Phulpur upazilas. Price data were collected from secondary sources. Five years weekly price data for two different fishes of Mymensingh markets were collected from the Department of Agricultural Marketing (DAM). The instruments used for collecting primary information of the study included a structured questionnaire and informal interview. The questionnaire included both closed and open-ended questions, which were prepared keeping the objectives of the study in view. This was pre-tested before using it for final data collection. The data collection process took place during 12 November to 30 December 2004. Finally, the collected data were summarized, tabulated and analyzed in accordance with the objectives of the study.

Results and Discussion

Socio-economic characteristics of pondfish farmers and different intermediaries

Level of Education: Education plays vital role in cultured fish production because educated farmer can take rational decisions regarding production and marketing system. The following table shows that only.10 percent farmers were in graduate level, while the corresponding percentage of Paiker, Aratdar and Retailer were zero:

Occupational status: Occupation is an important indicator of socio-economic status. It is observed from the table that 80 per cent respondents' main occupation was fish culture and the remaining percentage (20%) was involved in agriculture and business as their main occupation but they were indirectly involved in fish production. A close look of the table shows that most of the intermediaries were involved in fish selling and marketing and their percentages were 90, 100 and 88.89 of Paiker, Aratdar and Retailer respectively and the rest of the Paiker and Retailer were related with this business indirectly.

Annual income: It is observed form the table that 70 per cent of the pondfish,farmer earned more than Taka one lakh annually, while the corresponding percentages of Paiker, Aratdilr and Reatiler was 0.0, 25 and 16.66 respectively. It is also observed, form the table that most of the intermediaries earned annual income. less than Taka one lakh each. Islam et al. 175

Table 1. Socio economic profile

Socio-economic Pondfish farmers Paiker Aratdar . Retailer profile No % No % No % No % Level of Education Illiterate 5 10 15 75 - - _ 12 66.67 Primary 10 20 5 25 10 50 _ 3 16.66 Secondary 25 50 5 25 r 1 5.56 Higher Secondary 5 10 , - - 5 25 2 11.11 Graduate 5 10 - • - - - - - Occupational status Fish culture 40 80 - .. - - - - Fish seller - - , 18 90 20 100 16 88.89 - . Agriculture 8 16 • 2 10 - - 2 11.11 Business 2 4 ------Annual Income Upto 50000 10 20 . 15 75 - - 3 16.67 50001-100000 , 5 10 5 25 15 75 12 66.67 100001-500000 • 20 40 - - 5 25 3 16.66 5000001- Above 15 30 . - .. .. - - - Experience in fish culture ancf Selling • 0-5 30 .. 60 . , 15 75 15 75 - - 5-10 16 "32 3 15 3 15 15 83.34 10-Above 4., . . 8 2 10 2 10 3 16.66 Source: Field Survey

Experience in fish culture and selling: Experience in fish culture and selling is an important social characteristic, which indicates success and sustainability of fish production and proper marketing. It is observed from the table that 60 per cent pondfish farmer had less than five years experience of fish production, whereas 75 per cent of both Paiker and Aratdar had same experience of selling and marketing fish, but Retailer had much more experience in this regard.

Cost and return of pond fish culture

Two types of cost are significant in analyzing gross margin, which is related to pond fish production, i.e. material input cost and human labor cost commonly known as variable cost. The selected fish species for which cost and return analysis was done included Rui, Katla, Mrigal, Kalbaus, Grass Carp, Silver Carp, Pungus Tilapia Carpio, Shar Puti and Indigenous fish. Table 2 shows that material input cost consists of manure cost, cow dung, urea, TSP, lime, rice bran, rice polish, mustard oil cake, fish meal, ready feed, fingerlings, irrigation/fuel, medicine, electricity, transportation and green grass. Among input material cost of rice bran was fouhd to be the highest amounting Tk. 14796.53 per acre. In the study area, human labor j is needed for re-excavation, re-construction of bund, feeding and compost, stocking of fish seed, water moving, insecticide applications, weeding, fish harvesting and netting. Among the human labor cost feeding and compost bear the highest cost amounting Tk. 8106.69 per acre. It is found from the table that total variable cost of pond fish production was Tk. 86842.6.6 per acre. 176 Marketing system, cost, margin and price behaviour of pond fish

Table 2. Per acre material input cost and Human labor cost for pond fish production of selected species

Items Cost (Tk./ acre) , Material input cost _ Manure 776.46 Cow dung 698.40 _ Urea . 930.90 TSP 1031.84 , Lime _ 1111.19 Rice Bran 14796.53 Rice Polish , ' 973.60 , Mustard Oil Cake 9765.69 , Fish Meal 10156.68 Ready Feed 5659.50 Fingerlings 10207.32 Irrigation/Fuel 2281.79 Medicine 724.39 Electricity 18:73.14 Transportation . 3430.94 Green Grass 176.06 Miscellaneous 1497.08, Human labor cost . Re-excavation of ponds 5021.98 Re-construction of Bund 1545.62 Feeding and Compost 8106.69 Stocking of Fish Seed . 501.95 . Water moving . 654.95 Insecticides applications 165.02 Weeding 319.48 Fish harvesting 3558.78 Netting 876.68 Total , 86842.66 Source: Field Survey

Table 3 exhibits per acre return from different species of cultured fish. It is observed from the table that per acre returri from Katla was the highest (Tk. 40475.25) and that of indigenous fish was the lowest (Tk. 1782.50) in the study area and the gross return of all selected fish species was Tk. 147608.99 per acre. Then gross margin was calculated by subtracting variable cost from gross return and it was Tk. 60766.33 per acre. Islam et al. 177

Table 3. Per acre return from different species of fish

Species of Fish Total Production/ Acre Price (T.k./Kg.) Return (Tk./Acre) Rui 690.25 57.55 , 39723.89 Katla 711.34 . 56.90 , 40475.25 Mrigal 424.72 50.25 , 21342.18 Kalbaus 135.05 62.5 8440.62 Grass carp 185.65 40 7426.00 Silver Carp 245.56 . , 40.5 9945.18 Fungus 66.83 . 40 2673.20 Tilapia • 40.46 60 2427.60 Carpio • 85.91 62.50 5369.37 Shar Puti 133.42 60 8005.20 Indigenous fish 35.65 50 1782.50 Total 2754.84 • 580.2 147608.99 Source: Field SUrvey

Marketing channel of pond fish

Marketing channels are the alternative routes of product flows froni producers to consumers (Kohls and Uhl, 1980) It refers to the sequential arrangement of various marketing intermediaries involved in movement of product from producers to ultimate consumers. Marketing channel may be long or short for a particular commodity depending on the marketing system, qualities of the product, size and nature of the consumers and the producers and the prevailing social and physical environment. Regarding pond fish production, marketing 'channel started from fish producer and ended with consumers. It is .found from the Fig. 1 that 94.74 percent produced fish were sold to Aratdar and the cent per cent were.sold to Paiker, to Retailer and finally to consumers through different channels, while the rest of the percentage (5.26%) were consumed at home by the producer. 178 Marketing system, cost, margin and price behaviour of pond fish

Fish Producer 5.26 %

94.74 .% Consumed at Home

Aratdar at Trisha! and Phutpur Market 17.34%

• '77.40 Vo Retailer

17.34% Paiker.

77.40 % .Consumer

Local Aratdar adjacent to Trishal and Phulpur 100 Vo 1 6.94% 70.46%

Paiker from Retailer other Local

70.46% 6.94% Consumer Consumer

Channel I: Producer Aratdar Retailer Consumer

Channel 11: Producer Aratdar at Trish.al and P,hulpur Market Paiker Local Aratdar adjacent to Trishal and Phulpu- r Market Retailer —.0 Consumer

Channel Ill: Producer Aratdar—÷, Paiker—* Local Aratda.r—o- Paiker-from other Market-1o'. Consumer

Fig 1: Marketing channels,of pond fish at Mymensingh market Islam etal. 179

Marketing cost, gross margin and net margin of different intermediaries • Table 4. Shows that the total-marketing cost of Aratdar, Paiker and Retailer was. Tk. 96.96, 242.8 and 75.39 per quintal of fish respectively. Personal expenses was the highest (31.50%) cost item of the total marketing cost of Aratdar, whereas transportation was the highest cost item of both Paiker and Retailer and their percentage .was 66.24 and 24.85 respectively. It is also observed from the table that. Paiker bears the highest marketing cost among the three intermediaries and transportation cost constitutes the highest marketing cost among-all cost items.

Table 4. Marketing cost of pond fish for various intermediaries Cost Items Aratdar Paiker • Retailer - Total • • Cost (TR./quintal) Percentage Transportation 23.10 66.24 24.85 • 114.19 27.51 Personal expenses ' 31.50 27.98 21.40 - 80.88 19.48 Wastage 1.47 54.94 5.21 61.62 14.84 Icing . 5.10 33.51 _ 13.41 _ 52.02 12.53 Wages and Salaries 9.22 9.13 - -18.35 • 4.42 Market Tolls . 2.07 14.85 1.35 18.27 4.4 Rent and Electricity • 2.87 13.37 -3.21 19.45 4.69 Loading and Unloading 0.79 14.34 0.31 15.44 3.72 • _ Telephone _ 18.75 6.41 4.57 • • 29.73 7.16 Grading 0.86 - 0.43 1..29 0.31 Security • 0.58 - 0.37 . 0.95 0.23 Others 0.65 . 2.03 0.28 2.96 0.71 To:al 96.96 242.8 75.39 415.15 100 Source: Field Survey

Table 5 presents the marketing margins of various intermediaries for different types of fishes. The above table states that the average gross margin and net margin of Aratdar were Tk. 356.49 and Tk.321.814 per quintal respectively. Aratdar earned the highest (Tk.1605.35) and,: the lowest (Tk.-22.26) net margin from Kalbaus and Tilapia fishes respectively. The average gross margin and net margin of Paiker were Tk. 679.12 and Tk 441.28 per quintal respectively. Paiker earned the highest (Tk.577.68) and the lowest (Tk.327.44) net margin from Rui .and Silver Carp fishes respectively. The average gross margin and net margin of Retailer were Tk. 725.79 and Tk. 598.44 per quintal respectively. Retailer earned the highest (Tk. 1281.30) and the lowest (Tk.158.34) net margin from Kalbaus and Silver Carp fishes respectively. It is also observed from the table that gross, and net margin was higher for high valued fishes and lower for low valued fishes for all kind of intermediaries. The study also found the marketing cost highest for Paiker (Tk.237.88) and lowest for Aratdar (Tk. 34.69). Again, average gross margin was the highest for Retailer (Tk.725.79) and lowest for Aratdar (Tk.356.49) and average net margin highest for Retailer (Tk.598.44) and lowest for Aratdar • (Tk.321.81). Although per unit profit was the lowest for Aratdar, their total profit was the highest as because they handled the largest quantity of fishes per unit of time compared with other traders. 180 Marketing system, cost, margin and price behaviour of pond fish

Table 5. Marketing margins of different intermediaries for different types of fishes (Tk./quintal)

Fish Species Aratdar • Paiker Retailer Gross Marketing Net Gross Marketing Net Gross Marketing Net Margin Cost Margin Margin Cost Margin - Margin Cost Margin _ Rui 276.39 34.69 241.7 815.56 237.88 577.68 1035.86 127.35 908.51 Katla 62.19 34.69 27.50 650.00 237.88 412.12 832.47 - 127..35 705.12 - Mrigal 45.71 34.69 11.02 600.14 - 237.88 362.26 507.32. 127.35 379.97 , Kalbaus 1640.04 34.69 1605.35 750.50 237.88 512.62 _ 1408.65 127.35 1281.30 Grass Carp 147.60 34.69 112.91 600.61 237.88 362.73 .327.21 127.35 199.86 Silver Carp 257.09 34.69 222.40 565.32 237.88 327.44 285.69 127.35 158.34 Pangus 410.53 34.69 375.84 650.05 '237.88 412.17 481.84 127.35 354.49 Tilapia 12.43 34.69 -22.26 _ 801.08 237.88 563.20 927.29 . 127.35 799.94 . Average 356.49 34.69 321.81 679.12 237.88 441.28 725.79 127.35 598.44 Source: Field Survey

Marketwise seasonal price variation for different fishes

The monthly average wholesale price indices of different fishes in Mymensingh market have been presented in Table 6 and in Fig. 2 .It is evident from table and figure that during the period 1997 -2001, the maximum price indices was 109.14 and 106.40 in the month of December and the minimum of 93.81 and 91.27 in the month of January for Rui and Katla fish respectively. The important feature of Rui fish prices was that their prices were more or less same during March to September. This implies that during this period the supply matched the demand for Rui fish. After slight decrease in August the price of Rui began to increase in September and reached to the maximum level in December. Again, the prices for Katla fish fluctuated all over the year. After slight decrease in July the price of Katla began to increase in August and reached to the maximum level in November. The ranges of seasonal price variation were 15.33 and 15.13 respectively for Rui and Katla fish. The co-efficients ot variation were 5.16 and 5.07 for Rui and Katla fish respectively.

Table 6. Seasonal price variations of different fishes at Mymensingh market during 1997 to 2001

Months Seasonal indices _ Rui Katla January. 93.81 91.27 February 95.19 92.86 March 96.78 104.36 _ April 101.04 101.24 May 104.16 , 104.23 . June 99.67 99.49 July 95.78 94.82 , August 97.29 . _ 101.96 . September 95.27 .. 97.38 . October 106.93 99.72 _ November 104.94 , 106.40 December 109.14 , 106.27 Co-efficient of Variation 5.16 5.07 Source: Department of Agricultural Marketing (DAM) • Islam et aL 18i

—*—Seasonal indices —11--Seasonal indices 115

110 -

105 -

85 -

80 Jan Feb March April May June July Aug Sep Oct Nov • Dec Months Fig 2. Seasonal price variation of different fishes at Mymensingh market

Problems and suggestions in fish production and marketing

The pondfish farmers and intermediaries faced a great deal of problems in producing and selling their fish. The pondfish farmers reported that lack of sufficient knowledge and technical support on scientific fish culture, loss of fish fingerlings during rainy season and non-availability of desired fingerlings at proper time, high pries for various inputs, theft of fish, instability of fish price, multiple ownership of pond etc. are the major problems they faced during fish production, while intermediaries argued that inadequate transportation and storage facilities, lack of infrastructural facilities, political unrest, price fluctuation and low price of fish and lack of adequate market information were the prime problems in selling and marketing of cultured fish.

The pondfish farmers and intermediaries recommended the following suggestions to solve the problems such as establishing improved hatchery for quality fingerlings, providing insurance facilities, supply of available credit on easy terms and conditions, providing social, moral, and scientific education and training, improving communication system and market information and ensuring reasonable prices of fish and various inputs.

Conclusion and policy implication

In the present study it was observed that production and marketing of cultured fish is a profitable business. It is evident that most of the intermediaries were illiterate, while about 70 per cent pondfish farmers had only primary and secondary education and majority of them had little experience in producing and marketing pond fish. Yet both pondfish farmers and 182 Marketing system, cost, margin and price behaviour of pond fish intermediaries earned substantial cash income all the year • round from production and marketing of pond fish, which might improve their livelihood pattern and socioeconomic condition as well. The study also reveals that per acre gross margin of pondfish farmers was Tk. 60766.33 and the profit of retailer was higher than that of other intermediaries, particularly in case of Rui, Katla, Mrigal and Tilapia fishes. It was not possible to collect price data from the study area due to time constraint. As a result the weekly wholesale prices of selected fishes were collected from the weekly statistical bulletin of Department of Agriculture Marketing. Increasing the economic assistance and efficiency in the marketing system through research and experiment can reduce the problems confronted by the producers and traders of pond fish. Transportation facilities, storage and preservation facilities, dissemination of marketing information may also improve the production and marketing system in the study area significantly.

Finally the study suggested that efforts should be taken to establish improved hatchery to ensure supply of quality fingerlings at a reasonable price in time, establish cold storage to save their product from perishability, ensure better communication and transportation, 'establish suitable market infrastructure and provide social moral and scientific education and training that might ensure fair prices for the pondfish farmers and better margins for different intermediaries. . • 'References..

Bangladesh Bureau of Statistics. 2000. Statistical Year Book of Bangladesh, Ministry of Planning, Government of the • People's Republic of Bangladesh, Dhaka. DAM. Wholesale Price of Agricultural and Animal Products in Bangladesh, Department of Agricultural Marketing, • Khamar Bari, Farmgate, Dhaka. FFYP. 1998. The Fifth Five Year Plan (1997-2002), Planing Commission, Ministry of Planing, Government of the People's Republic of Bangladesh, Dhaka. Islam, M.A. 2000. Recent Trends in Fisheries. Sector of Bangladesh, in M.A.S. Mondal (ed.), Changing Rural Economy of Bangladesh, Bangladesh Economic Association, Dhaka. Kohls, R.L. and Uhl, J.N. 1980. 1h Marketing of Agricultural Products,(5 ed,) New York, Macmillan Publishing Col Inc. Rahman, M.H. 1992. A Socio-economic Study on Pond Fish Farming in Gafargaon Thana of Mymensingh An unpublished District, M.S. Thesis, Submitted to the Department of Agricultural Economics, BAU; Mymensingh.