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Participatory Assessment of Market and Marketing in Patuakhali and Barguna

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Participatory Assessment of Market and Marketing in Patuakhali and Barguna PARTICIPATORY ASSESSMENT OF MARKET AND MARKETING IN PATUAKHALI AND BARGUNA DECEMBER 2009 Reconstruction, Economic Development and Livelihoods (REAL) Project of Helen Keller International Assessment conducted by: Practical Action Bangladesh Markets and Livelihoods Programme House 12/B, Road 4, Dhanmondi, Dhaka-1205 2 CONTENTS I. Executive summary ......................................................................................................................... 2 II. Introduction ..................................................................................................................................... 4 2.1. Methodology ................................................................................................................................ 4 2.2 Limitation of the study .................................................................................................................. 5 III. Overview of the investigation area ............................................................................................. 6 IV. Analysis of focus group discussions and institutional survey ..................................................... 8 4.1. Background of farmers involved in poultry, field crops and vegetables ..................................... 8 4.2. Agricultural products and IGAs in Patuakhali ............................................................................. 9 4.3. Agricultural products and IGAs in Barguna ........................................................................ 11 4.4. Marketing system In Patuakhali and Barguna ........................................................................... 15 4.5. Role of government institutions and NGOs and supports expected by the producers and other actors ................................................................................................................................................. 18 4.5.1 Role of Government Institutions and NGOs ........................................................................ 18 4.5.2. Institutional support expected by producers ....................................................................... 21 V. Recommendations ..................................................................................................................... 23 5.1. Agricultural products and IGAs ................................................................................................. 23 5.2. Marketing activities ................................................................................................................... 24 VI. Annexes ..................................................................................................................................... 25 Annex 1: Sectoral Map ..................................................................................................................... 25 Annex 2: Discussion guidelines ........................................................................................................ 25 Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna ................................. 25 Annex 4: Persons met/discussed for interviews ................................................................................ 25 Tables and Figures Table 1. Participants interviewed………………………………………………………………… 4 Table 2. Summary background of farmers ……………………………………………………….8 Table 3. Summary of constraints and opportunities for potential IGAs………………………13 Figure 1. Poultry market system – Kalapara upazila ………………………………………….. 16 Figure 2. Vegetable market system – Pathagatha upazila …………………………………….17 Figure 3. Crop market system – Barguna upazila ………………………………………………18 Annexes Annex 1: Sectoral maps Annex 2: Discussion guidelines Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna Annex 4: GOB officials interviewed; PNGO staff meeting participants 1 I. Executive summary This study aims to identify existing and potential income-generating activities (IGAs) and post- harvest activities for poor and ultra-poor households in the project area who farm field crops, vegetables and poultry. It also seeks to analyse the information and recommend activities and strategies to Helen Keller International (HKI), which has been implementing the Reconstruction, Economic Development and Livelihoods (REAL) project. The investigation was carried out in two upazilas in Patuakhali and Barguna districts. Different categories of respondents interviewed during the study included smallholders, medium and rich farmers, collectors, paikers/traders, arotdars/wholesalers (big traders/feed sellers involved in poultry, field crop and vegetable production and marketing. Besides HKI and its partner NGO staff, government of Bangladesh (GOB) officials were consulted. The survey mainly considered qualitative aspects and PRA methods were used in discussions with the targeted group members. Market Map tools of participatory market system development (PMSD) were applied to understand market systems for poultry, vegetable and field crop sub-sectors. Although the main market channels for these product sub-sectors are the same, the volume of production in different channels varies. The study results for these three sub-sectors are as follows: Poultry: The majority of households (70%) at Char-rangabali rear ducks commercially. Almost all the households hatch eggs and rear chicks of marketable size, i.e. 0.8-1.2 kg. Market opportunities in Nilgonj (Kalapara) are better than in Baisdia (Char-rangabali). There are about 100 paikers (traders) in Kalapara who buy poultry birds and eggs from farmers at Tk. 165 (on average) and sell to two arotdars (big traders) in Patuakhali at Tk. 180. The three main problems facing poultry producers are unavailability of medicine, the absence of vaccinators, and cold-related diseases. HKI has already provided training and inputs to support some vaccinators. Vegetables: Farmers in Char-rangabali of Patuakhali district cultivate radishes, red amaranth, puishak, gourds, beans, papayas, bitter-gourds, cucumbers, ridge gourds, okra, spinach and watermelon. Like Char-rangabali, Kalapara is also a vegetable-deficit upazila. However, availability is better here because of a comparatively good road network. In the rainy season, 100% of all vegetables come from Jessore. The most common vegetables produced in Kalapara include red amaranth, beans, gourds, yard-long beans, tomatoes, bitter gourds and cucumbers. The farmers here encounter high cost and non-availability of quality fertilizer and insecticides at the right time. In some distant char lands there are no local vendors for seeds, fertilizer and insecticides. Field crops: The main field crops in Patuakhali District are rice, onions, garlic, pulses (kheshari, felon, and mug), chillies and maize. Rice is generally cultivated in two hundred thousand acres of land, producing 181,000 metric tons of rice (Statistical Yearbook 2007). However, in the off-season (from Ashar-Kartik), rice is imported mostly from Gobindoganj (Gaibandha), Rangpur and Dinajpur. In the harvesting season rice is exported to Khulna, Narayanganj, Dhaka and Gobindoganj. Farmers in Soot Basidia in Char-rangabali produce rice, onions, garlic, pulses (kheshari, felon, and mug), chillies and maize. Irrigation affects the production of rice and maize. Paikers (traders) come to the villages from Goainkhali bazaar to buy their products. Farmers prefer selling to them because transportation costs to take rice to Goainkhali bazaar is around Tk. 200. There are no processing activities except boiling and drying of paddy for farmers’ household consumption. Role of government institutions: The Department of Agriculture Extension (DAE) provides direct counselling to the farmers through their Sub-Assistant Agriculture officers. They also demonstrate new technology and innovative techniques to the farmers and and provide training. In most cases, DAE’s interventions do not reach the extreme poor. Department of Livestock Services (DLS) provides subsidised vaccines, de-worming medicine, free consultancy/counselling to the farmers and farm owners. Upazila Department of Youth Development (DYD) trains youth in poultry, fish culture, vegetable and agriculture. The Department of Women’s Affairs (DWA) provides credit to women amounting to Tk 10,000 to 15,000 and trains women in sewing, embroidery and kantha making. The government departments face inadequate manpower and shortages of inputs and services. 2 Potential IGAs, marketing activities and strategy recommended: HKI to continue its support to beneficiaries in Patuakhali and Barguna to cultivate vegetables like radishes, red amaranth, bitter gourds, watermelon, brinjals, cabbages, cauliflower and papayas, spinach, sweet gourd/pumpkins, bottle gourds, beans, cabbages, coriander, long-yard beans, capsicum, carrots, and tomatoes. Potential IGAs related to these crops are seed preservation and selling, seed vending, organic fertilizer production, vegetable selling in villages and markets. Group members can also be supported to operate motorized van transportation services. Production of small quantities of vegetables is the main constraint in Patuakhali and Barguna districts. Farmer groups should combine their produce for group marketing. HKI to encourage its beneficiaries to cultivate more field crops like onions, chillies, rice seed, maize, lentils, wheat, and soybeans. Potential IGAs related to field crops are rice seed production and selling, equipment rental services (power tillers for ploughing, power
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