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Crab Culture Value Chain Development Under FEDEC Project

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Crab Culture Value Chain Development Under FEDEC Project International Network of Alternative Financial Institutions Investing in rural people Harvesting Innovations, Spreading Opportunities. Crab Culture Value Chain Development under FEDEC Project The Case of Crab Culture in Satkhira, Bangladesh Crab Culture Value Chain Development under FEDEC Acknowledgements We would like to express our gratitude and appreciation to all without whose support this book would not have been completed. A special gratitude to Mr. Gokul Chandra Biswas, Assistant General Manager (Operations), Palli Karma-Sahayak Foundation (PKSF) & Project Coordinator, FEDEC, Md. Manir Hussain, Manager (Operations), PKSF and Mr. Moznu Sarkar, Assistant Manager (Operations), PKSF for their guidance and constant support throughout the whole process of this documentation. Furthermore, we would like to acknowledge with much appreciation the crucial role of the local implementing organization of the case, Nowabenki Gonomukhi Foundation (NGF), its Executive Director Mr. Md. Lutfor Rahman, Technical Officer Mr. Shamim Ahmed and the team as well as the local community especially the crab farmers for extending their kind cooperation towards us. We would also like to take this opportunity to thank International Fund for Agricultural Development (IFAD) for their overall contribution from the beginning till end. INAFI Bangladesh and PROCASUR Corporation Disclaimer: The opinions expressed in this publication are those of the authors and do not necessarily represent those of Corporación PROCASUR, its donors or programs. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever by PROCASUR concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The contents of this publication, including all figures, tables, and drawings, are the intellectual property of PROCASUR. All rights reserved. Removal or alteration of copyright notices or trademarks is not permitted. The distribution or reproduction of this publication or parts thereof for commercial use is not permitted without the explicit written authorization of PROCASUR. All program names and services of PROCASUR used in this publication as well as the corresponding logos are trademarks or registered trademarks of PROCASUR in Chile and other countries. PROCASUR does not guarantee the accuracy or completeness of information, text, graphics, links, or other elements contained in this publication. This publication is provided without any warranty, whether explicit or implicit. This applies in part but not exclusively to a warranty of marketability and suitability for a particular purpose as well as a warranty of non-violation of applicable law. This book is financially supported by IFAD 2 Crab Culture Value Chain Development under FEDEC List of Acronyms BDT Bangladeshi Taka BDS Business Development Services IFAD International Fund for Agricultural Development INAFI International Network of Alternative Financial Institutions FEDEC Finance for Enterprise Development and Employment Creation FGD Focus Group Discussion ME Mirco-Enterprise MFI Microfinance Institution NGF Nowabenki Gonomukhi Foundation NGO Non-Government Organization PKSF Palli Karma-Sahayak Foundation PO Partner Organization TO Technical Officer VCD Value Chain Development 3 Crab Culture Value Chain Development under FEDEC Table of Content Executive Summary 5 1. Introduction 7 2. Overview of the Finance for Enterprise Development and Employment Creation (FEDEC) 8 2.1 The Project 8 2.2 Value Chain Development Component 8 3. Crab Culture Value Chain Development Sub-Project 8 3.1 Crab Culture Technique 9 3.2 Actors Involved in the Crab Culture Value Chain 10 4. Experience of Crab Farmers in Satkhira 12 4.1 Background and Location 12 4.2 Development of Experience over Time 12 5. Project Activities 14 6. Improving Crab Culture Techniques and Enhancing Organizational Capacity through FEDEC 15 6.1 Impact of Behavioral Change among the Crab Farmers over Time 15 6.2 Impact on Organizational Capacity 16 7. Analysis of Crab Farmers’ Experience: Good Practices, Lessons Learned, Challenges and Opportunities 18 7.1 Good Practices 18 7.2 Lessons Learned 19 7.3 Challenges 20 7.4 Opportunities 20 8. Recommendations 21 Annex 22 4 Crab Culture Value Chain Development under FEDEC The output of crab culture has significantly increased as Executive Summary a direct result of the project interventions. Compared to the beginning of the project, production per decimal has This report documents and analyses the experiences, enabling increased by 39.52 percent. Total production for 200 farmers, and disabling factors, best practices and lessons learned from on the other hand, has increased 73 percent per cycle of crab the Crab Culture Value Chain Development under the IFAD culture. Per kg crab production cost has decreased by 9.5 funded Finance for Enterprise Development and Employment percent. With increased productivity, decreased production Creation (FEDEC) project in Bangladesh. FEDEC has been cost and increased demand in the international market, implemented by PKSF through its partner organizations (POs). income of crab farmers has increased significantly. After the The Crab Culture VCD sub-project has been implemented project interventions, profit in crab culture has increased by by the local organization and one of the POs of PKSF, NGF 110 percent per kg of crab produced. Return on investment in Satkhira district. has also increased more than 6 fold. Aside from this, average farm size has also increased from 13.01 decimal (2011) to 17.01 FEDEC is a six year project with the overall goal to contribute (2013). During this period, 23 percent additional employment to economic growth in order to increase employment has been created in these farms. opportunities of the poor and thus reduce poverty. The project focused on three areas: (i) Micro-enterprise (ME) lending, Implementation of this value chain development project (ii) Capacity Building, and (iii) Value Chain Development of worked as promotional activities for ME loan program of potential economic sub-sectors. NGF. With the technical knowhow the farmers are expanding their operations which is resulting in increase of ME loan in Crab is an important export item in Bangladesh as demand crab culture sub sector. The organization also has enhanced for crabs is increasing in the international market. The crab capacity to implement further VCD projects. culture value chain is quite complex as crab farmers as well as catchers, depot owners and middlemen are involved in Good Practices: Some of the good practices of this VCD mud crab value chain. The catchers collect crabs from the project have been adoption of the promoted techniques mangrove forest the Sundarbans. They supply it to the depots of crab culture by the farmers; mainstreaming of technical for export. The grade-fail crabs go into the fattening or culture support service by the organization; introduction of immature ponds. The process includes fattening of female crabs, shell female crab culture; introduction of crab culture using pots; hardening of soft shell male crabs and culture of immature and dissemination of technology using demonstration plots. male and female crabs. Introduction of immature crab culture has opened a new avenue for the farmers in Satkhira as it is very profitable. Interventions: The Crab Culture VCD sub-project provided The profits from crab farming are mostly used in expanding trainings to 820 crab farmers, forias (middlemen) and depot the enterprises. owners on modern techniques of crab culture. The project also facilitated exposure visit to Bagerhat to learn from the best Lessons Learned: The farmers are still dependent on nature practices in crab fattening in the said area. The project also for crablets as there is no crab hatchery. It is essential to set up demonstration plots in farms of some of the advanced explore alternate source by establishing crab hatchery for farmers to motivate other farmers in the area to adopt modern this sub-sector to sustain the growth. The Technical Officer methods of crab culture and fattening. Continuous technical with the technical knowledge and expertise has been very support related to crab culture and marketing was provided proactive in acquiring information on modern techniques through Information Center set up by the project. The project and technology related to crab culture. As a result the farmers also organized workshops with the aim of strengthening have experienced positive result by adopting the techniques market linkages. Under FEDEC project, the implementing introduced by the project. Using demonstration plots to organization has increased their ME loan ceiling and also disseminate technology has been proven to be very effective. provided seasonal loans to farmers and depot owners. The project also explored the feasibility of crab hatching by setting This VCD project has demonstrated that it is possible to up an experimental hatchery under the project. cultivate crab more profitably by introducing improved cultivation and improved management which resulted in Impact: Due to the interventions such as trainings, refreshers reduction in crab mortality rate, reduction in production cost and exposure visits of the VCD project, the crab farmers and improvement in quality of the crabs produced. Technical have become more skilled in crab culture management. support in addition to financial support
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