IOSR Journal of Business and Management (IOSR-JBM)e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 1. Ver. I (Jan. 2014), PP 45-51www.iosrjournals.orgMarketing Efficiency and Post Harvest Loss of Flower inBangladeshMd. Imran Omar1, Md. Monowarul Islam Chowdhury2 & Md.Tauhidul Islam2,Md.Rauful Islam3, Mohaiminul Islam41&2Scientific officer, Agricultural Economics Division, Bangladesh Agricultural Research Institute, Joydevpur,Gazipur-1701.2Scientific officer, Barind Station, OFRD, Bangladesh Agricultural Research Institute, Joydevpur, Gazipur1701& 2Scientific officer, Agronomy Division, Bangladesh Institute of Nuclear Agriculture (BINA),Mymensingh.3&4Post Graduate Student of Agriculture Faculty, Bangladesh Agricultural University, Mymensingh-2202.Abstract: The present study was conducted to estimate the post harvest losses of flower and its impact onfarmer’s net profit, marketing margin and marketing efficiency and also estimate producer’s share inconsumer’s price at different level of marketing such as producer, local trader, wholesaler and retailer.Primary data were randomly collected from 110 respondents from Jessore and Dhaka city. The study coveredfour kinds of flower such a rose (White), marigold, Jasmine (Yellow) and Tulip (Purple). Post harvest losseswas highest at retail level (39.82%) followed by wholesaler (27.52%), producer (18.87%) and local trader(13.78%) per hundred of all flowers. Due to post harvest losses the marketing margin of the local traders,wholesaler and retailers decreased by 6.14, 8.88 and 7.65 per cent respectively. Total marketing margin wasreduced due to post harvest loss for Rose (White), marigold, Jasmine (Yellow)and Tulip (Purple) by 12.16,62.55, 3.83 and 17 per cent respectively. Tulip (Purple) market was more efficient than other flowers market inboth with and without post harvest loss. Producer’s share in consumer’s taka in the present study wascomparatively lower. Lack of storage facilities, inadequate and under developed transportation andcommunication system, absence of scientific and modern harvesting technology, lack of infrastructural facilitiesand standardized packing method are the main reason which deteriorate the quality of flower and enhance thepost harvest losses of flower. Some measures are suggested for reducing post harvest losses of flower.Keywords: Marketing Margin, Marketing Efficiency, Post Harvest Loss, Producer’s Share.I.IntroductionThe flower farming is an important and profitable enterprise in the Agriculture sector of Bangladesh.The area under floriculture is increasing day by day, particularly in the area adjacent to big cities. In fact flowerfarming is labor intensive as compared to other Horticulture crops particularly vegetables rather, it lies inbetween the two ends with the skilled labor force and modern techniques, it has been proved that the investmentin this sector yields high returns for the growers. It is evident from the increase number of nurseries, greenhouses, flower markets and flower auction centers and the production of flowers turn out to be about 8000 to10,000 tons per annum (BBS, 2008, Govt. of Bangladesh). In ornamental plants, especially those that havescented flowers or leaves have essential oil; few are used commercially in perfumes, flavor or cosmeticindustries. In all the perfumes used in the world today, oil of rose and jasmine are the most delicate perfumesused since the beginning of human civilization. Although it is very difficult to give exact figures of rose oilproduction, it is estimated that about ten tones of rose oil produced the world today, of which Bulgaria producesmore than five tones followed by Turkey and Morocco (K.L. Chadha et al June,1992). In Bangladesh, rosewater is prepared from roses. Rose water is extensively used in flavoring foods, confectionery and funeralceremonies. While the word Jasmine comes from Arabic word, “Yasmine”. Although there are several speciesof Jasmine that have scented flowers and which are used for making garlands and Attars. Flowers have becomesymbol of sentiments and an essential part of religious and social ceremonies. Commercial production of flowerin Bangladesh started from mid 1980S at Jessore district. Now around 10,000 hectares are under flowercultivation (Siddika, 2004).The major production is concentrated at Godkhali in Jessore which covered about 60per cent of total flower production. At present approximately 8000 farmers are engaged in floriculture (Mou,2006). Due to the varied agro-climatic conditions and relatively low cost of production, Bangladesh hasimmense opportunities not only to meet the local demands of both traditional and cut flowers but also a highpotential for export. Lack of enterprise, technical know-how, standardized methods of growing and harvestingof ornamental flowers of internationally acceptable quality, problem of packing and transportation has been amajor impediment in realizing this goal. Farmers involve highly in floriculture practice as it is more profitablethan other crop and the demand for flower has been increasing day by day. As a result, there exists awww.iosrjournals.org45 Page
Marketing Efficiency and Post Harvest Loss of Flower in Bangladeshcompetition of high qualityflowerproduction. Production areas are concentrated in the rural environments, butthe consumption is concentrated in the cities. There is no organization or association for marketing anddistribution of flowers. The flowers, being highly perishable, require special post harvest management. Butimproved post harvest handling has not yet been initiated in Bangladesh. Inefficient postharvest managementdeteriorates the quality of flower and as aresult farmers are deprived of getting expected price of flower. So thequality management of flower is of utmost important of getting higher returns. Lack of modern harvestingtechnology, improper storage, transportation, handling and packing causes both qualitative and quantitative lossof flower.Post Harvest LossPost harvest loss is the loss that occurs from the point of harvest of flower in the field till it reaches to the handsof ultimate users. Post harvest loss (PHL) of flower occurs at different levels due to different reasons. Flowersare damaged at different levels due to various causes such as over-maturing due to delay in harvesting, pluckingand assembling, packing, press due to wholesaling process, loading and unloading, cleaning and sorting,multiple handling and transportation, making flower vase and unsold stock. At retail level post harvest loss isalso occurred due to sun and rain because most of the retailer‟s shop is not well furnished and for this sun andrain deteriorate the quality of flower and as result price of flower becomes low. Keeping in view theabovementioned fact, present study was conducted with the following specific objectives:To estimate the post harvest loss of selected flower at different stages of handling of the produceTo analysis the impact of post harvest losses of flower on farmer‟s net price, marketing margin andmarketing efficiencyTo estimate the producer share in consumer‟s priceTo identify the major constraints and suggest measures for reducing post harvest loss of flower.II.Materials and MethodsSampling and Data CollectionJessore district is considered as one of the leading flower producing zones in Bangladesh. Two unions,namely Godkhali and Panisaraunder Keshabpur Upazila of Jessore district were selected as the flower growingarea while Dhaka city was selected as the consuming centre because it would provide maximum informationabout flower marketing in Bangladesh. The sample size was 110 of which five were input suppliers, 30 flowergrowers, and 35 traders „at local, district and Dhaka city, and another 40 retailers in Dhaka city. Thus the totalsample size was 110 which were selected randomly. The primary data were collected by the personal interviewmethod with the help of well-designed and pre-tested schedules. The survey was conducted during January toFebruary in the year of 2009. The study included four kinds of flowers such as Rose (White), marigold, Jasmine(Yellow)and Tulip (Purple)which are commercially producedby the farmers in the study area.Analytical ProcedureNet price received by farmer is expressed by the following formulaWhere,NPF GPF – CF – (LF GPF)NPF Net price received by farmers (Tk per100 flowers), GPF Gross price or price received by farmers(Tkper100 flowers),CF Marketing cost of farmers (Tk per 100 flowers) and LF Physical loss offlower (number)Total Marketing CostTotal marketing cost (MC) incurred by producer and by intermediaries was calculated by using the followingformula:Where,MC CF CL CW CRCF Marketing cost of farmer (Tk per 100 flowers), CL Marketing cost of local trader (Tk per 100 flowers),CW Marketing cost of wholesaler (Tk per 100 flowers) and CR Marketing cost of retailer (Tk per 100flowers)Measurement of Marketing EfficiencyTo examine the marketing efficiency Acharya‟s method was used (Acharya and Agarwal, 1999). Acharya hasmodified the formula of estimating marketing efficiency, which is worked out as:ME FP/ (MC MM) (before post harvest loss)ME FP/ (MC MM ML) (after post harvest loss)Where,www.iosrjournals.org46 Page
Marketing Efficiency and Post Harvest Loss of Flower in BangladeshME marketing efficiency, FP Net price received by the farmer, MC Total marketing cost ,MM Total netmargins of intermediaries ,ML Total marketing lossGross marginGross Margin Sale price – Purchase priceNet marketing marginNet marketing margin Gross margin – Marketing costProducer’s Share in Consumer’s PriceThis was the percentage of the net price received by the producer to the price paid by the consumer or sellingprice of retailer. It may be expressed as follows: Post Harvest Loss of Flower and its Impacts on FlowerMarketing in BangladeshPs (Pf Pc) 100Where, Ps Producer‟s share, Pf Net price received by producerandPc Price paid by consumerIII.Results and DiscussionEstimation of Post Harvest Losses at Different Levels forDifferent FlowersThe post harvest loss at different stages of marketing for different flowers was estimated and it waspresented in Table 1. The result revealed that the total post harvest loss at producer level for per hundred of allflowers was 18.87 per cent, of which highest percentage was due to over maturing followed by due to delay inharvesting (8.13%) followed by losses due to plucking and assembling (5.72%), losses due to transportation,loading and unloading (4.94%). The major cause of post harvest loss at local trader level was due to press due towholesaling process (5.77%) followed by poor packing (3.64%) and transportation (2.35%) and cleaning andsorting (2.13%). Thus13.78 per cent of total post harvest loss on value basis was occurred at local trader level.Total post harvest losses were 27.52 percent at wholesale level. The causes of loss were transportation (9.2%),loading and unloading (7.23%), packing (5.82%) and unsold stock (5.27%). The maximum loss was occurred atretail level which accounted 39.82 per cent of total post harvest loss. The causal factors were identified asunsold stock (17.4%), during making flower vase (9.86%), and multiple handling and transportation (6.86%)and processing for sale (5.81%). In addition, most of the retailer‟s flower shop is not well shaded and retailerretains the flowers for a longer period than others, so sun and rain easily deteriorate the unsold flowers andretailer also perform more processing activities than other functionaries such as making flower vase, cleaning,sorting, some time change the form of the flower.Table 1: Post harvest loss at different levels for different low)a. Sales price (GPT)1659.243997710b. Purchase price (GPF)1006.826965440.8c. Marketing cost (CT)11.751.3417.9117.2548.25d. Marketing margin 3.5748.340.24146.5712.56207.71a. Sales price (GPW)2559.95645111.021020.97b. Purchase price (GPT)1607.643888693.6c. Marketing cost (CW)6.070.566.483.1516.26d. Net marketing margin (before)81.931.71201.5219.87305.03e. Loss of flower in value (LW GPW)15.230.686.944.2527.1f. Net marketing margin (after)73.71.11193.5815.62284.01a. Sales price (GPW)42820.79151551518.7b. Purchase price (GPR)2489.35535.595.5888.35c. Marketing cost (CR)36.524.4447.228.76116.92d. Net marketing margin 1. Local traderse. Loss of flower in value (--LT GPT)f. Net marketing margin (after)2. Wholesaler 0.003. Retailer 0.00www.iosrjournals.org47 Page
Marketing Efficiency and Post Harvest Loss of Flower in Bangladeshe. Loss of flower in value (LR. GPR)20.754.019.754.739.21f. Net marketing margin (after)122.731.9322.5526.04473.224. Total marketing margin of intermediaries (before)278.668.68685.9165.361038.615. Total marketing margin of intermediaries (after)244.773.25662.754.22964.946. Per cent change12.1662.553.8317.0495.58Impact of Post Harvest Loss on Farmer’s Net Price,Marketing Margin and Marketing EfficiencyNet price received by farmer was estimated as the difference ingross price received by farmer and sumof the marketing cost andvalue loss during harvesting, loading and unloading and marketingof flower. Perhectare net price received by farmer is presented inTable 2. The result revealed that the flower production wasprofitablein the study area. Jasmine (Yellow) production was more profitable forfarmer than other flowers. Thefarmer received highest net priceper hectare from Jasmine (Yellow) (Tk. 663601.29) followed by Rose (White)(Tk. 544452.6), Tulip (Purple) (Tk. 308245.4) and marigold (Tk. 18364.5) before excluding post harvest loss.Table 2: Per hectare net price received by farmersParticularsRose (White)MarigoldJasmine (Yellow)Gross price (GPF) (Tk)586000217940691733.5334490Marketing cost (CF) (Tk)41547.434293.528132.2126244.6Net price (Tk) (before)544452.6183646.5663601.3308245.4Loss of flower in value (LF GPF) (Tk)33870.870830.518489.0817033.26Net price (Tk) 53Percentage changeTulip (Purple)It is apparent from Table 2 that netprice received by farmer after deducting post harvest loss for Rose(White),marigold, Jasmine (Yellow) and Tulip (Purple) were reduced by 6.22 %, 39.56%,2.79 % and 5.53 %respectively.Marketing MarginThe intermediaries net marketing margin were worked out with and without taking into account thepost harvest loss and results are presented in Table 3. It is seen from the table that marketing margin wasreduced due to post harvest loss for Rose (White), marigold, Jasmine (Yellow) and Tulip (Purple) by 12.16,62.55, 3.83 and 17.04 per cent respectively.Table 3: Net marketing margin of intermediaries before and after excluding post harvest loss Tk. per 100flowersParticulars1. Farm level (Total flower)Rose yValue(No.)(Tk)1006.8Tulip (Purple)Jasmine (Yellow)QuantityValueValueQuantity (No.)(No.)(Tk)(Tk)10026910065% ofTotalValue447.7Damaged flower due to:Plucking and assemblingTransportation, loading andunloadingOver-maturing due to delay inharvestingTotal damaged flowers . Local trader (Total flower)1001601007.610043810088704.5Press due to wholesaling .591.591.840.140.531.420.670.433.64Cleaning and rtation0.980.982.7188.8.131.520.70.452.35Total damaged flowers (%)4.914.911.760.822.065.523.62.3213.783. wholesaler (Total 20.572.51.981.759.2Damaged flower due to:Damaged flower due to:Transportationwww.iosrjournals.org48 Page
Marketing Efficiency and Post Harvest Loss of Flower in BangladeshLoading and .263.63Unsold 311.391.21.06Total damaged flowers (%)9.495.2715.238.970.681.566.944.814.2527.524. Retailer (Total flower)Damaged flower due to:Multiple handling andtransportationMaking flower .280.451.90.260.256.86Processing for 151.230.281.091.521.455.81Unsold losses3.167.8511.7184.108.40.2062.632.517.4Total damaged flowers (%)8.3520.7542.884.012.229.754.934.7 39.82Total value of post-harvest loss28.6246.7695.087.728.5129.418.4314.58100Post Harvest Loss of Flower and its Impacts on Flower Marketing in Bangladesh Table 4 shows that the retailerscaptured the highest marketing margins both in before and after deducting post harvest loss followed bywholesalers and local traders. The highest change of marketing margins in per cent was found for wholesalers(8.88%) followed by retailer (7.65%) and local traders (6.14%).Table 4: Change in marketing margin of different intermediariesLocal traders total margin Tk./100 flowersBefore excludingpost harvest loss221.15After excluding postharvest loss207.71change in Percent(Decreased)6.14Wholesaler‟s total margin Tk./100 flowers305.03284. 018.88Retailer‟s total margin Tk./100512.43473.227.65ParticularsMarketing EfficiencyMarketing efficiency is essentially the degree of market performance. The term marketing efficiencymay be broadly defined as the effectiveness or competence with which a market structure performs itsdesignated function (Jasdanwalla, 1996). Kohls and Uhl (2005, p. 35) defined marketing efficiency as themaximization of input output ratio. An efficient marketing system is an effective means of change and animportant way of raising the income levels of the farmer and the levels of satisfaction of the consumers.Efficient marketing system plays an important role not only in stimulating production but also in acceleratingthe pace of economicdevelopment. The marketing efficiency before excluding post harvest loss for Rose(White), marigold, Jasmine (Yellow) and Tulip (Purple) was 0.25, 0.29, 0.32 and 0.46 respectively. Themarketing efficiency after excluding post harvest loss for Rose (White), marigold, Jasmine (Yellow)and Tulip(Purple)was 0.22, 0.20, 0.31 0.41respectively (Table 5). Theoretically it is revealed from Table 5 that Tulip(Purple) flower market was more efficient than other flowers market.Table 5: Marketing efficiency of market intermediaries before and after excluding post harvest lossRose(White)MarigoldJasmine(Yellow)Farmers net price NP (Tk/100 flowers)85.824.66247.1254.8Total marketing margin MM (Tk/100 flowers)278.668.68685.9165.36Total marketing cost MC (Tk/100 flowers)61.437.4182.5354.26Total marketing loss ML(Tk/100 flowers)46.677.7229.414.58Marketing efficiency (before)0.250.290.320.46Marketing efficiency (after)0.220.20.310.41ParticularsTulip (Purple)Producer’s Share in Consumer’s PriceTable 6 represented that the price paid by consumer for per hundred of Rose (White) was calculatedTk. 428 which was Tk. 20.70 for marigold and Tk. 815 for Jasmine (Yellow) and Tk. 155 for Tulip (Purple).Table 6 shows that the producer‟s share in consumer‟s price for Rose (White), marigold, Jasmine (Yellow)andTulip (Purple) was 20.05%, 22.51%, 30.32% and 35.35%per hundred flowers respectively before excluding postharvest loss, while after excluding post harvest loss the corresponding shares reduced to 18.7% 11.84%, 29.44%and 33.22%.Table 6: Producer’s share in consumer’s pricewww.iosrjournals.org49 Page
Marketing Efficiency and Post Harvest Loss of Flower in BangladeshParticularsA. Before excluding post harvest lossNet price received by farmers(Tk/100 flowers)Price paid by consumer (Tk/100flowers)Producer‟s share in consumer price (Tk/100flowers)Price spreadB. After excluding post harvest lossNet price received by farmers(Tk/100 flowers)Price paid by cons
of Jasmine that have scented flowers and which are used for making garlands and Attars. Flowers have become . per cent of total flower production. At present approximately 8000 farmers are engaged in floriculture (Mou, . about flower marketing in Bangladesh. The sample size was 110 of which five were input suppliers, 30 flower
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