Value Chain Analysis of Mango in Bangladesh

VALUE CHAIN ANALYSIS OF MANGO IN BANGLADESH
PhD
DISSERTATION
NASRIN SULTANA
Department of Agribusiness and Marketing

Bangladesh Agricultural University
Mymensingh
December, 2018
i
A Dissertation
Submitted in accordance with the requirements of the Bangladesh

Agricultural University, Mymensingh
for the degree of
DOCTOR OF PHILOSOPHY
By
NASRIN SULTANA
Roll No: 01, YEAR: 2012
Registration No: 15516, YEAR: 1987-1988

Mymensingh
December, 2018
ii
A Dissertation
Submitted in accordance with the requirements of the Bangladesh

Agricultural University, Mymensingh
for the degree of
DOCTOR OF PHILOSOPHY
By
NASRIN SULTANA
Roll No: 01, YEAR: 2012
Registration No: 15516, YEAR: 1987-1988
Approved as to Style and Contents by
............................................................ ......................................................
Professor Dr. Shankar Kumar Raha Professor Dr. Shaikh Abdus Sabur
Supervisor Co-Supervisor
................................................................
Professor Dr. Md. Idris Ali Mia
Chairman, Examination Committee

Mymensingh
December, 2018
iii
This humble effort is dedicated to
MY
DEPARTED PARENTS, HUSBAND AND ADORABLE

CHILDREN
iv
DECLARATION
I declare that, except where otherwise stated, this dissertation is

based entirely on my own work and has not been submitted in
any form to any other university for any degree.
December, 2018 Nasrin Sultana
v
ACKNOWLEDGEMENTS
At the beginning I would like to acknowledge and gratitude to the Almighty Allah for his unmentioned
and all time propitious that gave me enthusiasm to start and accomplish this dissertation work.
I would like to gratefully expresses my heartfelt indebtedness, deepest sense of gratitude and profound
respect to my honorable supervisor Professor Dr. Shankor Kumar Raha, Department of Agribusiness
and Marketing, Bangladesh Agricultural University, Mymensingh for his scholarly guidance,
affectionate feelings, invaluable advice, encouragement and constructive criticism throughout the course
of research and completion of thesis. Without his kind support and intense co-operation this work
would not have been seen the light of the day. His discussion and suggestion were very inspiring and
finally shaped and prepared the dissertation.
I would like to express heartfelt gratitude and special thanks to my Co-supervisor Professor Dr. Shaikh
Abdus Sabur, Department of Agribusiness and Marketing, Bangladesh Agricultural University ,
Mymensingh for his guidance, Scholastic co-operation, valuable suggestion, critical comments and
encouragement during the entire course of this study.
I am very much obliged to Dr. Nazia Tabussum, Professor and Head, Department of Agribusiness and
Marketing, Faculty of Agricultural Economics and Rural Sociology, Bangladesh Agricultural
University, Mymensingh for extending her helping hand to complete this work.
I would like to express my sincere gratitude and thanks to Dr. Paresh kumar Sarma, Senior Scientific
Officer, BAURES, for his valuable help and suggestions.
My sincere heartfelt gratitude goes to Director General, Dr. Mosammat Nazmanara Khanum and
formal Director General, Mr. Md. Mahbub Ahmed, Department of Agricultural Marketing, Ministry
of Agriculture, for their kind corporation and support to continue and complete this research work.
I am gratefully acknowledged the financial support from IQHDP (Integrated Quality Horticulture
Development Project), Bangladesh Agricultural Research Institute, Ministry of Agriculture,
Government of the People’s Republic of Bangladesh to successfully carry out the research work. I wish
to express my sincere gratitude to Shahnaz Begum Nina, Project Director, Increasing Cropping
Intensity in Sylhet Region Project (ICISRP), Department of Agricultural Marketing, for her
inspiration and encouragement.
I would like to express my special thanks to all officers of Department of Agricultural Marketing
specially Deputy Director, Mr. Dewan Ashraful Hossain, Assistant Director (Admin.), S.M. Sayed
Hasan, Assistant Director Mozibar Rahman for their always extending hands of helps
I wish to express my sincere indebtedness to my departed parents. I am highly grateful to my beloved

mother-in law for her unflinching affection and keen interest in my research study. I am most thankful
to my brothers and sisters for providing me affection, love, encouragement, continuous blessing, support
to make her capable and sacrifices during the entire period of my research work.
Sincere and special thanks are also due to my beloved husband Md. Israil Khan for his patience,
tolerance, earnest support, sacrifice, understanding and assistance. I am also thankful to my three
vi
beloved children Nayeb Ishraf Khan, Nazib Irfan Khan and Nashit Israq khan. for their unvaluable
love and sacrifices a lot in the long process of building my academic career which will never be
forgotten.
I wish to express my sincere thanks to my several friends, colleagues and relatives for their
encouragement, suggestion and co-operation.
Last but not the least I would like to express my acknowledges to all respondents of three areas for
their cooperation and moral support during conducting my research works, without whose willingness
to provide information the work certainly could not have been possible.
The Author
vii
BIOGRAPHICAL SKETCH
Nasrin Sultana Rita, the author of this dissertation was born on April 20, 1969 at Mymensingh
district of Bangladesh. She comes from a respectable Muslim family. Her father is late Shah Nurul
Islam and late Sayada Shamsun Nehar. She had her Secondary School Certificate (SSC) from
Vidyamoyee Govt. Girls High School, Mymensingh, under Dhaka Board in 1984. Afterwards, She
passed Higher Secondary Certificate (HSC) from A.M.M. College, Mymensingh, under Dhaka Board
in1986. She obtained Bachelor of Science in Agricultural Economics (B. Sc. Ag. Econ) degree from
Bangladesh Agricultural University (BAU), in 1993 (examination held in 1993). Following which she
completed the Master of Science (MS) in Agricultural Economics (Marketing) in June, 1995.
From November 1996 she started her service as a Research Assistant of Proshika Manabik Unnayan
Kendra, Head office, Mirpur, Dhaka. In December 1996, she joined as a Assistant Director,
Department of Agricultural Marketing, Ministry of Agriculture, Government of the people’s Republic
of Bangladesh.
The author’s awards and honors include the Scholarship from IQHDP (Integrated Quality Horticulture
Development project), Bangladesh Agricultural Research Institute, Ministry of Agriculture,
Government of the People ’s Republic of Bangladesh during pursuing of PhD degree.
She has 5 research articles published in different national and international scientific journals.
She is a life member of Bangladesh Economics Association (BEA), and a member of Bangladesh
Agricultural Economic Association and Krishibid Institute of Bangladesh.
She has married with Md. Israil Khan and blessed with three adorable children named Nayeb Ishraf
Khan, Nazib Irfan Khan and Nashit Israq khan.
The Author
viii
LIST OF CONTENTS
CHAPTER TITLE PAGE
DECLARATION v
ACKNOWLEDGEMENTS vi-vii
BIOGRAPHICAL SKETCH viii
LIST OF CONTENTS ix-xiii
LIST OF TABLES xiv-xv
LIST OF FIGURES xvi
LIST OF MAPS xvii
LIST OF PICTURES xviii
ABBREVIATION AND ACRONOMYS xix-xxi
ABSTRACT xxii
CHAPTER 1 INTRODUCTION 1-26
1.1 1.1 Background 1
1.2 Statement of the Problem 3
1.3 Research Gap 6
1.4 Worldwide Import-Export Scenario of Mango 6
1.5 Fruits Exported From Bangladesh 12
1.6 Mango Production in Bangladesh 13
1.7 Objectives of the Study 22
1.8 Scope and Significance of the Study 22
1.9 Organization of the Thesis 25
CHAPTER 2 REVIEW OF LITERATURE 27-54
2.1 Introduction 27
2.2 Marketing System 27
2.3 Supply Chain 29
2.4 Marketing Costs 31
2.5 Marketing Margin 32
2.6 Value Chain Development 33
2.7 Value Chain Analysis 34
ix
LIST OF CONTENTS (Continued)
CHAPTER TITLE PAGE
2.8 Risk Perception 52
2.9 Important findings of the reviewed literature 53
CHAPTER 3 METHODOLOGY 55-71
3.1 Introduction 55
3.2 Research Design 55
3.3 Selection of the Study Area 56
3.4 Selection of Commodity 61
3.5 Selection of Sample and Sampling Techniques 61
3.6 Period of Data Collection 61
3.7 Preparation of Survey Schedule 62

3.8 Data Collection 62
3.8.1 Collection of Primary Data 62
3.8.1.1 Data Collection from Growers 63
3.8.1.2 Data Collection from Actors 63
3.8.2 Secondary data 63
3.9 Processing, Tabulation and Analysis of Data 64
3.9.1 Costs and Benefits of Mango Growers 64
3.9.1.1 Production Cost 64
3.9.1.2 Gross Return (GR) 65
3.9.1.3 Gross Margin (GM) 65
3.9.1.4 Marketing Margin of Market Actors 66
3.10 Value Addition by Traders 66
3.11 Marketing Efficiency 67
3.11.1 Methods for Measuring Marketing Efficiency 67
3.12 Mapping the Value Chain of Mango Marketing 68
3.13 Likert Scale Analyses for Risk Perception 69
3.14 Analytical Techniques of Challenges Facing Index 69
(CFI)
3.15 SWOT Analysis 70
x
CHAPTER TITLE PAGE
CHAPTER 4 MANGO MARKETING SYSTEM 72-91
4.1 Introduction 72
4.2 Marketing of Mango 72
4.3 Value Chain of Mango 73
4.4 Supply Chain Actors 77
4.4.1 Input Supplier 77
4.4.2 Grower 78
4.4.3 Bairal 78
4.4.4 Bepari 79
4.4.5 Aratdar 79
4.4.6 Aratdar (local) 80
4.4.7 Aratdar ( Dhaka) 80
4.4.8 Retailer 81
4.4.9 Consumer 81
4.5 Period of Marketing 81
4.6 Supermarkets and other Institutional Outlets 82

4.7 Functions Involved in Mango Marketing 82
4.7.1 Buying and Selling 83
4.7.2 Storage 84
4.7.3 Packing 84
4.7.4 Transportation 86
4.7.5 Grading and Standardization 88
4.7.6 Financing 88
4.7.7 Market Information 89
4.7.8 Promotion 90
4.8 Conclusion 90
CHAPTER 5 DISTRIBUTION OF BENEFITS AND RISKS 92-114
5.1 Introduction 92
5.2 Cost of Mango Cultivation 93
xi
CHAPTER TITLE PAGE
5.3 Financial Profitability of Mango Production 98
5.4 Marketing Cost of Different Actors in Mango 99
Marketing
5.5 Value Addition of the Different Actors Involved in 103
the Value Chain
5.6 Farmers’ Perception on Major Sources of Risk in 108
Mango Farming
5.6.1 Production Risk 108
5.6.2 Market Risks 109
5.6.3 Investment Risk 110
5.6.4 Socio-economic Risks 111
5.6.5 Environmental Risks 112
5.7 Conclusion 114
CHAPTER 6 UPGRADING OF MANGO IN THE VALUE 115-127

CHAIN
6.1 Introduction 115
6.2 Method of Upgrading 115
6.3 Value Adding Activities by Mango Growers 117
6.4 Upgrading Practices in the Study Areas 117
6.4.1 Process Upgrading 117
6.4.2 Product Upgrading 121
6.4.3 Functional Upgrading 124
6.5 Conclusion 127
CHAPTER 7 MARKETING EFFICIENCY 128-132
7.2 Marketing Cost, Marketing Margins and Price 128
Spread
7.3 Price Spread and Grower’s Share 130
xii
CHAPTER TITLE PAGE
7.4. Measurement of Marketing Efficiency of Different 131
Marketing Channel by Three Methods
7.5 Conclusion 132

CHAPTER 8 CHALLENGES AND OPPORTUNITIES OF 133-142
MANGO VALUE CHAIN
8.2 Challenges Faced by the Mango Value Chain Actors 133

8.3 Marketing Problems of Mango Value Chain Actors 137
8.4 Opportunities of Mango Value Chain 138
8.5 SWOT Analysis 139
8.5.1 SWOT Analysis of Mango Value Chain 140
8.6 Implications of SWOT Analysis 142
8.7 Conclusions 142
CHAPTER 9 SUMMARY, CONCLUSION AND 143-153

RECOMMENDATION
9.1 Summary 143
9.2 Conclusion 148
9.3 Recommendations 151
9.4 Limitations of the Study 153
REFERENCES 154-174
xiii
LIST OF TABLES
TABLES TITLE PAGE
1.1 List of top10 mango producing countries in the world 8
1.2 Top mango importing countries (2016) 9
1.3 Top mango exporting countries (2016) 11
1.4 Fruits exported from Bangladesh 12
1.5 Mango area, production and yields by major region 13

2014-15
1.6 Production of horticulture crops in Bangladesh during 15

2001-02 to 2014-15
1.7 Areas and production of mango by former districts 18
1.8 Area of important fruits in Bangladesh 19
1.9 Production of important fruits in Bangladesh 20
4.1 Modes of transport used by various actors in mango 87

marketing
5.1 Cost of production of mango in Rajshahi district 93
5.2 Cost of production of mango in Meherpur district 94
5.3 Cost of production of mango in Chapai Nawabganj 95

district
5.4 Cost of production of mango in all areas 96
5.5 Marketing cost of mango grower 97
5.6 Per hectare yield, cost and return of mango in the study 98
areas
5.7 Marketing cost of mangoes incurred by different actors 100

in Dhaka market
5.8 Marketing cost of mangoes incurred by different actors 102

in local market
5.9 Gross value addition by different actors of mango 104
5.10 Growers perception about production risks 109
xiv
LIST OF TABLES (Continued)
TABLES TITLE PAGE
5.11 Growers perception about market risks 110
5.12 Growers perception about investment risks 111
5.13 Growers perception about socio-economic risks 112
5.14 Growers perception about environmental risks 113
6.1 Methods of upgrading 116

6.2 Growers’ response on upgrading activities 117
6.3 Distribution of mango growers by adoption of process 121
upgrading activities
6.4 Distribution of mango growers by adoption of product 122

6.5 Distribution of mango growers by adoption of 126

functional upgrading activities
6.6 Traders involvement in upgrading activities 126
7.1 Marketing costs and marketing margins of actors for 129

mango marketing
7.2 Price spread and grower’s share in marketing channel 130
7.3 Measurement of marketing efficiency of mango 131

marketing
8.1 Rank order of 25 selected challenges faced by the mango 134

value chain actors
8.2 Core challenges of mango value chain 135
8.3 Marketing problems of mango value chain actors 137
8.4 SWOT analysis of mango value chain 141
xv
LIST OF FIGURES
FIGURE TITLE PAGE

1.1 Top 10 mango producing countries 8
1.2 Top mango importing country (value) 10
1.3 Top mango importing country (%) 10
1.4 Top mango exporting country 2016 (value) 11
1.5 Top mango exporting country (%) 12
1.6 Mango area by major region 13
1.7 Mango production by major region 13
1.8 Production of horticulture crops in Bangladesh during 16
2000-01 to 2014-15
1.9 Area of important fruits in Bangladesh 19
1.10 Production of important fruits in Bangladesh 21
1.11 Benefits of value chain 24
4.1 Value chain map of mango 75
4.2 Marketing channels of mango in the study area 77
4.3 Supply chain map of super market 82
5.1 Marketing cost (%) of farmer and the other actors 103
involved in the value chain
5.2 Gross value addition of the different actors involved in the 105
value chain
5.3 Net value addition of the different actors involved in the 106
value chain
5.4 Sales price, value addition and value addition (%) of 107
different value chain actors of mango
6.1 Possible uses of mango 123
xvi
LIST OF MAPS
MAPS TITLE PAGE

3.1 Map of Bangladesh showing the selected districts 57
3.2 Map of Rajshahi district showing the Bagha Upazila 58
3.3 Map of Meherpur district showing the Meherpur Sadar 59
Upazila
3.4 Map of Chapai Nawabganj district showing the Shibganj 60

Upazila
xvii
LIST OF PICTURES
PICTURES TITLE PAGE

4.1 Mangoes are piled in Arat for sale 83
4.2 Mangoes are ready for sale on the hat 83
4.3 Labour is packaging mangoes in the plastic caret 85
4.4 Mangoes are being packaged in caret at Baneshore 85
mango market
4.5 Traditional packaging of mango 86
4.6 Mangoes are being transported by different 87
transportation
6.1 Farmers are collecting mango by traditional method 119
6.2 Farmers are collecting mango by ‘Thushi’ 119
6.3 Mango begging in study area 124
xviii
ABBREVIATIONS AND ACRONOMYS
AMCL = Agricultural Marketing Company Limited.
BAU = Bangladesh Agricultural University
BARC = Bangladesh Agricultural Research Council

BARI = Bangladesh Agricultural Research Institute
BBS = Bangladesh Bureau of Statistics
BCR = Benefit Cost Ratio
BINA = Bangladesh Institute of Nuclear Agriculture
BSTI = Bangladesh Standard and Testing Institute
BSMRAU = Bangabandhu Sheikh Mujibur Rahman

Agricultural University
CFB = Corrugated Fibre Box
CH = Channel
D = Dhaka
DAM = Department of Agricultural Marketing
DAE = Department of Agricultural Extension
DESA = Dhaka Electric Supply Authority
DFID = Department for International Development
EC = European commission
e.g. = Exempli gratia (for example)
et al. = et alia (L.) and other
etc. = et cetera (Other and so forth)
FAO = Food Agriculture Organization
FGD = Focused Group Discussion
xix
ABBREVIATIONS AND ACRONOMYS (Continued)
GAP = Good Agricultural Practice
GDP = Gross Domestic Product
GMP = Good Manufacturing Practices
GOB = Government of Bangladesh
GR = Gross Return
GVC= Global Value Chain
HACCP = Hazard Analysis and Critical Control

Analytical Point
HORTEX = Horticulture Export Development Foundation
HYV = High Yielding Varieties
ICM = Integrated Crop Management
IPM = Integrated pest Management
ISO = High Yielding Varieties
ISHS = International Society of Horticulture Science
Kg = Kilogram
KII = Key Informants Interview
L = Local
MC = Marketing cost
MRP = Maximum Retail Price
NMM = Net Marketing Margin
No. = Number
NFPCSP= National Food Policy Capacity Strengthening

Programmers
xx
ABBREVIATIONS AND ACRONOMYS (Continued)
PhD = Doctor of Philosophy
PHM = Post Harvest Management
PHM = Post Harvest Management
QA = Quality Assurance
REB = Rapid Action Battalion
SAC = SAARC Agriculture Centre
SAARC = South Asian Association for Regional Co-

operation
SAU = Sylhet Agricultural University
SPSS = Statistical Package for Social Science
SPS = Sanitary and Phyto-Sanitary Standards
SWOT = Strengths, Weakness, Opportunities Threats
SME = Small and Medium Enterprises
TVC = Total variable cost
TFC = Total Fixed cost
TR = Total Return
UNIDO = United Nations International Development

Organization
USAID = United States Agency for International

Development'
% = Percentage
$ = US Dollar
xxi
NASRIN SULTANA
ABSTRACT
The study was conducted on value chain analysis of mango marketing in Bangladesh.
This study is an attempt to analyze the prevailing value chain of mango along with system of
mango marketing. Value addition at different levels of value chain, upgrading of mango in the
value chain and cost and benefit of mango business were also examined. The sample size was
210, which included 75 growers selected randomly from three mango growing districts, namely
Rajshahi, Chapai Nawabganj and Meherpur. Wholesale and retail markets were also selected
from the supplying districts, while Karwan Bazar and Badamtoli market were selected as
consuming area from Dhaka city. The selected 135 traders consisted of 30 Bairal, 30 Bepari, 26
Aratdar and 49 retailers. Data were collected by applying direct interview method, conducting
focus group discussions and the Key Informants Interviews during the period of January to
August 2013. The whole value chain of mango was completed through six separate supply
chains of mango from the input suppliers to mango growers, and delivered mango to the
ultimate consumers and processors. Mango marketing season spreads over four months from
May to August. But, Guti mango is generally available only during May to June in the market.
No grade standard has been developed yet in the country. Market information is collected
individually. Retailers adopt promotion program for selling mangoes. Mango cultivation was
found profitable in the study areas with per hectare net return of Tk. 277,365 and BCR was 2.34
in all areas. Net return per hectare for mango growers was higher in Meherpur (Tk. 281,099)
than the mango growers in Rajshahi (Tk. 276,865) and Chapai Nawabganj (Tk. 274,130) districts.
The total marketing cost was Tk. 912 per quintal in local market which is lower than Dhaka
market. The highest marketing cost was incurred by Bepari that was Tk. 474 per quintal which
is followed by retailer (Dhaka), farmer, Bairal, local retailer, and Aratdar. In value chain, the
highest value was added by growers (Tk. 1632) and second highest value (Tk.656) was added by
Aratdar (Dhaka) and lowest value was added by Bairal (Tk.122). Risks involved in mango
production as perceived by growers were identified as (i) production risks (ii) market risks (iii)
investment risks (iv) socio-economic risks and (v) environmental risks. Among six channels, it
was found that grower’s share was the lowest (58.82%) in Channel-I and the highest (93.60%) in
Channel VI. Mango growers and traders participated in upgrading the mango value chain such
as product, process and functional upgrading. It was observed that the highest number of
traders (51.85%) followed functional upgrading while the small number of respondent (3.70%)
was involved in product upgrading. Picking technique upgrading as a process upgrading was
practiced by highest number of growers (57.33%). Mango growers and traders faced a number
of challenges in the field of input, production, infrastructure, market access, processing, finance
and risk etc. The prevailing major opportunities for mango growers and traders were training
on post harvest management of mangoes, establishment of market linkage through group
market approach; increase the productivity of mango cultivation by adapting modern
management practices, use of right varieties, proper management, balanced use of fertilizer,
proper irrigation, protection of the mango-trees from attack of insect-pests and diseases etc.
Arrangement of adequate storage facilities, improvement of transport and communication
facilities, reduction of transport cost and establishment of mango processing company were
suggested by mango growers and traders as the remedy of the existing problems, which would
ensure fair prices for the growers
CHAPTER I
INTRODUCTION
1.1 Background
Mango is the favorite fruit for a lot of people around the world. Mangoes are
rich with fiber that make it one of the healthiest and most delicious fruits in the
world and it also provides carbohydrates, vitamins A, B1, B6 and C, sodium,
calcium, magnesium, zinc, copper, manganese, iron, phosphorus, potassium,
pantothenic acid, and niacin. They are used in different types of cuisines around
the world. Mango lassi, pickles, custards, puddings and even raw mangoes are
widely used around the world. It is the national fruit of India, Pakistan, and the
Philippines, and also the national tree of Bangladesh. Mangos were first grown
in India over 5,000 years ago. A mango seed traveled with humans from Asia to
the Middle East, East Africa and South America beginning around 300 or 400
A.D. Mango is a major food crop in Bangladesh and top in the list in terms of
area and occupies third position in production among the fruits in the country.
At present Bangladesh produces about 1161685 metric tons annually from
approximately 93480 acres of land (BBS, 2016).
In Bangladesh, fruit consumption is seasonal but some fruits are cultivated

round the year. Bangladesh produces a lot of summer fruits like mango, litchi,
jackfruit, guava, pineapple, etc. and mango is particularly considered as the
fruit of the North Region of Bangladesh. The leading mango growing districts
are Chapai Nawabganj, Rajshahi, Rangpur, Dinajpur and Kushtia. Mango is one
of the most delicious, popular and nutritious fruits and is rightly designated as
the king of fruits. It ranked top of the list in terms of production among the
fruits of Bangladesh, though the yield is very low compared to that in India,
Pakistan and many other mango growing countries of the world (Hossain et al.
1994). Different varieties however, have different taste and flavors. The highest
consumption of mango is in the form of fresh fruit. Around 160 varieties of
mangoes are cultivated in more than 90 countries. The mango fruit grows well
1
under (warm) tropical climate, with long dry season (over three months)
followed by sufficient rains (Uliwa et al. 2011). There are some intensive mango
growing areas in Bangladesh where mango produced commercially and as well
as marketed in other areas of the country. Mango needs to be moved along a
distance to reach the ultimate consumers under the prevailing marketing
system. Mangoes are bulky and highly perishable in nature and preserving
them in the cold storage is not always possible on account of high cost involved
with it. Hence, spoilage of mango during transportation as well as during sales
is quite high. In the peak period, there is an excess supply which creates a glut
in the market and causes a fall in the price and affects the incomes of the
farmers. As a result, the growers are not getting their due returns for their
produce and the country is being deprived of potential resources.
Mangoes are nutritionally superior amongst all fruits of the world; it is one of
the most valuable fruit. . Mango provides a lot of energy with as much as 74
Kcal per 100 gram edible portion which nearly equals the energy values of
boiled rice of similar quantity by weight. Mango has number of medicinal uses,
in addition to its great popularity as fresh fruit, and it is used in many dried
and process forms. The pulp or juice of the inferior ones is often eaten with rice
in combination with milk and molasses. Unripe fruits are sometimes used to
make sour curries, eaten fresh sprinkled with salt and chili powder, made into
dried strips called ―Phali‖ and ―Achar‖ preserved in mustard oil or pickle in
combination with sugar, chilli and other spices. Mango juice is bottled or
canned in juice, squash and syrup.
Value chain is the sequence of activities required to make a product or provide

a service (Vermeulen et al. 2008). The value chain concept entails the addition of
value as the product progresses from input suppliers to producers and
consumers. So, mango value chains that offer more promising prospects for
economic growth and poverty reduction in this region. There are also a key
issue that has an impact on industrial development and the capacity to produce
2
more mangoes which can supply to overall country as well as can export to
other country.
Even though mango marketing is economically and socially important, mango

value chain and their characteristics have not yet been studied and analyzed for
the target study area where great potential of mango production exists.
Therefore, this study has the purpose of investigating mango marketing chains
and factors affecting mango value chain to the market in study area, which will
narrow the information gap on the subject and will contribute to better
understand on improved strategies for reorienting marketing system for the
benefit of small mango growers and intermediaries.
This study is intended to provide the understanding of the mango value chain
and to identify the possibilities of developing the industry along the entire
value chain and in order to make Bangladesh grow and become competitive in
the mango industry. Bangladesh has been growing essentially traditional
varieties of mango for domestic market but currently improved varieties are
increasing in importance and a unique market window exists regionally and
internationally.
The first step in mapping the market is to delineate the value chain. The flow of
mango seed to farmers and pickles to the market occurs along chains. These can
be referred to as value chains because as the product moves from chain actor to
chain actor e.g. from producer to intermediary to consumer it gains value. The
chain actors who actually transact a particular product as it moves through the
value chain include input (e.g. seed suppliers), farmers, traders, processors,
transporters, wholesalers, retailers and final consumers.
1.2 Statement of the Problem
A development can be inhibited by many factors such as high transaction costs,

market imperfection, lack of technology, lack of access to credit, perishability of
3
the products and the prevalence of staple foods that are only slightly traded
(World Bank, 2008). These constraints may result in either exclusion of
smallholders from market or unequal distribution of benefits. There is a need to
manage effective participation of stakeholders in national and international
economy to ensure that incomes are not reduced or further polarized
(Kaplinsky and Morris, 2000).
In Bangladesh the production and marketing of mangoes is complicated by

high postharvest losses, which are about 34% (Sarker et al. 2011).This high
postharvest loss is due to poor packaging, storage facilities and poor means of
transportation, public transport and rented trucks. The principal reasons for
postharvest losses are: (i) physiological and biochemical processes i.e. increase
in respiration, ethylene production and transpiration loss of water, (ii) microbial
decay, (iii) high perishability, and (iv) sub-standard postharvest handling
infrastructures (Hassan, 2010). Inadequate knowledge on crop maturity stage,
harvesting methods, grading and packaging techniques, lack of storage and
marketing facilities, producers’ inability to bear transportation cost, lack of post
harvest handling technologies are some of the important constraints of post
harvest management . Harvesting products at optimum maturity, maintaining
higher sanitation standards, decreasing injury incidence and maintaining
environmental conditions guarantee excellent postharvest quality (Zagory and
Kader, 1988).
It is learnt through review of various studies (Dereje, 2007; Kaleb, 2008 ) that the
Agricultural sector in Ethiopia has been facing challenges due to seed supply,
market outlets, limited efforts in market linkage activities and poor market
information among actors. This finding is also relevant for agricultural sector in
Bangladesh.
There is growing realization that future growth in the agricultural sector relies
heavily on diversification and promotion of opportunities for the addition of
4
value, particularly with regard to horticultural crops, because of a gradual
increase in consumer demand and the export potential of fresh fruits ( Hanif et
al. 2004 ; Anwar et al. 2008 ; Malik et al. 2010 ; CSF 2011). Value addition and
diversification in horticulture can therefore make a significant contribution to
the nation’s growth and prosperity (Dunne & Johnson 2011). However, over the
whole study areas absence of food processing industries, lack of
entrepreneurship, poor road communications, and huge amount of post harvest
looses of fruits are common feature. The situation stated above is further
compounded by poor marketing infrastructures and huge post harvest losses.
Due to seasonal glut and absence of proper marketing system, bulk quantity of
harvested mangoes is wasted every year.
The characteristics of mango productions are labeled as small scale, dispersed

and unorganized growers and cannot explore the opportunities as they do not
have necessary economies of scale, and low bargaining power both in
procurement of inputs and selling mangoes.
In all these circumstances, it is clear that the mango industry has the potential to
contribute significantly to the economic development of Bangladesh. The
marketing of mango has therefore become a major priority for the government
in the development of the country’s horticultural crops (UNIDO 2006 ; Malik et
al. 2010). It is imperative that the nature and extent of value chain challenges be
fully comprehended across the entire mango industry value chains so that
appropriate responses can be identified and developed for implementation by
both public and private sector players. This study investigated mango value
chain actors and their linkages, and determines marketing efficiency. This
study may help to narrow the information gap on the subject and it may
contribute towards improvement of strategies for developing effective value
chain system. This study therefore adopts the value chain approach to explore
sustainable development options for mango value chain.
5
1.3 Research Gap
There is no study on mango marketing which covered more than one mango
producing districts particularly the districts of Rajshahi, Chapai Nawabgonj and
Meherpur. Secondly, no specific and comprehensive study on mango value
chain was conducted in the country though some studies covered mango along
with other fruits. Keeping in mind the research gaps, the present study was a
modest attempt to fill the research gaps to some extent. The study covered three
important areas of mango producing districts. Secondly, value chain analysis
was employed to examine the mango marketing in Bangladesh. In order to
conduct the study systematic scientific procedures were followed which had
been explained in detail in chapter 3.
1.4 Worldwide Import-Export Scenario of Mango
Marketing of mango fruits is quite complex and risky due to perishable nature
of the produce, the seasonality of production, and the logistics challenges of
high weight-to-value shipments. The marketing arrangements at different
stages also play an important role in price levels at various stages as mangoes
move from farm gate to the ultimate user. These features make the marketing
system of mangoes quite different from other agricultural commodities,
particularly in providing time, form and place utilities.
Multiple actors such as local collectors, local traders, local market Aaratder and
their agents, urban wholesaler and their commission agents, rural and urban
retailers—constitute the important components of the marketing system. The
Aratdar and their agents mainly determine the market price of fresh mangoes.
Market price is determined by the marginal cost of supply and demand. The
wholesalers are able to pass on their entire risks, partly to farmers in terms of
lower farm gate prices, and partly to consumers in terms of higher wholesale
prices than what would have been the outcome had the farmers been able to sell
6
their products directly to consumers. This partially explains the large
differential between farm gate price and wholesale/retail price as observed in
the market. The more elastic is the demand, the higher would be the farm gate
and wholesale price differential.
Mangoes are now the most important cash crop in the study area. Mango
growers are getting higher prices than farmers of paddy, jute and other crops.
Understandably, there is a great interest in commercial mango cultivation.
Farmers hardly achieve fair prices for paddy and other crops but with mangoes
good prices are usual. The livelihoods of many people depend heavily on
mangoes. Indeed the mango orchards provide employment for many, involved
in tending the trees as well as harvesting, nursing and packing work. A large
number of people are passing busy days making bamboo baskets, locally called
jhuri or tukri, as the item is widely used for safe packing of mangoes to send it
to different areas of the country from the famous mango producing district.
Chapai Nawabganj has produced 1.67 lakh tonnes of mangoes from 19 lakh
mango trees on 4466 acres of land. This area has long tradition of producing
around 350 varieties of the popular summer fruit mango. Rajshahi has
produced 2.77 lakh tonnes of mangoes from 21767 acres of land and 11159
tonnes of mangoes are produced from 440 acres of land in Meherpur district
(BBS, 2016).
7
Table 1.1 List of top 10 mango producing countries in the world
SL. Country Production (MT)

1 India 151,88000
2 China 43,50000
3 Thailand 26,00000
4 Indonesia 21,31139
5 Pakistan 18,88440
6 Mexico 18,27314
7 Brazil 12,49521
8 Bangladesh 8,89176
9 Nigeria 8,50000
10 Philippines 8,00551
Source: FAOSTAT database, 2014
Mango is considered one of the most farmed tropical fruits in the world,
accounting for approximately 50 percent of total fruit production (Jedele et al.
2003). According to FAO (2014), the main mango producers worldwide
included India (151,88000 MT), followed by China (43,50000 MT), Thailand
(26,00000 MT), Indonesia (21,31139 MT), Pakistan (18,88449) and Mexico
(18,27314 MT). Mango production is concentrated in developing or emerging
countries. In developed countries such as the United States, mango production
remains marginal.
Figure 1.1 Top 10 mango producing countries
8
Table 1.2 Top mango importing countries (2016)
Country Value (%)

1 USA US$ 583.3 million (23.2% of mango imports)
2 Netherlands $ 280.8 million (11.2%)
3 Germany $ 174.1 million (6.9%)
4 UK $ 170.8 million (6.8%)
5 China $ 168.8 million (6.7%)
6 France $ 127.4 million (5.1%)
7 Vietnam $ 97.5 million (3.9%)
8 Canada $ 87.5 million (3.5%)
9 Spain $ 71.2 million (2.8%)
10 United Arab Emirates $ 58.4 million (2.3%)
Source: Trade Map, International Trade Centre, www. intracen. org./ market analysis
The top five mango importers worldwide in 2016 were the United States $583.3
million(23.2% of mango imports), Netherlands $280.8(11.2%), Germany $174.1
million (6.9%) United Kingdom $170.8 million (6.8%) and China $168.8 million
(6.7%). Table1.2 reveals the top 10 mangoes importers based on their percentage
of global import purchases (shown within parenthesis). In 2016 world mangoes
imports totaled US$ 2.5 billion.
The top mango exporters were: Maxico US$402.1 million (17.2% of mango
imports), Netherlands US$285.1 million (12.2%), India US$202.6 million (8.7%),
Peru US$197.7 (8.5%) and Brazil US$180.3 (7.7%). Mexico is considered the
principal mango supplier for the United States while Brazil and African
countries supply Europe (Jedele et al. 2003). The demand for mango is growing
in both developed and developing countries, leading to increased mango
production and heavier competition among mango exporting countries (Jedele
et al. 2003). Table 1.3 which shows each exporter’s percentage of global
mangoes exports within parenthesis. In 2016 world mangoes exports were
US$2.3 billion.
9
Figure 1.2 Top mango importing country (value)
Figure 1.3 Top mango importing country (%)
10
Table 1.3 Top mango exporting countries (2016)
SL Country Value (%)

1 Maxico US$ 402.1 million (17.2% of mango
exports)
2 Netherlands $ 285.1 million (12.2%)
3 India $ 202.6 million (8.7%)
4 Peru $ 197.7 million (8.5%)
5 Brazil $ 180.3 million (7.7%)
6 Thailand $ 166.4 million (7.1%)
7 Spain $ 68.2 million (2.9%)
8 Philippines $ 66.9 million (2.9%)
9 Coted’ lvoire $ 61.3 million (2.6%)
10 China $ 56.6 million (2.4%)
Source: Trade map, international trade centre, www.intracen.org./ market
analysis
Figure 1.4 Top mango exporting country 2016 (value)
11
Figure 1.5 Top mango exporting country (%)
1.5 Fruits Exported From Bangladesh
Mango, as a fruit, has a good export potential. It has earned popularity for its
taste in foreign countries especially in the Middle East. Table1.4 shows that the
total amount of fruits exported from Bangladesh. Based on this, it can be said
that mango has a great export prospect. Bangladesh exported 308.90 metric tons
mangoes in 2016-17 as against 95.04 metric tons in 2012-13 (DAE, 2016).
Table 1.4 Fruits exported from Bangladesh

(Metric tons)
Fruits 2012-13 2013-14 2014-15 2015-16 2016-17
Mango 95.04 159.75 579.56 664.96 308.90
Jackfruit 794.29 835.07 3515.60 1535.80 992.82
Lichee 1.7 0.55 74.17 0.035 0.1
Lotcon 11.9 7.3 10.64 45.28 16.24
Jabbura 0.1 _ 23.28 27.99 52.87
Jam 10.20 20.30 208.22 _ _
Source: Plant Quarantine Wing, DAE
12
1.6 Mango Production in Bangladesh
Mango covers an area of 93480 acres and produces 1161685 metric tons rank
first in fruit production in Bangladesh, behind bananas and jackfruit. Mango
occupied 26.4% of the total area covered by fruits in Bangladesh. The major
mango producing districts are presented in Table 1.5. In terms of production,
mango ranks top in Bangladesh (BBS, 2016). Total production of fruits in
Bangladesh was 4.8 million metric tons in 2016.
Table 1.5 Mango area, production and yields by major region 2014-15
District Area Production Average % of Total

(000ha) ( 000MT) yield/ha Production
Rajshahi 10.87 543.07 49.96 53.34
Kushtia 0.75 35.36 47.15 3.47
Dinajpur 4.31 33.29 7.72 3.27
Barishal 0.12 11.75 97.91 1.15
Pabna 1.82 26.01 14.29 2.55
Faridpur 0.50 6.71 13.42 0.66
Others 7.28 361.92 49. 71 35.56
Total 25.10 1018.11 40.56 100.00
Source: BBS, 2015
Figure 1.6 Mango area by major Figure 1.7 mango production by

region major region
13
Fruits are grown in only a little over 1 percent of the total cropped area. Banana
and mangoes are the two major fruits, each of which covers more than 30
percent of the fruit cropped area and which together account for nearly two
thirds of the total quantity of fruits produced in the country. Among the
different fruits of Bangladesh mango has a unique position. So far as
deliciousness is concerned, mango is considered to be the leading fruit of the
country. Mango has a very significant position in terms of total production in
Bangladesh which was 1.18 million tons in 2014-15 (Table 1.5).
14
Table 1.6 Production of horticulture crops in Bangladesh during 2001-02 to 2014-15
(000’ tones)
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Crop
Important Fruits 1479 1501 1571 1725 4323 9322 3321 3254 3169 3564 3343 3268 3588 4478 4697
Vegetables 1588 1567 1566 1714 1675 1791 1800 2037 2105 2228 2290 2363 2361 3357 3729
Spices 394 418 425 609 1000 1182 1405 1368 1212 1350 1649 1756 1711 2041 2408
Potato 3216 2994 3386 3908 4856 4161 5167 6648
32165268 7930 8226 8205 8603 8950 9254
Sweet Potato 357 346 332 320 311 308 304 307 305 307 298 253 263 260 255
Coconut 89 87 88 133 907 326 352 334 316 402 326 372 364 423 421
Source: BBS, 2016.
Production of horticulture crops in Bangladesh during 2001-02 to 2014-15 has been shown in table 1.6. Over the years consumptions
of vegetables has increased rapidly from 1588 to 3729 metric tons in year 2000-01 to 2014-15. Highest production of important fruits
has observed in 2005-06 and lowest production has observed in 2000-01. Sweet potato has declined from 2000-01 to up to 2006-07,
slightly increasing in 2007-08 again decreasing rate has occurred from 2010-11 up to 2014-15. Potato production has increased from
2994 to 9254 metric tons over the years.
15
Cultivation of horticultural products was about only 7% of the total cultivated
area. As for example, fruits covered only about 0.98 % and vegetables covered
2.18 % of the total cultivated area (Siddique and Azad, 2010). Vegetable
growing area in the country is about 0.374 million ha and fruits 0.148 million ha
(BBS, 2015). Production of vegetables has increased from 1.56 to 3.72 million
tons in 2002-03 to 20014-15. Similarly, the production of fruits during the same
period has increased from 1.57 million tons to 4.69 million tons (Table 6).
Among fruits, banana occupied the highest area (31.61%), followed by mango
(25.22%), pineapple (9.04%), jackfruit (7.37%) and guava (2.37%). Among
vegetable crop brinjal occupied the highest area (12.55%) followed by radish
(6.57 %), pumpkin (2.82%), aroid (5.66%), tomato (6.80%), and bean (5.03%)
(BBS, 2015). Although horticultural products occupy only 7% of Bangladesh’s
agricultural land, production generates more than 18 % of its agricultural GDP
(Ahmed and Shamsuddoha, 2012).
Figure 1.8 Production of horticulture crops in Bangladesh during

2000-01 to 2014-15
16
Fruits and vegetables are grown in all over Bangladesh but the extent of
cultivation varies from one region to another. Some crops have concentrated
areas for production because of favorable agro-ecological condition and better
marketing facilities.
Over the years, fruits consumption have been increasing rapidly in recent years
in the country, as the economy moves forward and consumers diversify their
diets. This trend is likely to continue in future. Furthermore, domestic markets
have undergone modernization owing to urbanization, agro-industrialization,
rise of supermarket, trade liberalization, while the procurement system is
shifting from traditional wholesale markets toward vertically coordinated value
chains.
17
Table 1. 7 Areas and production of mango by former districts
(Area in hectares and production in metric tons)
Former Districts 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 2014-2015
Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod Area Prod
Bandarban 487 1430 43 3795 46 3730 45 3730 50 2606 262 1786 153 2300 134 2812 143 2882 143 2950 140 3302 131 3080
Chittagong 2163 10830 259 19750 268 19020 269 20040 118 14409 123 15846 108 16366 97 15762 109 16765 109 16755 115 20110 89 15638
Comilla 1817 7260 26 39055 10 35265 16 42065 16 41427 16 42559 - 38018 2 35911 - 36921 _ 36870 - 40958 18 20780
Khagrachari 481 1670 211 15415 231 1410 233 1960 229 1688 264 1765 340 2164 369 2819 462 3324 462 3412 834 3855 726 4686
Noakhali 1692 5940 - 10155 - 8996 - 8370 - 2239 --- 4473 ---- 4473 ----- 7027 --- 8009 _ 7974 - 8294 - 3184
Rangamati 801 1795 91 2600 111 4665 103 5410 197 4051 134 4504 194 5349 220 5777 248 6509 249 6533 236 5223 246 5410
Sylhet 3841 16690 131 2620 900 26505 902 26180 67 201431 21 35880 19 41546 19 28838 16 30922 16 31009 13 29319 122 40821
Dhaka 3153 13035 618 22665 587 26105 588 27200 617 19569 267 22896 323 23730 329 21975 353 23666 358 23644 356 22758 2555 126413
Faridpur 1232 3875 1226 31975 915 29090 973 40540 1213 55248 1226 25125 574 41217 547 36670 503 36755 506 37083 503 36849 65 6716
Jamalpur 1376 7275 8 15370 8 13105 8 13940 8 15367 9 16887 10 14734 10 15732 9 16424 8 16323 8 17535 5 8652
Kishoreganj 1232 5340 14 16595 8 15125 9 17270 2 20542 2 26687 0.004 27815 2 23053 1 21789 2 22887 2 21897 2 7327
Mymensingh 1202 5395 140 16990 65 15400 61 18670 125 11527 97 154424 86 18936 94 17023 93 16589 94 17564 20 16681 - 11675
Tangail 2726 7845 404 6795 809 7280 813 9470 260 8739 260 10175 158 10969 263 10835 387 11775 388 11988 381 13224 355 11503
Barisal 2345 10710 - 16160 - 13515 - 15840 - 5438 --- 14611 1323 9519 22 10378 22 9137 23 9445 22 10332 13 11753
Jessore 2248 8530 4143 43830 3123 37950 3121 39635 619 40542 681 33905 654 34743 649 34991 815 31904 822 32191 849 35943 404 10830
Khulna 1552 5580 662 21420 1021 11765 973 13805 791 17274 721 18229 322 19278 578 21294 677 13154 682 13628 718 16086 163 6147
Kushtia 1386 5890 2326 50790 2401 46965 2138 45310 2503 42826 2508 42256 2519 44018 2595 43112 2991 47019 2996 44535 3012 48012 754 35355
Patuakhali 597 2000 342 32220 402 28720 407 28225 990 10735 715 24586 256 18678 257 17451 250 11717 251 11930 107 2669 - 764
Bogra 1722 7165 48 8330 51 8805 54 10140 64 15724 - 16098 - 17233 125 17555 78 21774 79 22080 92 20868 17 17125
Dinajpur 3475 11805 872 66745 910 62020 915 58455 1100 50644 957 39784 1210 47552 1131 56163 1967 69304 1970 70865 2079 76623 4308 33293
Pabna 2287 9380 697 63150 702 29955 679 36275 764 41612 730 44413 734 48678 738 47982 765 50558 765 70361 744 49506 1822 26012
Rajshahi 9848 78155 12434 93245 13108 154570 16514 245928 21435 321969 21527 336079 21755 304442 18867 370513 20468 394321 20551 399158 24082 446392 26889 543070
Rangpur 3331 15010 346 62430 281 39860 276 38675 449 37143 499 34194 458 45080 403 48186 317 45868 321 47682 319 45860 5481 131935
Bangladesh 51004 242605 25051 662100 25968 639820 29104 766930 31653 802750 31058 828161 32010 842312 27446 889176 30680 945059 30796 956867 34632 992296 25100 1018112
Source: BBS 2016

Bangladesh produces about 1018112 tons of mango annually from about 25100 hectares of land at the rate of about 41 tons per hectare.
Only Rajshahi region supplies about 53% of this total production. Total area and production of mango in Rajshahi region and
Bangladesh are shown in Table1.7. 18
Table 1.8 Area of important fruits in Bangladesh
(Area in hectares)
Name of
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Fruits
Mango 50687 50792 51004 25051 25968 29104 31653 31054 32010 27466 30680 30796 34413 25100
Jackfruit 26951 27052 27649 7432 9144 9966 9966 9235 10187 10650 9380 9440 9035 13421
Banana 44967 45343 49270 53854 56008 58809 53286 53601 53969 52870 49278 48309 46425 46734
Pineapple 14192 14240 16817 18493 17104 16975 15932 15782 16065 14994 13985 14080 13655 13638
Lichee 5252 5385 5713 1806 1680 1734 2343 1608 1724 1863 5598 5925 1919 2857
Coconut 30774 31048 39075 5191 8916 4906 2597 2777 2457 2948 2287 1974 2282 1655
Source: BBS, 2016
Figure 1.9: Area of important fruits in Bangladesh
19
Table1.9 Production of important fruits in Bangladesh
(Production in thousand tons)
Name of
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Fruits
Mango 187 243 243 662 640 767 803 828 1047 889 954 945 992 1018
Jackfruit 275 276 279 744 720 926 976 975 1005 962 929 956 1004 1060
Banana 654 650 707 899 909 1005 877 836 818 801 746 774 770 777
Pineapple 153 154 213 236 254 238 210 229 234 219 181 186 198 197
Lichee 14 14 15 92 40 44 44 55 65 66 57 68 67 73
Coconut 87 88 133 907 326 352 334 316 402 326 372 364 423 421
Source: BBS, 2016
20
Figure 1.10 Production of important fruits in Bangladesh
Among the different fruits of Bangladesh mango has a unique position. Mango
has a very significant position in terms of total world production. Bangladesh
produced 9.45 lakh tons in 2011-12 from 31 thousand acres of land. Table 1.9
shows that mango occupies first highest position in 2009-10 and 2014-15 but in
second highest position in 2014-15. But overall mango production has declined
in 2010-11 as against in 2009-10.
Fifty percent of the tropical fruits produced and traded worldwide are mangos
that are grown in over 60 countries. Although the total world mango
production is over 25 million tons most of it is locally consumed (AMAGRO,
Match Maker Associates Ltd, 2011). Mango prices are declining in the world
market with growing export volume, though prices fluctuate mainly depending
on variety, size, origin and season.
21
1.7 Objectives of the Study
The overall objective of the study is to identify the most cost-effective options
for improving performance of marketing systems and suggest improved polices
and better supports throughout the marketing chain.
The specific objectives are as follows:
i) To examine the mango marketing system;

ii) To assess the distribution of benefits and risks among actors in the value
chain;
iii) To analyze the upgrading options within the value chain;
iv) To estimate marketing efficiency of mango; and
v) To identify the challenges facing the mango value chain actors and
suggest probable solutions to those constraints.
1.8 Scope and Significance of the Study
Geographic area coverage of this study included Rajshahi, Chapai Nawabganj

and Meherpur districts, with specific focus on mango. The study was conducted
in these districts considering as the major mango production areas in the
country. The participants and value chain actors included such as growers,
Bairal, Bepari, local Aratdar, Dhaka Aratdar, local and Dhaka mango retailers.
Conceptually, identifying the roles of actors, marketing system of mango,
marketing efficiency of mango, value chain upgrading, value addition and
distribution among the chain actors, and identification of value chain
constraints were the center of the study. Methodologically, the study was a
descriptive study in which representative sample was selected by using
probability and non-probability sampling techniques. Both quantitative and
qualitative data were obtained from respondent growers selected by using
simple random sampling technique from the study area. Interview schedule
and checklist for interview and focus group discussion were used respectively
as data collection instruments.
22
Mango can earn popularity for its taste in foreign countries especially in the
Middle East. Now it is believed that mango is the most prospective fruit, which
can earn a considerable amount of foreign exchange. Mango is a perishable fruit
that requires careful handling and quick marketing. Therefore, under the
prevailing marketing system, particularly with inadequate communication and
transportation facilities, a large quantity of this mango is reportedly wasted and
damaged in the marketing process. This wastage is a net leakage from the
nation’s total fruit production, resulting in higher consumers’ price but most
likely with lower total returns to the growers. There is a huge scope of
production and marketing of fruits in the study area. At present the agricultural
marketing systems in the country are widely considered by all corners as
inefficient. In the fruit markets the middlemen i.e., traders are critical players.
The marketing margins of Aratdar and Bepari was between 17-18 percent of
the retail price and their return on working capital was found to be
exceptionally high (NFPCSP 2011).This might be due to high cost of marketing
which could be due to poor infrastructure in the marketing chain.
Production can be increased by increasing the technical efficiency of existing

mango production and marketing practices. Inadequate marketing facilities of
mango affect the income of the producers and its trading which also limit the
expansion of mango production in the country. Some of the studies on
marketing of mangoes have conducted earlier and a few studies have
conducted on value chain aspects on agricultural products in Bangladesh. There
are three main sets of reasons why value chain analysis is important in this era
of rapid globalization. They are:
 With the growing division of labour and the global dispersion of the production
of components, systemic competitiveness has become increasingly important.
 Efficiency in production is only a necessary condition for successfully
penetrating global markets.
 Entry into global markets which allows for sustained income growth – that is,
making the best of globalization - requires an understanding of dynamic factors
within the whole value chain.
23
In the intensely competitive world of changing markets and technologies,
businesses are faced with new demands, making it difficult to remain
sustainable. A value chain approach is one of business strategies used to adapt
to these changes.
The basic characteristics of a value chain are market-focused collaboration:

different business enterprise work together to produce and market products
and services in an effective and efficient manner. Value chain allows business to
respond to the market place by linking production, processing and marketing
activities to market. The benefits of value chain are shown in Figure 1.11.
Co-operation
Increasing
Competition
Globalization
of supply and
production
Figure 1.11 Benefits of value chain

Source: http:// www. slideshare.net
The advantages of being a participant in a value chain would be:
•Reduction in the cost of doing business

•Increase in bargaining power
•Improved access to advanced technology, information and capital
•Transport and logistics
•Formation of alliances
24
―Trueness to promise‖ that strengthen backward and forward linkages
Inventory management including the quality of the inventory storage. But no
specific study on value chain of mango has been worked out in Bangladesh.
There is no special program of the Government to develop cultivation and
marketing of mango in Bangladesh.
More importantly, it was urgently needed to identify inefficiencies of fruit

growers and market intermediaries for improving their present condition. Most
of the conducted studies in Bangladesh dealt with production and marketing
aspects of mango. Although this is important from the marketing point of view
but the study on value chain is also of great importance for market participants
and policy makers. Furthermore this study of value chain analysis of mango is
undertaken to cover all the activities related with input supply to the
distribution of product to the final consumer and the value addition by the
actors. This study is an attempt to find out an efficient value chain of mango for
efficient supply of input for large scale production, information flow to the
producers, traders, and users, appropriate distribution and marketing. So the
present study is an attempt to examine the value chain of mango which will
provide useful information for the policy makers. This study will also help the
researchers for further studies of similar nature and to the extension personnel
who are directly involved in different agricultural development programs and
to the planners for making effective and judicious plan also for the other actors
in the value chain.
1.9 Organization of the Thesis
The thesis is organized into eight chapters. Chapter one presents the
background, statement of the problem, mango trends in market, mango
production in Bangladesh, objectives, significance of the study, and scope. The
second chapter provides review of literature. The third chapter deals about the
methodology of the study like study design, types of data, source of data, data
collection method, sample size and method of data analysis. Chapter four
discusses mango marketing system. Distribution of benefits and risks of mango
25
growers and intermediaries in the study area has been illustrated in chapter
five. Chapter six has briefly discussed about the upgrading of mango in the
value chain. Chapter seven discusses marketing efficiency of mango growers
and intermediaries in the study area. Chapter eight illustrates challenges and
opportunities of mango value chain. Chapter nine presents summary,
conclusions and policy recommendations for the study.
26
Chapter II
REVIEW OF LITERATURE
2.1 Introduction
The main purpose of this chapter is to review the available studies related to
present research. In any research review of literature is essential, because it
provides a scope for reviewing the stock of knowledge and information
relevant to the proposed research. In the business literature of Bangladesh,
there is a little information regarding demand and supply aspect of mango.
Literature on the marketing efficiency and value chain development of mangoes
in study areas is considerably inadequate particularly in Bangladesh, because
very little research has been done on these issues. Whatever attempts have been
made to investigate related topics is remain scattered and inadequate. However,
some relevant studies in respect of marketing efficiency, supply chain and value
chain of fruits are available from Bangladesh as well as in other countries. This
chapter is concerned with the review of literature related to some basic concept
of marketing, marketing system, supply chain and value chain of mango. The
studies of Bangladesh and different countries of the world, which have
relevance to the present study, are reviewed here in brief.
2.2 Marketing System
Rokonuzzaman (2000) conducted a study on Mango Marketing System in

Chapai Nawabganj District. This study states that there were basically six tiers
of marketing agents involved in mango marketing system viz. growers, Bairals,
Beparies, Aratdars -1, Aratdar- 2 and retailers. The functions of mango
marketing at intermediaries level were buying and selling, grading, packing,
transportation, storage and pricing. The net margins of Bairals, Beparies,
Aratdars -1, Aratdars - 2 and Retailers were Tk. 241, Tk. 299, Tk. 129, Tk. 85 and
27
Tk. 565 respectively per quintal of mango. The producer‘s share of consumer
retail price was 38.53 percent. Mango traders faced a number of problems
Shajiduzzaman (2005) pointed out that the existing horticulture literature

reveals the data relating to trade and consumer preference of mangoes are
scanty in Bangladesh and no integrated attempt has yet been taken to conduct
any comprehensive field inquiry to obtain integrated and details picture of the
structure of mango trade in our economy.
Chhina (2009), a market can be said highly efficient if the difference in price of
the commodity at the different points of time in year should not be more than
the cost of storage; the difference of price of commodity at different places
should not be more than the cost of transportation to that place, and the price
with the change in the form of the commodity (processing) should not be more
than the cost of processing. So, the efficiency of a market can be measured with
the pricing of the product with the change of time, change of place and change
of form. Generally, market efficiency is measured on the basis of consumers
satisfaction at the minimum cost and the maintenance of high volume of
outputs.
Akteruzzaman and Islam (2010) conducted a study on Marketing Channel and

Pricing of Mangoes from Chapai Nawabganj to Dhaka Retail Market. This
study states that various seasonal fruits are important food products of
Bangladesh. Mango is one of the popular fruits of Bangladesh and the biggest
portion of mangoes is produced in northern region of the country especially in
Chapai Nawabganj district. Distribution system and pricing are the most vital
elements of marketing mix for agricultural products like mangoes. Quality,
design, standard, features of agricultural products cannot be controlled directly
like manufactured products. Since brand is not used for most of the agricultural
products as like mangoes. So the potential tools are not generally used for these
types of products. The premise of the study is to make field inquiry on
28
distribution and pricing system of mangoes produced in Chapai Nawabganj
and sold in Dhaka retail market.
Gopalakrishnan (2013 ) carried out a study on Marketing System of Mangoes

in India. The study states that India is the largest mango producer, accounting
for about half of the global mango production. But, less than five per cent of the
produced mangoes are processed and mango pulp is the main export product
both in terms of volume and value. Contract system is the major marketing
system in the supply of mangoes because (1) Producers usually avoid the
marketing of fruit by themselves as they do not want to be involved in the
complication of the marketing system, (2) They do not want to take risk of price
and income variation due to perishability, qualities and seasonality and (3) Lack
of knowledge of marketing. This paper attempts to study about the type of
marketing systems existing at present in India and suggestions to realize higher
value for the produce. In the supply chain, growers, contractor‘s traders,
processors, exporters and supermarket owners are the important stakeholders,
involved in successful trading of mangoes. There is a need to proactively
manage the two way movement and coordination of goods, services,
information and funds to exploit the potential that is already available for the
Indian mangoes in domestic and International market.
2.3 Supply Chain
Memon et al. (2005) conducted a study on Supply Chain Analysis of Mango

Fruit: Orchard to Processing & Export Markets Value Chain Management in
Sindh Market. Mango is one of the most demanded fruits of the world. Its
worldwide trading is increasing, especially in the US and European markets
who pay a high price but demand a better quality and higher standards. While
the Pakistani mango production is increasing, the export stands at a negligible
4.5% and that took to the low paying markets of Gulf states specially Dubai.
This paper explores why Pakistani mangoes fail to be exported to high paying
markets. Out of the five value chain components, two components, Operations
29
and Outbound logistics, have been analyzed through quantitative research
techniques and the rest through qualitative. Action research methodology was
adopted to develop this case study. Results of this research show that the weak
value chain mechanism that exists in Pakistan has hindered in meeting
international mango demand. Recommendations have been made to improve
the value chain mechanism that may assist Pakistani producers and marketers
to meet the quality standards and play a more forceful role in the mango
market in the US and Europe.
Panichsakpatana (2013) worked out a study on Supply Chain Collaboration in

the Management of Nam Dok Mai Mango Exports from Thailand to Japan. This
thesis aims to develop the supply chain collaboration in the management of
fresh Nam Dok Mai mangoes for exports to Japan. To accomplish the research
aim, three main objectives are addressed; 1) to provide an overview of existing
supply chain of Nam Dok Mai mangoes in Thailand and to identify strengths
and weakness in the supply chain; 2) to analyze supply chain collaboration
between growers and exporters in the production of mangoes for export to
Japan; and 3) to provide recommendations to the government and related
agencies on sufficient supply chain management for fresh mango exports.. The
thesis framework presents concepts of supply chain collaboration used for an
agro-food industry focusing on the perishable products. The results
demonstrate that information sharing, decision synchronization, relationship
and trust are the keys to improve production capability. Incentive alignment
can provide the motivation for increasing growers‘ performances. Traceability
can be determined as a critical issue for product quality improvement in terms
of food safety. The collaboration can increase production efficiency. Thus, the
value in collaborative supply chain has a positive impact on the agribusiness in
terms of increasing competitive advantage.
Padhi et al. (2014) worked out a study on Supply Chain Management of

Mango: A Case Study of South Orissa. This study aimed to find out Mango is
30
the most important commercially grown fruit crop of the country. It is called
the king of fruits. India has then richest collection of mango cultivators. In India
mangoes are available in various shapes, sizes and colours with a wide variety
of flavor, aroma and taste. The Indian mango is the special product that
substantiates the high standards of quality and bountiful of nutrients packed in
it. Mangoes account for approximately half of all tropical fruits produced world
wide.India is the largest mango producer and accounting for about half of the
global mango production. Fruits and Vegetables production can help increase
producers‘ incomes but only with a very high level of management and a fairly
high degree of risk is involved in it. Berhampur is considered as the main
wholesale market for mangoes in south Odisha. Every year tones of mangoes
are supplied to various internal areas from here. This paper attempts to study
about the existing supply chain of mango in south Odisha and suggestions to
realize higher value for the product
2.4 Marketing Costs
Azgar (2000) conducted a study on Fruits and Vegetables Export from

Bangladesh. The study found that Bangladesh fruits and vegetables are being
exported to about 25 countries. The UK is a prime export market for fruits and
vegetables. The UK markets are very quality and price conscious and offer good
price and opportunities for export expansion. The major marketing cost of the
exporter was the air freight charge. The UK exporters earned comparatively
higher margin than gulf region exporting. The share or profit of the UK
exporters about 21 per cent for fruits and 16 per cent for vegetables. Price
instability is one of the major problems in the export of fruits and vegetables
from Bangladesh. Information system must be developed and geared to supply
market information on a regular basis on the various marketing variables like
price, quality, promotion and distribution channels, consumers test and
preference, shortage of warehouse, legal requirements and so on .
.
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2.5 Marketing Margin
Khushk and Smith (1999) conducted an analysis of Financial Viability of Long

Term Investment in Mango Orchards in Sind province of Pakistan. A
combination of analytical techniques is employed to provide reliable and
accurate information for growers, market traders and policy makers starts
during the fifth year after planting and reaches a maximum level during the 12th
year remaining constant up to the 25th year. Using data collected from 120
mango growers in Sind, the return on investment in mango orchards was found
to be 18% and 50% against the current rate of interest on agricultural loans. The
‗pay-back‘ period of mango orchards starts from 3 and 9 years with and without
intercropping respectively. Moreover, analysis indicates that 40 years is the
optimum economic life of the mango orchard, after that there is a decline in
production potential. Finally, sensitivity analysis found that mango outcomes
are more sensitive to variation in prices than the cost of production. Hence there
is a need to put more emphasis on stabilization of mango prices by improving
the existing marketing system and export policy.
Chhina (2009) and Hassan et al. (20l2), studying marketing margin is very
important for several reasons such as to study marketing efficiency, compare
different markets, improve marketing system, study the role of the middlemen,
and implement different Government policies. Role of middlemen is important
aspects in influencing the marketing costs and margins, the results or
marketing margin of the different middlemen indicate that there are certain
unreasonable charges, and inefficiency in the services of the middlemen, those
can be improved accordingly. Another important aspect of marketing margin
analyses is the implementation of Government policy. The Government
formulates policies with the objective of improving the efficiency of the
marketing system. The study of marketing margin indicates the field to adopt
and implement the appropriate market policy, the required intervention of the
Government is also based on the study of the marketing margin.
32
2.6 Value Chain Development
Melle et al. (2007) conducted a study on Agricultural Value Chain
Development in West Africa –Methodological framework and case study of
mango in Benin. Globalization and competitiveness of agricultural could have
significant potential benefits for food security and poverty reduction in West
Africa. Participation in global trade and economy is potentially important but
not enough to ensure benefits at all levels of the chains and equitable
distribution of income for each participant. Efficiency is key in the commodity
value chain, but effective support functions and services, infrastructure, legal
and policy environment are also important. This paper presents the framework
of value chain concept and analysis, as a guide to enhance competitiveness of
commodities at national, regional or global level. The paper applies the value
chain framework to a case study on mango in Benin, West Africa. The
international market for mango is characterized ‗by stringent quality
requirements regarding fruit flies. This needs to be addressed as a key value
chain challenge for competitiveness of the commodity in Benin and West Africa.
UNIDO (201l) a positive or desirable change in a value chain to extend or

improve productive operations and generate social benefits; poverty reduction,
income and employment generation, economic growth, environmental
performance, gender equity and other development goals. Value chain
development interventions can focus on improving business operations at the
level of producers, processors and other actors in the chain and/or the
(contractual) relationships among them; follow of knowledge and information
and innovation. Value chain development can also foster overall coordination
in the chain; participation of selected beneficiaries in local, national or global
value chains, reduction of entry barriers and a higher snare of value addition
for certain actor.
33
2.7 Value Chain Analysis
AGRICO (2004) reported that the core problem for agribusiness development
in Bangladesh is the lack of effective value chain linkages among input
providers, fruit growers, intermediaries, processors, and service providers. The
lack of effective linkages is explained by various factors including policy,
institutions, human resources, gender, and infrastructure.
Sugar and Beverages Group, FAO (2004) conducted a study on Value Chain
Analysis: A Case Study of Mangoes in Kenya. The study found that in 2003, a
total area of 373 000 hectares was dedicated to horticultural production,
producing 4.35 million tones of horticultural products, valued at US$494.4
million. The contribution to Gross Domestic Product (GDP) was 3.5 percent and
14.5 percent to Agricultural Gross Domestic Product. However, the value of
production was lower than that of 2002 and 2001 which were US$503.6 million
and US$528.4 million, respectively. The subsector also provides employment to
a large number of Kenyans, currently estimated at 2 million, both direct and
indirect jobs. Stakeholders in the industry could look at ways to improve
exports of fresh fruit through better quality control and management of the
value chain. Given that a sizeable quantity of fruits does not normally meet
export standards, other utilization must be examined. In the immediate future,
the development of processed products seems to offer the best market
opportunities to this end, particularly for export, given that shipping and
handling costs are lower for processed products.
Keane (2008) worked out a study on a ‗new‘ approach to Global Value Chain
Analysis. This paper uses new trade/new growth theories to better
contextualize Global Value Chain (GVC) analysis of ‗traditional‘ and ‗non-
traditional‘ agricultural trade. Research suggests that GVC governance
structures may limit or enhance the applicability of new trade/new growth
theories in terms of ‗learning by doing‘; and therefore the ability to value chain
upgrade. This paper tries to bridge the current divergence between input:
34
output and value distribution approaches to GVC analysis. The case is made
that both aspects are central to understanding upgrading processes within
agricultural GVCs and growth through trade.
Ssemwanga (2008) conducted a study on Analysis of The Mango Value Chain From
Homosha-Assosa To Addis Ababa. This paper provides a mini-report on the
findings of a mango Value Chain analysis study conducted between September

and December 2008, through desktop and field research involving chain
operators, enablers and supporters in Assosa.. Though the immediate market is
small, there is a short and established value chain linking to Addis Ababa via a 700 km
trip. Typically, Assosa exports between 150-300 (10-ton) truckloads of fruit per season
to other regions, principally Addis Ababa. In spite of the high cost of imported fruit,
nationally the volume has risen by 100% in the last seven years, while that of imported
juices has more than doubled in the last four years, evidence of an up-scaling market.
The farm-gate price of mangoes in Asossa ranges from 0.25 to 1.15 Birr/kg while the
retail price is approximately 5 Birr per kg in Addis, compared to 10 Birr per kg of other
imported whole fruits. Farmers typically achieve approximately 5 to 8% of the final
retail price (at lower levels) giving them about 1,400 Birr in annual income, while
wholesalers get about 30% of it but meet the high transport costs. The mango value
chain can spur development in Assosa, introduce technologies, create employment and
reduce poverty among the communities.
Matin et al. (2008) conducted a study on Mango Marketing System in Selected

Areas of Bangladesh. This study was carried out to identify the most efficient
and suitable marketing channels of mango by using primary data collected
randomly from 90 farmers and 55 traders. According to the volume of mango
handled and longevity or participation of the intermediaries in the channel, five
major channels were identified as dominant in the study areas. The result
shows that channel V, Farmer – Retailer - Consumer, possesses the highest
marketing efficiency followed by channel IV Farmer - Retailer (other district) -
Aratdar (local)-Retailer(other district) - Consumer, III Farmer – Bepari-Aratdar
(local) - Aratdar (other district) - Retailer(other district) - Consumer, and II
35
(Farmer– Bepari - Aratdar(local) - Aratdar(Dhaka) - Retailer (Dhaka)-Consumer.
The performance indicator revealed that the channel I Farmer – Bairal -Bepari -
Aratdar(local) - Aratdar(Dhaka) - Retailer (Dhaka) –Consumer and channel II
(Farmer– Bepari - Aratdar(local) - Aratdar(Dhaka) - Retailer (Dhaka)-Consumer.
were not relatively efficient in the mango producing regions.
UNIDO (2009) worked out a staff working paper on agro-value chain analysis
and development. In this paper they state- A value chain describes the entire
range of activities undertaken to bring a product from the initial input- supply
stage, through various phases of processing, to its final market destination, and
it includes its disposal after use. As products move successively through the
various stages, transactions take place between multiple chain stakeholders,
money changes hands, information is exchanges and value is progressively
added. The value chain is a concept which can be simply described as the entire
range of activities required to bring a product from the initial input-supply
stage, through various phases of production, to its final market destination. The
production stages entail a combination of physical transformation and the
participation of various producers and services, and the chain includes the
products disposal after use. As opposed to the traditional exclusive focus on
production, the concept stresses the importance of value addition at each stage,
thereby treating production as just one of several value-adding components of
the chain.
Cassani et. al. (2009) conducted a study on Fair Trade Mangoes From India.
India is a major producer of mango and within India the region of Tamil Nadu
is on the main mango producing areas. Quality and safety are important aspects
in food supply chains with regards to competitiveness. Private standards
(GLOBALGAP, HACCP and ISO) contribute to entering the European market
and can be considered obligatory in practice. Compliance with these standards
may raise high costs. The first chapter is dedicated to a description of the
current situation in Tamil Nadu. Chapter 2 gives a rapid overview on the
36
market structure as far as mangoes and processed mangoes (with a special
focus on mango pulp). Chapter 3 gives an extensive background information on
the public (compulsory) and private (voluntary) regulations to be followed
when it comes to export products within the EU boundaries. Chapter 5
elaborates on logistics, partly applied on this chain where as chapter 6 gives an
overview on the aspects of quality with particular focus on mango pulp.
Chapter 7 gives insights on how mango sub-products can be obtained and what
is their use and added value, whereas chapter 8 is about costs and provides an
overview on the possible costs involved for setting up a processed-mango
business from India to Europe. The final chapter summarizes the conclusions
and provides recommendations for developing the Indian mango (pulp) chain.
Akhter (2009) worked out a study on Value Chain Analysis of Dairy sector in
Rangpur District. This study is an attempt to examine the prevailing dairy value
chain based on primary data collected from 90 respondents, who were both
randomly and purposively selected from the study areas in Rangpur district.
The sample included 50 milk producer and 40 value chain actors. Milk
producers and value chain actors were selected from Rangpur, Sadar Upazila.
Primary data were collected during the month of August to September 2009 and
pertained information of July 2008 to June 2009. The total costs per day per cow
were estimated at Tk. 108.66 and Tk.106.06 and net returns were calculated Tk.
93.62 and Tk. 76.18 for independent and contract farm respectively. The value
additions to per litre of milk by the milk producers, processors, traders and
retailers were calculated at Tk.14.39, Tk.13.00, Tk.24.00 and Tk.4.33 respectively.
The net margins obtained per litre of milk were Tk.12.21, Tk.7.86, Tk.17.50. and
Tk.3.99 for milk producers traders, processors and retailers respectively.
Expensive, inadequate and low quality feed, lack of grazing land, green grass.
adequate capital, high fees of veterinary doctor, irregular supply and high price
of veterinary medicine, and low price of milk were the major problems of milk
producers. Supply of adequate feed at subsidized price ensuring easy access to
institutional credit at a lower interest rate, adequate medicine and veterinary
37
services, allocation of khas land for producing fodder /grass and increasing
milk price were suggested to solve the problems.
IDAF (2009) reported that, a weak agricultural credit system, unorganized

market structure, unfavorable weather, small land holding sizes and inadequate
technology development contributes to low productivity in the smallholder
sector. There has been also been an erosion of extension services. Smallholder
‗agriculture is associated with a lack of value addition in agricultural products
with little agro-processing and with most smallholders selling raw agricultural
produce without adding value receiving no additional payment tor quality.
The lack of effective linkages among stakeholders in a value chain has several
consequences. Bottlenecks result in produce from fruit growers not flowing to
the market in the amount and quality necessary to ensure high and stable
returns. As a result, fruit growers experience gluts of commodities, processors
are not able to procure sufficient raw materials for their plants; retailers do not
get sufficient products to meet the demand of consumers; and exporters are
unable to meet foreign customers‘ requirements. In turn, a weak rural economy
reduces the scope for further investment in rural areas and entails low
aggregate growth.
Patricia et al. (2010) conducted a study on Assessment of Haitian Mango Value

Chain. This document is structured in three main parts. The first part provides
an overview of the current mango market at the international and national
level, as well as a description of the importance of agriculture and mango in
Haiti. The next two parts are products of interviews and workshops with
almost all of the actors of the mango chain in southern Haiti. These parts
include a description of the mango chain for the region and its actors,
constraints analysis and recommendations. Priority was given to nine objectives
that are considered strategic leverage points for three links in the chain. These
objectives were prepared together with chain actors during constraints and
38
solutions identification workshops. Each objective includes general activities
that, if implemented, can facilitate improvement of the chain.
Rahman (2010) carried out a study on value chain analysis of mushroom in

Savar upazila under the district of Dhaka during the month of September to
October 2009. Simple random sampling was followed to select the 30
mushroom growers, while 20 traders and 48 consumers were selected. She
found per cycle (1 cycle = 3 months) gross returns of growers was Tk. 11676.
Net return was Tk. 10821. The value addition of per kg fresh and dry
mushroom by growers was Tk. 35.16 and Tk. 259respectively. Value addition by
retailers was Tk. 40 and Tk. 200 for fresh and dry mushroom respectively. The
net margin for growers and processors were Tk. 58.92 and Tk. 0.58 respectively.
The net margins of retailers were Tk. 6.5 per kg and Tk. 167 per kg fresh and
dry mushroom respectively.
Rahman et al. (2010) conducted a study on An Economic Study of Mango

(Mangefera Indica L.) Cultivation in Chapai Nawabgonj and Dinajpur Districts
of Bangladesh. The study was conducted to find out the trend and profitability
of mango production in Chapai Nawabganj and Dinajpur districts during the
period of 2008-09. The study revealed that mango cultivation was found
profitable in the study areas although return was negative during first four
years of cultivation, the yield was found higher in Dinajpur compared to that in
Chapai Nawabganj. The BCR was found to be 2.23 and 2.54 of Chapai
Nawabganj and Dinajpur Districts, respectively. IRR was found 20 percent for
Chapai Nawabganj and 19 percent of Dinajpur District. In the study areas,
farmers faced problems like lack of adequate good seedling, insecticides,
natural disasters etc. during mango cultivation.
Padmavathi (2011) conducted a study on Value Chain Analysis of Mango – An

Agribusiness Perspective. The present study was conducted in Srinivaspur
taluk and Bengaluru city of Karnataka with the major objective of analyzing the
mango value chain. The primary data for the study was collected from 162
39
respondents which included farmers (30), traders (10), wholesalers (10), retailers
(10), processors (2) and consumers (100). The secondary data regarding area,
production and productivity of mango was collected from National
Horticultural Board database. The analytical tools employed included value
chain analysis, conjoint analysis and descriptive statistics. Only two varieties of
mangoes (alphonso and totapuri) are used for pulp and juice extraction because
of aroma, TSS content and high percent of pulp content. The degree of value
addition is more during pulp extraction (105.70 %) and processing of mango
into juice (424.43 %). Ninety per cent of the consumers purchased both fresh as
well as processed mango and they mainly purchased from local retail shops.
Majority (65.59 %) of them purchased branded mango juice and they mainly
consumed ‗Maaza‘ and ‗Slice‘ brands of mango juice. Since there is scope for
value addition and demand for value added products of mango, the
Government may take up initiatives for strengthening of the mango value chain
by establishing processing units in the production belts as well as provide the
required institutional framework for domestic and export promotion of value
added products of mango.
Uliwa et al. (2011) conducted a study on Mango Value Chain Analysis in

Tanzania. This study focuses essentially on the exotic or improved varieties that
are globally traded. Tanzania is the 17th largest producer in the world with over
300,000 ton per year, whilst India, with annual production of over 13 million
tons, is by far the largest producer in the world. The Tanzanian production is,
however, largely dominated (around 95 %) by the traditional varieties.
Countries in the Northern hemisphere are producing but also consuming most
of their mango. The production time in the northern hemisphere is roughly
between April and September and in the Southern hemisphere between
November and March. The lack of supply in the northern part of the world
during these months and their high demand provides a very interesting export
opportunity for Tanzania and other countries located below the equator.
Although the EU is an attractive export market, the Middle-East and Turkey
40
provide an even more attractive opportunity for Tanzania, due to their relative
vicinity, their less stringent requirements (compared to the EU) and their
growing economies.
Zakari (2012) worked out a study on National Mango Study. In the last 20
years, Ghana has developed its exports of fresh produce to Europe and other
destination markets, although earnings have been undulating. Total earnings
from fresh edible fruits in 2003 amounted to about US$ 44 million, US$ 144
million in 2006 and dropped to about US$ 23 million in 2010, mainly due to the
Ghanaian pineapple loosing substantial market shares against Costa Rican
suppliers in Europe. Pineapples, mangoes and papayas lead the fruit exports
while yams, chillies and Asian vegetables (aurbergines, okra, etc) head the
shipments of vegetables. These ―non-traditional‖ agriculture exports make a
notable contribution to the economy in terms of employment, fiscal revenues
and foreign exchange. This study takes into cognizance the value chain of
mangoes from production to exports. In this vein, the value chain of fresh
mangoes as well as that of transformed and dried ones were looked at
extensively, assessing the main actors, past and ongoing interventions in the
sector, problems militating against each value chain segment and a host of other
factors. Notable operators that have been profiled in this work include Blue
Skies, Sunripe, Ebenut and FMSL
Shahreen (2012) conducted a study on Value chain analysis of Banana in

selected areas of Kushtia and Tangail districts. Net returns per hectare for
banana producers were higher in Tangail (Tk. 220516) than the banana growers
in Kushtia (Tk. 197883).Marketing margin in five retail markets i.e. Karwan
bazaar, Mohakhali Kacha bazaar, Gulshan D.C.C market, Jatrabari Kacha
bazaar and street shops were Tk. 10.37, Tk. 11.49, Tk. 20.08, Tk. 10.766, and Tk.
6.442 per brunch respectively. In Kushtia to Karwan bazaar channel percentage
of value addition of intermediaries were 7.02, 27.14, 23.92, 21.90 and 20.02 for
Faria, Bepari, Aratder, wholesaler and retailer.
41
Gor et al. (2012) carried a study on The Interface between Mango Value Chain
Analysis and the Socioeconomic Determinants. The study focused on a value
chain analysis geared towards identifying the various processes, inputs and
major players in the mango value chain system. Data was collected from the
main actors in the mango value chain at different segments including input
suppliers, producers, traders and consumers using a structured questionnaire.
The sampling method employed included stratification of respondents on the
basis of functional roles of the various actors followed by a Sequential random
sample of the requisite number of respondents per segment. Data and
information collected were cleaned and coded for electronic entry and analysis.
The Statistical Package for Social Sciences (SPSS) and Microsoft Excel were
employed to generate basic descriptive statistics including frequencies,
percentages, z-scores, chi-squares, standard deviations and minimum and
maximum levels as well as the means. These were used to organize the data for
in depth analysis and presentation. Results showed that important socio-
economic determinants of the functional roles of actors in the various mango
chain segments included income, education, age, gender, farm size or size of
business operation. These variables influence the agribusiness uptake pathways
impended in mango value chain and therefore their importance in policy
formulation and technology recommendation domains.
Hoq et al. (2013) carried out a study on Existing Value Chain Assessment of
Chilli Marketing in Selected Areas of Bangladesh. The study was conducted in
two chili growing districts Jamalpur and Bogra to examine the value chain,
value addition at different levels, post harvest loss and seasonal price variation
of both green and dry chilli. Farmer, input dealer, farm labourer, Faria, Bepari,
Paiker, Aratdar, retailer, local processor/ miller, company agent and agro
processing industry (BD Foods Ltd.) were the main actors of the value chain. It
was observed from the study that green chilli cultivation is profitable and per
hectare net return is Tk.92,250 and BCR is 1.64 and the per hectare net return
from dry chili is TK.1,02,853 and BCR is 1.67. The net value addition per quintal
42
of green chilli at farm level was Tk.1105.25 and highest value addition at
intermediaries‘ level was 333 for Retailer (Dhaka). The post-harvest loss of
green chili was highest at retailer (Dhaka) level which was Tk.180 per quintal.
The overhead processing & marketing cost and net value addition of agro
processing industry (BD foods ltd.) were Tk.3522 and Tk.4231 per quintal of dry
chili which was highest. The post harvest loss of dry chili was highest at agro-
processing industry (BD Foods Ltd,) level which was Tk. 2497per quintal its due
to dry loss, milling and shortage. Seasonal price variation showed that price of
green chilli was minimum in the month of April which was due to late
harvesting period and maximum in the month of August which might be due to
non-availability of green chilli. On the other hand price of dry chilli found to be
minimum in the month of May it might be due to adequate supply found in the
market and maximum in the month of January it might be due to non-
availability of dry chilli.
Badar (2014) conducted a study on Value Chain Performance Improvement for

Sustainable Mango Industry Development in Pakistan. This study aimed to find
out how the performance of value chains could be improved in order to bring
sustainable development to Pakistan‘s mango industry. It focused on four
issues: 1) consumers‘ mango value preferences and the implications of these
preferences for the industry‘s development; 2) the structure and performance of
the mango industry; 3) constraints on sustainable development of the industry;
and 4) measures needed to address consumer, economic, social and
environmental issues in the value chains so as to promote industry‘s sustainable
development. Chain-wise assessment revealed that most value chain actors
earned profits, yet inadequate creation of consumer value particularly neglect
of food safety aspects, 30 to 40 per cent postharvest losses and poor export
performance showed considerable gaps in economic performance. Although the
industry generated sizeable employment, its social performance failed dismally
to ensure employment for women and care for worker welfare and safety.
43
Similarly, its environmental performance suffered because of excessive
chemical use, inefficient resource use and inadequate waste management.
Hasan and Goswami (2014) conducted a study on Marketing and Value Chain
Analysis of Ginger: A Study in selected areas of Bangladesh. Four major
marketing channels were identified for domestic produced ginger marketing.
Channel-3 was the most important supply chain through which 48% domestic
produced ginger reaches to consumers. Marketing costs for each 100 kg of
ginger were estimated from Tk. 86.92 to 339.77 and marketing margin Tk. 674.00
to 1820.00, respectively for different intermediaries. Marketing margin and
profit were the highest for retailer than those of other intermediaries. Out of
four marketing channels, Channel-4 was more efficient than those of other
channels. Six actors like; farmer, local trader, Bepari, commission agent,
wholesaler, retailer and consumer are identified who are involved in the ginger
value chain. The study revealed that farmer added the highest amount of value
Tk. 2062.00 per 100 kg ginger followed by retailers (Tk. 1820.00), Beparies (Tk,
83500), local trader ( Tk.69000) and wholesalers (Tk. 67400) respectively. Eleven
marketing problems were identified, among them price fluctuation, high
transport cost and lack of loan facilities were the major problem. It is therefore,
recommended that loan facilities should be provided to the intermediaries. IT
service should be developed up to village level and transportation cost should
be keep reasonable
Muluken Marye (2014) conducted a study on Value Chain Analysis of Fruits

for Debub Bench Woreda, Bench Maji Zone, Tigray-Ethiopia. This study was
aimed at analyzing value chain of fruits in Debub Bench woreda, Bench Maji
zone with specific objectives of describing important marketing channels and
actors involved on fruit value chain, identifying the upgrading strategies in
fruit value chain, analyzing the governance structure in the fruit value chain,
analyzing the value addition and distribution between the different actors, and
identify constraints in value chain of the fruit. The highest marketing cost is
44
incurred by wholesalers and the highest market profit is shared by retailers. The
value chain analysis revealed that the major actors in the Woreda are producers,
local collectors, wholesalers, retailers and consumers. Five marketing channels
are identified for banana, mango and papaya fruits. The findings of the study
have important implication in upgrading the livelihood of smallholder
producers, for agricultural research institutions, policy makers and researchers.
Infrastructural development is a key to support the fruits sector. In this context,
emphasis should be given to improved storage and transportation system,
offering credit and other services to improve effective production and
marketing of fruits.
Hasan et al. (2014) worked out a study on Marketing and Value Chain Analysis
of Garlic: A study in selected areas of Bangladesh. The study was undertaken to
determine price fluctuation, marketing system, marketing cost, margin,
efficiencies and to examine the value chain of garlic aiming to determine the
value addition in different steps of garlic marketing channel. Data was analyzed
using simplest method for fluctuation, marketing margin, profit and efficiency
ratio, and value addition. The study showed that the extent of annual price
fluctuation of garlic was indentified which was between 55 to 173 percent while
the extent of fluctuation of area production and yield ranged between -14to 46-
18to 73 and -5 to 18 percent respectively during the study period. Four major
marketing channels were identified for domestic produced garlic marketing.
Channel-3 was the most important supply chain through which 40% domestic
produced garlic reaches to consumers. Marketing costs for each 100 kg of garlic
were estimated from TK 86.82 to 388.28 and marketing TK 546.19to 1474.72
respectively for different intermediaries. Marketing margin and profit were the
highest in retailer than those of their intermediaries. The study showed, out of
four marketing channels, Channel-2 was more efficient than those of other
channels. Six actors like, farmer, faria, bepari, aratdar, wholesaler, retailer and
consumer are indentified who are involved in the garlic value chain.
45
Dewan et al. (2014) worked out a study on Performance Analysis of Supply
Chain and Value Chain of Selected Fruits in Khagrachari Hill District. The
study was conducted at Khagrachari Sadar upozila under Khagrachari Hill
District to document socioeconomic profile of market actors of selected fruits, to
know the existing supply chain of selected fruits, to identify value chain of
selected fruits and to find out constraints in value chain performance of selected
fruits. Three local markets, namely Shapla chattor (town market/baro bazar),
Madhupur bazaar and Shonirvhor bazar and one assemble market in Narikal
Bagan were purposively selected for data collection from both fruit growers and
market intermediaries. The selected samples included 130 fruit growers (mango
growers-56, jackfruits growers-34 and litchi growers-40) and 84 market
intermediaries (wholesaler-16, faria-20, bepari-32 and retailer-16). In the study
area, nine supply chains was found for mango marketing of which three supply
chain had went out of the region. For jackfruit and litchi marketing six supply
chains was found. For all fruits (mango, jackfruit and litchi), the most important
supply chain, grower to customer was supplied about 34 percent of total fruits
supply. Highest value was added on grading process which was about 85
percent to 100 percent. For developing value chain in the study area some
constraints like post harvest losses, storage problem, lack of processing center,
high packaging cost etc was found.
Islam et al. (2014) conducted a study on Marketing of Agro forestry Products

in Bangladesh: A Value Chain Analysis. This study worked out Bangladesh
agriculture, including agro forestry, is dominated by small-scale subsistence
farming; however, farmers do not get proper prices for their products due to the
involvement of many intermediaries in its value chain. Therefore, the objectives
of this study are to analyze the value chain of main agro forestry products and
the position of the various intermediaries within it, and to determine the extent
of value addition in terms of costs in successive stages of products movements.
The study was conducted in Madhupur Sal forests area of Bangladesh and data
were collected through questionnaire interviews, focus group discussion,
46
observation and literature review. Moreover, farmers had possessed strong
negative relationship with intermediaries and that the lack of a farmer
organization severely affected farmers‘ free and fair access to local markets to
sell their products. So, there is an immediate need to establish farmers‘
cooperatives in order to reduce unexpected intermediaries from value chain to
get fair prices of their products, and to harmonize and execute marketing
legislations.
Ahmed et al. (2014) worked out a study on Value Chain Analysis and Market
Studies on Fruits and Vegetable in Bangladesh. The study has outlined the
nature of Bangladeshi fruits and vegetables value chain, including the main
actors in the chain and marketing structure. There is great potential to make
smallholder farmers competitive in the face of globalization. In order to
promote the competitiveness of the sub-sector in the high value niche markets
and improve farmers‘ incomes, institutional and organizations innovations are
required. These innovations would improve product quality and reduce
transactions costs. Furthermore, through the adoption of the new technologies
farmers would be able to realize economies of scale in production, and possibly
reduce price variability. The study concluded that value chain integration for
improving productivity, marketing efficiency and reducing transaction costs in
fruits and vegetables sub-sector is urgently needed in Bangladesh. In order to
develop viable value chains, more initiatives should be undertaken to promote
regional coordination at each and every stage of value chain and that will help
access into the global value chains and promote regional development.
Honja (2014) conducted a study on Review of Mango Value Chain in Ethiopia

This study worked out that mango is one of the main fruit crop produced and
exported in Ethiopia. The main objective of this review is to review mango
production and marketing system with their respective constraints, to identify
major actors along mango value chain and their respective functions along the
chain and to review current status and potential opportunities of mango in
47
Ethiopian economy. In line with this, the main constraints of mango production
are mentioned as irrigation water scarcity, pest and disease and technology
limitation, limited access to mango varieties, and limited capacity in R&D.
Marketing system of mango in Ethiopia is characterized by use of traditional
transportation means such as donkeys, cart, human back and marketing is
mainly oriented on local market. The main constraints of mango marketing are
mentioned as lack of markets to absorb the production, low price for the
products, poor product handling and packaging, imperfect pricing system and
lack of transparency in market information system mainly in the export market.
Currently, mango sub-sector is a good entry point for tackling poverty and that
the market for mangoes in Ethiopia is significant and growing. Distribution of
pest and disease resistance and early maturing varieties is a method to increase
production potential. Facilities like road, canal and transportation system
should be improved for further dimension and to reduce the loss.
Hossain (2016) conducted a study on Value Chain Analysis of Potato In

Selected Areas of Bogra And Munshigonj Districts of Bangladesh. This study
worked out Potato plays a significant role in increasing food security and
income of the farmers of Bangladesh.. This study was carried out to analyze the
existing value chain of potato in two selected districts o f Bangladesh viz. Bogra
and Munshiganj. It‘s an attempt to assess the existing potato value chain with
the help of primary and secondary data. Primary data were collected from the
potato growing area of Kahaloo upazila under Bogra district and Sadar Upazila
of Munshiganj district.. Twenty farmers, forty traders and three cold storage
owners were selected through simple random sampling, purposive sampling,
and simple random sampling procedure, respectively. Simple descriptive
methods were used to analyze the data. The primary data were collected
through the direct interview method with the help of pretested questionnaires
during the month of February to April 2016. Highest sales price per 40Kg of
potato received by retailer was Tk. 818.50 and the lowest sales price received by
farmer was Tk. 480.38. In the value chain, highest value (33.13 percent) was
48
added by wholesaler and lowest value (14.23 per cent) was added by Faria of
the total value addition.
Kumar et al. (2016) conducted a study on Agricultural Value Chains in India:

Prospects and Challenges. This study worked out growth and development of
agricultural value chains for local and external markets can be considered as a
powerful tool for poverty reduction and to fight against the challenge of food-
security in developing countries like India. This particularly makes a strong case in
India where farmers are able to produce agricultural products, such as fresh fruits
and vegetables that have higher potential for value addition as compared to
conventional crops, and if access is made available to processing, marketing and
distribution, which could enhance the value of the final products. This paper
assesses the current status of fruits and vegetables production and export from
India along with its potential to external markets particularly to other South Asian
countries. Besides, the paper also examines the overview of agriculture value
chains (mainly of fruits and vegetables) in India. A comparative case analysis helps
to better understand various processes adopted and initiatives of agri-business
models in India. Finally, the paper identifies major challenges related to the
agriculture value chains and puts forward some of the key recommendations for
the growth and development of agriculture value chains in India.
Romo (2016) conducted a study on Value Chain Analysis of Mango in Dong

Thap Province, Vietnam Opportunities to Promote Inclusive Value Chain
Development. The study was worked out that mango is one of the most
cultivated fruits along the Mekong Delta in Vietnam. Its domestic and
international demand rises every year, representing an important opportunity
for the development of the mango sector. However, as markets evolve, often
actors of the value chain get excluded. Therefore, the aim of this study was to
analyze the level of inclusion of the actors in the mango value chain in the Dong
Thap province, especially for small-scale farmers. In order to find opportunities
for this inclusion, a value chain analysis that identified who are all the involved
actors, their activities and contribution to add value along the chain and an
49
analysis of the actors‘ business model, helped to address this study‘s objective.
The results show a low level of inclusion of small-scale farmers working
individually, as they are only involved (both, voluntary and involuntary) to
what concerns for the production of the mango and the sale to the collector.
Small-scale farmers that belonged to a cooperative obtain a higher level of
inclusion as they are able to access more resources, have better market linkages
and outcomes measurement, regardless that trust and commitment among the
members was still lacking.
Honja et al. (2016) conducted a study on Mango Value Chain Analysis: The
Case of Boloso Bombe Woreda, Wolaita Zone, Southern Ethiopia. This study
was conducted with the main objective of identifying mango value chain actors
and their respective functions, analyze distribution of the benefits among the
actors and identify constraints and potential opportunities of mango production
and marketing in the study area. About 138 smallholder mango producers were
selected randomly from four kebele administrations proportionally. Margin
analysis method was used to analyze distribution of benefits among the value
chain actors. Margin analysis for value chain actors indicated that about 89.43%
of gross marketing margin in mango value chain goes to mango traders and
producers earn about 10.57% of gross marketing margin. The major constraints
of mango production and marketing during the survey period include lack of
technology, limited supply of improved mango variety, low level of extension
service provision, low level of knowledge and skill, lack of use of credit, lack of
farmers‘ cooperative, perishability, low price of mango, lack of postharvest
management and lack of market information. Therefore, policy initiatives
aiming at increasing farmers‘ access to mango technologies, developing and
improving market information, cooperative development, postharvest loss,
innovation, improving extension system, price and credit are recommended to
accelerate the development of mango value chain in the study area.
50
Fernandez-Stark et al. (2017) worked out a study on The Philippines in the
Mango Global Value Chain. This report uses the Duke CGGC Global Value
Chain (GVC) framework to examine the role of the Philippines in the global
mango industry and identify opportunities for the country to upgrade. The
globalization of mango production and consumption is a relatively new
phenomenon that is experiencing rapid growth. Over the past ten years, trade
in mango products has tripled; in 2005 the total exports were just US$696
million, while in 2015 it had increased to almost US$2.1 billion (UN Comtrade,
2016).1 Mango products include fresh mango and processed ones such as dried,
frozen, puree and juice. The mango export market is quite concentrated and
dominated by developing countries located in the Tropics. The Philippines
holds a relatively significant position in the mango GVC, and in 2015, the
country ranked seventh amongst exporters of fresh and dried mango, with
US$91 million in exports and a 4% share of the global market (UN Comtrade,
2016). Participation in the GVC is based primarily on the export of processed
mango—85% of the country‘s processed mango is destined for the export
market. The mango industry plays an important role in the Philippines‘
economy, providing a source of livelihood to about 2.5 million farmers
(PCARRD-DOST, 2011). However, despite climatic advantages, fresh mango
exports have declined considerably in recent years due to failure to meet strict
SPS requirements in key markets.
Precision Farming Development Center and Water Technology Center (2018)

conducted a study on Value Chain Analysis of Mango in Chittoor District,
Andhra Pradesh. The study on ‗value chain analysis of mango in Chittoor
district has been conducted during 2017 to analyze the area, production,
marketing channels, processing units, constraints for value chain and to arrive
the actionable activities to be undertaken to further encourage and strengthen
the mango value chain system in Chittoor district. A survey was taken up in
different mandals of Chittoor district in which the total mango sample farmers
covered were 96, processors were 10, traders were 21, and nursery units were
51
11. Among the sample farmers, majority are in the age group of 45-50 years, the
education levels are intermediate and below tenth. The actionable points were
arrived to further strengthen the mango value chain in Chittoor district, Andhra
Pradesh. These are (1) arrange awareness programmes to farmers with regard
to crop insurance to protect them in the events of unexpected calamities,(2) to
facilitate establishing solar based cooling chambers at farm levels by including
them under subsidies list and encouraging on educating on that aspect, as only
12 cooling chambers (private) are available to store 854007 MT of mango, (3) the
Govt. should encourage use of mango value added products and include them
in different government schemes like mid day meals to school children, supply
of rations to economically backward citizens etc.,(4) promotion of small scale
industries for production of Mango jelly, candy, tandra and other value added
products, (5) providing cargo facility at International Airport, Tirupathi for
export of mangoes to South East Asian countries.
2.8 Risk Perception

Ali et al. (2008) conducted a study on Farmers‘ Perception on Risks in Fruits
and Vegetables Production: An Empirical Study of Uttar Pradesh The
perceptions of farmers about risks in production of fruits and vegetables have
been analysed using structured survey method. The study is based on the
survey of a total of 634 farmers, comprising 188 fruit farmers and 446 vegetable
farmers, covering six districts of Uttar Pradesh, namely, Lucknow, Allahabad,
Gorakhpur, Moradabad, Jhansi and Agra. The perceived priorities of farmers
about major sources of risks in production of fruits and vegetables have been
reported under ‗investment risks‘, ‗socio-economic risks‘, ‗environmental risks‘,
‗production risks‘ and ‗market risks‘. In general, the price and production risks
have been perceived as the most important sources of risk in production of
fruits and vegetables in the area. The study has argued that public intervention
can facilitate better risk management through improved information system,
development of financial markets and promotion of market-based price and
52
yield insurance schemes, thus ensuring that the marginal farmers are able to
benefit from these interventions as well as participate in the emerging systems.
Fakayode et al. (2012) worked out a study on Economic Analysis of Risks in

Fruit and Vegetable Farming in Osun State, Nigeria. The study analyzed the
risks involved in fruit and vegetable farming in Osun state, Nigeria.
Specifically, the study examined the risk attitude of farmers, factors influencing
risk attitude as well as farmer‘s perception on major sources of production and
market risks. The study was based on a survey of 150 farmers, comprising 75
predominantly fruit and vegetable farmers, respectively, and covering 12
communities within the six agro-ecological zones in the state. Data were
collected using a well structured questionnaire. Descriptive statistics,
discriminant analysis and Kruskal–Wallis ranking analysis were used in the
study. The study revealed that the average age of the fruit and vegetable
respondent was 58.5 and 40.1, respectively, with the male respondents
outnumbering the females in each case. The average year of experience was 30.8
and 15.3 for fruit and vegetable respondent, respectively. An average area of
(5.36 and 2.21) ha was cultivated by the fruit and vegetable farmers, while
orange and okra are the most widely grown fruit and vegetable crops. Damage
by pest and disease, traditional methods of farming and weather dependency
were the most perceived sources of production risk by the fruit and vegetable
farmers. Perishability of produce, low price of produce, poor product handling
and packaging as well as exploitation by middlemen were the most perceived
sources of market risk. The study also revealed that maintaining good
relationship with traders, selling at low prices due to perishability, selling
within the locality and non-farm businesses were the major risk management
strategies employed by the farmers.
2.9 Important findings of the reviewed literature
The literature was arranged into seven groups such as marketing system,
supply chain, marketing cost and marketing margin, value chain development,
53
value chain analysis and risk perception. It is evident from the review that a
few studies were conducted particularly on mango marketing system its
production cost, marketing cost, return, and marketing margins in Bangladesh.
In addition, there were some studies on value chain of agricultural commodities
like fruits and vegetables, mushroom, banana, ginger, garlic, and chilli. Value
chain of dairy was also conducted in the country. Most of the studies in the
country were confined to a single or two areas. Though there was no separate
study on mango value chain analysis but mango was included under the term
vegetables. But a good number of studies were conducted on mango value
chain in different countries such as India, Pakistan, Thailand, Philippines,
Ethiopia, Kenya, Haiti, Tanzania, and Ghana. Wide variations in use of value
chain concept by different researchers in conducting their respective studies

were evident.
54
CHAPTER III
METHODOLOGY
3.1 Introduction
Methodology is the systematic steps of action which involves collection of data

from the selected respondents as per objectives of the study. It is an
indispensable and integral part of any research. The reliability of any scientific
research depends to a great extent on the appropriate methodology.
Methodology is the important part of any research. Improper methodology
very often leads to an erroneous result. In this study provides a deed with the
objectives the study detailed account of the description of the study area,
selection of the study area, selection of respondents, data collection procedure
and different analytical techniques that would be used to achieve the objectives
of the study have been described elaborately. So, methodology is connected
with the objectives of the study. Proper methodology can fulfill the objectives of
the study. The researcher of the study inflicted a careful consideration in
following a scientific and logical methodology. The design of the survey for the
present study involved some necessary steps which are presented in the
following section.
3.2 Research Design
The study was based on the survey method of data collection. The word survey
refers to a method of study in which an overall picture of a given universe is
obtained by a systematic collection of all available data on object. Interviewing
the respondents and observational methods were followed for collecting
primary data. The data was collected by face to face interview and FGD
(Focused Group Discussion). The key informants’ interviews were also
followed for collecting primary data. Secondary data were obtained from
various sources.
55
3.3 Selection of the Study Area
Three important mango growing areas, namely Rajshahi, Chapai Nawabganj

and Meherpur districts were selected for the present study considering
concentration of mango production. Within the districts Bagha Upazila of
Razshahi, Sibgonj Upazila of Chapai Nawabganj, and Meherpur Sadar of
Meherpur was purposively selected for the study. One village of each Upazila
was selected with the help of agricultural extension personnel. From each of the
selected villages, a list of mango growers was prepared. Rajshahi, Chapai
Nawabganj and Meherpur districts were selected as supply hinterlands while
markets in Dhaka city would be considered as consuming center. From the
production area, mango goes to the markets of Dhaka, Chittagong, Khulna,
Mymensingh, Comilla and the other areas of the country. Wholesale and retail
markets were selected from Dhaka, Rajshahi, Chapai Nawabgang and
Meherpur. Karwan Bazar and Badamtoli markets were also selected for
collection of data from Aradar and retailers.
56
3.3.1 Maps of the study area
3.3.1.1 Location of the study area
Legend Selected districts

Map 3.1: Map of Bangladesh showing the selected districts
57
3.3.1.2 Study Area Map, Bagha, Rajshahi
Legend: Selected Upazila
Map 3.2: Map of Rajshahi district showing BaghaUpazila
58
3.3.1.3 Study Area Map, Meherpur Sadar, Meherpur
Map 3.3: Map of Meherpur district showing the Meherpur Sadar

Upazila
59
3.3.1.4 Study Area Map, Shibganj, Chapainawabganj
Map 3.4: Map of Chapai Nawabganj district showing the Shibganj

Upazila
60
3.4 Selection of Commodity
Mango is chosen as the selected commodity for the study. There are more than
270 varieties of mangoes in the country. However, in this study, the selected
varieties of mangoes are Fazlee, Gopalbhog, Khirsapati, Himsagar, Langra and
Ashwina.
3.5 Selection of Sample and Sampling Techniques
The mango growers, Bairal, Bepari, Aratdar and retailers were considered as
the population for this study. The sample of the study included mango growers,
Bairal, Bepari, Aratdar (Local), Aratdar (Dhaka), retailer (Local) and retailer
(Dhaka). Simple random sampling technique was used to select the growers
and the other actors were selected by using convenience sampling technique.
The sample included other actors from different categories who were involved
in the mango value chain. There were 210 respondents; where 75 respondents
were mango growers and 135 respondents were actors of different categories.
Out of the sample of mango growers 25 were selected from Bagha Upazila of
Rajshahi district, 25 were taken from Meherpur Sadar Upazila of Meherpur
district and 25 were chosen from Shibganj Upazila of Chapai Nawabganj
district. The actors involved in the mango marketing were categorized into four
groups viz., Bairal, Bepari, Aratdar (both local and Dhaka), retailers (both local
and Dhaka). Aratdar and retail markets were selected from Dhaka, Rajshahi,
Chapai Nawabganj and Meherpur districts. Selected 135 traders included 30
Bairal, 30 Bepari, 18 Aratdar (local), 8 Aratdar (Dhaka) and 49 retailers. Out of 49
retailers, 28 retailers were selected from Dhaka and 21 retailers from local areas.
3.6 Period of Data Collection
Data for the present study were collected by the researcher herself during the
month of January to August, 2013. Face to face interview method was followed
in the data collection. During the data collection the objectives of the study were
clearly explained to the respondents so that they could respond freely. The
61
selected mango intermediaries were directly interviewed at different market
levels. The intermediaries were interviewed on the market days.
3.7 Preparation of Survey Schedule
For collecting data through survey method, preparation of interview schedule is

of crucial need. Before the final survey a pre-test was done from the growers
and market actors in the local market of the study area. The pre-test helped to
find out the weakness of the schedules and the survey schedules were finally
prepared after including the findings of the pretest. The data on volume of
sales, place of sale and purchase, production cost, marketing cost and sale price
and purchase price, whom to buy and whom to sell and problems faced by
stakeholders in the value chain and their possible recommendations were
collected through the interview schedule. Two sets interview schedules were
prepared; one for farmer, and another for traders.
3.8 Data Collection
Both primary and secondary data were used to fulfill the objectives of the
study. The researcher herself conducted the survey and collected data through
direct interviews with respondents. Data collection is not an easy task. It must
be done sincerely, because success of the study depends mainly on the accurate
and relevant data. Before beginning the interview, each respondent was given a
brief description about the aim and objectives of the study. Primary data were
collected from the market actors including growers using pre-tested semi
structured survey schedule; and through conducting FGDs and the Key
Informants Interviews (KII). The questions were asked in a simple manner and
in a friendly environment with explanation where it was felt necessary.
3.8.1 Collection of Primary Data
For primary data collection, the following steps were followed:
62
3.8.1.1 Data Collection from Growers
Mango growers were selected from Rajshahi, Chapai Nawabgang and

Meherpur districts. Most growers of the selected areas maintain their livelihood
by agriculture. Main profession is mango production and marketing and the
mango orchards are inherited from ancestry. The income from their orchard is
sufficient to generate capital. They get enough crop to maintain their livelihood
from this land. The orchard itself is their capital, there is no necessity to depend
on others. Formal survey data were complemented by key informant interviews
and through Focus Group Discussions.
3.8.1.2 Data Collection from Actors
The actors refer to those people who act between the growers and consumers.
The important actors are Bairal, Bepari, Aratdar, and retailer. Actors were
interviewed by the researcher with the help of a pretesed survey schedule.
Information was collected on trade volume, marketing costs (depreciation on
investment capital, interest on running capital, transport cost, office cost,
commission, market toll, wastage, etc.), mode of sales, purchase and sale prices,
price formation, gross and net marketing margins and marketing constraints.
Among these actors, Bepari and Aratder, used to transport fruits to other
districts in the country.
3.8.2 Secondary data
Secondary data were collected from various sources like Government Agencies,
Fruit Research Center, Bangladesh Agricultural Research Institute, Bangladesh
Bureau of Statistics, Export Promotion Bureau, Department of Agricultural
Extension (DAE), Department of Agricultural Marketing (DAM), newspapers,
books, journals and internet and relevant documents of Bangladesh Bureau of
Statistics (BBS).
63
3.9 Processing, Tabulation and Analysis of Data
After collecting information, the filled in schedules were scrutinized and

checked to avoid irrelevant information. The collected data were edited, coded
and finally tabulated according to the objectives of the study. Data obtained
through interviews were coded where appropriate, entered into a database
system using Microsoft Excel, and analyses using SPSS Statistical Software.
Finally tabulated data were analyzed by descriptive statistics (percentage,
mean, range, standard deviation etc.) to describe the variables.
3.9.1 Costs and Benefits of Mango Growers
In the present study, the costs and benefits of the mango growers were
calculated. The methods are briefly described in the following:
3.9.1.1 Production Cost
Production costs considered both variable cost and fixed cost. The following
profit equation was used to assess the benefit of production of mangoes.
Net return of mango producer
Π =PF.QF- (TVC+TFC)
Where
Π = Profit of mango producer per hectare per year
PF = Per unit price of mango
QF = Quantity of mango
TVC = Total variable cost
TFC = Total fixed cost
64
Variable cost items are:
1. Cost of seed/ Seedling
2. Cost of human labour
3. Cost of cultivation
4. Cost of fertilizer
5. Cost of manure
6. Cost of irrigation
7. Cost of insecticide and pesticide
Fixed cost includes:
1. Land use cost
2. Interest on operating capital
3.9.1.2 Gross Return (GR)
Gross return was calculated simply by multiplying the total volume of output
of an enterprise by the average price per unit in the harvesting period (Dillon
and Hardaker, 1993). The following equation was used to estimate gross return
(GR):
GR= ∑ Pb.Qb
GR= Gross return from product
Pb= Price of product per unit
Qb= Quantity of product
3.9.1.3 Gross Margin (GM)
Gross margin calculation was done to have an estimate of the difference

between gross return and total variable cost. The arrangement for using gross
65
margin analysis is that the farmers are more interested to know their return
over variable cost. The following equation was used to assess the gross margin.
GM=GR-TVC
Where
GM=Gross margin
GR=Gross return
TVC= Total variable cost
3.9.1.4 Marketing Margin of Market Actors
The net marketing margins of the actors (after physical losses) were calculated
by the following formula:
Marketing Margin= Sale price – Purchase price
Net marketing margin = Marketing margin – Marketing cost
The marketing costs mainly include costs for various market operations like
transportation, loading and unloading, market toll, rents, staff salary,
electricity, commission, wastage, depreciation, and other miscellaneous costs.
The items of the marketing costs vary with the type of actors.
3.10 Value Addition by Traders
Net Value Addition = Gross Value Addition – Marketing Cost
Gross Value Addition = Sale Price – Purchase Price
66
3.11 Marketing Efficiency
Conceptually, efficiency of any activity or process is defined as the ratio of
output to input.
E=
Where
E =Index of marketing efficiency
O = Output of the marketing system
I = Input of the marketing system
A higher value of E denotes higher level of efficiency and vice versa. When
applied in the area of marketing, output is the ‘value added’ by the marketing
system and ‘input is the real cost of marketing (including some fair margins of
intermediaries)’.
3.11.1 Methods for Measuring Marketing Efficiency

The marketing efficiency was assessed based on three methods such as (a)
Conventional method, (b) Acharya’s method and (c) Shepherd’s method. Those
methods are shown below.
(a) In Conventional method, marketing efficiency is calculated in the

following way:
Marketing Efficiency =
Where,
VA= Value added
Value added =Consumers price – Net price received by the farmer
MC = Total marketing cost
67
(b) In Acharya’s method, marketing efficiency is worked out by the
following formula:
Where,
FP= Price received by the farmer
MC= Total marketing cost and
NMM= Net marketing margin of intermediaries
(c) In Shepherd’s method, marketing efficiency is calculated by using the

following formula:
Where,
CP= Price paid by the consumer
MC= Total marketing cost
In addition, the efficiency of marketing was investigated by using price spread

and growers’ share.
Price spread = Price paid by the consumers - Price received by the growers.
Price received by the grower

Grower’s share = 100
Consumer' s purchase price
3.12 Mapping the Value Chain of Mango Marketing
There are many potential dimensions of the value chain (M4P,2008) that could
be included in mapping as follows:
 Mapping the core processes in the value chain ;

 Identifying and mapping the main actors involved in the process ;
68
 Mapping flows of products;
 Mapping knowledge and flows of information ;
 Mapping the volume of products number of actors and jobs ;
 Mapping the geographical flow of the product or service ;
 Mapping the value at different level of the value chain ;
 Mapping relationships and linkages between value chain actors ;
 Mapping service that feed into the value chain ;
 Mapping constraints and potential solutions ; and
 Making a value chain map matrix.
3.13 Likert Scale Analyses for Risk Perception

This study used descriptive statistics like mean, standard deviation, frequencies
and tabular analysis to examine and rank sources of risks based on farmers’
perception. In addition, a Likert scale (responses on a 1-5 scale (1=no/negligible
risk, 2=low, 3=medium, 4=high and 5=very high risk) has also been used to
rank risks. A Likert scale is a psychometric scale commonly used in
questionnaires, and is the most widely used scale in survey research. When
responding to a Likert questionnaire item, respondents specify their level of
agreement to a statement. The scale is named after its inventor, Rensis Likert. To
have a different source of risks, the mean of the five Likert scales were used.
3.14 Analytical techniques of Challenges Facing Index (CFI)

The dependent variables were measured by constructing scores for each of the
five aspects. The scale contained five possible challenges which the farmer
might face in respect of each of the five aspects of challenges in mango value
chain. Each of the farmers was asked to indicate the extent of difficulty caused
by each of the challenges by checking any of the four responses such as, ‘very
high’, ‘high’, ‘little’ and ‘not at all’ and weight was assigned to these responses
as 3, 2, 1 and 0, respectively. Thus the possible score of each respondent could
range from 0 to 15 in each aspect, 0 indicating no challenges and 15 indicates
facing high challenges.
69
An overall constraint score for each respondent was computed by adding his
constraints scores in all five aspects. Possible range of overall challenges Facing
Index (CFI) score of the farmer could range from 0 to 75, while 0 indicating no
constraint facing and 75 indicating high challenges facing. For clear
understanding, the 25 aspects of challenges were arranged in a rank order by
developing Challenges Facing Index (CFI) by using the formula ( Gebresilasie,
2014 ; Pandit and Basak 2013) .
CFI= Pn×0 + Pl×1 + Ph×2 + Pvh×3
Where,
CFI = Challenges Facing Index
Pn = Percentage of farmers having no challenges
Pl = Percentage of farmers having little challenges
Ph = Percentage of farmers having high challenges
Pvh = Percentage of farmers having very high challenges
CFI for any aspect of constraint could range from 0 to 300, 0 indicating no
challenges and 300 highest challenges.
Data analysis was performed by using the Statistical Package for Social Sciences
(SPSS). Descriptive analysis such as range, number, percentage, mean, standard
deviation and rank order were used whenever possible.
3.15 SWOT Analysis
A SWOT analysis (alternatively SWOT matrix) is a structured planning method

used to evaluate the strengths, weaknesses, opportunities, and threats involved
in a project or in a business venture.
Setting the objective should be done after the SWOT analysis has been
performed. This would allow achievable goals or objectives to be set for the
organization.
70
 Strengths: characteristics of the business or project that give it an
advantage over others.
 Weaknesses: characteristics that place the business or project at a
disadvantage relative to others
 Opportunities: elements that the project could exploit to its advantage
 Threats: elements in the environment that could cause trouble for the
business or project
Findings of the analyses are presented in histograms, bar charts, pie charts and
graphical formats
71
CHAPTER IV
MANGO MARKETING SYSTEM
4.1Introduction
Marketing systems play a significant role in enhancing production and

consumption, and in accelerating the pace of economic development (Huda et
al. 2012; Kapoor et al. 2003). At the same time, the marketing of agriculture
products plays a major role in smallholders’ economy which are both produced
and consumed locally. These products are contributing to a significant role in
developing countries because the products make a major contribution to the
GDP, and their consumption represents an important part of rural people's
expenditure (Dorward et al. 2008; Kohls and Uhl, 2005). The analysis of
marketing systems, particularly value chain analysis provides the full range of
activities which are required to bring a product from conception, through the
primary phases of production and delivery to final consumers (Kaplinsky and
Morris, 2000; Porter, 1980). As a product moves from the producer to the
consumer, a number of transformations and transactions take place along a
chain of inter connected activities, and value is added continuously at each level
of the chain (Kirimi et al. 2014). Production, standardization, pricing and
distribution of agricultural and horticultural products are progressively being
organized into value chains, where the movements of products have affected
farmers, wholesalers, retailers and other intermediaries. Value chain analysis
analyzes the organization and behavior of all the actors in the value chain. It
also expresses the achievements of all intermediaries/actors participating in the
chain (Jacinto, 2014).
4.2 Marketing of Mango
Marketing of mango is quite complex and risky due to the perishable nature of
the produce, seasonality in production and bulkiness. The spectrum of prices
from producer to consumer, which is an outcome of demand and supply of
72
transactions between various intermediaries at different levels in the marketing
system, is also unique for mango. Moreover, the marketing arrangements at
different stages also play an important role in price levels at various stages viz.
from farm gate to the ultimate user. These features make the marketing system
of mango to differ from other agricultural commodities, particularly in
providing time, form and space utilities. While the market infrastructure in
Bangladesh is better developed for food grains, mango markets are not well
developed and markets are congested and unhygienic. Multiple actors such as
Bairal, Bepari, local Aratdar, Dhaka market Aratdar , local and Dhaka retailers --
constitute one of the three components of the marketing system. The other two
components include marketing channel and the various functions performed by
the different actors.
4.3 Value Chain of Mango

One question could arise when the value chain is studied: Is the value chain and
supply chain different? Physically they are the same because they both overlay
the same network of members who are tied up with each other to provide
goods or services to the final customers. If we compare the definition of a
supply chain with that of a value chain, we may realize that they cover the same
things. The idea behind, however, is different. The supply chain, as the name
implies, focuses mainly on the costs and efficiencies of supply. The supply chain
is meant to bring materials into manufacturing operation and finished products
to customers smoothly and economically. The primary objective of a supply
chain is to fulfill customer needs and requirements through the most efficient
use of resources, including distribution capacity, inventory and labour. A
supply chain seeks to match demand with supply using the minimal inventory.
Various aspects of optimizing the supply chain include liaising with suppliers
to eliminate bottlenecks; sourcing strategically to strike a balance between
lowest material cost and transportation, implementing Just In Time techniques
to optimize manufacturing flow; maintaining the right mix and location of
factories and warehouses to serve customer markets, and using
73
location/allocation, vehicle routing analysis, dynamic programming and, of
course, traditional logistic optimization to maximize the efficiency of the
distribution .Whereas, the value chain lays its focus on value generation for
customers. The objective of a value chain is, therefore, to maximize value at the
least possible costs to customers. Thus, the primary difference between a supply
chain and a value chain is a fundamental shift in focus from the supply base to
the customer (Feller, Shunk, and Callarman, 2006). Since the cost cutting and
price-off strategy is not enough to guarantee for sustainable market advantage
in the long run, it is necessary for the company to provide the value that will
justify the price of the product. Therefore, the supply chain itself has evolved to
synchronize supply and value. The evidence can be noticed in the definition of
a supply chain from the Global Supply Chain Forum (1998): “the integration of
key business processes from end user through original suppliers that provides
products, services, and information that add value for customers and other
stakeholders”. The notion that a supply chain must “add value” is trying to
blur the distinction between a supply chain and a value chain (Feller, Shunk,
and Callarman, 2006). A value chain map of mango is shown in Fig. 4.1.
74
Functions Actors Support Services
Consumers Consumer Consumer Consume Consumer Consumer Consumers
Research
Institute
Mango
smers
Retailer-D Retailer-D Retailer-D Retailer-D Retailer-L-

Retailing
LLLLLLL
Horticulture
Centre
Retailer-D Aratdar-D Aratdar-D Aratdar-D
Wholesaling
Agricultural Aratdar-D
Agricultural
Aratdar-L Aratdar-L Aratdar-L
Extension
Wholesaling
Assembling Bepari Bepari Bepari
Banks
Assembling
Bairal
Advanced Purchased
Transport
Agencies
Production Grower Gro
Grower Grower G
Grower Grower Grower
Input Supply Ch-I Ch-II Ch-III Ch-IV Ch-V Ch-VI

Fig-4.1 value chain map of mango
Note: Ch=Channel
D=Dhaka
L=Local
75
From the value chain map only the marketing channels of mango are examined
below.
Marketing channels are the alternative routes of products flows from producers
to consumers (Kohls and Uhl, 2005). There are several actors involved in the
production and marketing of mango. It is made up by the middlemen who
move the goods from the producers to ultimate consumers. The production
process starts at the stages of input supply, then covers production, processing,
marketing and ends with the consumption of a certain product.
Marketing channel may be short or long for a particular commodity depending

on the marketing qualities of the product, size and nature of the consumers and
producers and the prevailing social physical environments. In the channel of
mango marketing of the study area, the mango moves from the grower to the
consumers through some marketing actors such as Bairal, Bepari, Aratdar
(Local), Aratdar (Dhaka), retailer (Local) and retailer (Dhaka). It is observed that
mango needed to be moved a long distance from production points in order to
reach the consumers. Commercial mango follows the trade channel consisting
of Bairal, Bepari, Aratdar (Local), Aratdar (Dhaka), retailer (Local) and
retailer(Dhaka). They are classified into functionary groups of traders without
any trade license. License for mango traders is not required in the country. The
marketing channels of mango in Bangladesh are presented in Figure 4.2. At
present various channels are operating at various scales and degrees in the
markets. Following channels were observed during the study period.
76
Ch-I: Grower Bairal Bepari Aratdar Aratdar Retailer Consumer
(Local) (Dhaka (Dhaka)
Ch -II: Grower Bepari Aratdar Retailer Consumer

(Local) (Local)
Ch-III : Grower Aratdar Aratdar Retailer Consumer
(Local) (Dhaka) (Dhaka)
Ch-IV: Grower Bepari Aratdar Retailer Consumer
(Dhaka) (Dhaka)
Ch-V : Grower Aratdar Retailer Consumer

(Dhaka) (Dhaka)
Ch-VI : Grower Retailer Consumer

(Local)
Figure 4.2 Marketing channels of mango in the study area
4.4 Supply Chain Actors

In this study, different mango market actors were identified in performing the
marketing functions between mango growers and final consumers. Market
actors in the study areas include: input suppliers, growers, Aratdar, Bairal,
Bepari, retailers, processors and final consumers of the product. In the study
areas the mango moved from the producer seller to the consumers through
some market actors, such as Bairal, Bepari, Aratdar (both local and Dhaka) and
retailers (both local and Dhaka). Even though, each actor was involved in
different activities, based on major activity undertaken, the sampled actors were
categorized into different categories (Bairal, Aratder, retailer and Bepari) .
4.4.1 Input Supplier
Mango supply /value chain starts from the input suppliers. Seed, fertilizer,
irrigation, insecticide and pesticide are the key inputs of mango production.
Farmers of the study area collect fertilizer, insecticide and pesticides from the
77
traders of local market. In case of irrigation, large farmers have their own
irrigation equipment while other farmers use the equipment on payment of
charge.
4.4.2 Grower
These are the primary or first link actors who cultivate and supply mango to the
market. Since the mango is very perishable in nature, producers sell their
produce right after harvest either at garden or local market. Due to lack of
adequate, reliable and timely market information, fruit growers are forced to
dispose their produce within limited period at low selling price. Bamboo basket
(locally called Thurong/Hallong), gunny sacks, plastic bag and plastics crates
(used by big fruit growers) are the customary packaging material for collection
and delivery of mango in the study areas. Due to absence of storage facilities,
mangoes are marketed immediately after harvest. In fact most growers are not
fully aware of the advantages of storage system of mango marketing. Thus, due
to limited production and supply of mango, storage was not a problem at the
moment, because what is produced now is marketed immediately right after
harvest. But it would be a critical problem in the near future when production
and productivity of mango is intensified and supplied to market within the
study area.
4.4.3 Bairal
The people who have no own orchard land but involved in mango business are
known as Bairal. They are the advance buyers of the estimated crop from the
growers. They are doing their business all over mango growing centers and
making the business competitive. They sell their mangoes to Bepari and local
Aratdar. One of the special features of the marketing system of commercial
mango in the country is “forward sale” by the orchard owners. Frequent
hazardous weather and attack by mango hoppers during the flowering and
fruit setting stage make the crop very uncertain. Therefore, in order to avoid the
risk and uncertainty of the crop, most of the growers in the selected districts sell
78
their expected crop at the time of fruit setting or even before on the basis of
estimation formed from the amount of bloom to the classified advance buyer
locally known as Bairal. Bairal are doing business with little capital of their own
and sometimes they borrow the major part of the business capital from local or
outside Aratdar. Their business is very risky characterized by frequent ups and
downs.
4.4.4 Bepari
The Bepari are relatively big traders in the study areas of mango marketing who
have no fixed establishment and staff. They purchase harvested mangoes from
the growers and the Bairal at the garden premises or in the local market
through the local Aratdar. The Bepari usually sell mango to the retailers in the
local market or dispatch it to Aratdar of other big markets. They are doing their
business in group. In most cases the business functions of Bairal, Bepari and
Aratdar are integrated. Some Bepari come from Dhaka, Mymensingh,
Chittagong, Khulna, Feni, Sylhet etc. and collected mango from different
growers and Bairal. In some cases, they borrow capital from the dealing
Aratdar.
4.4.5 Aratdar
Aratdar is the owner of „Arat‟ and big trader. They are the commission agent
and have fixed establishment in the market and operate distribution trade with
Bairal, Bepari and retailers. The Aratdar do the functions of negotiating
transactions between buyers and sellers in exchange of commission. Sometimes
some Aratdar buy mangoes directly from garden then no commission is
charged. Mango Aratdar are not only commission agents, they also perform the
function of mango buying, selling and distribution. They charged fixed fees as
commission from the Bepari and retailers. Their business premises usually are
situated at the well-communicated areas in the secondary and other big
marketplaces. In general the Aratdar operate in a large geographic area between
production points and consuming points. Generally the Aratdar are self-
79
financed, as they do not require large cash capital for operating the business. In
many cases, Aratdar require to have large amount of capital in the business for
financing the Bepari and Bairal.
Generally Aratdar render the following services:
(i) Storage facilities
(ii) Transportation facilities
(iii) Financing the Bairal and the Bepari.
Bairal and Bepari strongly feel that Aratdar is an essential and most useful
institution in the marketing system of mango. In his absence, neither the Bairal
nor the Bepari feel safe in making transaction with each other. There are two
types of Aratdar who are conceptualized as Aratdar (local) and Aratdar
(Dhaka). Their functions are discussed below:
4.4.6 Aratdar (local)
The researcher termed the Aratdar (local) as those traders who conduct their
business activities as commission agent in Rajshahi, Chapai Nawabganj and
Meherpur districts only and local. They usually conduct their business
throughout the Upazila such as Bagha, Sibgonj and Meherpur Sadar.
Sometimes they purchase their mango from growers, Bairal and Bepari who
come to them. Then they sell their mangoes to the Aratdar (urban) who are
located in different parts of Bangladesh and to the consumers.
4.4.7 Aratdar (Dhaka)
Aratdar (Dhaka), are the businessmen who conduct their business in Dhaka,
Aratdar (urban) purchase their mango from Aratdar (local) and Bepari. It is
notable that the Aratdar (local) and Bepari send mango to the Aratdar ( Dhaka)
by their own transport arrangement. Aratdar (Dhaka) conduct their business
activities at their own Arat in different markets in Dhaka city. Aratdar (Dhaka)
80
purchase mangoes from Bepari and Aratdar (local). Then they sell to retailers
(local and distant market) and directly to the consumers from the Arat.
4.4.8 Retailer
In the mango marketing channels, the retailers are the last link in the mango
marketing chain. Retailers are the small of all types of mango traders. They
purchase maximum amount of mango from Aratdar and few from growers,
Bairal and Bepari. The retailers of the selected area are found to buy mango
from the Aratdar mostly in cash and sometimes on credit basis for short time.
They sell mangoes to the urban residents, the ultimate consumers.
The retailers are small traders. It was not their only business. Mango was an
item of their business. There are two types of retailers- local retailers and Dhaka
retailers. Local retailers sell their mangoes in different local markets and Dhaka
retailers sell at permanent shops, temporary shops and by using van in different
areas in the city. Most of the retailers were independently organized.
4.4.9 Consumer
From the consumers‟ point of view, the shorter the marketing chain, the more
likely is the retail price going to be affordable. Consumers for this present study
mean those households who purchase and consume fruits. They are individual
households; they bought the commodity for their own consumption only.
4.5 Period of Marketing

The domestically-supplied mango market operates mainly during four months
(e.g., May, June, July and August), with the peak being in June and July, and
much lesser quantity in August and May. This is the case with respect to
superior quality, grafted mangoes, originating in the leading mango producing
areas in the western part of Bangladesh. On the other hand, the mangoes
known as Gooti in the west and deshi in the east can be found around May and
June only in the market. According to some estimates, more than 70 per cent of
the growers sell their crops at blossoming or fruit-setting stage. Thus, the
marketing of mango commences more or less from the blooming stage, if not
81
earlier, and the ownership of fruits, even on the tree, changes hands at that time
from producers to traders.
The sale of commercially valuable mangoes often takes place three times:
a) At first, from grower to 2nd party at pea/marble stage

b) Secondly, from 2nd party to 3rd party at mature stage on the tree, and
c) Thirdly, from 3rd party to wholesaler at Dhaka or elsewhere
4.6 Supermarkets and other Institutional Outlets

The development of supermarkets is a recent addition in the domestic retail
section of Bangladesh started appearing in about 10 years. New outlets are
coming up in quick succession. To date, there are about 87 supermarkets
operating in the country as a whole of which 67 are located in Dhaka.
Supermarkets are also coming up in the other cities such as Chittagong, Sylhet,
Rajshahi etc. Mostly all types of vegetables depending on seasonality are sold in
the supermarkets. Generally the supermarkets collected fruits and vegetables
from the wholesale market and directly place in the rack without sorting,
grading while few have separate storage and sorting/grading facility.
Consumers
Retailing
Superemarket
Supply
Dhaka based Trader
Wholesaling Contracted
Trader outside of Dhaka
WholeaWhole Farmers
Trading Farmer
Production Input Input
Fig 4.3: Supply chain map of super market

4.7 Functions Involved in Mango Marketing
A marketing function is a fundamental or basic physical process or service
required to give a product the form, time, place and possession utility
82
consumers‟ desire (Branson and Norvell, 1983). Marketing functions help a
company to identify and source potentially successful products for the
marketplace and then promote them by differentiating them from similar
products. Typical marketing function within a larger business might include
performing market research, producing a marketing plan, and product
development, as well as strategically overseeing advertising, promotion,
distribution for sale, customer service and public relations. The functions of
mango marketing at intermediaries‟ level were broken down into buying and
selling, grading, packing, transportation, storage, financing, processing and
market information.
(http://www.business dictionary. com/ definition/ marketing- function. html).
4.7.1 Buying and Selling
Buying and selling are the functions of exchange. Both have their primary
objective of negotiating favourable terms of exchange. Buying generally
includes the selection of kinds of goods, the determination of quality and
quantities and the selection of sources of supply. Selling is the personal or
impersonal process of assisting and persuading a prospective customer to buy a
commodity or a service.
Picture 4.1: Mangoes are piled in Arat Picture 4.2: Mangoes are ready for
for sale sale on the Hat
Generally Bairal purchased their entire volume of mangoes from the growers.
Bepari purchased major portion of mangoes from Bairal and a few percent of
mangoes purchased from the growers. Aratdar purchased major portion of
mangoes from Bepari and also purchased from Bairal and the growers. Retailers
83
purchased the highest quantity from the Aratdar and the lowest quantity from
Bepari or growers. The growers sell most of their mangoes to the Bairal. Bairal
sold most of their mangoes to the Bepari and Aratdar. Bepari sold most of their
mangoes through the Aratdar. Aratdar sold almost the entire quantity of their
mangoes to the retailers. Retailers sold their entire mangoes to the customer.
4.7.2 Storage
Storage adds the time utility to the products. The excess supplies at the harvest
time are stored so that they could be supplied in the off-season and in areas
where there is demand for the particular product. Proper storage is required to
protect produce from quantitative and qualitative deterioration. The perishable
agricultural goods need special type of storage to prolong their use. For most
fruits and vegetables, no noticeable low temperature storage facilities are
available in the country (Hassan, 2010). After the mangoes are picked, they are
stored for a period of time which may be short if they are to be sent somewhere
else, eaten or sold out immediately, or long if they are to be used or consumed
later. If the mangoes are to be consumed very soon, they are ripened after being
brought to the storage. Initially the fruits are spread in one layer on a bed of
mango leaves and left there as such for one or two days, as a kind curing,
particularly to get the sticky exertion from the fruit-stalk dried. Later on, they
are placed on a bed of rice straw, 7 to 10 cm thick in one layer, above which
another two or three layers of fruits are placed, every layer being separated
with a layer of straw, about 5 cm in thickness. The fruits stored in such a way
gradually take up a bit of colour and become slightly soft. The fruits are taken
out from the store soon after this and sold in the market.
4.7.3 Packing
Packing means the wrapping and crating of produce before they are
transported. Produce have to be packed either to preserve them or for delivery
to buyers. Packaging is a part of packing, which means placing the goods in
small packages like bags, boxes, etc for sale to ultimate consumers. It is needed
84
for fruits in order to protect during the marketing process, avoid individual
handing and to rationalize the produce. In Bangladesh, this important handling
step is at best basic. The materials used for packaging fresh perishables are
mostly bamboo, straw, wooden boxes, cardboard boxes, plastic bags, synthetic
fibers, multi-layer paper, sacks etc. These materials must have the performance
capabilities of preventing mechanical damage to the produce, provide enough
strength to withstand wears and tears in handling, allow ventilation for the
produce with maintenance of shapes and sizes of the packaged commodities
and lastly and most importantly should be either disposable or returnable. Over
and above, any forms of packaging must add value to the produce, sufficient to
cover additional capital outlay plus a margin of profit.
Picture 4.3 Labour is packing mangoes in Picture.4.4 Mangoes are being packaged in
the plastic caret caret at Baneshore mango market
Adequate packing is also necessary for facilitating handling and marketing of

produce. For mango, plastic crates of 22kg capacity are used for long distance
transportation. Sometimes bamboo made baskets, locally known as „Jhuri‟ or
„Tukri‟ are used for packing mangoes. Different sizes of baskets are there as –
large, medium and small, but without any definite standard.
85
Picture 4.5 Traditional packing of mango
Tukri are made by local people and is used for one time. For packing
procedure- the bottom of the Tukri contains straw by 1 inch in and around, and
then mangoes are kept in mid stage and in upper stage again contain a layer of
straw and then packed by a „Bostha‟ (gunny bag). Packing is done under the
supervision of Aratdar(local) by their permanent labour. On an average, 30 to
35 packages are made per labour per day. At the retail levels, no improved
customer packages are available except polyethylene/ paper bags.
4.7.4 Transportation
Transportation is an important function in agricultural marketing.

Transportation is the only means of making goods available at proper place and
it creates place utility. Adequate and efficient transportation is the corner stone
of modern marketing system. Transportation is not only essential to the
operation of the marketing system, but also accounts for a very substantial part
of the total marketing cost. There are various modes of transportation. The
modes of local transportation include head load, bi-cycle, van, Votvoti (a three
wheeler vehicle), tractor, trolley, etc. For long distance transportation, mini and
large open trucks of 7 and 10 tons capacities are used without any cooling
facilities. So any modifications to the present vehicle or introduction of
refrigerated vehicles at least in pilot basis would greatly contribute to enhance
86
marketing. For example, Hortex Foundation recently purchased few REEFER
Truck with refrigeration facilities.
Picture 4.6: Mangoes are being transported by different transportation
But few Growers who sell their product to Aratdar (local) use various
transports like rickshaw, van, pushcart, and truck. Mode of transport used by
different actors are shown in Table 4.1
Table 4.1 Modes of transport used by various actors in mango marketing
Mode of Used by actors (%)

transport
Grower Bairal Bepari Arardar Arardar Retailer Retailer
(local) (Dhaka) (local (Dhaka)

Head load 10 _ _ _ _ 27 12
Bi-cycle 65 56 34 _ _ 29 _
Van 45 34 37 12 9 31 69
Votvoti 30 21 16 5 _ 25 _
Truck _ _ 56 91 85 _ _
Bepari also transport their purchase as like Bairal. At first they collect mangoes
from various areas and then transport to the assembling point using rickshaw,
van, pushcart, and then truck to bring to other traders. Bepari used different
transportation to send their mangoes to Aratdar and other districts in different
parts - Mymensingh, Chittagong, Moulvibazar etc.by truck. Aratdar(Dhaka)
87
usually buy and sell their mangoes at their own Arat. Aratdar(Dhaka) use
rickshaw/van and push cart to load and unload mangoes in their Arats.
4.7.5 Grading and Standardization
Grading is a basic function in all transactions and is defined to be the sorting of

products according to some standard. Grading is a very important marketing
function because it affects the process of buying, selling and price formation.
For sending to far distant markets, mango should be graded into different sizes
soon after being picked and when remaining green and hard. Grading and
standardization of fresh produce in terms of size, variety, maturity and quality
are important considerations for improvement of postharvest quality and
reduction of postharvest losses. In the absence of grading, losses may be
incurred because of contamination between mixed rotten items and good
quality ones after some period of time. Thus grades and standards are
instrumental in making the market more transparent which is to the advantage
of all producers, traders and consumers. The criterion of edible versus inedible
is the basic standard and whenever there is a glut of a particular produce in the
market, prices fall most for the lower quality whilst for the best quality this fall
is least.
The mangoes were graded by some growers, Bepari, Bairal and mainly Aratdar
(Local) and retailers on the basis of variety, size, shape and weight. There was
no standard grading method and they frequently did it by their personal
assessment by open eye. In Bangladesh, still no grade standard has been
developed for horticultural produce.
4.7.6 Financing
Source of finance is a vital factor for mango production and marketing. The
function of advancing money to ease on various aspects of marketing functions
properly is known as financing. Financing involves various forms of advances
made to the market actors from different sources. To run the mango marketing
business smoothly, financing at different levels of marketing is necessary. It
88
helps the growers and the concerned actors to perform their marketing function
smoothly.
From the study area, it appears that the major source of finance was own
finance. Generally the growers invested their total capital from their own fund
for producing mango. Sometimes they borrowed money from bank and their
relatives. Financial institutions like Sonali Bank, Janata Bank, Islamic Bank,
Bangladesh Krishi Bank (BKB) , Bangladesh Krishi Unnayan Bank (RAKUB) etc
were lending money to mango growers in the study area.
Bairal were doing business with little capital of their own and sometimes
borrowing capital from Aratdar. Bepari were doing their business in group. In
some cases, they borrowed money from the dealing Aratdar. They charged
fixed rate of 6-10% fees as commission from the Bepari and retailers. The major
source of financing for the Aratdar was their own fund. It was reflected from
the study that the major source of fund for both the growers and the market
actors was the own fund. They did not require paying any interest for
borrowing capital from friends and relatives and traders. They, however, paid a
9-13% rate of interest to the banks and paid a nominal interest to the money
lenders.
4.7.7 Market Information
Market information is a facilitative marketing function required for an

efficiently operating marketing system. Accurate and timely market
information facilitates growers in deciding about the price, time and place of
sale of their produce. Source of information about mango marketing and mango
price is crucial because growers need to know about the marketing situation,
place to sell, price behavior, location of trading etc. In the study area most of the
growers and market actors received their market information through various
sources such as fellow traders, visit to market and personal observation,
neighbours, business community, follow previous price, fixed profit on buying
price and spot negotiations based on daily demand supply situation.
89
4.7.8 Promotion
Promotion is one of the important elements of marketing mix. There are so

many elements of promotion such as advertising, direct marketing, public
relations and sales promotion. At growers‟ level there is no evidence of use of
promotion for mangoes. But at retail level the retailers used to promote their
sales through posters/billboard etc.
Agricultural Marketing Company Limited (AMCL) such as PRAN, Square and

other AMCL use many tools or techniques for promoting mango products
making available to the marketers for achieving objective of sales promotion.
4.8 Conclusion
This chapter describes the role of marketing system in the field of production,
consumption and finally the economic development of the country. Nature of
the mango, marketing arrangements and involvement of the actors at different
levels make the marketing system different from that of other agricultural
commodities. Multiple actors such as Bairal, Bepari, local Aratdar, Dhaka
market Aratdar, were identified, and investigated for their involvement in
marketing activities. It is observed that mango moves a long distance from the
grower to ultimate consumers. Marketing channels are shown in this chapter.
License is not required for the mango traders. Value chain of mango is also
presented. Supply chain / value chain actors include from input suppliers,
mango growers, mango traders both at local and Dhaka markets and
consumers. The characteristics and activities of the actors are also analyzed.
Mangoes are marketed over the four months starting from May to August. But
Gooti/ Deshi mango is generally available only during May and June in the
market. More than 70% of the growers sell their mangoes at blossoming.
Marketing of mangoes take place three times i.e at pea/marble stage, mature
stage, and at wholesale level. Development of supermarkets is an indication of
expansion of retail markets in the country. Storage facilities are not developed.
Bamboo baskets, wooden box are considered card board and plastic crates etc.
90
are used in mango packing. It has been improving over the years. Modes of
transportation vary subject to distance of destination. No grade standard has
been developed yet in the country but mangoes are graded by different actors
according to variety, size, shape and weight. Marketing of mango is mainly
financed by the individual actors.
Market information on mango is collected by the concerned actors through

personal visits to markets, and fellow traders. Demand and supply factors
dominate the market price of mangoes. Promotion of mango marketing at retail
level is practiced by retailers.
91
CHAPTER V
DISTRIBUTION OF BENEFITS AND RISKS
5.1 Introduction
In this chapter, an attempt is made to analyze the cost and benefit of mango
growers and different actors. The total cost per hectare per year for mango
cultivation was calculated in the study areas. The main objective of this chapter is
to present cost incurred by mango growers, profitability of growers and value
addition by actors. Benefit of mango growers and market actors has been
measured in terms of gross value addition, net return etc. Mango tree is a
perennial tree which can live more than fifty years so its growing represent long
term investment. This type of enterprise involves only cost and low returns for the
first few years. Returns from growing mango trees vary with the age of trees. So
financial analysis is generally used to determine profitability of mango
production by adopting Net Present Worth (NPW) technique. But with the
limitations of adequate data and shortage of time the present study used data of a
particular/specific year to determine the profitability of mango production.
92
5.2 Cost of Mango Cultivation
The average cost of production of mango in Rajshahi district was Tk.241,135,
(Table 5.1) per hectare and with an average yield was 14 MT per hectare; which
indicates to a production cost of Tk. 17.22 per kg. The share of variable cost and
fixed cost is 42.11 % and 57.90 % respectively. The highest variable cost was spent
on labour which covered 7.38 % of the total cost. The lowest variable cost item
was fertilizer zip sum which was 0.38 percent of the total cost (Table 5.1)
Table 5.1 Cost of production of mango in Rajshahi district

(Tk. /Hectare)
Sl. Cost Items Unit Quantity Unit Total Per cent
No. /Ha Price Cost of total
(Tk.) (Tk./Ha) cost
A Variable cost
1. Fertilizer
1.1 Urea Kg 180 20 3600 1.49
1.2 TSP Kg 179 22 3938 1.63
1.3 MOP Kg 136 20 2720 1.13
1.4 Zip sum Kg 131 7 917 0.38
1.5 Zink Kg 102 18 1836 0.76
1.6 Cowdung Kg 4200 1.74
2. Land Preparation N 7300 3.03
3. Labour N
o. 89 200 17800 7.38
4. Pesticides N
o. 21000 8.71
5. Irrigation N
o. 9400 3.90
6. Mango collection. o. 16724 6.94
7. Others 7265 3.01
8. Interest on revolving 4835 2.00
fund
B. Total variable cost 101,535 42.11
C. Fixed cost
9. Lease value of land Tk 132,952 55.14
10. Interest on lease value Tk 6648 2.76
.
.
D. Total Cost(B+C) 241,135 100.00
93
Table 5.2 shows the mango production cost in Meherpur district.
Table 5.2 Cost of production of mango in Meherpur district
(Tk./hectare)
Sl. Cost Items Unit Quantity Unit Total Cost Per cent
No. /Ha Price (Tk./Ha of total
(Tk.) cost
A Variable cost
1. Fertilizer
1.1 Urea Kg 178 20 3560 2.24
1.2 TSP Kg 180 22 3960 2.49

1.3 MOP Kg 134 20 2680 1.69
1.4 Zip sum Kg 128 7 896 0.56
1.5 Zink Kg 98 18 1764 1.11
1.6 Cowdung Kg 4200 2.64
2. Land Preparation No. 7000 4.41
3. Labour No. 78 200 15600 9.82
4. Pesticides No. 10000 6.29
5. Irrigation No. 7000 4.41
6. Mango collection 9776 6.15
7. Others 4898 3.08
8. Interest on revolving Fund 3567 2.24
C.
B. Fixed cost 1,12,334
9. Lease value of Land Tk. 80,000 50.35
9.10. Interest on lease value Tk. 4000 2.52
D. Total Cost (B+C) Tk. 158,901 100.00
The average cost of production of mango was Tk. 158,901 per hectare and with an
average yield was 10 MT per hectare; which indicates to a production cost of
Tk.15.89 per kg in Meherpur district. The share of variable cost and fixed cost is
47.13 % and 52.87 % respectively. The highest variable cost was spent on labour
which covered 9.82% of the total cost. The lowest variable cost item was fertilizer
zip sum which was 0.56 percent of the total cost (Table 5.2).
94
Table 5.3 Cost of production of mango in Chapai Nawabganj district
(Tk./hectare)
Sl. Cost Items Unit Quan. Unit Total Per cent
No. /Ha Price Cost of total
(Tk.) (Tk./Ha cost
A Variable cost
1. Fertilizer
2.1 Urea Kg 182 20 3640 1.58
2.2 TSP Kg 181 22 3982 1.73
2.3 MOP Kg 135 20 2700 1.18
2.4 Zip sum Kg 131 7 917 0.40
2.5 Zink Kg 100 18 1800 0.78
2.6 Cowdung Kg 5100 2.22
3. Labour No. 85 200 17000 7.40
6. Mango collection 21500 9.35
7. Others 11837 5.15
8. Interest on revolving fund 5844 2.54
C. Fixed cost
9. Lease value of Land Tk. 102,047 44.39
10. Interest on lease value Tk. 5103 2.22
D. Total Cost(B+C) 229,870 100
Total variable cost and total fixed cost was estimated at Tk. 122,720 and Tk.
107,150 per hectare respectively. The average cost of production of mango was
estimated at Tk. 229,870 per hectare in Chapai Nawabganj district with an average
yield of 12 MT per hectare. Thus the production cost of per kg mango was
Tk.19.16. Lease value of land was the highest (44.39%) followed by cost of
pesticides (10%), mango collection (9.35%) and labour (7.40%). The share of fixed
cost and variable cost is 46.61% and 53.39% respectively (Table 5.3). Table 5.4
presents the cost of mango production in the selected three areas.
95
Table 5.4 Cost of production of mango in all areas
Tk./hectare)
Sl. Cost Items Unit Quantity Unit Total Per cent
/Ha Price
No. Cost of total
(Tk.)
(Tk./Ha) cost
A Variable cost
1. Fertilizer
2.1 Urea Kg 180 20 3500 1.67
2.2 TSP Kg 180 22 3960 1.89
2.3 MOP Kg 135 20 2700 1.29
2.4 Zip sum Kg 130 7 910 0.43
2.5 Zink Kg 100 18 1800 0.86
2.6 Cowdung Kg 4500 2.14
3. Labour No. 84 200 16800 8.00
6. Mango Collection 16000 7.62
7. Others 8000 3.81
8. Interest on revolving fund 4749 2.26
Total variable cost 99,719 47.49
C.
B. Fixed cost
B.9. Lease value of land Tk. 105,000 50.01

9.10. Interest on lease value Tk. 5250 2.50
D. Total Cost(B+C) 209,969 100.00
The average cost of production of mango in all areas was Tk.2, 09,969 per hectare
and the average yield was 12 MT per hectare; which indicates to a production cost
of Tk. 17.50 per kg. It reveals from Table 5.4 that the share of variable cost is
47.49% and the fixed cost is 52.51% of the total cost. Lease value of land was the
highest cost item followed by pesticides (8.57%), labour (8.00), mango collection
(7.62%), irrigation (4.76 %) and land preparation (4.19%).
96
Thus the cost of production per quintal of mango was Tk.1750. It is observed from
Tables 5.1 through 5.4 that average cost of mango production per year was Tk.
209,969 which was higher than that of Meherpure (Tk. 158,901) but lower than
Chapai Nawabganj (Tk.229, 870) and Rajshahi (Tk. 241,135). The pattern of cost
sharing among the items almost similar. The marketing cost of farmer was Tk.283
per quintal of mango (Table 5.5).
Table 5.5 Marketing cost of mango grower

Tk./Quintal
Cost item Average cost Percent of total cost
( Tk./Quintal)
Harvesting 66 23.33
Grading 15 5.30
Packing (Caret+Labour) 56 19.79
Loading 4 1.41
Transportation 95 33.57
Market toll 6 2.12
Donation 4 1.41
Entertainment/ personal expenses 12 4.24
Damage/wastage 25 8.83
Total cost 283 100.00
The highest marketing cost was transportation cost among all the cost items,
which covered 33.57 % of the total cost. Harvesting cost was the second highest
marketing cost among the all cost items and that was Tk. 66 per quintal which
covered 23.33 % of the total cost. Packing occupied the third position (19.79%)
followed by damage /wastage (8.83%). Loading and donation was the lowest cost
item which shared 1.41%. Each of the items contributed to 1.41% to total cost.
Other cost items were grading, market toll, and entertainment/ personal
expenses.
97
5.3 Financial Profitability of Mango Production
Profitability of mango grower was calculated by following formula; profit of

grower per unit per year = per unit price of commodity* Quantity of commodity-
(Total variable cost+ Total fixed cost). Gross return was calculated by, price of
product * quantity of product. Gross return was calculated by, total return –
variable cost. Gross margin of mango was Tk. 387,615 per hectare. The benefit cost
ratio (BCR) for mango was 2.34 which indicate that mango cultivation is profitable
in the study areas. Benefit cost ratio also indicates that there is a larger scope to
increase the mango production with further investment in the study areas. Net
return for mango was found Tk.277, 365 per hectare in areas while gross return
for mango was found
Tk.492, 000 in all area (Table 5.6).
Table 5.6 Per hectare yield, cost and return of mango in the study areas
Particulars Rajshahi Meherpur Chapai Nawabganj All areas

Yield (kg) 14000 10000 12000 12000
Price (Tk./kg) 37 44 42 41
Gross return 518,000 440,000 504,000 492,000
(Tk/hectare)
Total variable cost 101,535 74,901 122,720 99,719
(Tk/hectare)
Total fixed cost 139,600 84,000 107,150 110,250
Total cost 241,135 158,901 229,870 209,969
Gross Margin 416,465 365,099 381,280 387,615
Net return 276,865 281,099 274,130 277,365
BCR 2.15 2.76 2.19 2.34
Cost of mango 17.22 15.89 19.16 17.50
(Tk/kg)
98
5.4 Marketing Cost of Different Actors in Mango Marketing
The marketing cost represents the cost of performing the various marketing
functions and operations by various agencies involved in marketing process
(Kohls and Uhl, 2005). In other words, the costs which are needed to move the
product from producers to consumers are generally known as marketing cost. The
total marketing cost of different actors was Tk. 1153 per quintal in Dhaka market
(Table 5.7).
99
Table 5.7 Marketing cost of mangoes incurred by different actors in
Dhaka market
Tk. /quintal
Items Bairal Bepari Aratdar Retailer All Per cent

(Dhaka) (Dhaka) of total
Transportation 90 195 136 421 36.51
Grading 15 15 1.30
Binding, Packaging 10 10
& Weighing 20 1.73
Labour Wages 14 10 20 44 3.82
Loading & 8 30 10 48
Unloading 4.16
Salaries to 15
Employees 15 1.30
Commission 135 180 315 27.32
Market Toll & Taxes 9 7 16 1.39
Entertainment & 11 9 10 4
Personal Expenses 34 2.95
Electricity 8 3 11 0.95
Tips &Donation 10 - 10 0.87
Telephone 5 9 3 17 1.47
Storage 8 3 11 0.95
Damage/Wastage 56 30 - 86 7.46
Others 25 20 35 10 90 7.81
Total 178 474 125 376
(15.44) (41.11) (10.84) (32.61) 1153 100.00
Note: Figures within parenthesis indicate percentages
The highest marketing cost was transportation cost among the cost items of all
actors, which covered 36.51 % of the total cost. Commission was the second
100
highest marketing cost among the all cost items and that was Tk. 315 per quintal
which covered 27.32% of the total cost. Commission is a form of payment for
providing services. This is a kind of service charge. Aratdars act as commission
agents help negotiating sales between Bairals and Bepari or Bepari and retailers in
exchange of fees from one or both the parties on the value of mangoes transacted.
Of total marketing cost 15.44%, 41.11%, 10.84% and 32.61% were incurred by
Bairal, Bepari, Aratdar (Dhaka) and retailer (Dhaka) respectively. The lowest
marketing cost was tips and donation which covered 0.87% of the total cost.
The total marketing cost of mango was Tk. 912 per quintal in local market which
was lower than that of Dhaka market. In local market, transportation cost was the
highest marketing cost among the all cost items and that was found Tk.355 per
quintal which was 38.93% of total cost of all actors in the local market (Table 5.8).
101
Table 5.8 Marketing cost of mangoes incurred by different actors in
local market
Tk./quintal
Items Bairal Bepari Aratdar Retailer Total Per cent
(Local) (Local) of total
Transportation 90 195 70 355 38.93
Grading 15 15 1.64
Binding, Packaging & 10 10 20
Weighing 2.19
Labour Wages 14 8 15 37 4.05
Loading & Unloading 8 30 5 43 4.71
Salaries to Employees 12 12 1.31
Commission 135 50 185 20.29
Market Toll & Taxes 9 - 9 0.99
Entertainment & 11 9 7 2 29
3.18
Personal Expenses
Electricity 6 2 8 0.88
Tips &Donation 10 10 1.10
Telephone 5 6 1 12 1.32
Storage 5 - 5 0.55
Damage/Wastage 56 20 15 91 9.98
Others 25 20 30 6 81 8.88
Total 178 474 94 166 912
(19.52) (51.97) (10.31) (18.20) 100.00
Note: Figures within parentheses indicate percentages
The second highest marketing cost was Tk.185 per quintal for commission which
was 20.29 % followed by damage/ wastage ( 9.98 %) of the total cost of all actors
in local market. Total marketing cost was Tk. 178, Tk. 474, Tk.94 and Tk.166 per
quintal for Bairal , Bepari, local Aratdar and local retailer respectively.
Marketing cost of mango incurred by farmers and other actors are shown in
Figure 5.1. It is revealed from the figure that Bepari incurred the highest cost
which is followed by retailer (Dhaka), farmer, Bairal and local retailer.
102
Fig. 5.1 Marketing cost (%) of farmer and the other actors
involved in the value chain
5.5 Value Addition by the Different Actors Involved in the Value

Chain
Value-Added is the process of taking a raw commodity and changing its form
to produce a high quality end product. Value-Added is defined as the addition
of time, place, and/or form utility to a commodity in order to meet the
tastes/preferences of consumers. In other words, value-added is figuring out
what consumers want, when they want it, and where they want it – then make
it and provide it to them. Value Added is the extra value created over and
above the original value of something.
Gross value addition is concerned with changes of quality. Value is added

when products pass different stages and move from one intermediary to
another (Alam, 2001). Gross value addition is the difference between the price
paid by the consumer and price received by the producer. Gross value addition
103
can be divided into two components marketing cost and net value addition or
profit.
Table 5.9 presents the mango gross value addition of actors per quintal of
mango were Tk.300, Tk.800, Tk. 750, Tk. 450, Tk. 500, and Tk. 400 for Bairal,
Beperi, Aratdar (Local), Aratdar (Dhaka), retailer (Dhaka) and retailer (Local)
respectively. It is the price of all utility adding activities and functions that are
performed by the actors. In this study, the gross value addition of each actors
was estimated by deducting the purchase price of mango from the sale price
while the net value was estimated by deducting the marketing costs from his
share of gross value addition. It was estimated that higher marketing cost
incurred by Bepari and the lowest marketing cost incurred by local Aratdar.
Table 5.9 Gross value addition by different actors of mango

Tk/quintal
Actors Sale Purchase Gross Marketing Net value
price price value cost addition
addition
Farmer 4000 1750* 2250 283 1967
Bairal 4300 4000 300 178 122
Bepari 5100 4300 800 474 326
Aratdar(Local) 5850 5100 750 94 656
Aratdar(Dhaka ) 6300 5850 450 125 325
Retailer(Dhaka) 6800 6300 500 376 124
Retailer (Local) 6250 5850 400 166 234
Note: * cost of production per quintal
104
Fig.5.2 Gross value addition of the different actors involved in the value
chain
Data on gross value addition of Table 5.9 are shown in Figure 5.2. Figure 5.2
shows that highest gross value addition was done by Bepari followed by
Aratdar( local), retailer (Dhaka), Aratdar (Dhaka) and the lowest amount was
made by Bairal.
105
Fig. 5.3 Net value addition of the different actors involved in the
value chain
The figures in last column of Table 5.9 show that the net value addition by
Bairal, Bepari, Aratdar (Local), Aratdar (Dhaka), retailer (Dhaka) and local
retailer were Tk. 122, Tk. 326, Tk. 656, Tk. 325, Tk. 124 and Tk. 234 per quintal
respectively. Among the actors the local Aratdar added more value than other
actors involved in the value chain and followed by Bepari, Aratdar (Dhaka),
retailer (Local), retailer (Dhaka) and Bairal (Fig.5.3 ). The share of various actors
in value addition is presented in Fig 5.4 .
106
Bairal Bepari Aratdar Aratdar Retailer Retailer Consumer
Value Value (Local) (Dhaka) (Dhaka) (Local)
addition addition Value Value Value Value
7.50% 18.61% addition Addition addition Addition
14.71% 7.69% 7.94% 6.84%
Tk.4000 Tk.4300 Tk.5100 Tk.5850 Tk.6300 Tk.6800

Value
(Sales Price Tk.6250
Tk./Quintal)
Value addition Tk.300 Tk.800 Tk.750 Tk.450 Tk.500 Tk.400

Tk./Quintal
Fig.5.4 Sales price, value addition and value addition (%) of different value chain actors of mango
107
109
5.6 Farmers’ Perception on Major Sources of Risk in Mango Farming
Risk refers to the degree of uncertainty and/or potential financial loss inherent in
an investment decision. Agricultural production takes place in an environment
characterized by highly variable biophysical, economic, political and institutional
conditions, which poses several types of risks (Pingali, 2001; Hanson et al. 2004;
Chong, 2005; Ibitayo, 2006; Lourdes et al. 2007; Pokhrel and Thapa, 2007). Risk
perceptions play a key role in the production and investment behaviour of
farmers. The perceived priorities of farmers about major sources of risks in
production of mango have been reported under i) production risks ii) market risks
iii) investment risks iv) socio-economic risks and v) environmental risks. In
general, the price and production risks have been perceived as the most important
sources of risk in production of mango in the area.
5.6.1 Production Risk
Production risks relate to the possibility that yield or output levels will be lower
than projected. Growers’ perceptions about production risk are presented in Table
5.10. There was variation in perception of production risks among mango growers
in study areas. It is revealed from Table 5.10 that the perception about sources of
production risks in all areas can be arranged on the basis of mean score as damage
by pests and diseases (0.80), expensive inputs (0.79), perishability of produce
(0.78), termites/ Insects attack (0.71), lack of technical knowledge in production,
processing (0.67), decrease in farm-size (with mean score of 0.64), high post-
harvest losses(0.63), poor adaptation of varieties (0.63) , weather dependency
(0.61) and weak research and extension agents (0.57).
108
Table 5.10 Growers perception about production risks
Source of risk No. of growers reporting
Rajshahi Meherpur Chapai Nawabganj All areas
(N=25) (N=25) (N=25) (N=75)
N Mean SD N Mean SD N Mean SD N Mean SD
Perishability of produce 24 0.76 0.19 20 0.93 0.19 21 0.66 0.22 65 0.78 0.20
Damage by pests and diseases 11 0.78 0.20 13 0.95 0.20 22 0.68 0.22 46 0.80 0.21
Expensive inputs 25 0.79 0.23 21 0.91 0.25 25 0.66 0.29 71 0.79 0.26
Termites/ Insects attack 21 0.63 0.26 23 0.85 0.25 21 0.64 0.30 65 0.71 0.27
Lack of technical knowledge in production,
processing, and quality control 25 0.64 0.27 17 0.72 0.26 22 0.65 0.31 64 0.67 0.28
Decrease in farm-size 18 0.64 0.31 9 0.70 0.57 12 0.58 0.59 39 0.64 0.49
High post-harvest losses 19 0.63 0.30 25 0.69 0.27 14 0.57 0.33 58 0.63 0.30
Poor adaptation of varieties 14 0.65 0.32 16 0.69 0.29 24 0.54 0.35 54 0.63 0.32
Traditional methods of farming 22 0.62 0.28 23 0.68 0.26 25 0.34 0.31 70 0.55 0.28
Weak research and extension agents 24 0.60 0.25 14 0.67 0.26 23 0.43 0.33 61 0.57 0.28
Weather dependency 25 0.63 0.29 18 0.65 0.28 15 0.55 0.31 58 0.61 0.29
Note: N=Number of respondents, SD = Standard deviation
Sources: Field Survey, 2013
5.6.2 Market Risks

Market risk is the risk that the value of an investment will decrease due to
changes in market factors. Market risks are the result of variations in supply and
demand for crops that are not subjected to price controls and the inability of
controlled markets to respond timely and efficiently to changes in the market
conditions. Variations in the market price fetched by the growers are a reflection
of the market risk. The growers perceived sources of market risks are shown in
Table 5.11. Market risks may be due to perishability of produce (0.81), low price of
mango (0.81), and lack of coordination among producers to increase their
bargaining power (0.74). Exploitation by middlemen or large number of
middlemen (0.65) and poor product handling and packaging (mean 0.65) have
also been perceived as sources of market risks. Lack of market information, poor
market linkages and lack of markets to absorb production obtained the same
mean score of (0.64) while followed by high processing costs (0.62) and lack of
marketing infrastructures (0.61).
109
Table 5.11 Growers perception about market risks
Rajshahi Meherpur ChapaiNawabganj All areas
(n=25) (n=25) (n=25) (n=75)
Perishability of produce 22 0.76 0.19 18 0.75 0.21 19 0.93 0.19 59 0.81 0.20
Low price of produce 11 0.78 0.20 13 0.76 0.24 16 0.89 0.24 40 0.81 0.23
Lack of coordination among producers to 21 0.79 0.23 21 0.60 0.27 22 0.83 0.24 64 0.74 0.25
increase their bargaining power
Exploitation by middlemen or large 21 0.63 0.26 23 0.61 0.28 21 0.71 0.25 65 0.65 0.26
number of middlemen
Poor product handling and packaging 25 0.64 0.27 17 0.61 0.32 25 0.69 0.55 67 0.65 0.38
Lack of market information 17 0.64 0.31 11 0.60 0.31 12 0.68 0.26 40 0.64 0.29
Poor market linkages 11 0.63 0.30 24 0.62 0.33 14 0.68 0.28 49 0.64 0.30
Lack of markets to absorb production 14 0.65 0.32 16 0.59 0.29 24 0.67 0.25 54 0.64 0.29
High processing costs 22 0.62 0.28 23 0.57 0.26 21 0.66 0.25 66 0.62 0.26
Lack of marketing infrastructures 23 0.60 0.25 14 0.60 0.30 23 0.64 0.27 60 0.61 0.27
In Rajshahi, the three major sources of market risk as perceived by the mango
growers were lack of coordination among producers to increase their bargaining
power (0.79), low price of produce (0.78) and Perishability of produce (0.76). The
condition is different in ChapaiNawabganj. The major three sources were
perishability of produce (0.93), low price of produce (0.89) and Lack of
coordination among producers to increase their bargaining power (0.83). The
mango growers in Meherpur identified the sources of risk of which the major
three sources included low price of produce (0.76), perishability of produce (0.75)
and lack of coordination among producers to increase their bargaining power
(0.60).
5.6.3 Investment Risk
Investment risk can be defined as the probability or likelihood of occurrence of

losses relative to the expected return on any particular investment. Lack of new
varieties/ HVY seeds (mean 2.37) was found to be the highest ranked source of
risk followed by Water-scarcity/ inadequate water supply (1.80), timely
unavailability of fertilizers /pesticides (1.59), micronutrient deficiency (1.50) ,
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inadequate and/ or unbalanced manuring (1.31), lack of irrigation facilities (1.03)
(Table 5.12).
Table 5.12 Growers perception about investment risks

Rajshahi(N=25) Meherpur ChapaiNawabganj All areas
(N=25) (N=25) (N=75)
Water-scarcity/ Inadequate water supply 23 1.32 1.24 23 1.12 1.30 19 2.97 1.32 65 1.80 1.29
Lack of irrigation facilities 11 1.86 1.30 24 0.91 1.26 16 0.31 1.26 51 1.03 1.27
Micronutrient deficiency 21 1.90 1.26 21 0.77 0.32 22 1.84 1.35 64 1.50 0.98
Inadequate and/ or unbalanced manuring 25 0.47 0.83 23 1.14 0.96 19 2.33 0.99 67 1.31 0.93
Lack of new varieties/ HVY seeds 22 2.71 1.36 17 2.97 1.33 25 1.44 1.18 64 2.37 1.29
Timely unavailability of fertilizers 17 0.49 1.27 11 2.12 1.07 12 2.16 1.09 40 1.59 1.14
/pesticides
5.6.4 Socio-economic Risks
Socio-economic risks in production of mango are associated with cash capital,

human resources and legal issues. The growers’ perceptions about the socio-
economic sources of risks in mango production are presented in Table 5.13.
Although, there were differences in perception of sources of socioeconomic risks
among the mango growers in three study areas but similar pattern is observed in
terms of ranking. However, in all areas the major sources of social risks were lack
of capital (mean 0.92), lack of storage facilities (cold chain) (mean 0.87),
insufficient/lack of training facilities (mean 0.81), shortages of land for mango
garden (mean 0.70), lack of farm credit/financial institution (mean 0.70), high
population density (high pressures on the land and resources) (mean 0.69),
inadequate labour availability (mean 0.68), poor/little education (mean 0.67) and
family conflict & violence (mean 0.67).
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Table 5.13 Growers perception about socio-economic risks
Source of risk No.of growers reporting
Rajshahi Meherpur Chapai Nawabganj All areas
( N=25) (N=25) (N=25) (N=75)
Lack of capital 25 0.54 0.12 25 0.23 0.05 24 0.15 0.22 74 0.92 0.39
Lack of storage facilities (cold chain) 25 0.53 0.13 18 0.21 0.04 23 0.14 0.27 66 0.87 0.44
Insufficient/Lack of training facilities 21 0.48 0.15 25 0.19 0.06 25 0.14 0.28 71 0.81 0.49
Land shortages 25 0.42 0.16 24 0.17 0.06 24 0.12 0.29 73 0.70 0.51
Lack of farm credit/financial institution 25 0.42 0.18 25 0.16 0.14 22 0.12 0.54 73 0.70 0.86
High population density (high 25 0.42 0.17 23 0.16 0.06 23 0.11 0.30 71 0.69 0.54
pressures on the land and resources)
Poor/Little education 23 0.40 0.18 25 0.16 0.07 25 0.11 0.32 73 0.67 0.57
Inadequate family labour
Family conflict & violence (presence & 24 0.41 0.16 21 0.16 0.06 22 0.10 0.29 67 0.67 0.51
frequency)
Inadequate labour (hired) 25 0.41 0.14 25 0.15 0.06 21 0.11 0.28 71 0.68 0.49
5.6.5 Environmental Risks
The leading environmental sources of risks in production of mango as identified

by (Tilman et al. 2001) were weather dependency, insufficient rainfall, soil loss
and degradation, salinity, pests and impact of climate change. Although weather
is an important factor for mango production in but it is almost beyond the control
of the growers. Impact of climate change is a serious concern for the farmers
though growers were not fully aware of weather related issues. The growers’
perceptions on environmental risks are presented in Table 5.14. Fallen
underground water table, weather dependency, climate changes and lack of
canal/tube-wells and deterioration of water quality were assigned the highest
mean score (0.24) followed by Low yield (0.23) and Flood/high rainfall (0.23).
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Table 5.14 Growers perception about environmental risks
Source of risk No.of growers reporting

Rajshahi Meherpur ChapaiNawabganj All areas
(N=25) (N=25) (N=25) (N=75)
Fallen underground water/ depth of
water table 25 0.44 0.16 23 0.16 0.17 19 0.12 0.63 67 0.24 25
Seasonality/ weather dependency 14 0.44 0.15 16 0.16 0.07 24 0.11 0.35 54 0.24 14
Insufficient rainfall/drought/delayed
rainfall 21 0.41 0.16 21 0.16 0.08 22 0.11 0.37 64 0.23 21
Low yield 23 0.42 0.14 23 0.16 0.07 19 0.10 0.34 65 0.23 23
Climate changes 14 0.44 0.15 16 0.16 0.07 24 0.11 0.35 54 0.24 14
Lack of canal/tube-wells 17 0.44 0.14 11 0.17 0.07 12 0.12 0.34 40 0.24 17
Deterioration of water quality 11 0.44 0.16 24 0.16 0.17 14 0.12 0.63 49 0.24 11
Flood/high rainfall 22 0.42 0.12 17 0.15 0.07 24 0.11 0.32 63 0.23 22
It is found from the field study that there is no institutional arrangement for
shifting or sharing risk among the value chain actors. Sometimes some growers
are found to sell mango trees after flowering for a season or three to four years. In
that case risks are borne by the buyers. Risk taking and ownership of the garden
or mango is directly related. Service providers simply provide service without
having any risks if that is caused by their service. Many of the production risks
can be avoided or reduced by prior intervention in the form of insect and pest
management and modern scientific management techniques, adoption of post-
harvest reduction technology. Market risks may be ameliorated by forming
farmers’ organization, contract farming, and developing linkages with processors.
Perishability of mango and its low price are considered as sources of market risk
by the respondents. That is why, arrangement of storage facilities would ensure
that mangoes are stored, processed, and sold at better prices. Efforts should be
made at introducing to growers and other actors the relevant improved
technologies to cope with environmental risks. However, government
intervention is needed to facilitate better risk management through improved
information system.
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5.7 Conclusion
The objective of this chapter is to examine the costs incurred by various actors in
mango marketing and the benefits shared by them. Production cost is estimated
by hectare which varies from area to area. The benefit cost ratio (BCR) for mango
was 2.34 which indicates that mango cultivation is profitable in the study areas. A
positive relation is observed between yield and total cost per hectare of mango.
Among the traders the highest cost is incurred by Bepari followed by retailer in
Dhaka, Bairal and Aratdar. The highest two cost items were transportation, and
commission to Aratdar of mango. At local market, the highest cost was shared by
Bepari, then Bairal and retailer while Aradar’s cost was the lowest. On an average,
the marketing cost was shared by Bepari, retailer in Dhaka city, farmer, Bairal and
local retailer. The contribution of different actors to gross value addition is also
shown in this chapter. Based on contribution to gross value addition from the
highest the actors can be arranged as Bepari, Local Aratdar, retailer in Dhaka,
Aratdar in Dhaka, retailer at Local market and Bairal. But if we consider the
contribution in terms of net value addition, the ranking has been changed into
Local Aratdar, Bepari, Dhaka Aratdar, Local retailer, retailer in Dhaka and Bairal.
It may be concluded that the highest net value addition was contributed by local
Aratdar though they spent least amount of marketing cost. The net value addition
by the Aratdar in Dhaka city and Bepari is about the same though the Bepari’s
cost was about 4 times higher compared to Aratdar. Similarly, the contribution of
retailer in Dhaka is lower than that of local area but incurred 2.26 higher
marketing costs. Risks associated in mango growers as perceived by them are
identified as (i) production risks (ii) market risks (iii) investment risks (iv) socio-
economic risks and (v) environmental risks. Most cases risks are borne by the
owner of the produce. Sharing of risks is limited.
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CHAPTER VI
UPGRADING OF MANGO IN THE VALUE CHAIN
6.1 Introduction
Upgrading is the process of replacing a product with a newer version of the

same product. Upgrading of mango is an increase or improvement:
upgrades in product, processing, functional and inter-sectoral upgrading.
Upgrading mango ensures a greater value quality of mango product. A four-
fold distinction of „upgrading‟ methods is illustrated in Table 6.1. Some slight
amendments have been made in order to better tailor upgrading typologies to
agricultural goods. For example, process upgrading may result from new
technology or information which enables a higher volume of product to be
produced for a reduced or „smarter‟ input.
6.2 Method of Upgrading
Product upgrading may be defined when we can get mango pickle from green
mango introducing new products or improving old products faster than rivals.
This involves changing new product development processes both within
individual links in the value chain and in the relationship between different
chain links. Functional upgrading may be packaging, branding, designing and
quality ensure of mango product. In case of mango process upgrading may be
mechanical picking of mango which ensure high price and better condition of
mango. Product upgrading may result from selling a labeled product, which
may command a higher unit value and price. Gibbon (2001: 346) discusses chain
co-ordination as enhancing barriers to entry, but more importantly allowing
„driving‟ agents to institute measures which reduce costs and risks while
increasing the speed and reliability of supply, which increases sales. This
implies that chain co-ordination and upgrading usually occurs when it benefits
the chain driver, but this doesn‟t necessarily mean it‟s a zero-sum game.
115
Table 6.1. Methods of upgrading
Transforming inputs into outputs more

efficiently by re-organizing the
production system or introducing
Process upgrading
superior technology. This may be use
of pesticides or mechanical picking of
mango, as examples.
Moving into more sophisticated
product lines (which can be defined as
increasing unit values). This may be
Product upgrading
better quality seed supply of mango
and mango juice from green mango for
example.
Acquiring new functions in the chain
(or abandoning existing functions) to
Functional upgrading increase the overall skill content of
activities. This may be branding and
designing of mango product
Using the knowledge acquired in
Inter-sect oral upgrading particular chain functions to move into
different sectors.
Source: Adapted from Humphrey and Schmitz (2004)
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6.3 Value Adding Activities by Mango Growers
Table 6.2 shows that 38.67 % growers involved in value adding activities on
their mangoes while the larger number of growers 46 (61.33 %) responded that
they do not make any value adding activities on their product.
Table 6.2. Growers’ response on upgrading activities
Grower‟s response Frequency Percent
Yes 29 38.67
No 46 61.33
Total 75 100.00
Source: Field Survey, 2013
So there is scope to involve the growers to undertake more value adding

activities to increase more value to mangoes and also their income from mango.
6.4 Upgrading Practices in the Study Areas
The upgrading provides many opportunities to firms that range from increased
efficiency and output to access to new market channels and industry
knowledge. Some application of these upgrading in the study areas was found
which are explained in turn below.
6.4.1Process Upgrading
Process upgrading involves improving value chain efficiency by increasing

output volumes or reducing costs for a unit of output. Examples of this include
irrigation infrastructure. In the study areas many growers were not aware to
apply irrigation in their garden before but now they have done this. This may
result in improving quality of produced mangoes and enhance yields that
result in higher sales or own consumption, or both. Newly planted mango trees
was watered at planting and every other day for the first week or so, and then 1
117
to 2 times a week for the first couple of months. During prolonged dry periods
(e.g., 5 or more days of little to no rainfall) newly planted and young mango
trees (first 3 years) is watered once a week.
Once the rainy season arrives, irrigation frequency is reduced or stopped. Once
mango trees are 4 or more years old, irrigation will be beneficial to plant growth
and crop yields only during very prolonged dry periods during spring and
summer. Mango responds well to irrigation, particularly at fruit set and
developmental phases. The young plants at bearing stage were irrigated
frequently. In bearing trees, for obtaining good flowering, irrigation is stopped
at least two months before flowering period. Stopping of irrigation creates
stress and encourages flower bud formation. Irrigation was given at fruit set
and thereafter at regular intervals during fruit development period, beginning
from fruit set stage to full development stage. For better quality, irrigation is
stopped 20-30 days before maturity/harvesting the crop.
Postharvest losses of mango fruits include bruises, cuts and sap burn. Bruises
are the major causes of postharvest loss at the growers‟ hand. This is probably
due to the conventional harvesting methods, ignorance of the pickers, and most
importantly due to the carelessness of the pickers. It is generally believed that
mangoes picked from the tree at the stage of full maturity and ripened in
storage acquire better flavor, quality and colour. In the study area mangoes are
picked from the trees as soon as they attain full size and maturity but still green
and in semi-ripe stage. This stage is determined by outward observation of the
dropping down of one or two ripe fruits naturally from the trees in association
with a colour.
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Picture: 6.1 Farmers are collecting Picture: 6.2 Farmers are collecting
mango by traditional method mango by „Thushi‟
Harvesting provides the first opportunity for physiological damage of fruits.

Therefore, the choice of right stage of maturity and harvesting method should
allow for maintenance of quality. Most of the mangoes are harvested
considering their size, shape, and surface colour. Maturity indices are not yet
established for most of the fruits. To avail the high prices sometimes the
farmers/producers harvest their fruits very early when the nutritional quality is
poor. Pre-cooling is not generally done. As a result deterioration starts after
harvesting.
Mangoes are generally harvested with 8-10 mm long stalks appear better on
ripening this may injuries to the peel or to the stalk end serve as avenues for
invasion of microorganism and lead to rotting of the mangoes. Mangoes
harvested by stick are injured/ bruised due to impact resulting in decay, poor
quality and attract low price. To overcome these problems, a simple, low cost
and portable mango harvesting device has been developed recently. Mango
fruits are taken into the pouch and held between the divider and knife and as
the device pulled the blade cuts the pedicel. The fruits are then conveyed knife
and as the device is pulled the blade cuts the pedicel. The fruits are then
conveyed through a nylon chute to collecting bags without bringing down the
device every time. This saves time and protects fruits from mechanical damage
119
due to impact. It also protects operators hand from the sap, which oozes out
from the point of detachment. Pesticides use may also be treated as process
upgrading. In study areas growers use timely and proper doze of pesticides
which resulted in production of insect and diseases free mangoes. Process
upgrading may be the result of improved planting techniques, planting
materials or investments.
Pruning is also being a process upgrading. Upgrading of pruning practiced by

20.00% growers which are lowest number of respondents involved in process
upgrading. Pruning is usually done after harvest to prepare the tree for
production, improve fruit quality and attain desired size and shape of crown,
eliminate undesirable branches and achieve dwarfing effect to enable the trees
to be resistant to lodging. To avoid infection after pruning, they treat the cut
portion with any paint or used diesel oil. Growers do not prune young trees
unless insects and disease are present, if this happens; they remove only the
affected parts. Only the inside branches should be pruned to allow the
penetration of light as well as circulation of air inside the canopy. Some farmers
did the “open center” pruning to enhance light penetration. Pruning of the
dried twigs and branches are done with pruning saw during June-July. The
objectives of pruning are: (i)) to remove dead or diseased wood, (ii) to remove
additional growth flushes to allow more light penetration into the leaf canopy,
and (iii) to control tree height to facilitate cultural management practices.
The activities which are practiced by the mango growers are presented in Table
6.3
120
Table 6.3 Distribution of mango growers by adoption of process
Activities Number of growers Percent
Harvesting/picking technique 43 57.33
Use of Irrigation 21 28.00
Use of insecticides at the growing stage 34 45.33
Cleaning 19 25.33
Pruning 15 20.00
Source: Field survey, 2013

Table 6.3 shows that picking technique upgrading practiced by 57.33 %
growers. The lowest number of respondent (20.00 %) involved in pruning while
45.33 % growers reported use of insecticides at the growing stage. It was also
shown that irrigation was done by 28.00 % growers and cleaning practice was
followed by 25.33 % growers.
6.4.2 Product Upgrading
Product upgrading improving product quality and increasing value for

consumers may be stimulated by changes in end markets, usually stemming
from changes in customer preferences, or the desire for higher value added,
higher quality, and consequently more profitable products. To remain
competitive in rapidly changing markets, growers must be able to upgrade their
products on an ongoing basis in order to adapt to new trends and achieve
higher standards. Different product upgrading was applied in the study areas.
Mango pickle, mango chutney, Amchoor, Amsatta and mango conserve were
made in the study areas for family consumption. Process and product
upgrading are closely related because improving product quality often involves
121
improvements to the production process. The product upgrading activities
which are practiced by the mango growers are presented in Table 6.4.
Table 6.4. Distribution of mango growers by adoption of product

Use of quality seed 23 30.67

Mango juice 5 6.67
Mango pickle 11 14.67
Mango chutney 19 25.33
Mango Murrumba 14 18.67
Table 6.4 shows that better quality of seed was used by 30.67 % growers. The
small number of respondent only 6.67 % growers involved in mango juice
processing. Mango pickle, mango chutney and mango murrumba are processed
by 14.67 %, 25.33 % and 18.67 % growers respectively.
Figure 6.1 shows the possible utilization of mango to produce an array of

mango products such as mango chutneys and pickles, brined mango slices,
dried green mango slices and powder (Amchoor) and various other products
such as candy, preserve, squash and jam are prepared from unripe mangoes.
Fully ripened mangoes with well developed flavor, color and texture are
preferred for fresh consumption and processed in larger quantities. The major
commercial products of the ripe mango are slices in syrup, pulp, jam, squash,
juice and nectar.
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Mango
Fresh Processed
Pickling High Freezing Canning Aespetic Dehydration Fermentation Minimally

Sugar Packed Processed
Pickles
Pickles Slices Fresh cut
Chutney Jelly Slices Pure Juice
Chutney Leather Vinegar chunks
Jam Pure Concentrate
Mango Bar Yogurt of slices
Conserve Concentrate Juice
Ice-cream Nectar Candies
Squash
Slices
Figure 6.1: Possible uses of mango
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6.4.3 Functional Upgrading
Functional upgrading was also followed by study areas. Functional upgrading
may be packaging, grading and bagging. This refers to changing the mix of
functions performed by actors in the value chain –increasing (upgrading) or
reducing (downgrading) the number of activities performed by individuals and
firms. For instance, an agricultural producer starting to process some of their
output to add value to it represents functional upgrading. Often, horizontally
coordinated institutions are best able to provide these value-adding activities
(such as grading and packaging of produce). In other wards functional
upgrading is the entry of a firm into a new, higher value-added function or
level in the value chain. Bamboo basket are commonly used for packaging and
transportation of mango fruits under dynamic transport conditions the baskets
are punctured, which result in bruising decay and low price of fruits. Further,
too much ventilation affects the quality of fruits due to shrinkage, loss in
weight, colour etc. To overcome these problems, CFB Boxes of 5 kg and 10 kg
capacity for packing of mango fruits successfully as an alternative to traditional
method. At present plastic crates are also used in the study areas which is an
evidence of functional upgrading. Bagging as a functional upgrading is also
used in the study areas.
Picture 6.3: Mango begging in study area
Bagging of fruits is not a requirement in mango production, but it is an effective

way of protecting mango fruits from mechanical damage and damages due to
124
pests such as the fruit fly. A good number of mango farmers are using the
method following its successful implementation. The alternative method
appears as a blessing against the backdrop of unsystematic use of pesticides
and fungicides that threaten ecological balance and public health. All the
leading mango-producing countries are using the environment-friendly
process. Bagging prevents pests, especially fruit flies, from reaching and
damaging the mangoes and prevents latex burns and fungal spots on the fruit.
By protecting the mangoes from diseases and pests, the method boost the
production of high quality exportable mangoes. It will also provide physical
protection from scratches and scars, making the mangoes. While mango
growers usually spray pesticides 20 to 30 times in their orchards, they will need
only two to three times spraying of the items at the early stages of fruiting if
bagging method is used.
Starting of bagging when the fruits are about the size of a chicken‟s egg, or 55
to 60 days after flower induction. Here are the steps in bagging:
1. For small trees, simply set the ladder on the ground and climb to reach
each fruit.
2. For big and tall trees, bring the ladder up the tree and secure it on a
strong branch . The position of the ladder should allow the bagger to
reach each fruit and bag as many fruits as possible.
3. Insert one fruit per bag then close the bag using coconut midrib.
The bag should be big enough to allow room for fruit development. Its bottom
portion should be closed to prevent the mango seed borers from laying its eggs
on the apex of the fruit.
Bagging, using sturdy materials, protects the fruits from the rain and strong
winds. Also, it does not only promote fruit quality but also protects fruits from
diseases like stem-end rot, scab and sooty mold. It minimizes incidence of fruit
fly, mango seed borer or cecid fly. The practice also helps avoid latex burns.
125
During harvest, fruit rejects are reduced. Several bagging materials are used in
the field.
In the study areas inter-sectoral upgrading was not observed or reported.
The functional upgrading activities which are practiced by the mango growers
are presented in Table 6.5. Table 6.5 shows that 60.00 % growers practiced
Table 6.5 Distribution of mango growers by adoption of

functional upgrading activities
Packaging 45 60.00
Grading 23 30.67
Bagging 5 6.67
Marketing 16 21.33
packaging upgrading while the small number of growers only 6.67 % involved
in bagging upgrading. Upgrading of grading maintained by 30.67 % growers
followed by marketing activities 21.33 % growers.
Table 6.6 Traders involvement in upgrading activities
Strategies for upgrading Traders

No. of respondent Percent
Process upgrading 60 44.45
Product upgrading 5 3.70

Functional upgrading 70 51.85
Inter-sectoral upgrading - -
Total 135 100.00
It was observed that (Table 6.6) the highest number of traders (44.45%) follow
process upgrading while the small number of respondent (3.70 %) involved in
product upgrading. Functional upgrading practices were reported by 51.85 %
126
traders on the other hand inter-sectoral grading was not observed in the study
area.
6.5 Conclusion
This chapter deals with the upgradation of mango in value chain. Four forms of
upgradation such as process upgrading, product upgrading, functional
upgrading and inter-sectoral upgrading were examined. About 38% of the
mango growers took part in mango upgrading practices. Process upgrading
covers irrigation practice, picking, pesticides use, and pruning. Small
percentages of growers used to practice these activities which varied from
activity to activity i.e. improved harvesting technique (57%), pruning (20%), use
of insecticide at growing stage (45%), irrigation (28%) and cleaning (25%).
In product upgrading, a few growers were involved in different product

upgrading process such as juice, mango pickle, mango chutney and mango
murrumba for family consumption. A list of potential uses of mango products
is also presented.
As a functional upgrading covers bagging, packing, grading and marketing . In

packing bamboo baskets are replaced by CFB Boxes of 5 kg and 10 kg capacity
for transportation of mango as an alternative to traditional method. Plastic
crates are being used in the study areas which are an evidence of functional
upgrading. About 60% growers adopted improved packing followed by
grading (30.67%), marketing by about 21.33% while bagging practice has been
adopted by only 6.67% growers. Results show that 44% traders were engaged in
process upgrading, functional upgrading was adapted by about 52% and only
3.70% involved in product upgrading. No evidence was found about inter-
sectoral upgrading in the study areas.
On the whole it may be concluded that there is vast scope for improvement in
upgrading of mango which will result in higher value, increase efficiency in
value chain through reduction of cost and wastages.
127
CHAPTER -VII
MARKETING EFFICIENCY
7.1 Introduction
Marketing efficiency is the ratio of market output (satisfaction) to marketing

input (cost of resources). An increase is this ratio represents improved efficiency
and a decrease denotes reduced efficiency. A reduction in the cost in the cost for
the same level of satisfaction or an increase in the satisfaction at a given cost
results in the improvement in efficiency. An efficient marketing system for farm
products ensures that;
i) Increase in the farm production is translated into a proportionate increase in

the level of real income in the economy, thereby stimulating the emergence of
additional surpluses;
ii) Good production years do not coincide with low revenues to the producers
achieved through effective storage, proper regional distribution and
channelizing of latent demand: and
iii) Consumers derive the greatest possible satisfaction at the least possible cost.
An efficient marketing system is an effective agent of change and an important

means for raising the income levels of the farmers and the levels of satisfaction
of the consumers.
7.2 Marketing Cost, Marketing Margins and Price Spread
The information on costs incurred by actors, grower’s prices and consumers’

prices in different marketing channels are shown in Table 7.1. The gross and net
margins earned by various actors are presented in Table 7.1.The overall price
spread, gross and net margins of different channels are also depicted. It appears
from Table 7.1 that consumers paid highest price Tk. 6800 in channels 1,3,5,6
and growers received highest price of Tk. 6300 in Channel 6 where the
marketing cost, marketing margin and price spread was lowest. Channel 4
provides lowest price for consumers while producers also received almost
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Table 7.1: Marketing costs and marketing margins of actors for
mango marketing
Tk. per quintal
Sl. Channels Particulars Gross Marketing Net margin
no. margin/Product price cost
1. Grower-Bairal- Grower 4000 -

Bepari-Aratdar Bairal 300 178 122
(local)-Aratdar Bepari 800 474 326
(Dhaka)-retailer Aratdar(local) 750 94 656
(Dhaka)- Aratdar(Dhaka) 450 125 325
consumer Retailer(Dhaka) 500 376 124
Consumer 6800 - -
Overall PS,MC 2800 1247 1553
and MM
2. Grower-Bepari- Grower 4300 - -
Aratdar (local)-- Bepari 800 474 326
retailer (local)- Aratdar(local) 750 94 656
consumer Retailer(local) 400 166 234
Consumer 6250 - -
Overall PS,MC 1950 734 1216
and MM
3. Grower-Aratdar Grower 5100 - -
(local)-Aratdar Aratdar(local) 750 94 656
(Dhaka)-retailer Aratdar(Dhaka) 450 125 325
(Dhaka)- Retailer(Dhaka) 500 376 124
consumer Consumer 6800 - -
and MM
4. Grower-Bepari- Grower 4300 - -
Aratdar-(Dhaka)- Bepari 800 474 326
retailer-(Dhaka)- Aratdar(Dhaka) 450 125 325
consumer Retailer(Dhaka) 500 376 124
Consumer 6050 - -
and MM
5. Grower-Aratdar- Grower 5850 - -
(Dhaka)-retailer- Aratdar(Dhaka) 450 125 325
(Dhaka)- Retailer(Dhaka) 500 376 124
consumer Consumer 6800 - -
and MM
6. Grower-retailer- Grower 6300 - -
(local)-consumer Retailer(Dhaka) 500 376 124
Consumer 6800 - -
and MM
129
lower price and high price spread. In channel 5, growers received the second
highest price while consumers paid the highest price but the marketing cost and
net marketing margin was lower. So to assess efficiency of the channels,
interest of the growers and consumers should be taken into consideration for
smooth operation of the marketing system
7.3 Price Spread and Grower’s Share
For measuring marketing efficiency price spread is an important measure. Price

spread was estimated to be difference between the price paid by the ultimate
consumers and the price received by the growers. The smaller the price spread,
the greater the efficiency of the marketing system. The grower’s share is the
price received by him expressed as a percentage of consumer prices. It was
found (Table -7.2) that price spread varied from Tk. 5.00 per kg in value chain
VI to Tk. 28 per kg in value chain I ( Six channels were shown in Table 7.1).The
grower’s share in consumer’s taka has varied with the chain adopted by
growers. It was also found that grower’s share was the lowest (58.82 percent) in
value chain-I and the highest ( 93.60 %) grower’s share in value chain VI. It was
observed that price spread was the second lowest and producer share was the
second highest (92.65 %) in value chain V while the highest price spread and
lowest grower’s share was obtained in the value chain-I. So value chain V was
more efficient than value chain I.
Table 7.2: Price spread and grower’s share in marketing channel

Tk./kg
Particulars Consumer Grower’s price Price Spread Grower’s
price share (%)
Marketing Ch- I 68.00 40.00 28.00 58.82
Marketing Ch- II 62.70 43.00 19.70 68.58
Marketing Ch -III 68.00 51.00 17.00 75.00
Marketing Ch- IV 60.50 43.00 17.50 71.07
Marketing Ch- V 68.00 58.50 9.50 92.65
Marketing Ch- VI 68.00 63.00 5.00 93.60
Source: Own estimation based on Table 7.1

130
7.4. Measurement of Marketing Efficiency of Different Marketing
Channel by Three Methods
The marketing efficiency was assessed based on three methods such as
(a) Conventional method, (b) Acharya’s method and (c) Shepherd’s method.
Table 7.3 Measurement of marketing efficiency of mango

marketing
Tk. /Quintal
Particulars Marketing Marketing Marketing Marketing Marketing Marketing
Ch-I Ch-II Ch-III Ch-IV Ch-V Ch-VI
1.Consumers price 6800 6250 6800 6050 6800 6800
2.Total marketing 1247 734 595 975 501 376
cost
3.Total net margin of 1553 1216 1105 775 449 124
intermediaries
4.Net price received 4000 4300 5100 4300 5850 6300
by the grower’s {1-
(2+3)}
5.Value added (1-4) 2800 1950 1700 1750 950 500
Index of Marketing Efficiency
a) Conventional 2.25 2.65 2.86 1.79 1.90 1.33

Method (5/2)
b) Shepherd’s 5.45 8.51 11.43 6.21 13.57 18.09
Method
(1/2)
c)Acharya’s method 1.43 2.21 3.00 2.47 6.16 12.60
{4/(2+3)}
Source: Own computation based on table 7.1
131
The marketing efficiency was assessed based on three methods such as (a)
Conventional method, (b) Acharya’s method and (c) Shepherd’s method. It may be
concluded from the analysis that marketing efficiency seemed to be very low in value
chain I, while the cost of marketing and total net margins were highest in this value
chain. According to Shepherd’s and Acharaya’s method value chain VI is the most
efficient as it possesses highest indices of marketing efficiency but in real life this value
chain is not widely used by the mango growers. The next efficient chain is value chain
V which obtained value of 6.16 and 13.57 with second lowest marketing cost and net
marketing margin. The results of the convention methods are contradictory to the
results of Acharya’s and Shepherd’s methods. Value chain III obtained the third
position interms of index of marketing efficiency as measured by the methods of
Shepherd and Acharya. Field observation supported that channel III was relatively
more popular compared to channels V and VI. The small growers could not use
channel V as their volume of production is less and supply is not very regular which is
preferred by the Aratdar in Dhaka.
7.5 Conclusion
Marketing efficiency is analysed in this chapter by using the concepts of price
spread, growers’ share, marketing costs and margins. Three methods of
assessing marketing efficiency were employed. Channel VI is not a better
alternative though it resulted in highest grower’s share as it ended in local area
and local area is not capable to consume the total production of mango.
Considering the place of retail market, the size of price spread was lowest in
channel V while grower’s share was second highest but the opposite scene is
seen in channel I. Channel V is the most efficient channel which resulted in
second highest grower’s share with second lowest price spread. The highest
efficiency of channel V and lowest position of channel I was supported by the
findings of the three methods of efficiency measurement. In practice channel III
is more popular as compared to channel V and VI. Grower’s share could be
increased by using the channel V instead of channel III if they could be
organized into group or association. Grower’s group/Association would
increase the volume of supply and also improve the capability to deal with
Aratdar in Dhaka.
132
CHAPTER-VIII
Challenges and Opportunities of Mango Value Chain

8.1 Introduction
One of the merits of value chain approach is that it helps to clearly identify
bottlenecks to the development of the chain right from input supply up until the
consumption level in various ways. Although mango is a profitable crop in the
study area, there are some challenges to its higher production. The first and
foremost challenges to mango cultivation in all the areas were insect infestation.
Fruit fly and mango hopper were main insects which severely attacked in the
study areas. Marketing of perishable fruits like mango is affected by its nature,
climate condition, nature and size of market demand and efficiency of marketing
system. Preservation and handling of the mango are in worst condition for which
the extent of wastage increases. In the study area various challenges were
reportedly faced by growers and other actors in the mango value chain which has
been discussed in this chapter.
8.2 Challenges Faced by the Mango Value Chain Actors
In order to measure value chain actors’ extent of challenges facing in all

individual 25 challenges, a challenges facing index (CFI) was developed. The
computed CFI and associated rank order on the basis of CFI values taking all 25
challenges items have been presented in Table 8.1. Low price of fresh mango
during harvesting ranked first among the 25 characteristics in the study area
followed by lack of quality inputs, high wages of labourer and lack of storage
facility. The most of the positions of the rank orders could be explained by the
situation of the locality and existing potential for commercialization of mango
cultivation. These problems could be mitigated through well designed extension
programme towards improvement of commercial mango value chain.
133
Table 8.1. Rank order of 25 selected challenges faced by the mango
value chain actors
Aspects of Constraint items CFI Rank
constraint order
Lack of organic fertilizers and pesticides resulting in poor 280.3 2
quality mangoes.
Lack of product (input) knowledge of the local retailer 139.0 13
Input Supply Link
Prevalence of sales of poor quality and adulterated inputs 105.5 21

Challenges
(fertilizers and pesticides) by the input supplier.

Inadequate knowledge and skills in adhering to the use of 172.3 5
recommended pesticides and ignorance of environmental
concerns as demanded by importing countries.
Some producers of seedling are producing without taking 138.9 14
the market demands into account, which makes their long-
term business case fragile.
Lack of communication knowledge 161.1 7
Production Link
Lack of quality inputs and high price 141.6 12

Challenges
Natural disaster and length of production cycle 155.7 8

Poor disease control and lack of motorized pumps for 152.8 9
effective pest and disease control
Poor crop management practice, which leads to flower and 88.9 25
fruit fall
Low skill in post harvest management 197.1 3
Challenges
Infrastructure/Tech
nology Link
Lack of good storage facilities 113.8 20

Poorly developed transport infrastructure, such as the bad 163.7 6
road conditions that serve production areas which further
contribute to post harvest losses and a deterioration of
quality leading to low selling prices.
Lack of market transport infrastructure 136.1 15
Political and technological problem 144.6 11
Inadequate market information on alternative marketing 174.9 4
Challenges
Market Access Link
possibilities and on alternative product uses, such as

drying, and other options for value addition
Lack of poor marketing initiative and market linkage 280.5 1
Traditional marketing practices, which do not help 114.1 19
producers to realize adequate sale proceeds of their fruits.
Lack of awareness on the group marketing benefits 133.4 16
Lack of Mango growers association 152.6 10
Insufficient plant capacity and organization of supplies 122.2 18
Seasonal production meets demands of processing factories 94.5 24
Challenges
Processing
for four months only

Link
Low skill and technology for processing 100.0 23

Low capital base from which to invest 127.9 17
Many low priced mango 102.7 22
134
Table 8.2 summarized the challenges identified in this study which are common
for all areas.
Table 8.2 Core challenges of mango value chain
Aspects Challenges
 Shortage of improved and quality seedlings
Input Supply
 Lack of organic fertilizers and pesticides resulting in poor quality mangoes.

 Prevalence of sales of poor quality and adulteration inputs (fertilizers and
pesticides) by the input supplier.
 Not aware about the harmful effect of abuse of pesticides and other crop
protection chemical
 Low yielding seedlings and low irrigation facility
Production
 Poor disease control and lack motorized pumps for effective pest and
disease control
 Poor crop management practice, which leads to flower and fruit fall
 Lack of knowledge on improved production technology
 Natural disaster and length of production cycle
 Lack of good storage facilities and other physical facilities to spoilage and
Infrastructure/Technology
degage at the farm level, and this forces them to sell their product
immediately after harvest.
 Low skill in post harvest management, leading to significant losses, which
affect returns to the farmer and traders
 Poorly developed transport infrastructure, such as the bad road conditions
that serve production areas which further contribute to post harvest losses
and a deterioration of quality leading to low selling prices.
 Irrigation system is hardly developed and promoted, which makes many
production less profitable and more dependent on rains. Irrigation system
have not yet developed in the study area for mango.
 Inadequate market information on alternative marketing possibilities and on
Market access
alternative product uses, such as drying, and other options for value
addition.
 New varieties are less appreciated by small retailers because they are too
prone to attacks of insects and rotting
 Traditional marketing practices, which do not help producers to realize
adequate proceeds from the sale of their fruits
 Insufficient plant capacity and organization of supplies
Processing
 Lack of processing facilities

 Low skill and technology for processing
 Low level of technical support for maintenance
 Low capital base from which to invest
135
Continued
 Aratder, Bairals and Beparires conduct their business by borrowing capital

Finance & Risk from money lenders and other informal sources. But the interest of this
capital was very high. Besides, they have to face lot of problems to take loan
from govt. bank.
 Lack of credit facility with appropriate terms and condition
 General lack of financial resources to access and improve infrastructure
 Lack of Bank finance for traders or farmers for commercial production
 Lack of awareness on the quality and environmental issues
 Lack of sufficient air cargo space and shortage of cargo handling facilities in
the ports
Export
Export
 Support for establishing good quality packaging for easy export market
access
 Arrange policy dialogue with GOB to formulate horticultural export policy,
increase air cargo space options in national and international airlines and
allowing foreign cargo plane to operate from Bangladesh
 Lack of uninterrupted power supply by DESA/REB causing direct effect on
Environment
Environment
production as well as at storage of produce

Enabling
Enabling
 Lack of awareness on the quality and environmental issues

 There is hardly any data collection and computerization, which makes it
difficult to attract (foreign) investors and to enable the potential to tap from
market opportunities.
 On the consumption side, the price of natural mango juice is too expensive
Consumption
for domestic consumers, who mostly consume cheaper products and

indigenous varieties.
 The low consumption attributes to lack of knowledge to prepare different
recipe, dishes and products from mango by most consumers in Bangladesh.
 Absence of collaboration among farmers and value chain actors leading to
Organization
poor bargaining power and loss of potential bulk discounting in terms of

buying inputs and sales of fruits access to financial markets etc.
 Lack of awareness on the group marketing benefits
136

8.3 Marketing Problems of Mango Value Chain Actors

Although mango is a profitable crop in the study areas, there are some constraints
to its higher production. Seventeen marketing problems indicated by growers and
traders in the study areas are shown in Table 8.3. Among them, lack of cold
storage facility, unstable price, lack of loan facility, lack of adequate transport
facility, and lack of processing industry are the major problems of mango
growers.
Table 8.3 Marketing problems of mango value chain actors
Marketing problems Grower Bairal Bepari Aratdar (%) Retailer (%)

(%) (%) (%)
(N=75) (N=30) (N=30) Local Dhaka Local Dhaka
(N=18) =8) (N=28) (N=21)
Lack of proper communication 50 75 52 43 50 30 35
from the orchard
Lack of cold storage facility 93 65 100 80 60
Aratdar local takes more in 55 40 30
terms of weight
Lake of adequate transport 84 100 78 60 - - -
facility on credit
Selling 56 40 50 71 60 - -
Unstable price 86 83 100 91 93 62 65
Non availability of good 45 - 30 - - - -
quality of fertilizers and
High interest on capital
insecticides 50 40 60 30 - - -
Strike/ Political unrest - 20 25 30 50 - -
Lake of shed in the market - - - - - - 40
Lack of processing industry 80 78 30 40 50 - -
Perishability 40 55 50 - - - 60
Lack of export facility 60 30 70 30 20 - -
Lack of loan facility 85 73 78 75 60 45 30
Poor road 50 33 40 60 65 30 35
Insect and diseases infestation 65 40 - - - -
High transportation cost 65 70 100 75 60 - -
Note: N=Multiple responses are recorded
Sources: Field survey, 2013
Table 8.3 showed that value chain actor, Bairal faced several problems of which
lake of adequate transport facility, unstable price, lack of processing industry, lack
of proper communication from the orchard, lack of loan facility and high
transportation cost as the major problem for mango value chain. Hundred
137
percent of Bepari cited that lack of cold storage facility, unstable price, lake of
adequate transport facility, lack of loan facility and lack of export facility as the
main problem. In the study areas ,Aratdar of local area identified the main
problem as Unstable price, lack of cold storage facility, Lack of loan facility and
high transportation cost while the Aratdar in urban area (Dhaka) ranked some of
the major problems as unstable price (93%), and poor road(65%). But 60 percent of
urban Aratdar mentioned Lack of cold storage facility, selling on credit, lack of
loan facility and high transportation cost as their major problems in mango value
chain.
On the other hand, retailers reported unstable price, perishability of mango, lack
of shed in the market, were lack of proper communication from the orchard, poor
road and lack of loan facility their main problem (Table 8.3).
8.4 Opportunities of Mango Value Chain
There are vast scope to develop mango value chain in Bangladesh. Some of the
opportunities in mango value chain in the country are mentioned below.
 Availability of commercially attractive and relative resistant mango varieties
and others and late-maturing varieties.
 There are large areas available for plantation of mango in blocks that could
reach higher productivity.
 Provide training on post harvest management of mangoes

 Establish market linkage through group market approach
 Increase the productivity of mango cultivation by adapting modern
management practices
 Create a general awareness for use of right varieties, proper management ,
balanced application of fertilizer, irrigate in proper manner
 Protect the mango -trees from attack of insect-pests and diseases.
 Harvest properly, handle carefully, and market in the proper manner
 Develop awareness on the impact of in-appropriate application of pesticides
and impart training on IPM & ICM practice.
 Organize training programs for dissemination of appropriate technologies
138
 Organizing the farmers in groups for production and marketing of crops,
especially linking them with the city/ urban markets;
 Training for the service providers on improved crop management practices
including PHM practices
 Enhancement of yields and quality of mango by addressing the issues related
to GAP and SPS etc.
 Identifying appropriate markets, initiating appropriate marketing and
promotional activities and creating direct market linkage for the small farmers,
traders and processors with the urban markets
 Creating awareness on food safety regulations and identify the harmful effects
of indiscriminate use of pesticides
 Facilitating air cargo space, allow air cargo services for perishables and
discouraging the provision of off-loading.
8.5. SWOT Analysis
A SWOT analysis (alternatively SWOT matrix) is a structured planning method

used to evaluate the strengths, weaknesses, opportunities, and threats involved in
a project or in a business venture. A SWOT analysis can be carried out for a
product, place, industry or person. Analysis of strengths, weakness, opportunities
and threats (SWOT) is an effective participative device in resolving the problems
that a company faces in its business and management affairs. The analysis can
bring out effective and useful ideas concerning the utilization of strengths and
opportunities available to the company and, at the same time, can overcome
weakness and threats in its ongoing. Setting the objective should be done after the
SWOT analysis has been performed. This would allow achievable goals or
objectives to be set for the organization.
 Strengths: characteristics of the business or project that give it an
advantage over others. Strengths are defined as what each business does
best in its gamut of operations which can give it an upper hand over its
competitors.
139
 Weaknesses: characteristics that place the business or project at a
disadvantage relative to others. Weaknesses are used to refer to areas
where the business or the brand needs improvement.
 Opportunities: elements that the project could exploit to its advantage.
Opportunities refer to those avenues in the environment that surrounds the
business on which it can capitalize to increase its returns.
 Threats: elements in the environment that could cause trouble for the
business or project. Threats are those factors in the environment which can
be detrimental to the growth of the business.
8.5.1 SWOT Analysis of Mango Value Chain
Mango Value Chain in study area has following strength, weakness, opportunity
and Threats. The SWOT-analysis is used to find out the competitiveness of the
mango value chain in markets, in terms of the strengths, weaknesses,
opportunities and threats. In light of the stakeholder analysis, mixed focus group
discussions are executed with farmers and traders to draw points of interventions
and to address constraints by promoting the strength of the chain. For this
purpose, internal weakness and strengths of actors and external opportunities and
threats are analyzed under categories of economic, social, technological,
demographic and institutional aspects. The main results of the SWOT analysis are
listed under the Table 8.4.
140
Table 8.4: SWOT analysis of mango value chain
Strength Weakness
 Good quality mango  Seasonal and perishable nature
 Potential to increase productivity of mango
 Payment received at delivery  Pre and Post- harvest losses
 Organic input utilization  Poor agronomic and
 Existence of big domestic market along management practices
Internal factors
with export market  Lack of knowledge and skills on

 Large number of people are involved in harvest and post-harvest
production, processing and marketing handling
areas in mango value chain  Low productivity
 Lack of coordination among
producers to increase their
bargaining power
 Lack of improved and Lack of
suitable variety to prolonged
harvesting time
Opportunity Threats
 Favorable climatic conditions for  Prevalence diseases
production (anthracnose and stem- end rot)
 Transformation and development plan and pest (fruit fly)
 High market demand  Harmful effect of abuse of
 Flexible crop for diversification-Can pesticides and other crop
easily be combined with annual crops protection chemical
 Opportunity to increase yield  Mango Processing industry in
 High opportunity to establish contract Bangladesh is very weak
farming with mango growers  Poor harvest and post-harvest
External factor
 High opportunity to develop agro technology

processing industry  Poor marketing infrastructure
 Opportunity exists to export mango  Poor market organization and
from Bangladesh information
 Mango value chain promises more job  Poor infrastructure with a large
opportunities number of middlemen
 Price disincentives for
smallholder farmers
 Limited Research and
dissemination and extension
services
 Limited access to credit service
141
8.6 Implications of SWOT Analysis
The actors are able to understand the business well, able to address the identified
weaknesses, prevent threats. Business goals and strategies could be developed for
achieving those. Policies could be developed to explore the opportunities exist in
mango business. Possibility of developing contact farming between growers and
traders especially processing companies and exporting agents is prevailing.
Scopes prevail for value addition to mango and to distribute the entire domestic
market. It is also implied that the SWOT analysis does not offer solutions but
enable actors to identify key issues which affect the business.
8.7 Conclusions
Challenges and opportunities in mango value chain are examined in this chapter.
Based on primary data Challenges are categorized into ten groups. Those are
input supply, production, Infrastructure/Technology, market access, processing,
Finance and Risk, export, enabling environment, consumption and organization.
Seventeen marketing problems were identified by farmers and traders which
includes lack of transport facility, lack of cold storage facility, high transportation
cost and insect and disease infestation The chapter also included a SWOT analysis
of mango value chain.
142
CHAPTER IX
SUMMARY, CONCLUSION AND

RECOMMENDATION
9.1 Summary
Mango is an important source of niacin, thiamine (Vit, B-1) and riboflavin (Vit,
B-2) than most other fruits. Many people of Bangladesh suffer for want of
vitamin. Since mango can play an important role as a source of vitamin. A
higher perfection and consumption of mango could help solve this problem of
vitamin encountered by the country. Besides, as fruit, mango of our country,
too this may increase the export earnings of Bangladesh.
The problem of insufficient mango production and low consumption is further

aggravated by the lack of efficient and organized marketing system. Steps are
being taken to increase mango production. But practically very little emphasis is
being given to improve the existing marketing system. Mango marketing in
Bangladesh faces various problems such as rough handling, lack of feeder
roads, problem of local transport, lack of cold storage facilities, lack of
processing industry, lack of export facility, imperfect marketing system,
wastage, etc. No systematic attempt has been made so far to study the mango
marketing system in Bangladesh.
The broad objective of the present study was to assess the distribution of
benefits among actors in the value chain with a view to assessing the efficiency
of the marketing system. The specific objectives were : to examine the mango
marketing system, to assess the distribution of benefits and risks among actors
in the value chain, to analyze the upgrading options within the value chain, to
estimate marketing efficiency of mango; and to identify the challenges facing
the mango value chain actors and opportunities and recommendation to those
constraints. The study is expected to provide useful information to traders,
143
consumers, producers and policy makers. For the constraints of time this study
was confined to some selected areas of Chapai Nawabgonj, Rajshahi , Meherpur
districts, and Kawranbazar and Badamtoli market in Dhaka city .
The mango growers, Bairal, Bepari, Aratdar (local, Dhaka) and retailers (local,
Dhaka) were randomly selected for the study. In total 210 samples, consisting of
75 growers, 30 Bairal, 30 Bepari 18 Aratdar (local), 8 Aratdar (Dhaka), 28 retailer
(Dhaka) 21 retailer (local) were randomly selected from different districts. The
data were analyzed by tabular technique.
In the present study mango marketing channel consisted of Growers-Bairal –

Bepari –Aratdar (local)–Aratdar (Dhaka) –retailer(Dhaka)- retailer (local). Barial
purchased magoes directly from the growers and sold the same to the Bepari at
mango orchards and Aratdar (Local, Dhaka) at different markets, Bepari
purchased mangoes from the Bairal and sold to the Aratdar (local, Dhaka) at
different markets. Aratdar (local,Dhaka) purchased mangoes from their Arat
and sold those to the retailers (local, Dhaka). Retailers (local, Dhaka) sold their
entire mangoes to the consumers.
Marketing systems were studied from the view point of marketing of mango,
value chain of mango, supply chain actors, the period of marketing, and super
markets and other institutional outlets. Marketing functions were also studied
from the view point of transportation, grading and standardization, packaging,
storage, buying and selling, financing, market information, and promotion .
Prices of mangoes were determined mainly by the buyers in the market.
Generally payment in cash was common in mango marketing. The Aratdar
were found to handle more mangoes than the Barial, Bepari and retailers.
Barail, Bepari, Aratdar and retailers were not fully solvent in respect of their
capital needs. Personal contact and fellow traders were the major sources of
market information. Inefficient transportation and inadequate storage facilities
for mango signify lack of efficiency in the existing mango marketing system.
144
Head load, bicycle, van, votvoti and truck were the means of transporting
mangoes from the growers to the Arat centres. Maximum number of Bepari
uses truck for transporting of their mangoes. For transporting 45% growers
used van and maximum number of growers (65%) used bicycle to send their
mangoes to Arat. The lowest number of local Aratdar (5%) used votvoti for
transportation of their mangoes. Standing from shipping areas storage facilities
at various levels of mango trading were quite unsatisfactory. Due to the lack of
transport and storage facilities, it was reported that 10 percent to 44 percent of
mango per quintal was wasted from the Barial to the retail trading. Packaging
was done for carrying mangoes from mango orchard to the different markets of
the country. There were no systematic weighing and measurements standards
in the mango market where mangoes were sold by counting and weighing also.
Cost of production of mango in three study areas were examined for this study.
The highest cost of production of mango has observed in Rajshahi district and
the lowest cost of production of mango has executed in Meherpur district. The
average costs of production of mango were Tk. 2,09,969/ hector and with an
average yield of 12 MT /hectare; which indicated a production cost of
Tk.17.50/kg. The total human labour cost was Tk. 16,800 fertilizer cost was Tk.
17,370 and irrigation cost was Tk. 10,000 per hectare. The cost of production per
quintal of mango was Tk.1750. The cost of human labour, fertilizer, insecticides
and land use cost was found to be major cost items of mango production. The
marketing cost of farmer was Tk.283 per quintal of mango.
In three study areas higher gross return (Tk, 51,8000) per hectare and higher
total cost was observed in Rajshahi. Average gross margin and net return of
mango were Tk. 3, 87,615 and Tk. 2, 77,365 per hectare in all areas respectively.
The benefit cost ratio (BCR) for mango was 2.34 which indicates that mango
cultivation is profitable in all areas. Gross return for mango was found
Tk.4,92,000 per hectare in all area.
145
The total marketing cost for Dhaka market was Tk.1153. The highest marketing
cost was transportation cost among the cost items in all actors, which covered
36.51 % of the total cost. Commission cost was the second highest marketing
cost among the all cost items and that was Tk. 315 per quintal which covered
27.32% of the total cost. Of the total marketing cost 15.44%, 41.11%, 10.84% and
32.61% was incurred by Bairal, Bepari, Aratdar (Dhaka) and retailer (Dhaka)
respectively.
The total marketing cost was Tk. 912 per quintal in local market which was
lower than Dhaka market. In local market, transportation cost was the highest
marketing cost among the all cost items and that was found Tk.355 per quintal
which was 38.93% in all actors of the local market. The second highest
marketing cost was Tk.185 per quintal for commission which was 20.29 %
followed by damage/ wastage (9.98 %) of the total cost of all actors in local
market.
The average cost of marketing for farmers, Barial, Bepari, Aratdar (local),
Aratdar (Dhaka), retailer (Dhaka) and retailers (local) were Tk. 283 Tk. 178, Tk.
474, Tk. 94, Tk. 125, Tk. 376 and Tk.166 per quintal of mango respectively.
Transportation was reported to be the major item of marketing cost of the
intermediaries. Damage/wastage accounted for Tk.60, Tk.30, Tk.20 and Tk.15
per quintal of mango for Bepari, Aratdar (local), Aratdar (Dhaka), and retailers
(local) respectively. Commission as cost for Bepari, retailer (Dhaka) and retailer
(local) were Tk.135, Tk.180, and Tk.50 per quintal of mango respectively.
The gross margin for Barial, Bepari, Aratdar (local), Aratdar (Dhaka), retailer
(Dhaka) and retailers (local) were Tk. 300, Tk.800, Tk.750, Tk.450, Tk. 500,
Tk.400 which contained value addition of Tk.122, Tk.326, Tk.656, Tk.325,
Tk.124,and Tk.234 respectively. Value addition as a percentage of purchase
price was calculated at 7.56% , 18.61%, 14.71%, 7.69%, 7.94% and 6.84%
respectively for the Barial, Bepari, Aratdar (local), Aratdar (Dhaka), retailer
(Dhaka) and retailers (local) .The study reveals that despite high marketing cost,
146
the Aratdar (local) obtained the highest returns mainly because of higher selling
price and higher volume of trades.
Risks involved in mango production as perceived by growers were identified as

(i) production risks (ii) market risks (iii) investment risks (iv) socio-economic
risks and (v) environmental risks. It is found from the field study that there is
no institutional arrangement for shifting or sharing risk among the value chain
actors.
Among six marketing channels price spread varied from Tk. 5.00 per kg in
channel VI to Tk. 28 per kg in channel I (Six channels were shown in table 4.1).
It was also found that grower’s share was the lowest (58.82 percent) in channe-I
and the highest (93.60 %) grower’s share in channel VI. It was observed that
price spread was the second lowest and producer share was the second highest
(92.65 %) in channel- V while the highest price spread and lowest grower’s
share was obtained in the channel-I. So marketing channel V is more efficient
than marketing channel-I.
Marketing efficiency was assessed based on three methods namely

Conventional method, Shepherd’s method and Acharya’s method. Among six
channels result shows that the most efficient channel was VI based on the
Acharya’s method, Shepherd method and the lowest efficient channel was I.
The farmers’ responses to the channel VI, selling mango directly to the retailers
showed to be most desirable. It may be concluded from the forgoing analysis
that marketing efficiency seemed to be very low in channel I, while the cost of
marketing and total net margins were highest in this channel. According to
Acharaya’s method channel VI is the most efficient as it possesses highest index
of marketing efficiency but in real life this channel is not widely used by the
mango growers. The next efficient channel is channel V which obtained value of
6.16 and with second lowest marketing cost and net marketing margin.
Upgrading of mango value chain was also examined. Growers and traders
followed three methods of upgrading; these are process upgrading, product
147
upgrading, and functional upgrading. In the study areas inter-sectoral
upgrading was not observed 38.67 % growers involved in value adding
activities on their mangoes while the larger number of farmers 46 (61.33 %)
responded that they do not make any value adding activities on their product.
The highest numbers of traders (44.45%) followed process upgrading while the
small number of respondent (3.70 %) involved in product upgrading.
Functional upgrading practiced by 51.85 % traders on the other hand inter-
sectoral grading was not observed in the study area.
Mango growers and traders faced a number of challenges such as production

link challenges, infrastructure link challenges, processing link challenges,
finance and risk link challenges and export link challenges etc. The major
opportunities occupied by mango growers and traders were provide training
on post harvest management of mangoes, establish market linkage through
group market approach, increase the productivity of mango cultivation by
adapting modern management practices create a general awareness for use of
right varieties, proper management, balanced application of fertilizer, irrigate in
proper manner protect the mango -trees from attack of insect-pests and diseases
etc.
9.2 Conclusion
Value chains for fruits and vegetables are different from food grains. These are
highly perishable commodities and there are issues of food safety both for
domestic and international markets. There is a need to envision a complete
agro-food system. Agricultural processors and retailers are scaling up very fast
while farmers continue to be small and fragmented. The question of economic
viability of small farmers arises which could be tackled by developing
horizontal and vertical coordination (domestically and globally) through
efficient and equitable fruits value chains development with respect to
competitiveness, inclusiveness, scalability and sustainability to ensure fair
148
prices to farmer and agribusiness participants to improve the income and
livelihood of the chain actors.
At present, there is considerable gap between the gross production and net
availability of mangoes due to heavy post-harvest losses. The loss occurs due to
poor pre-production and post-harvest management as well as lack of
appropriate processing and marketing facilities. These losses have several
adverse impacts on farmer income, consumer prices and nutritional quality of
the produce. Because of the poor planting material, cultural practices including
harvesting methods and handling practices, the quality of harvested produce is
below expected standard. Absence of on farm storage facility and proper pack
house/packing station results in the perishable produce being marketed
immediately after harvesting without primary processing and adequate
packaging. Small farmers with limited access to markets as well as financial
resources are discouraged from adopting improved post harvest management
techniques.
It was found the study that if the farmers sell their mango directly to the
ultimate consumers then they will get more benefit, but it would not be possible
because intermediaries were engaged to transfer mango from the farmers` field
to distant consumers. Comparatively mango growers’ are getting higher share
in consumers’ taka.
Given the large potential for mango production in the country, its contribution
to the total GDP has been extremely low for many reasons. The most cited
reasons include lack of market oriented production which is too traditional and
poorly supported by scientific recommendations, high margin mainly due to
inefficient and costly transport, absence of mango market information,
inadequate government interventions and absence of market regulations and
legislations and its marketing activity is principally attributed to poor actors
skill. Scope exists for improvement in mango marketing.
149
Even though most payments are made instantly, in some areas payment in cash
but in some cases mango sells on credit. Small scaling deduction, quoting of
lower prices and lack of market information are also common market
malpractices in the study area. Simultaneously, deficiency in capital and credit
availability and storage facility were also reported as major problems that badly
compelled fruit grower to sell their produce at whatever price given by
intermediaries. Following conclusions may be noted.
●The presence of middlemen and a long chain that increase costs without
adding much value
●Complex and fragmented supply chain of mangoes constitute the major

challenge for production and marketing of produce .
● Rural intermediaries in the mango chain play a key role in facilitating the flow
of produce to the markets.
● In general the institutional set up in the mango marketing is supportive to
business
● Transportation and storage facilities are not so favourable for quick

distribution of mangos which results huge post harvest losses and quality
deterioration of the produce.
●poor and underdevelopment packaging system is observed in mango value
chain.
● Improved and exportable varieties of mango are not available in mango value
chain
● Quality control and management system is not satisfactory.
The study concluded that value chain integration for improving productivity,
marketing efficiency, improved packaging system and reducing marketing
costs in mango subsector is urgently needed in Bangladesh. In order to develop
150
viable value chains, more initiatives should be undertaken to promote
coordination at each and every stage of value chain.
9.3 Recommendations
On the basis of the findings of this study some policies can be adopted for the
promotion of mango value chain in Bangladesh. In the process of achieving the
set objectives and considering the findings of the study some important policy
recommendations can be put forwarded which are highlighted below:
(i) To make the marketing system smooth and efficient, the existing
distribution system should be simplified. Provision of marketing and
technical information will enhance the capacity of the growers and
market actors to perform post –harvest activities of mango.
Institutional credit should be made available to the mango growers
and the other actors to meet their production and marketing
requirements. The malpractices in the form of excess weight, informal
toll etc. should be stopped and more modern and sophisticated
weight bridge would be introduced to weigh big lot of produce.
(ii) Mango cultivation is profitable in study areas. Transportation and

commission to Aratdar were the highest cost items of all the cost
items involved in mango marketing. The benefits obtained from
mango marketing by various actors were not proportional to the cost
incurred by them. Risks in production and marketing of mango are
mainly borne by the individual actors. In these contexts
development/improvement of mango value chain will introduce
benefit distribution among the actors on the basis of contribution to
value addition in marketing process of mango. Introduction of
insurance programme for mango production should be considered by
the concerned government authority and private insurance
companies.
151
(iii) Huge potential scope for upgrading mango would be explored
through imparting training for the actors in value chain on
different aspects of postharvest management including
harvesting, grading, sorting, packaging, transportation, storage
(conventional and modern), and processing.
(a)
(iv) To reduce loss and maintain quality and safety of mangoes both
for domestic and export markets, a marketing policy would be
helpful to comply with the domestic and global marketing
requirements and standards. Priority may be given to quality
management and prevention of losses in marketing channels of
mangoes and value addition activities for income generation.
(v) The mango growers should organize themselves into cooperative

or group to improve their bargaining power for their produce
over the traders in the market. Concerted and collaborative effort
is needed by the concerned actors, service providers, and
government agencies to address the challenges. Institutional credit
facilities should be ensured through growers’ association. Further,
an enabling environment needs to be created to attract private
sector investment in the development of mango market.
(vi) Efforts should be made to explore the scope for reducing cost of
transportation and adoption of government approved commission
rate and suitable techniques for prevention of wastage.
Consequently marketing efficiency will be improved.
(vii) Public intervention can facilitate better risk management through

improved information system and development of infrastructural
facilities, thus insuring the participation of all actors in mango
value chain. Training for mango growers and other trader-actors
and service providers would increase their level of awareness and
enhance their capability to face the challenges.
152
On the whole, arrangement of proper training on production, processing and
marketing aspects, and adoption of scientific practices in all areas and
development of infrastructural facilities enable the actors to face the challenges
and explore opportunities. In addition adoption of suitable marketing strategies
is necessary.
9.4 Limitations of the Study
Some limitations were faced during conducting the study. These are;
i) The study was confined to the districts of Rajshahi, Chapai Nawabgonj

and Meherpur only where mango production is concentrated. One
village from one Upazila under the each district was selected
purposively considering as intensive producing areas. The study might
provide more meaningful results if it cover more mango producing
districts.
ii) Mango growers and market actors did not maintain any written record
of their production and marketing information so it was tough to collect
accurate data. Among the actors the wholesalers maintain some records
but they at first hesitated in providing actual information in the fear of
enhanced income taxes. So there may be some divergences from the
hard realities of facts. However, they were ultimately convinced to
cooperate with the researcher by providing information.
iii) Some of the market actors i.e. Bepari and Aratdar came from different
districts in market day and did not stay in the study area; they were very
fast to talk, this created hindrance to collect data.
iv) Most of the respondents were not habituated with this type of research.
So a huge amount of time had to spend to explain them about the
purpose of the research.
153
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VALUE CHAIN ANALYSIS OF MANGO IN BANGLADESH

Department of Agribusiness and Marketing

Submitted in accordance with the requirements of the Bangladesh

Department of Agribusiness and Marketing

Submitted in accordance with the requirements of the Bangladesh

Approved as to Style and Contents by

Department of Agribusiness and Marketing

DEPARTED PARENTS, HUSBAND AND ADORABLE

I declare that, except where otherwise stated, this dissertation is

December, 2018 Nasrin Sultana

I wish to express my sincere indebtedness to my departed parents. I am highly grateful to my beloved

3.7 Preparation of Survey Schedule 62

3.15 SWOT Analysis 70

4.5 Period of Marketing 81

4.6 Supermarkets and other Institutional Outlets 82

CHAPTER 6 UPGRADING OF MANGO IN THE VALUE 115-127

7.5 Conclusion 132

8.2 Challenges Faced by the Mango Value Chain Actors 133

CHAPTER 9 SUMMARY, CONCLUSION AND 143-153

TABLES TITLE PAGE

1.1 List of top10 mango producing countries in the world 8

1.2 Top mango importing countries (2016) 9

1.3 Top mango exporting countries (2016) 11

1.4 Fruits exported from Bangladesh 12

1.5 Mango area, production and yields by major region 13

1.6 Production of horticulture crops in Bangladesh during 15

1.7 Areas and production of mango by former districts 18

1.8 Area of important fruits in Bangladesh 19

1.9 Production of important fruits in Bangladesh 20

4.1 Modes of transport used by various actors in mango 87

5.1 Cost of production of mango in Rajshahi district 93

5.2 Cost of production of mango in Meherpur district 94

5.3 Cost of production of mango in Chapai Nawabganj 95

5.4 Cost of production of mango in all areas 96

5.5 Marketing cost of mango grower 97

5.7 Marketing cost of mangoes incurred by different actors 100

5.8 Marketing cost of mangoes incurred by different actors 102

5.9 Gross value addition by different actors of mango 104

5.10 Growers perception about production risks 109

TABLES TITLE PAGE

5.11 Growers perception about market risks 110

5.12 Growers perception about investment risks 111

5.13 Growers perception about socio-economic risks 112

5.14 Growers perception about environmental risks 113

6.1 Methods of upgrading 116

6.4 Distribution of mango growers by adoption of product 122

6.5 Distribution of mango growers by adoption of 126

6.6 Traders involvement in upgrading activities 126

7.1 Marketing costs and marketing margins of actors for 129

7.2 Price spread and grower’s share in marketing channel 130

7.3 Measurement of marketing efficiency of mango 131

8.1 Rank order of 25 selected challenges faced by the mango 134

8.2 Core challenges of mango value chain 135

8.3 Marketing problems of mango value chain actors 137

8.4 SWOT analysis of mango value chain 141

FIGURE TITLE PAGE

MAPS TITLE PAGE

3.4 Map of Chapai Nawabganj district showing the Shibganj 60

PICTURES TITLE PAGE

BARC = Bangladesh Agricultural Research Council

BBS = Bangladesh Bureau of Statistics

BCR = Benefit Cost Ratio

BINA = Bangladesh Institute of Nuclear Agriculture