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PARTICIPATORY ASSESSMENT OF MARKET AND MARKETING IN PATUAKHALI AND BARGUNA

DECEMBER 2009 Reconstruction, Economic Development and Livelihoods (REAL) Project of Helen Keller International Assessment conducted by: Practical Action Bangladesh Markets and Livelihoods Programme House 12/B, Road 4, Dhanmondi, Dhaka-1205

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CONTENTS I.  Executive summary ......................................................................................................................... 2 II.  Introduction ..................................................................................................................................... 4 

2.1. Methodology ................................................................................................................................ 4 2.2 Limitation of the study .................................................................................................................. 5 

III.  Overview of the investigation area ............................................................................................. 6 IV.  Analysis of focus group discussions and institutional survey ..................................................... 8 

4.1. Background of farmers involved in poultry, field crops and vegetables ..................................... 8 4.2. Agricultural products and IGAs in Patuakhali ............................................................................. 9 4.3. Agricultural products and IGAs in Barguna ........................................................................ 11 4.4. Marketing system In Patuakhali and Barguna ........................................................................... 15 4.5. Role of government institutions and NGOs and supports expected by the producers and other actors ................................................................................................................................................. 18 

4.5.1 Role of Government Institutions and NGOs ........................................................................ 18 4.5.2. Institutional support expected by producers ....................................................................... 21 

V.  Recommendations ..................................................................................................................... 23 5.1. Agricultural products and IGAs ................................................................................................. 23 5.2. Marketing activities ................................................................................................................... 24 

VI.  Annexes ..................................................................................................................................... 25 Annex 1: Sectoral Map ..................................................................................................................... 25 Annex 2: Discussion guidelines ........................................................................................................ 25 Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna ................................. 25 Annex 4: Persons met/discussed for interviews ................................................................................ 25 

Tables and Figures Table 1. Participants interviewed………………………………………………………………… 4 Table 2. Summary background of farmers ……………………………………………………….8 Table 3. Summary of constraints and opportunities for potential IGAs………………………13 Figure 1. Poultry market system – Kalapara upazila ………………………………………….. 16 Figure 2. Vegetable market system – Pathagatha upazila …………………………………….17 Figure 3. Crop market system – Barguna upazila ………………………………………………18 Annexes Annex 1: Sectoral maps Annex 2: Discussion guidelines Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna Annex 4: GOB officials interviewed; PNGO staff meeting participants

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I. Executive summary

This study aims to identify existing and potential income-generating activities (IGAs) and post-harvest activities for poor and ultra-poor households in the project area who farm field crops, vegetables and poultry. It also seeks to analyse the information and recommend activities and strategies to Helen Keller International (HKI), which has been implementing the Reconstruction, Economic Development and Livelihoods (REAL) project.

The investigation was carried out in two upazilas in Patuakhali and Barguna districts. Different categories of respondents interviewed during the study included smallholders, medium and rich farmers, collectors, paikers/traders, arotdars/wholesalers (big traders/feed sellers involved in poultry, field crop and vegetable production and marketing. Besides HKI and its partner NGO staff, government of Bangladesh (GOB) officials were consulted. The survey mainly considered qualitative aspects and PRA methods were used in discussions with the targeted group members. Market Map tools of participatory market system development (PMSD) were applied to understand market systems for poultry, vegetable and field crop sub-sectors. Although the main market channels for these product sub-sectors are the same, the volume of production in different channels varies. The study results for these three sub-sectors are as follows:

Poultry: The majority of households (70%) at Char-rangabali rear ducks commercially. Almost all the households hatch eggs and rear chicks of marketable size, i.e. 0.8-1.2 kg. Market opportunities in Nilgonj (Kalapara) are better than in Baisdia (Char-rangabali). There are about 100 paikers (traders) in Kalapara who buy poultry birds and eggs from farmers at Tk. 165 (on average) and sell to two arotdars (big traders) in Patuakhali at Tk. 180. The three main problems facing poultry producers are unavailability of medicine, the absence of vaccinators, and cold-related diseases. HKI has already provided training and inputs to support some vaccinators.

Vegetables: Farmers in Char-rangabali of Patuakhali district cultivate radishes, red amaranth, puishak, gourds, beans, papayas, bitter-gourds, cucumbers, ridge gourds, okra, spinach and watermelon. Like Char-rangabali, Kalapara is also a vegetable-deficit upazila. However, availability is better here because of a comparatively good road network. In the rainy season, 100% of all vegetables come from Jessore. The most common vegetables produced in Kalapara include red amaranth, beans, gourds, yard-long beans, tomatoes, bitter gourds and cucumbers. The farmers here encounter high cost and non-availability of quality fertilizer and insecticides at the right time. In some distant char lands there are no local vendors for seeds, fertilizer and insecticides.

Field crops: The main field crops in Patuakhali District are rice, onions, garlic, pulses (kheshari, felon, and mug), chillies and maize. Rice is generally cultivated in two hundred thousand acres of land, producing 181,000 metric tons of rice (Statistical Yearbook 2007). However, in the off-season (from Ashar-Kartik), rice is imported mostly from Gobindoganj (Gaibandha), Rangpur and Dinajpur. In the harvesting season rice is exported to Khulna, Narayanganj, Dhaka and Gobindoganj. Farmers in Soot Basidia in Char-rangabali produce rice, onions, garlic, pulses (kheshari, felon, and mug), chillies and maize. Irrigation affects the production of rice and maize. Paikers (traders) come to the villages from Goainkhali bazaar to buy their products. Farmers prefer selling to them because transportation costs to take rice to Goainkhali bazaar is around Tk. 200. There are no processing activities except boiling and drying of paddy for farmers’ household consumption.

Role of government institutions: The Department of Agriculture Extension (DAE) provides direct counselling to the farmers through their Sub-Assistant Agriculture officers. They also demonstrate new technology and innovative techniques to the farmers and and provide training. In most cases, DAE’s interventions do not reach the extreme poor. Department of Livestock Services (DLS) provides subsidised vaccines, de-worming medicine, free consultancy/counselling to the farmers and farm owners. Upazila Department of Youth Development (DYD) trains youth in poultry, fish culture, vegetable and agriculture. The Department of Women’s Affairs (DWA) provides credit to women amounting to Tk 10,000 to 15,000 and trains women in sewing, embroidery and kantha making. The government departments face inadequate manpower and shortages of inputs and services.

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Potential IGAs, marketing activities and strategy recommended: HKI to continue its support to beneficiaries in Patuakhali and Barguna to cultivate vegetables like radishes, red amaranth, bitter gourds, watermelon, brinjals, cabbages, cauliflower and papayas, spinach, sweet gourd/pumpkins, bottle gourds, beans, cabbages, coriander, long-yard beans, capsicum, carrots, and tomatoes. Potential IGAs related to these crops are seed preservation and selling, seed vending, organic fertilizer production, vegetable selling in villages and markets. Group members can also be supported to operate motorized van transportation services. Production of small quantities of vegetables is the main constraint in Patuakhali and Barguna districts. Farmer groups should combine their produce for group marketing.

HKI to encourage its beneficiaries to cultivate more field crops like onions, chillies, rice seed, maize, lentils, wheat, and soybeans. Potential IGAs related to field crops are rice seed production and selling, equipment rental services (power tillers for ploughing, power pumps for irrigation etc.), irrigation services, provision of quality organic fertilizers, pesticide production and marketing and soil testing services. Group marketing and improving storage/warehouse capacity at farm and market level might be useful. Farmers should be linked to banks and NGOs for post-harvest loans to preserve field crops at least for three to six months after harvesting. Group representatives can visit different markets to understand market situations and to develop business relationship with traders. HKI can also encourage its beneficiaries in Patuakhali and Barguna to rear poultry birds and ducks for egg production, as there is good demand for eggs. Potential IGAs in the poultry sector include egg collection and selling, duckling selling, duck collection and selling, chick rearing and selling, chicken collection and selling. Farmer’s groups can link up with small traders or collectors (paikers) willing to buy poultry and ducks from the villages. In the absence of such collectors, farmers may assign one farmer from their group as a collector to take birds to suitable market places/traders or to buy from villages and transport by van and sell to distant bazaars. HKI can encourage its beneficiaries to engage in food processing activities like making pickles from locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and making moa, chanachur, khurma, khaza, chatchoti, and dal fry. Practical Action’s experience in implementing projects in Gaibandha is that these IGAs are profitable and that there is demand for these products in char areas despite being available from large companies. The reason for the success of these IGAs is that raw materials are available, processing and production costs are low, the products require fewer preservatives and the price is low. Off-farm activities such as small grocery shops, tea stalls, pitha making and selling, small-scale fruit and vegetable selling, saree making, cosmetic making, tailoring, kantha stitching, broom making etc. are some of the IGAs that worked well in char areas where we implemented our project. Other off-farm activities that could be piloted involve bamboo products for making bamboo baskets, chaluni, jharuni required for rice cleaning and other processing activities, also making fish nets, drying fish and selling them, making pottery with traditional and modern designs, paper boxes for sweets and packets like shopping bags and thonga, dairy products like curd, ghee etc.

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II. Introduction

The study investigates the elements influencing agricultural and income-generating activities in Barguna Sadar and Patharghata in Barguna District and Kalapara and Golachipa in Patuakhali District. It aims to identify existing and potential IGAs and post-harvest activities of field crops, vegetables and poultry for poor and extreme-poor households in the project area. It tries to understand the typical ways these households currently market their produce and make improvements, focusing on greater inclusion of women in the marketing chain. The final objective of the study is to analyse the information related to the agricultural sector and to potential IGAs and recommend activities and strategies to HKI, which has been implementing the two-year Reconstruction, Economic Development and Livelihoods (REAL) project with the financial assistance of USAID. The project is supported under a cooperative agreement with Helen Keller International (HKI), as the implementing organization, to respond rapidly to food security and poverty alleviation in the 2007 cyclone Sidr-affected areas. The project began on 22 December 2008.

2.1. Methodology The study areas: In accordance with the terms of reference, the investigation was carried out in two upazilas in Patuakhali and Barguna districts. Mainly purposive sampling method was used to select the groups for discussion, with assistance from HKI field staff and partners (namely SAP Bangladesh, Speed Trust, SANGRAM and SANGKALPA) located in the study areas. The upazilas are Sadar and Patharghata of Barguna, and Kalapara, and Golachipa (Char-rangabali) of Patuakhali districts. Tools and techniques used: The survey considered mainly qualitative aspects. In carrying out the study, focus group discussions-PRA sessions were conducted with targeted group members. Mobility Map, Problem Prioritising and Ranking matrix and Market Map tools were used to understand the issues affecting the production and marketing system. Interactive discussions followed the visualization process in order to collect in-depth information about each of the issues. In addition, in-depth interviews were conducted with officers from District Agriculture Extension, (DD, DAE), District Women’s Affairs, District Livestock, and the deputy director of Department of Youth Development and Vocational Training Institute. Preset questionnaires were used during in-depth interviews. Observation, one of the most important techniques, was used during FGD to validate and cross check the economic segmentation of the farmers. Study team members had an opportunity to observe the housing status and other associated conditions of the targeted participants. Data collection: During the study, different categories of respondents were interviewed; these respondents included poor and small farm holders and middle and rich farmers involved in poultry, field crops and vegetable production and marketing. In addition, discussions were held with market actors like, paikers, middlemen, feed sellers, arotdars, traders and wholesalers. HKI field staff members and partner NGO staff members were also interviewed and consulted during the field study. Table 1: Participants Interviewed

Name of Area Name of Trade # of FGD

# of Participants Type of Participants M F Total

Golachipa, Patuakhali

Poultry and vegetable producers

1 - 11 11 Producers

Crop 1 12 - 12 Producers Kalapara, Patuakhali

LDS of crop, vegetable and poultry

1 4 3 7 Rich producers

Poultry and vegetable 1 4 9 13 Producers Patharghata, Barguna

Crop 1 10 10 Producers Rice farmer 1 12 - 12 Producers

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Poultry and vegetable 1 - 10 10 Producers Sadar Barguna

Poultry 1 3 7 10 Producers Rice farmer 1 12 - 12 Producers Vegetable 1 - 12 12 Producers

Kalapara, Patuakhali

Poultry market actors 1 9 9 Paiker, retailer, arotdar, feed seller, farm manager

Vegetable market actors 1 11 11 Retailer, arotdar, foria, baperi

Crop (rice) market actor 1 6 6 Paiker, arotdar, rice husker

Patharghata Barguna

Vegetable market actors 1 12 12 Chalani, wholesaler, retailer

Poultry market actors 1 8 8 Wholesaler, retailer, feed seller,

Crop market actor 1 10 - 10 Arotdar, retailer, rice husker

Total 16 113 62 175

Face-to-face interviews with participants (staff)

Department/Office Area/Thana # of Participants Govt. official of DYD, DAE, Social Welfare, JMS, DLS, poultry farm

Patuakhali Sadar, Kalapara, 9

SANGRAM Sadar, Barguna 18 SANKALPA TRUST Patherghata 8 SPEED TRUST Kalapara 9 SAP Bangladesh Golachipa 4 HKI Patuakhali 6 HKI Barguna 4 Total # of Participants 58 Review of secondary data and document: The study team reviewed the guidelines on market assessment, participatory market system development and the market mapping workshop report. The team also reviewed HKI’s beneficiary selection criteria, training manual on marketing and entrepreneurship development, IGA selection guideline, wealth ranking reports, etc. 2.2 Limitation of the study Qualitative studies have some inherent limitations. As the investigations are based on perceptions and opinions, subjectivity invariably creeps into the findings. In addition, communication in the study areas was a big problem that seriously affected the time schedule. For instance, delays caused by crossing rivers on ferries compelled the team to change their schedule several times. In some cases, HKI partner NGOs were not fully aware of the purpose of the study, which resulted in the study team taking time to organise meetings with traders and producers. The study team was also not fully aware of the distance and means of communication, which put them under tremendous pressure.

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III. Overview of the investigation area

Patharghata Upazila consists of 7 union parishads, 42 mouzas and 67 villages. The upazila has a population of 134,635; males 50% and females 50%. Main occupations include agriculture 40%, fishing 8%, agricultural labourer 18%, wage labourer 4%, and commerce 11%, Main crops are paddy, pulse and vegetables. The upazila is well known for fisheries, dairies, and poultries. It has 6 poultries, 59 fisheries, 1 hatchery and 4 dairy enterprises. Manufacturing enterprises include 9 ice factories and 5 sawmills. People of the upazila are also involved in cottage industries like cane work (7), woodworking (25), blacksmithing (15), goldsmithing (12), welding (8) and tailoring (150). The upazila exports paddy, palm molasses, Hilsa fish and shrimp. It has 16 hats and bazaars, most noted of which are Patharghata, Kakchira and Char Dowani. Communication facilities include 17 km pucca road, 368 km mud road and 32 nautical miles of waterways. (Source: Banglapedia.) Barguna Sadar Upazila has one municipality, 13 union parishads, 62 mouzas and 189 villages, with a population of 219,729 population; males 51%, females 49%; Muslim 92%, Hindu 7% and Buddhist

0.07%. Main occupations include agriculture 45%, fishing 4%, agricultural labourer 14%, wage labourer 5%, and commerce 13%. Main crops produced in the area are paddy, pulse and vegetables. Activities related to fisheries, dairies, poultries are noticeable throughout the upazila. It has 4 dairies, 25 poultries, 20 fisheries, and 1 hatchery. Manufacturing enterprises are 20 sawmills, 10 ice factories and 10 rice mills. Cottage industries include 70 goldsmiths, 20 blacksmiths, 200 woodworkers and 150 tailoring businesses. Main exports are palm molasses and Hilsa fish. Total hats and bazaars are 16, most noted of which are Gaurchinna, Babuganj and Chandkhali; Barguna Baishakhi Mela is notable. Communication facilities include 60 km pucca road, 25 km semi-pucca road and 205 km mud road; navigable river routes are about 39 nautical miles. Main means of communication is boat. (Source: Banglapedia.)

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Kalapara Upazila consists of 1 municipality, 9 union parishads, 57 mouzas and 247 villages, having a population of 174,921; males 51%, females 49%; Muslim 90%, Hindu 8%, Buddhist 1%, Christian 0.14%, others 0.02%; ethnic nationals: Rakhains 2625 (486 families). Main occupations are agriculture 46%, fishing 6%, and commerce 10%, It has 45,328 hectares of cultivable land of which fallow land is 93 hectares; double crop 10%, triple crop land 3%. Cultivable land under irrigation is 2%. Main crops are paddy, pulse, sugarcane, watermelon, vegetables; main fruits are banana, papaya, coconut, guava, plum. Main exports are paddy, Hilsa fish. The upazila is prominent for fishing, dairy and poultry. It has 28 shrimp, 5 livestock, 45 poultry and 1 hatchery enterprises. Manufacturing industries are 6 flour mills, 35 rice mills, 25 ice mills, and 6 sawmills. Cottage industries include 25 goldsmiths, 50 blacksmiths and 12 woodworks. There are 17 hats and bazaars, most noted of which are Kalapara, Mahipur, and Kuakata, and 1 fair (rash-purnima mela), Communication facilities include 20 km pucca road, 58 km semi-pucca road and 860 km mud road. (Source: Banglapedia.)

Galachipa Upazila has 13 union parishads, 142 mouzas and 230 villages. The upazila has a population of 286,307; males 53%, females 47%; Muslim 92%, Hindu 8%, Buddhist 0.04%; major ethnic nationals: Rakhains 2490 (51 families). Main occupations are agriculture 50%, fishing 4%, agricultural labourer 22%, wage labourer 4%, and commerce 8%, It has 69,824 hectares of cultivable land of which fallow land is 1271 hectares; single crop 45%, double crop 48%, triple crop 7%. Main crops are paddy, groundnuts, sweet potatoes, peppers, khesari (grasspea), mug bean, watermelon, betel leaf. There are 20 fisheries, 25 shrimp cultivation, 7 livestock, and 25 poultry industries. Manufacturing industries are 2 ice mills, 18 sawmills, and 178 rice mills. Main exports include paddy, fish, groundnuts, pepper, betel leaf. There are 78 hats and bazaars and 1 fair, most noted of which is Galachipa bazaar, Kalagachhia hat, Ulania hat, Baherchar hat, Sutabaria Dayamayee mela. Communication facilities include 15 km pucca road, 20 km semi- pucca road and 1000 km mud road.

All four upazilas were badly affected during the 2007 cyclone Sidr. Among the peasantry, landlessness is highest in Galachipa Upazila (79%) compared to

Kalapara (41%), Barguna (36%) and Patharghata (16%).

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IV. Analysis of focus group discussions and institutional survey

4.1. Background of farmers involved in poultry, field crops and vegetables One hundred seventy-five producers participated in the FGDs, out of which 113 (65%) were female and 62 (35%) male of average age range between 20 to 40 years. The males are the main income earners except for three women from Kalapara, Barguna Sadar and Patharghata. These three women work with BRAC School as teachers and they are the main source of their familíes’ income. Around 90% of respondents involved in poultry farming supported by HKI are women. They said that their husbands are the main income earners, engaging in various economic activities like running tea stall businesses, masonry, motorized rickshaw van (nosimon) drivers, rickshaw pullers, and winter vegetable and crop growers. Their average monthly family income is Tk. 3000-4200. Women poultry producers are directly and indirectly involved in other IGAs like, hogla mat making, nursery business, and vegetable cultivation; they earn Tk. 250 to Tk. 2000 per month as additional income. The rice farmers are men in the 33-60 year age range. Their monthly income varies from Tk. 2000 to Tk. 7000. Their land holding size is between 80 and 200 decimals. Apart from paddy cultivation, they are involved in other IGAs like winter vegetable cultivation and poultry rearing and they earn Tk. 2000 a month. The vegetable producers are between 22 and 45 years of age; most of them are women and their husbands, the main income earners, are involved in grocery shops, fishing, and day labouring. Their average monthly income is Tk. 2500-6000. Although the vegetable producers from Barguna Sadar are not involved in any IGAs, vegetable producers from Golachipa and Kalapara are involved in other IGAs like, fishing, cow and duck rearing. They earn Tk. 500-3000 a month from these IGAs. At Kalapara, women producers are involved in off-farm IGAs like, hogla mat making, puff rice business, kantha sewing. Table 2: Summary background of farmers involved in poultry, vegetables and field crops Sl No.

Category of farmers

Age range

Main income earner

Main economic activities

IGAs Income from main source (Tk)

Income from IGAs (Tk)

1. Vegetable farmers–69% female

20-40 Male Vegetable Fishing, cow rearing, duck rearing

2500 to 6000

500-3000

2. Rice/field crops–100% male

33-60 Male Rice production Winter vegetable cultivation and poultry

2000 to 7000

2000

3. Poultry–59% female

22-45 Male Tea stalls, masonry, nosimon driving, rickshaw pulling, winter vegetable and crop cultivation

Hogla making, nursery business, and vegetable

3000 to 420.

250 to 2000

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4.2. Agricultural products and IGAs in Patuakhali Vegetable sector: The study team conducted two FGDs with vegetable farmers (rich/poor/medium – mixed group) in Baisdia in Char-rangabali Union of Golachipa Upazila and in Nilgonj in Nilgonj Union of Kalapara Upazila, who are also involved in a poultry-rearing IGA. Farmers in Char-rangabali were traditionally cultivate radishes, red amaranth, Indian spinach (puishak), gourds, beans, papaya, bitter gourds, cucumbers, ridge gourds, okra, spinach and watermelon. On average, they cultivate vegetables on three decimals of land, mostly for household consumption, preferably in the dry season (November to April, i.e. Kartic-chaitra) as most of the char lands are low lying and it is difficult to cultivate vegetables in other seasons. Salinity also affects vegetable cultivation in the area. HKI supplied HYV seeds of vegetables mentioned above to its members. Newly introduced vegetables such as carrots, kolmi, and spinach introduced by HKI have become popular in the community. Generally, they sell some vegetables like Indian spinach,, papayas and okra to neighbours if they have any surplus. They sell to them because the paikers do not visit the village and the nearest market in Goinkhali bazaar is 4 km away. Besides, the 10% hat tax on sales is too much for them. Like Char-rangabali, Kalapara is also a vegetable-deficit upazila. However, availability is better here because of comparatively good road networks. Vegetable supplies come from Jessore year round. About 60% of vegetables are produced in winter to meet demand. During this period, the farmers sell some vegetables at Kalapara bazaar and earn between Tk. 600-1200 per month. Those selling vegetables in the market, pay 10% of their price as a hat tax and Tk. 4 for the ferry. They carry their vegetables on their heads. In the rainy season, 100% of the vegetables come from Jessore. The most common vegetables produced in Kalapara include red amaranth, beans, gourds, yard-long beans, tomatoes, bitter gourds and cucumbers. HKI introduced new varieties of vegetables like kolmi, spinach and carrots to this area. HKI trained some women members to preserve seeds at household level. The high cost and availability of fertilizers and insecticides at the right time is a big problem. There are no local vendors for seeds, fertilizers and insecticides in some more distant char lands. Farmers would like to get these services from the related inputs suppliers and service providers. Farmers know about using organic/herbal insecticides but most use chemical pesticides because they think organic pesticides do not work well. They also feel that insects have built up resistance to organic/herbal products. Availability, quality and variety are also factors affecting the use of organic fertilizers and pesticides as opposed to the non-organics. Vegetable production does not lend itself to post-harvest activities, although the crops require cleaning and drying activities for storage at household level. Some processing activities such as pickle making, murir moa, drying fish etc. do exist. Field crop/cereal: A study team conducted two FGDs with crop farmers. One was at Choto Baishdia village of Char-rangabali Union in Golachipa Upazila with 10 men producers categorized as poor and small farmers. The other was at Nilgonj of Kalapara Upazila with six women and six men producers categorized as medium and rich farmers. The main crops in Patuakhali District are rice, onions, garlic, pulses (kheshari, felon, and mug), chillies, maize, etc. Rice is cultivated on about 80,972 ha of land, producing 181,000 metric tons of rice (Statistical year book 2007). However, in the off-season (from Ashar-Kartik), rice is imported mostly from Gobindoganj (Gaibandha), Rangpur and Dinajpur. In harvesting seasons, rice is exported to Khulna, Narayanganj, Dhaka and Gobindoganj. The selling price of rice is dropping because of imperfect market situations. As a result, producers and traders do not get satisfactory returns for their produce.

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Farmers in Soto Basidia in Char-rangabali produce rice, onions, garlic, pulses (kheshari, felon, and mug), chillies and maize. After Sidr, HKI introduced new varieties of rice (BR 11) and maize cultivation started in this area in 2008. Irrigation is affecting the production of rice and maize. Paikars (traders) come to villages from Goainkhali bazaar to buy their products. Farmers prefer selling to them because transporting rice to Goainkhali bazaar costs around Tk. 200. There are no processing activities except boiling and drying of paddy for farmers’ household consumption. Farmers suggested installing a diesel-based mobile rice-husking unit. More than 80% of the farmers in Nilgonj village (Kalapara) are now involved in rice and maize cultivation. Farmers confirmed that these crops are more profitable because of quality and high productivity, although salinity, the high price of pesticides, pest infestation and inadequate irrigation facilities affect production frequently. Farmers use cows to plough their fields. Two or three power tillers are available for rent but they cannot meet the huge demand for this service. Farmers wanting to use the power tillers have to wait for two to three days before one is available. Some people also provide spray services to farmers’ plots. Farmers use surface water for six months from the narrow canals and bodies of saline water. These farmers have also shown interest in commercial irrigation services. During the discussion, some farmers expressed their interest in soybean cultivation as it is, like maize, saline resistant. Markets for fertilizers and insecticides are well established here, but some farmers lack proper information about soil conditions and use excessive chemical fertilizers and insecticides guided by shopkeepers. This may be an opportunity for starting soil testing services. When asked about their views on this, participating farmers confirmed their willingness to try this service. Marketing produce in Nilgonj village is easier than in Baisdia village. After harvest, farmers take their produce to Kalapara bazaar directly as the carrying cost is affordable. Rickshaw van/tom tom fare for carrying rice is around Tk. 10-15. There are six rice mills in Kalapara bazaar involved in processing activities. Poultry sector: The study team conducted two FGDs with poultry farmers; one at Noyavanguni village of Char-rangabali Union in Golachipa Upazila with 10 women producers categorized as poor and small farmers and another at Nilgonj of Kalapara Union in Patuakhali Sadar Upazila with three women and five men producers categorized as medium and rich farmers. Nilgonj and Char-rangabali unions are in two different geographical regions. Char-rangabali is an isolated char surrounded by water while Nilgonj is a more plain and tidal area. Economic activities in Char-rangabali focus on duck- and chicken-rearing businesses. Around 2000 households rear local country birds in Char-rangabali Union out of which 164 households are in Noyavanguni. Nilgonj village is very close to Kalapara Upazila Sadar and here producers do not rear ducks. Only 10% of the producers raise local birds. Vegetables and field crop cultivation are their main occupation in this village. Producers at Char-rangabali sell chickens at a better price from February to June and earn more in winter from selling ducks. Due to insufficient knowledge about treating poultry, producers face different types of poultry diseases such as fowl pox, ranikat, bird flu etc. Because of long distances from markets, poultry birds die while being carried to market. In Char-rangabali, duck rearing and eggs selling are the main livelihoods strategies among the HKI beneficiaries. Chicken rearing, crop and vegetable cultivation are other livelihood options for them. Producers sell eggs, ducks and chickens to the Boherpur bazaar. At the bazaar, the price of an egg is Tk. 7. Price of a local bird or a duck is Tk. 150. There is no commercial duckling or chick seller at Char-rangabali Union; producers sometimes sell ducklings for Tk. 30 each and chicks for Tk. 15 each to their neighbours. Ducklings can be another business option for that area. The respondents have around 12-50 ducks, 10-40 chickens, around 500 ducklings, 450 chicks and earn from Tk. 6000-10,000 per month from selling eggs, ducklings, ducks, chicks and chickens. Market opportunities in Nilgonj (Kalapara) are better than in Baisdia (Char-rangabali). The 100 or so paikers in Kalapara buy poultry birds and eggs from farmers at Tk. 165 per bird, on average, and sell to two arotdars in Patuakhali at Tk. 180, on average. The arotdars sell birds to local markets and to local restaurants. In addition, they supply 3000-4000 birds per month to Dhaka markets depending on

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demand and availability. Since the paikers do not buy or sell ducks, farmers sell them to neighbours and village markets. Prices for eggs vary from Tk. 6 to 7 each at the farmers’ level. Paikers sell eggs to local restaurants at Tk. 8 to 10. The restaurants in Kalapara need 1,000 eggs a day and supplement their supply by importing farm eggs. Unavailability of medicine, absence of vaccinators and cold-related diseases are the three main problems for poultry producers. Producers can go to Golachipa Upazila by launch, which takes at least 45 minutes and costs (to and from) Tk. 100. For them it is not cost effective in terms of time and money. To address these problems, HKI has taken some initiatives for developing local vaccinators at the village level by providing training and input supports to some vaccinators. 4.3. Agricultural products and IGAs in Barguna Vegetable sector: The study team conducted two FGDs with vegetable farmers in Barguna District; one at Paschim Golbunia of 7 No. Dholua Union in Sadar Upazila with 12 female participants categorized as poor farmers, and another at Paschim Hoglapasha of Char Doani Union in Patharghata Upazila with 10 male participants categorized as rich farmers. Vegetables grown in Paschim Golbunia village are red amaranth, spinach, radishes, sweet gourds, white gourds, bottle gourds, beans, cabbage, knol-khol, Indian spinach, okra, coriander, batishak, long-yard beans, papaya, potatoes, sweet potatoes, bitter gourds, brinjal, capsicum, carrots, tomatoes and chillies. All 164 households in the village use traditional methods to cultivate vegetables at their homesteads. Vegetable cultivation by women has been restricted to homesteads only, sometimes with the help of their husbands. The major occupations of their husbands are grocery shop business, working as day labourers, rickshaw pulling, catching fish, rowing boats and field crop cultivation. Monthly income from these activities ranges between Tk. 2000-6000 per month. FGD respondents think that 2-3% of the households are rich, 40-45% are middle and the rest are poor. HKI did not introduce any new variety of seeds. They supplied the seeds of red amaranth, beans, bitter gourds, lady fingers, kolmi shak, and cucumbers. Barriers to commercial vegetable cultivations are salinity, tidal water, availability of quality seeds, capital and lack of knowledge on management and plant diseases. Farmers are concerned about the sluice gate that controls the entrance of brackish water. The only processing activities observed were post-harvest cleaning, drying, and storing, mainly for personal use. Sometimes, in cases of emergency, they also sell at local markets. Considering the local conditions, bitter gourds, chillies, and pumpkin are the most promising in terms of higher production and income. In the absence of a marketing system, people grow these vegetables mostly for household consumption. Farmers currently sell their vegetables to neighbours or take their produce to kheaghat (the place where people cross the river by small boat, about 1 km away from Golbunia village) or ferryghat (the place where buses, trucks, motorbikes and people cross the river by ferry, 2 km away from the Golbunia village). Only a few farmers sell their produce at Barguna Sadar. The situation of HKI beneficiaries in Paschim Hoglapasha is similar to the beneficiaries in Paschim Golbunia, except that the farmers who took part in FGD are rich and cultivate vegetables in comparatively large areas (18-120 decimal) of land. Participants responded that their income ranged between Tk. 2500-3000 per month. Their major source of income came from vegetable cultivation (by eight respondents), van pulling (one respondent) and fishing in the sea (one respondent). The respondents mentioned other sources of earnings such as rearing indigenous birds and cows and fish culture. Modern production/cultivation technology like preparing vegetable beds and making stands for vegetables were introduced. Some farmers are now cultivating early and late varieties of vegetables, and are selling to Pathorghata bazaar, earning more money. However, vegetable cultivation is affected by availability of irrigation, salty soil conditions, lack of training on modern inputs and production systems. Transportation is also a problem. The only processing activities observed were post-harvesting cleaning, drying and storage for personal use and for sale if needed.

12

There is potential for starting IGAs related to organic fertilizer, seeds, seedlings, irrigation, and motorized van transportation services. Field crop sector: The study team conducted two FGDs at Barguna District with field crop farmers; one at Paschim Kewra Bunia of 6 No. Burir Char Union in Sadar Upazila with 12 male participants categorized as rich farmers and another at Hoglapasha of Char Doani Union in Patharghata Upazila with 10 male participants categorized as small and poor farmers. Of the 12 farmers, nine mentioned having 60-300 decimals of their own cultivable land. Two mentioned rickshaw pulling as their main source of income although they own small pieces of land and cultivate in other people’s land as sharecroppers. FGD respondents considered farmers owning more than 50 decimals of cultivable land as rich farmers. Since lower limit of the land holding category is not enough for a secure livelihood, these two farmers are pulling rickshaw for extra income and more diversification. According to the Bangladesh Statistical Bureau (BBS) these farmers fall under the category of poor. The other farmer is involved in carpentry apart from cultivation. The income of the respondent farmers ranged between Tk. 2000-7000 per month from field crops. The farmers also earn Tk. 4000-6000 per month from their IGAs like cattle trading and poultry rearing. The cropping pattern of Paschim Kewra Bunia village is Aus, Aman and pulse. During the Aus season, BRRI rice is cultivated in the area. After harvesting BRRI rice, transplanted Aman is cultivated and then the farmers cultivate pulses like mug bean and grasspea; some farmers cultivate groundnuts, potatoes, sweet potatoes, watermelon or other vegetables like chillies, sweet gourds, bitter gourds, ridged gourds, snake gourds, brinjal, white gourds and cucumbers. Indigenous musur dal (lentil) is profitable as production is good and marketing is easy. Some producers sell paddy to paikers at Tk. 280 per mound in their local area and the other producers sell to arotdars at Barguna Sadar at Tk. 300 a mound, although they deduct Tk. 10 per mound for transportation costs. There are no rice-husking mills or post-harvest processing activities except cleaning and drying. The respondents mentioned that mobile rice-husking businesses would reduce drudgery for the women and would benefit the farmers. They also reported that the use of agro tools such as power tillers, weeders and threshing machines is increasing in recent times. Major constraints include low quality of fertilizer and pesticides, lack of irrigation facilities, brackish water and tidal surges. Farmers are looking for irrigation and equipment rental services, quality fertilizers, pesticides, seeds, seed-preserving techniques and crop varieties suitable to local soil and climatic conditions. The Paschim Kewra Bunia village is well connected to Barguna Sadar. Farmers sell their produce to paikers and arotdars depending on the volume of produce. In Hoglapasha, all farmers having 7-15 decimals of land involved in crop cultivation as tenant farmers participated in FGD. The income of these farmers ranged between Tk. 1200-2000 per month from crop cultivation. They also cultivated vegetables and raised poultry as additional IGAs and earned Tk. 500-1500 per month from the IGAs. Field crops produced in the village include Aus, Aman, IRRI, peas, groundnuts, potatoes, sweet potatoes, watermelon, capsicum, sweet gourds, mug bean, musuri. These pulses are promising as farmers can earn more if they cultivate them systematically. Practical Action’s experience in similar char areas of Gaibandha reveals that there is room for small-scale pulse processing like mug dal fry, boot (gram) dal fry, dabli and ankor fry, and pulses as ingredients for chanachur. These processed foods are easy to produce as raw materials are available, processing and labour costs are low and there is good demand in the local market. Farm mechanisation is taking place with the introduction of power tillers and water pumps. There are no post-harvest processing activities except cleaning and drying. Farmers sell their produce to paikers at Patharghata. Like Paschim Kewra Bunia village, major constraints include low quality of fertilizers and pesticides, lack of irrigation facilities, brackish water and tidal surges. Farmer are looking for irrigation and equipment rental services, quality fertilizers, pesticides, seeds, seed-preserving techniques and crop varieties suitable to local soil and climatic conditions. Poultry sector: At Barguna District, the study team conducted two FGDs with poultry farmers; one at Kodomtola of 5 No. Aila Patakata Union in Sadar Upazila with seven women and three men

13

participants categorized as rich farmers and another at Hoglapasha of Char Doani Union in Patharghata Upazila with 10 women participants categorized as small and poor farmers. Local bird rearing is easy with less input requirement and low risk to diseases. The FGD respondents mentioned having between 30 and 50 indigenous birds in their households. The income of these participating farmers ranges between Tk. 200-2000 per month from poultry farming. Monthly income of the respondents from their major occupations is between Tk. 1250-4200 per month. To promote improved poultry raising, HKI supported farmers to build houses and feeding and water pots for poultry. Farmers sell their birds to their neighbours first and then to the paikers as neighbours pay higher rates (at Tk. 200 each) than paikers (Tk. 180 each). Farmers can sell their birds at Kodomtoli bazaar but have to pay an 8% hat tax, which is not encouraging. Considering the high demand and lower mortality rate for poultry, farmers view poultry-feed processing as a potential income-generating activity. Poultry feed can be processed in several ways such as making powder from khud (broken bits of rice), from kura (husking mixed with particles of grain) and fish dust or low cost fry fish. As most people in the area rear indigenous birds, they usually do not buy meal feed available in the market because of its cost. In such circumstances, poultry-feed processing could be one of the potential IGAs in that area as it requires less investment and it could meet area demands. There are also prospects for rearing ducks for egg selling. Some people can be trained as poultry vaccinators or extension service providers. The situation of Hoglapasha is a little different; the participants mentioned that there is no poultry farm in their village but they have heard of two poultry farms in the next village, Munshigonj. The participants rear only indigenous birds as they lack knowledge, skills and capital for rearing broilers or layers. They also mentioned that local bird rearing is easy with less input required and the birds are less prone to diseases. Protecting birds from foxes and other animals, however, is a problem. Most FGD respondents mentioned having 2-9 indigenous birds and 2-22 newly hatched chicks in their households, as most of them just started rearing birds. The family income of these farmers ranges between Tk. 2500-6000 per month. Due to limited production, farmers sell their birds from home to their neighbours. Indigenous birds are promising for their local market demand and lower mortality, but due to low egg production (15-20), the Pakistani variety known as Fahomi birds (80-100 eggs per cycle) could be more suitable for them. There is demand for poultry vaccinators, feed processing and extension service providers. As vegetable drying is not yet practiced in Bangladesh, there is no potential for this sector. However, HKI can encourage its beneficiaries to engage in food processing activities like making pickles from locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and by making moa, chanachur, khurma, khaza, chatchoti, and dal fry. This can be done by organizing food-processing training for interested persons. Practical Action has developed several small-scale processors for training service providers at Gaibandha. HKI may hire those service providers to train potential processors. Practical Action’s experience in implementing projects in Gaibandha shows that these IGAs are profitable and that there is demand for these products in char areas despite some of these products being available from large companies.

Table 3: Summary of constraints/opportunities/potential IGAs

Constraints Opportunities/potential IGAs

1. Poultry Scarcity of vaccines, medicine and feeds Low profit Lack of information and technology Capital Traditional marketing

Vaccination services Poultry feed production and selling Egg collectors Group marketing (procurement of

inputs and selling poultry birds, eggs, etc.)

Commercial duckling and chick rearing

14

2. Vegetable Brackish/saline water Poor extension systems Lack of technical know-how Lack of quality inputs Financial services

Irrigation services/water selling Rain water harvesting and supplying Seed production and marketing Input collection and selling Bio-fertilizer production and

marketing Group marketing services

3. Field crops Irrigation services Pest control Land preparation (ploughing) Seeds and other inputs Capital/financial services

Water sellers Repairing mechanics Equipment (power tiller, water

pump, mage Sheller, paddle thresher) rental services

Seed production and marketing Linkage with FIs Soil testing services Collective mobile rice-husking

business

Potential Food Processing Activities: Potential Off-farm Activities: Pickles made of

- Boroi (Jujubi) - Tetul (Tamarind) - Jolpai (olive)

Moa, Chanachur Khurma, Khaza Chatchoti Dal fry

•Small grocery shop •Tea stall •Pitha making and selling •Fruits/vegetable selling in small scale •Saree/cosmetic/ cloth ferry •Tailoring •Kantha stitching •Broom making •Bamboo products such as bamboo baskets, Chaluni, Jharuni •Fish net making •Fish drying •Dry fish selling •Pottery product of both traditional and modern design •Paper box for sweets and packets like shopping bags and thonga •Dairy products like curd, ghee

15

4.4. Marketing system In Patuakhali and Barguna

As the market systems for poultry, vegetable and field crop sub-sectors are similar in different upazilas of Barguna and Patuakhali districts, one representative market map for each sub-sector will be described. Main market channels in existing market systems for poultry, vegetable and field crop sub-sectors also are similar. Each market system contains three main channels such as Channel 1: producer to trader, trader to retailer and retailer to local/rural or urban consumers; Channel 2: direct linkage with producer to local consumers; and Channel 3: producer to collector/retailer and collector/retailer to local or urban consumers. Though main market channels are the same, the volume of production in different channels varies in the three sub-sectors.

Farmers usually purchase input from local hat/bazaar, local dealer, and nearby districts. As farmers live in remote areas, it is hard for men and women to go to different places for purchasing inputs and for selling products. For this reason farmers prefer to go to local and nearby bazaars. Because business services for the three sub-sectors were insufficient, irregular and inefficient, business service market development should be considered first to increase production and productivity. For example, seed supply chains need to be developed rather than supplying seed directly. Salinity and drought are the major climate problems faced by farmers and need to be taken into consideration before selection of appropriate vegetables and crops. For mitigating salinity, farmers are cultivating saline-tolerant BRRI 47, BRRI 40 and BRRI 41 varieties of rice. During drought, farmers are advised to cultivate groundnuts and pulse. Irrigation service is weak and respondents recommended canal re-excavation and a supply of power tillers and power pumps. Potential IGAs in Barguna and Patuakhali are: cultivation of saline-tolerant BRRI (40,41,47), groundnuts, pulses (mug bean, lentils), vegetables (cucumber, sweet gourds, bitter gourds, chillies, garlic, papaya, guavas, watermelon), seed trading and retaining of BRRI (40,41,47). In addition, other IGAs might include fertilizer retailing, tractor ploughing services, irrigation services by power tiller and power pump and agro tools (e.g. maize shellers, paddle threshers, fertilizer drillers, etc.). Sub-sector specific analysis of market systems and potential IGAs follow:

Poultry sub-sector: Almost no chicken producers are aware of modern commercial chicken-rearing practices. Most households (90%) in Kalapara Upazila rear 2-12 indigenous chickens, mainly for household consumption. In Char-rangabali nearly 70% of households rear ducks commercially. Most households hatch eggs and rear chicks to marketable size, i.e. 0.8-1.2 kg. Only 30% of the households totally depend on chicken production.

Chicken producers usually sell their chickens to Kalapara, Mohipur, and Nilgonj. These markets sell 3000 pieces per month (100-120 pieces per day) to local consumers. Besides, these markets send 800-1000 pieces a week and 5-7 times a year to Patuakhali, Barisal and Dhaka. The demand for native chickens is less in the rainy season. Paikers and arotdars support their businesses by taking loans from NGOs. Because they are not able to repay in weekly instalments, their credit is low, at just Tk. 5000 for paiker and Tk. 10,000 for arotdar. These loans for these traders are sufficient for their current volumes of trade

16

Figure 1: Poultry market system, Kalapara Upazila of Patuakhali District

Poultry producers in Kalapara Upazila sell 50% of their birds to collectors (paikers) and collectors sell to restaurants and consumers of Kalapara Upazila Sadar. About 30% of the producers sell their poultry birds directly to local consumers. The rest of the producers (20%) sell their birds to small traders who sell to big traders (arotdars). Big traders sell to retailers and retailers usually sell to consumers of Patuakhali, Barisal and Dhaka. In all channels, the total amount sold is 160-180 pieces per day to the paikers and arotdars in each upazila market. There are 20-25 paikers and six arotdars in each upazila and the selling price to paikers is 165 Tk./kg. Around 1600-1700 pieces per month go to the district market and sometimes Dhaka markets through paikers, arotdars and retailers (baperi). In the winter season, the demand goes up to around 20,000-25,000 pieces per month for two to three months as picnic parties and marriage ceremonies take place at that time. The farmers do not benefit from the demand, however, because they sell their birds well before the winter season, fearing that a chicken disease may break out. Arotdars cannot buy in bulk due to a shortage of capital. They need credit for bulk purchases and selling to Dhaka markets. For transporting their products they mostly use motorized van rickshaws (nosimon), motorbikes, vans, trawlers and trucks.

In Channel 1, there are six paikers in Kalapara, Kuakata and Mohipur and they sell their products for Tk. 175/kg to three arotdars, who sell to retailers of Patuakhali, Barisal and Dhaka for Tk./kg 185, who, in turn, sell to local consumers for Tk./kg 200. Sometimes consumers of Kalapara Sadar and restaurant owners buys directly from paikers. With regard to inputs markets, there are five feed sellers, one to three cage makers, five to six credit providers and one to three medicine suppliers in operation. Most households hatch the eggs and rear chicks for marketable size of 0.8-1.2 kg. Poor quality and irregular supply of feed, vaccine, medicine, treatment and vaccination services for poultry and duck rearing are the main constraints in the poultry sub-sector. In this sub-sector, the potential for IGAs will be to sell feed, vaccination services, treatments and medical supplies. Poultry feed could be processed by making powder from khud (broken bits of rice), kura (husking mixed with particles of grain) and fish dust or low cost fry fish. As most people in the area rear indigenous birds, they usually do not buy meal feed available in the market mainly because of its cost. In such circumstances, poultry-feed processing could be an IGA in that area as it requires less investment at low cost and it could meet the demand of the area. HKI already developed and trained some vaccinators. HKI needs to analyse supply chain of vaccine and medicine so that poultry farmers have access to medicine and vaccines. These local IGAs will require capital in the range of Tk 30,000 to 50,000. Our experience and cost benefit analysis shows that these

Loc

al

Con

sum

er

Collector (paiker) 20-25 at Kalapara (Sell-165 Tk./kg)

Retailer (baperi) Sell-200 Tk./kg,-Patuakhali -Barisal -Dhaka

Small trader (paiker) 6 persons, sell-175Tk/Kg -Kalapara, Kolaroa, Mirpur

Producer (sell-160 Tk./kg) Locations: -Nilgonj -Nababgonj -Kalapara

30% of production

Pat

uakh

ali,

Bar

isal

, Dha

ka

Kal

apar

a S

adar

Big trader (arotdar) Sell-185 Tk./kg -Patuakhali -Barisal

20%

50% of production

17

IGAs are profitable with a profit margin of about 18% to 40%. We suggest rigorous market assessment of specific, existing IGAs and cost benefit analysis to understand the situation. Vegetable sub-sector: Barguna produces 4616 mt of vegetables every year against demand of 27,648 mt a year. To meet the demand gap of 23,032 mt a year, vegetables are imported from other districts, mainly Patharghata 80%, Kakchira 10%, and Charduari 10%. Producers sell 15% of their vegetables directly to consumers. Between 8-10 arotdars purchase vegetables from producers in Patharghata, Kakchira and Charduari and about 18 to 20 retailers collect products from traders to sell to the local market. Vegetables retailers (paikers) need credit support. Repayment in monthly instalments is suitable for them although Micro Finance Institutions (MFIs) collect loans in weekly instalments. As a result, the retailers are not interested in getting credit from MFIs. Separate policies or loan products are needed for credit in coastal areas, especially for the vegetable sector. Better communication and a system for harvesting rain water are necessary to strengthen this sector in that area. (For more information, please see the market map shown in Annex 2.)

Figure-2: Vegetable market system, Patharghata Upazila of Barguna District The service market is not well developed. There are limited business services such as credit, training, and transportation facilities. The respondents mentioned that more services like training in vegetable cultivation, good quality, saline-tolerant seed production, transportation and cold storage could be useful. Equipment rental services for spray machines and power tillers and power pumps for irrigation are also necessary. However, the study shows that HKI is providing training, seed, cash support to producer groups and service providers for developing service markets. However, before supplying seed to farmers, demand for seed and its existing supply chain should be considered. As seed preservation is a technical task, a local seed supply chain should be developed by supplying seed to seed traders and retailers rather than directly to farmers for a sustainable seed supply. Potential IGAs in this regard will be vegetable seed trading and retailing. However, some capable farmers can produce seeds and sell them to traders, enabling the farmers to earn more than from just vegetable production. (For more information please see market map shown Annex 2.) Food processing activities like making pickles from locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and making moa, chanachur, khurma, khaza, chatchoti, and dal fry are potential IGAs for study areas.

Loc

al C

onsu

mer

Retailer577 Monds / yr

(5% of production)

Retailer 18/20 nos at

Pathorgahta market (Total 70 – 80)

Trader(Arotdar) 8-10 persons 9,232 mond/year (80% of production)

Producer 25 % of total34,000 household produce vegetable Locations: -Hogl apasa, -Kalomegha, -Rupdhan, -Kupdhan-Kakchira

1,731 monds /yr. 15% of production

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Field crop sub-sector: Channel 1 of the market map shows that around 20-25 arodtars are working in Barguna Sadar Upazila (this figure is almost the same for other upazilas). In one year they stock 228000 mt of rice, 1000 mt of pulse, and 500 mt of felon. Paikers buy crops from Chandpur and Khulna and sell to 8-10 arotdars, who then sell their product to the 20-25 retailers from different areas who then sell to the consumers of Patuakhali, Barisal and Dhaka. Sometimes, local consumers buy the product directly from small-scale local producers. Channel 2 shows that 20-25 paikers sell the crop to 50-60 local retailers who sell to local consumers.

Figure 3: Crop market system, Barguna Sadar of Barguna District

Rice mill (chatal) owners, transport services, banks and NGOs, seed sellers, insecticide and fertilizer dealers and DAE departments provide processing, transport, credit and input (seed and insecticide) support. These services are not enough to meet the demand from field crop producers. Some potential IGAs in this sector are seed selling (saline tolerate BRRI 47, BRRI 40 and BRRI 41), fertilizer retailing, tractor ploughing services and irrigation by power pump. Small agro tools may be a side business for ploughing and irrigation service providers (e.g. maize sheller, paddle thresher, fertilizer driller etc.). Pulse cultivation is profitable, especially mug dal and lentils, which are saline tolerate and have potential as field crops. To strengthen this marketing system, a market committee should be empowered to take the responsibility for toll collection. (For more information please see the market map shown in Annex 1.) In theory local governments lease the markets/bazaars through competitive bidding, although, in practice, political/influential people take hold of the markets. The lessee collects the toll from the shops or sellers in the market in the form of cash or in kind and usually do not follow any rules. Moreover, the market committee does not have any control over toll collection. Hence, the poor producers/sellers at the market are disadvantaged. Pickles made of locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and making moa, chanachur, khurma, khaza, chatchoti, dal fry could be profitable IGAs. 4.5. Role of government institutions and NGOs and supports expected by the producers and other actors

4.5.1 Role of Government Institutions and NGOs

Department of Agriculture Extension (DAE): DAE provides direct counselling to the farmers through their Sub-Assistant Agriculture officer. They also demonstrate new technology innovations for the farmer and provide training events for groups of 30 farmers. Distributing relief seeds to farmers has also been an important part of the DAE for the last few years. In most cases, DAEs’ interventions do not reach the extreme poor. DAE officers are aware of HKI interventions related to

Loc

al C

onsu

mer

Collector (Paiker)20-25 persons

Retailer

( Rice seller)

20 - 25 persons

Small trader (Arotder)20-25 persons

Producer -57,0000 monds paddy -2,500 monds Khesary -1,250 monds Mug dal

Retailer (50 - 60 persons)

Big trader ( Mokam /Arot) 8-10 persons

19

seeds and training support to farmers and thinks that there is scope for more collaboration in training, farmer selection, seeds preservation and management, pesticides management and soil testing issues.

The main problem in crop productivity in the region as mentioned by respondents is that farmers tend to discuss with the insecticide vendors/agents for suggestions on fertilizer and pesticide use, which has a negative impact on farm productivity, profitability and on ecology. Pesticide vendors do not have adequate technical knowledge on using fertilizers/pesticides; for them profit is the first and last issue they consider. Farmers without knowing the facts tend to contact them for technical advice. NGOs like HKI can help farmers understand that dealers/vendors are not the only party to communicate with and that they should test their soil and communicate with qualified agriculturists to decide their proportion and frequency of fertilizer use.

The respondents mentioned that other than paddy there is a huge potential for the different types of pulse, like moshuri, mug, felon and keshari. Cabbages, watermelon and chillies are also some crops that they think are important in terms of marketing and low transport costs to grow in those regions.

Department of Livestock Services (DLS): DLS provides subsidised vaccines, de-worming medicine, free consultancy/counselling to the farmers and farm owners. It also provides antibiotic powder, free field counselling by veterinary field assistants (VFAs), 5-10 day poultry and livestock training to 20 farmers per union a year.

District poultry farms provide 2-28-day-old chicks of Fahomi and Sonali breeds at Tk. 25 to the farmers. Each year village farmers buy around 30,000 of these birds. Raising this improved breed of chicken will enable farmers to make a profit of at least 36% per three-month production cycle. DLS also trains the farmers and farm employees on bird flu. Familiar with the HKI interventions in the poultry sector, the respondents encouraged HKI to provide training to the HKI-nominated vaccinator who is presently starting a business as a vaccination service provider.

The main problem with the government service is that the supply of inputs/human resources and medicine is inadequate. Only 50% of the available positions are staffed while other posts remain vacant for a long time. Medicine supplies are only enough to meet 15 days demand per year. Private service/medicine companies like ACI, Novartis, Advance, FNF, Itervet and Speed Care have branches and representatives in the region. However, the lack of proper control of poultry disease in the winter is still the main problem for the poultry sector.

According to DLS, estimated demand for eggs in the district market is 1.8 million per week whereas estimated local production is only 0.52 million, i.e. one-third of demand. Imports from neighbouring districts meet the rest of the demand. The selling price of an egg is double production costs and there is scope for cheap transport facilities around the region.

The respondents from DLS offices/farms are also critical of farmers not consulting veterinary doctors until it is too late. They believe that farmers, whatever their size, should be aware of the need to consult with veterinary doctors as soon as symptoms of poultry sickness come to their attention. HKI/partners can work to disseminate information and raise awareness for the benefit of the farmers and for the sector at large.

Department of Youth Development (DYD): DYD is present at district and upazila levels. At the upazila level office they operate a modest fund of approximately Tk. 100,000 of revolving credit, which they provide to selected entrepreneurs. Sadar Upazila of DYD trained 275 youths within a year on poultry, fish culture, vegetable and agriculture production. The beneficiaries are selected from the list provided by the local union parishad chairman. The DYD charges interest of 10% in declining rates and the repayment instalment is flexible. The respondents agreed that some of the beneficiaries may not have been the most deserving or vulnerable ones. They mentioned, however, that none of the NGOs in the area (including HKI) had come to the DYD for loan support for their beneficiaries. DYD personnel are constrained by their limited mobility to reach remote areas in support of deserving youth/folk. For the same reasons, DYD’s loan recovery rate is poor (80%), while NGOs’ recovery rates in the region were much higher before the cyclone. DYD officials also mentioned that they do not fully understand marketing techniques and they were unable to provide market linkage support or suggestions to their beneficiaries. Sometimes, the lack of marketing support is reflected in the credit approval process. DYD also says it is not sure that all the credit recipients use their money for the stated loan purposes.

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Department of Women’s Affairs (DWA): In the past, DWA provided credit to women amounting to between Tk. 10,000-15,000 for gainful employment options. This stopped recently because of non-repayment. Of Tk. 988,000 microcredit funds disbursed, Tk. 655,418 is overdue. It is not government policy to realise the money by using legal provisions. DWA also trains women in sewing, embroidery and kantha making. In the absence of a full-time district officer, an upazila level officer looks after the district office. Staff members were not well informed about HKI activities.

Department of Social Welfare (DSW): DSW provides credit of up to Tk. 5000 to farmers for agro and small businesses under the rural social welfare scheme. In addition to providing loans to disabled persons of up to Tk. 20,000, the department creates awareness and social protection against dowry payments, child marriage, child labour and disability. A respondent familiar with the activities of HKI partners in the region pointed out that there can be meaningful linkages with the beneficiaries if good communication with DSW is maintained.

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4.5.2. Institutional support expected by producers

Poultry sector: The FGD respondents expected the following solutions for the problems mentioned

earlier.

1. Providing livelihood development sites (LDSs) with flasks to help keep vaccines cold. LDS can inform Upazila Livestock Office about vaccine requirements in advance to prevent a crisis in time of need. Because most vaccinators cannot afford to buy a flask, they cannot maintain the cold chain and therefore cannot keep enough vaccines in store. Without proper storage, the efficacy of vaccines sometimes fails. 2. Poultry farmers expect training on poultry farm management. A strong networking relationship between producer and the Department of Livestock is important for farmers to receive technical support. 3. LDSs expect more training on common poultry diseases, its treatment and application of vaccines to give the farmers timely support. 4. As HKI does not provide financial services, farmers think it should promote linkages between financial institutions and producers. 5. The respondents requested information about the necessary steps they should take before an epidemic. In this regard, Department of Livestock support is important and requires establishment of good networking with DLS. Developing different-sized demonstration farms for chicken and duck rearing can motivate poultry farmers to improve their poultry-rearing practices, the availability of inputs, the costs and benefits from those businesses.

Vegetable sector:

1. Farmers should raise their vegetable beds higher than the water level to avoid salinity. Fresh irrigation water can be preserved in already existing canals. HKI can influence the Department of Public Health Engineering (DPHE) to introduce and provide support for rain water-harvesting systems. 2. The project should prioritise motivating farmers through learning sessions on biological and mechanical control methods for insect pest attacks. Alternative pest-control measures other than chemicals can be more helpful in this regard. 3. The vegetable farmers expect more training on identifying common diseases and taking effective measures against those diseases. 4. The farmers expect more motivational and awareness-raising support to stop indiscriminate application of inorganic fertilizers and pesticides. This will enable them to reduce their production costs and reduce environmental and soil degradation and health hazards to farmers. 5. As quality inputs are not available in the local markets and the price of the inferior inputs are higher, the farmers can assign a representative to go to a suitable market to purchase inputs and services in bulk for the group. 6. Farmers expect more support from HKI and its NGO partners to work with the LDS members to unlock the business potential through market assessments and developing business plans (marketing, financial, management, and organisational plans).

Field crop sector:

1. Farmers expect external support for re-excavation of canals and construction of culverts as part of cash for work programme to maintain the water level for irrigation and cultivation.

22

2. Farmers expect more information on IPM/ICM technology adoption. 3. Farmers anticipate more sprayers, power tillers and water pumps in the area. This might be achieved by farmers forming groups that can obtain loans or by others introducing equipment rental services that are affordable to farmers. 4. The farmers are not able to apply fertilizers to their crop fields in time and in the recommended doses most times. They need credit support to purchase fertilizers and other production inputs. Bangladesh Agriculture Bank (BKB) offered loans to farmers, but requires the farmers to have land available to mortgage the loan.

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V. Recommendations

Recommendations focus on two aspects for HKI interventions to achieve the objectives of REAL project.

Agricultural products and IGAs Marketing activities benefiting REAL project beneficiaries

5.1. Agricultural products and IGAs Issues Recommendation Profitable vegetable cultivation and IGAs

1. Considering cost, time and profit, continue to support beneficiaries in Patuakhali to cultivate vegetables like radishes, red amaranth, groundnuts, bitter gourds, watermelon, and papaya. 2. Encourage these beneficiaries to include the cultivation of brinjal, cabbages, and cauliflower. 3. In Barguna, continue to support beneficiaries in production of red amaranth, spinach, radishes, sweet gourds/pumpkins, bottle gourds, beans, cabbage, coriander, long-yard beans, papaya, bitter gourds, brinjal, capsicum, carrots, tomatoes and chillies 4. Encourage beneficiaries to include other vegetables like cabbages, cauliflower and watermelon. 5. Support beneficiaries to undertake IGAs like seed preservation and selling, organic fertilizer production and selling, and vegetable selling in the village and market. 6. Small processors usually use groundnuts as raw material for chanachoor and tomatoes to prepare ketchup. There is no practice of processing other vegetables.

Profitable field crops and IGAs

1. Support the skill development of beneficiaries producing rice, onions, garlic, pulses like mug, chillies, and maize in Patuakhali. Also encourage them to cultivate more maize, lentils, wheat, and soybeans to increase their income from crop cultivation. 2. In Barguna, farmers are producing Aus, Aman and pulses. Some farmers cultivate groundnuts, potatoes, sweet potatoes. Indigenous pulses like mug bean and lentils are profitable as production is good and marketing is easy, less labour and input required. While supporting the production of these vegetables, encourage its beneficiaries to focus on production of maize, rice seed, onions and chillies. 3. Support beneficiaries to undertake IGAs like rice-seed production and selling, equipment rental services, irrigation services, quality organic fertilizer, organic pesticides production and marketing, and soil testing services. 4. Encourage small-scale pulse processing like mug dal fry, boot (gram) dal fry, dabli and ankor fry, and pulses as ingredients of chanachur. These foods are easy to process as raw materials are available, processing and labour costs are low and demand is high in the local market. 5. HKI to encourage its beneficiaries to engage in food-processing activities like making pickles from locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and making moa, chanachur, khurma, khaza, chatchoti, and dal fry.

Poultry and related IGAs

There is a huge demand for eggs in Patuakhali. Currently farmers can produce 2,920,000 eggs (15% of demand), which is 10,950,000 eggs at Tk. 6 per egg. There is also demand for layer birds, which are also profitable. Considering this, encourage beneficiaries in Barguna to rear poultry birds and ducks for egg production. However, as mortality rate in Barguna is high, beneficiaries can start with indigenous birds and then move to layer birds. 2. Support potential IGAs like egg collection and selling, duckling selling, duck collection selling, chick rearing and selling, and chicken collection and selling. 3. Poultry feed could be processed in several ways such as making powder from khud (broken bits of rice), kura (husking mixed with particles of grain) and fish dust or low cost fry fish.

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5.2. Marketing activities Issues Recommendation Vegetable marketing by project beneficiaries

1. Form producer groups to gather their produce for group marketing. 2. Assist this group to establish linkages with small traders or collectors (paikers) so that collectors will come to a particular place (on a particular date and time) to buy vegetables where farmers will gather their produce for sale. 3. Identify or increase the number of paikers working with the groups. In the absence of paikers, farmers may also collect the produce with assistance of HKI partner NGOs. 4. Assist producer groups to intensify vegetable cultivation in one place to create a kind of vegetable belt around Patuakhali and Barguna. 5. Develop and increase production and marketing of inputs/services (seed trading and retailing, fertilizer retailing, ploughing service by tractor, irrigation service by power tiller and power pump and agro tools--paddle thresher, fertilizer driller) after market assessment. Farmers are already interested in buying good quality inputs and services. In Barguna farmers are looking for irrigation and equipment rental services, quality fertilizers, pesticides, seeds, seed-preserving techniques and crop varieties suitable to local soil and climatic condition. 6. Facilitate the effective functioning of farmer and service provider to develop a vegetable-value chain through group meetings, on-the-job training (learning sessions for one-to-two-hour orientation on particular problem) and exposure visits. 7. Facilitate the formation of market opportunity groups (comprised of value chain actors, input/service providers, private sector companies, leaders of business membership organizations and government policy makers) to improve relationship among different market actors that will ultimately improve competitiveness and reduce transaction costs to farmer. 8. Develop local seed supply chain by facilitating seed traders and retailers rather than direct seed supply to farmers. For example, HKI can work with local traders to distribute seeds or other inputs among the farmers. In this arrangement, farmers will identify their needs and traders will meet demand and provide value-added services to continue the collaborative relationship. HKI will arrange the payment to seed traders depending on the feedback of the farmers, quality of seeds and embedded services.

Field crops production and marketing

1. Support group representatives to visit different markets to understand market situation and scope for developing business relationships with traders. 2. Support producers to develop and manage household storage/warehouse system at farm and market level to get better prices for their crops. HKI can facilitate/pilot this process to address the price issue. Farmer could be linked with available banks and NGOs for post-harvest loans to preserve field crops for at least three to six months after harvesting. 3. Facilitate/develop local service providers operating irrigation facilities. Farmers are looking for irrigation and equipment rental services. They also reported that the use of agro tools such as power tiller, weeder and threshing machine is increasing in recent times. HKI, with its partners, can facilitate/develop service providers and assist them to market these services. These service providers can also be developed from the HKI partner members. For example, one threshing machine provided to one or two women members will enable them to start a service business at group and village levels. In Patuakhali, farmers plough their lands by using cows, The two to three power tillers for rent are unable to meet the huge demand for their services. Farmers willing to use this service have to wait two to three days for their turn. Some people also provide spray services to farmers’ plots. Farmers use the surface water for six months from the narrow canals and bodies of saline water. These farmers have also shown interest in commercial irrigation services. Farmers also lack proper information about soil conditions and therefore use excessive chemical fertilizers and insecticides guided by shopkeepers. This may be an opportunity for starting soil testing services. 4. Assist producer groups or local traders to start diesel-operated, mobile, rice-husking units as there are no post-harvest processing activities except cleaning and drying in most areas of Patuakhali and Barguna. Limited numbers of millers are working in the area

25

compared to demand. Milling can be operated collectively. Such value addition of paddy will enable group members to engage in processing and grain marketing to earn better prices for their products.

Poultry production and marketing

1. Assist groups to establish linkages with small traders or collector (paikers) so that collectors will visit door to door to buy poultry and ducks. In the absence of such collectors, farmers may assign one farmer from their farmer’s group to transport birds to suitable market places/traders. Otherwise collectors could buy from the village groups and transport the birds in a cage and sell to long-distance bazaar by van. 2. Develop local vaccinator/medicine seller through training and link them with DLS to deliver quality services. As there is demand for poultry feed in Barguna District, feed selling could be a good business.

Off-farm IGA Small grocery shops, tea stalls, pitha making and selling, fruits/vegetable selling on a small scale, saree /cosmetic, tailoring, kantha stitching, broom making etc. are some of the IGAs that worked well in many of our projects implemented in char areas. Other off-farm activities that could be piloted are bamboo products such as bamboo baskets, chaluni, jharuni required for rice cleaning and other processing activities; fish net making, fish drying, and dry fish selling; producing pottery of traditional and modern designs, paper boxes for sweets and packets like shopping bags and thonga, dairy products like curd, ghee etc.

Overall, all categories of respondents urged creation of credit services to purchase inputs like seeds, fertilizer, irrigation for vegetables and field crops and chicks, feeds, medicine and vaccine for poultry rearing. Credit is also required for income-generating and marketing activities mentioned above. The partner NGOs of REAL project can either provide/increase loans to vegetable, field crop and poultry sectors or assist beneficiaries to receive loans from other NGOs and financial institutions. REAL project should facilitate production and marketing activities through group planning and implementation. It can assist group members to link poultry, vegetable and crop farmers with local and high value markets.

VI. Annexes

Annex 1: Sectoral Map Annex 2: Discussion guidelines Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna Annex 4: Persons met/discussed for interviews

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LIST OF ANNEXES Annex: 1 (Sectoral Map)

Market Map of Indigenous Chickens at Kalapara Upazila

Business Enabling Environment

Market Chain/Value chain

50% 30% 20% Service Provision

Paikar 20-25 in Kalapara Sell- 165Tk/kg

Small Arotdar (6) Sell-175 Tk/kg Kalapara, Koakata, Mohipur

Big Arotdar (3) Sell-185 Tk/kg Patuakhali Barisal

Bepari Sell- 200Tk/kg Bepari of Patuakhali Barisal Dhaka

Consumer Local bazaar

Producers (Sell-160 Tk/kg Nilgonj, Nababgonj, Kalapara

Transport facilities

Cage maker

Feed supplier Credit

provider Treatment and vaccine and improve native variety

Toll collection policy

BLRI--Suitable breed and variety development

DLS Vaccine cold chain Chick supply policy

Medicine supplier

Consumer Kalapara Sadar, Restaurant

Consumer Patuakhali, Barishal, Dhaka,

Bepari

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Description of the Indigenous Poultry Market Chain at Kalapara

Producers and Production: 90% of the households (HH) of Kalapara Upazila rear indigenous chickens for household consumption; 70% of HHs at Char-rangabali rear ducks commercially and 30% of HHs totally depend on chicken production; the remaining 70% have 2-12 chickens per household. Most HH hatch the eggs and rear chicks for marketable size of 0.8-1.2 kg. The chicken supplier producers for the markets are from Kalapara, Mohipur, and Nilgonj. The total selling amount is 3000 pieces a month (100-120 pieces per day) from that market to the local consumer and 5-7 times in a year 800-1000 pieces/time sent to the outside markets (Patuakhali, Barisal, Dhaka). The demand for native chickens decreases in the rainy season. Paikers are not able to give weekly instalments so that their credit size is small (Tk. 5000); arotdars, however, also face similar problems and their credit size is Tk. 10000.

Main problems of the sector

Increasing price of balanced feed Lack of knowledge about modern chicken production technology Lack of saline adapted variety Lack of vaccination, medication Lack of capital for investment

Existing support (HKI and Sangram)

Producers are supported with improved training and Tk. 500 for chicken rearing and chicken houses in Kalapara Upazila through REAL project

Vaccinators trained for each 60 households or producer member

Support needed

Assist change to new production technology, credit, vaccine supply, subsidy in feed supply, market linkages

Recommendations

1. The producers should adapt modern commercial chicken rearing 2. Vaccine and medicine suppliers should be linked; 3. The capacity of LDS and local animal health workers should be increased by training

and linking with producer groups to influence production level 4. Customized loans could be promoted by credit-providing NGOs 5. A chicken business forum could be held to promote efficient supply of chickens to

outside markets

6. Department of Livestock Services can play a role to distribute vaccines more effectively

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Vegetable Market Map Kalapara Bazaar, Patuakhali

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29

Description of Vegetable Market Map of Kalapara, Patuakhali

Vegetables of Kalapara

Major vegetables:

Green vegetables, gourds, potatoes, Kangkong spinach, and papaya, lal sakh, bitter gourds, gourds, tomatoes, potatoes (4000 farmers)

Seasonal:

Beans, brinjal, cauliflower, cabbage radishes, pumpkins, beets, carrots, okra, bottle gourds, ridge gourds, cucumbers, bitter gourds etc.

Main vegetable markets:

Kalapara 80%, Mohipur 10% and Baillatola 10%

Major problems of the sector:

- Unavailability of fertilizer and insecticide in time

- No local vendors for seeds, fertilizer and insecticides

- Stagnant water and salinity in char area obstructs vegetable cultivation

- Limited local production

- Total demand is 56100 mond/year (1 mond = 37.32kg)

- Local production is 40% of total demand, that is 22440 mond /year

- Credit is not available after Sidr

-Lack of knowledge about modern production technology

- Tidal saline water

Limited extension services: Credit, training, preserved seed, transportation facility.

Services needed: Customized training, credit, transportation, cold storage, quality seed, spray machine and power tillers, irrigation service providers

Extension support from HKI and Speed Trust: Training, group formations, seed, cash, LDS development, and seed bank development

Facilitation support needed: Regular group meeting and on-the-job training (learning sessions of 1 to 2 hour orientation on particular problem), exposure visits for beneficiary and LDS, formation of market opportunity groups for market linkage, Upazila Agriculture Development Network (UADN), motivation for using herbal insecticides.

30

Crop Market Map, Barguna

Market committee

Credit policy for coastal area

Crop producer 570,000 mond paddy 2500 mond Khesary, 1250 mond Mugdal

Local consumer

Local consumer

Retailer 48 gb

Local consumer

Input supplier: quality seed, fertilizer, irrigation

Transport Truck, launch

MFI Bank, NGO

Information provider or trainer for modern cultivation of coastal area

Auto rice mill with paddy

drying ground

Business Enabling Environment

Infrastructure policy

Arat /Mokam Chandpur and

khulna 8-10 persons

Anis and kader

Arotdar (Paddy)

20-25

Rain-water harvesting policy

Arotdar Rice

20-25 Persons

Paikar (Paddy)

Market Actors

Business Development Services

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Annex 2: Discussion guidelines

A brief account of the methodology follows: Review of secondary data and documents: The review will begin with the documents and grey literature available in

Bangladesh related to the study such as reports, studies, and cases of GO, I/NGOs including Practical Action, which will help the researcher gain better insight into the study.

Interview with local NGOs: The study team will conduct face-to-face interviews of two focal NGOs present in each

district to identify ongoing IGA activities, profiles of involved people, supports and training provided by this NGOs, credit facilities, functioning processes, strategies to link poor people to markets, strengths and the point where they are lagging behind.

Focus group discussions: 8 FGDs discussions will be conducted in each district: 3 FGDs (1 for poultry, 1 for

vegetables and 1 for field crops/cereals) with between 10-12 participants (5 small farmers and 5 ultra-poor people as selected by HKI REAL project staff); 3 FGDs (1 for poultry, 1 for vegetables and 1 for field crops/cereals) with between 10-12 participants (5 medium-scale farmers and 5 large-scale farmers as selected by HKI REAL project staff); 1 FGD with between 10-12 relevant traders and 1 FGD with 10-12 vegetable-related middlemen and paikers. The researchers would lead the discussion to identify existing and promising income-generating activities, how do they market their product/produce, the market potential for ultra-poor and poor people, their involvement in post- harvesting activities, challenges and constraints they face, disparity between received support and expected support from GoB and NGOs, market environment, issues hindering effective functioning of the IGAs, and issues that need to be addressed. Checklists will be prepared for the FGDs.

Interview with GoB officials: 5 face-to-face interviews (1 with Department of Livestock and Poultry for poultry, 1

with Department of Agricultural Extension - DAE for field crops and vegetables, 1 with Women’s Directory, 1 with Department of Youth and 1 with vocational training centre) will be conducted in each district. The aim of these interviews will be to capture information such as existing initiatives and accessible support of GoB for ultra-poor people, expertise and skill development opportunities for poor people, strengths and limitations of GoB departments, facilities that could be utilized for the well-being of poor people, government rules and regulations to support ultra-poor people etc.

Discussion/meeting with HKI staff: At least 1 discussion/meeting in each district will be conducted with HKI staff

where researchers will attempt to understand their experiences on IGAs, opportunities and constraints, approaches taken to solve problems or grabbing the opportunities, relationships with stakeholders and GoB officials, supports from other NGOs, marketing linkages and challenges, existing market systems, credit facilities, field implementation problems, skills and training needs, innovations needed etc.

Study area: The study will be conducted in randomly selected upazila’s of REAL project working areas of Barguna

and Patuakhali districts. An equal number of upazila’s and participants will be covered during the study. Study time: The study will require 30 days to study the operation, its preparation, FGDs, interviews, meetings and

report preparation. Study team: The study team will comprise experts from relevant backgrounds who are directly involved in designing,

implementing and have specialized knowledge in this field (agro-processing specialists, PRA specialists, monitoring and evaluation specialists and facilitators). One team leader will head the team.

Reporting: The final study report is to be drafted and edited by an editing consultant and will be submitted to HKI on

or before four weeks after signing the contract.

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FOCUS GROUP DISCUSSIONS

Market and Marketing Survey For Reconstruction, Economic Development and Livelihoods (REAL) Project

PART 1: INTRODUCTION, WARM-UP I. Moderator introduction:

Rules of a focus group No comments on right or wrong answers One person talks at a time Honest responses are highly appreciated

II. Respondents introduction: Name and Place of the Session: Date:

Sl. No.

Name Age (Years)

Profession Types of activities Duration of involvement

(Years) 1

2

3

4

5

6

7

8

PART 2: QUESTIONS TO BE ASKED

Key Areas and Methods IGA Activities:

List of IGAs Who are mainly involved in IGAs?

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Women-oriented IGAs Why are they involved in IGAs; list of benefits from IGAs? Why have they selected the specific IGAs they are currently involved in? How many households in your area are involved in IGAs? Who are they? Poor/ultra poor/rich? (%) Where do you usually go for purchasing inputs? List product inputs 2 mobility maps -- men-women (quality, price and availability of inputs) Is it cost effective? Where do you sell your products? Ways of marketing the product Means of transportation-related mobility and products/input Who are involved in the market chain? List of IGA problems p, Problem Ranking and Solutions Which IGAs are more promising? Why? Supports they receive for continuing IGA and expected support (present support

providers and who else could provide support) Access to credit facilities What other opportunities could be explored? (for example: value added, ways of

improvement, scope for processing activities) Crop Farmers:

What are the main crops of this area? Was there any change in cropping patterns after Sidr and why? Do you cultivate? If not, why? What are the constraints? Where do you sell your products? What are the ways for marketing the product? Who are involved in the market chain? Do they get expected return from marketing/selling their products? If not, why and how

to manage the situation? Where do you usually go to purchase inputs? List product inputs 2 mobility maps - men-women (quality, price and availability of inputs) Mode of transportation? Which one is cheaper and more effective? How many households in your area are involved in production of main crops? Who are they? Poor/ultra poor/reach? (%) What are the bi-products of those crops? Their use? Which products are more promising? Why? What available supports and services do they receive? Who provides support for marketing the product? Do they have access to credit facilities? Involvement in post-harvesting activities Kinds of post-harvesting activities Involvement of women in post-harvesting activities (scope for processing activities)

Venn Diagram or Mobility Mapping: Venn Diagram/Mobility Mapping will be used

to know the institutions/market for those crops and the distance from farmer areas to know the frequency of use of those institutions/market place to know the reasons for best market/institutions

Vegetable Farmers:

What are the main vegetables grown in this area? Where is the market?

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How many households are involved in production of vegetables? Who are the producers? Poor/ultra poor/reach? (%)

Where do you usually go to purchase inputs ? List of product inputs 2 mobility maps - men –women (quality, price and availability of inputs) What are your marketing techniques? Who are involved in the market chain? Do they get expected returns from marketing/selling their products? If not, why and how

to manage the situation? Transportation facilities (which one is cheaper and effective?) Availability of credit, training facility, technical support Who provides marketing support and in which form? Which vegetables are more promising? Why? Which is the more promising product: field

crop or vegetable? Involvement in post-harvesting activities Kinds of post-harvesting activities etc.

Market Mapping: Market mapping will be done

to know the market flow of products to know the income and market actors of this sector benefits from institutional buyer/local buyer # of market actors in each sectors (overlay) volume and rate of production selling by each actor (overlay)

Poultry Farmers:

How many poultry farms are there in the area? Farm size, employment, income? Why have they chosen this sector, benefits accrued from this sector? Where do you go usually to purchase inputs? List product inputs 2 mobility maps -- men- women (quality, price and availability of input) Effective transportation for product and input marketing What are your marketing techniques and market chain? Who provides support and services in this sector? Credit source? Availability? Risk? Opportunities, constraints and probable solutions – Listing, Ranking Expected solution providers Expectations etc.

Mobility Map/Venn Diagram and Problem and Solution Ranking Tool will be used in every session.

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Annex 3: Profitability and cause of profit margin in Patuakhali and Barguna Name of vegetable/spices/fruits/field crop

Level of profitability Cause of profit margin

Brinjal Height Less production cost Tomato Moderate More nursing cost Radish Height More production Cabbage Moderate Irrigation problem Cauliflower Moderate Good price and low production Danta Sak Height Good demand and price Red amaranth (lal sak) Height More production Ladies finger ( derosh) Moderate Less production Potato Height More production Sweet potato Height More production Onion Height More production and good price Chilli Height More production Watermelon Height More production Homestead bangi Moderate Less demand Papaya Lowest profit Less demand Guava Lowest profit Less demand Amra Moderate Less production Jujube Moderate Les production Rice Moderate High production cost Mosore dal Moderate High production cost Mug dal Height Less labour and input required Maize Moderate Processing problem Groundnut Moderate More production cost and good price

The Private Sector Company supplied pesticides through local retailers. Pesticide vendors do not have adequate technical know-how on pesticide use. For them profit is the first and last issue they consider. Farmers without knowing the facts tend to contact retailers for technical advice. NGOs like HKI can work to make the farmers understand that dealers/vendors are not the only party to communicate with. DAE and NGOs should link farmers with qualified agriculturists to decide their proportion and frequency of pesticides and fertilizers.

Irrigation service is weak and respondents recommended canal re-excavation, supply of power tillers (8, 12, 16 HP), power pumps (0.5 and 1 Q-sac). DAE needs to test the soil from time to time to improve soil nutrients. More nurseries should be developed to supply seedlings and saplings to farmers.

Women’s involvement in post-harvest and processing activities has decreased significantly. However there is scope for the following food-processing activities: small-scale pulse processing like mug dal fry, boot (gram) dal fry, dabli and ankor fry, and pulses as ingredient of chanachur. These processed foods are easy to produce at household level as the raw materials are available and there is good demand in local markets.

HKI can encourage its beneficiaries to engage in food-processing activities like making pickles from locally available raw materials such as boroi (jujubi), tetul (tamarind), jolpai (olives) etc. and making moa, chanachur, khurma, khaza, chatchoti, and dal fry. The main reasons for the success of these IGAs are availability of raw materials, low processing and production costs, and fewer preservatives needed, which keep the price low and affordable.

Most agricultural products (80%) sell just after harvesting. Women resisted undertaking processing, especially rice. The majority of farmers sell paddy and buy rice for their household consumption. The absence of maize-processing machines is a problem for the farmers. DAE did not provide any support for post-harvest processing for farmers. Salinity and drought (from September to May) are the main problems for agricultural production. For mitigating salinity, farmers cultivate saline tolerate BRI 47, BRI 40 and BRI 41 varieties of rice. During drought farmers are advised to cultivate groundnuts and pulse.

36

Annex 4a: GOB officials interviewed

1. Md. Quddusur Rahman, Credit Supervisor- DYD, Sadar Patuakhali, Mobile: 01716669681.

2. Md. Ibrahim, Credit Supervisor- DYD, Sadar Patuakhali, Mobile: 01721187265

3. Ms. Israt Parvin, Cashier- DYD, Sadar Patuakhali, Mobile: 01721187265

(Discussion with the three officials was in the absence of Mr. Sunil K Roy- Upazilla Youth Officer, Phone: 01716-212333, 0441-63359. Mr. Roy was interviewed later by phone.

4. Mr. Md. Alauddin, Agriculture Officer (In-charge), Sadar Patuakhali

5. Mr. Badarul Alam, Agriculture Extension Officer, Sadar Patuakhali

6. Dr. Md. Ashraf Ali, District Veterinary Surgeon, Patuakhali, Phone: 01715-590260

7. Krishibid Indrajit K. Mondal, Farm Manager, Government Poultry Farm, Patuakhali. Phone: 0441-64113 Mobile: 01712-117752.

8. Mr. Mokbul Hossen, Coordinator, Jatiya Mohla Sangstha, Phone: 0441-62946.

9. Ms. Shilu Rani Dey, Upazilla Social Welfare Officer, Kalapara Phone: 01711113397.

Annex 4b: (PNGO Staff meeting participants)

1. Place of the session: Head Office of SANGRAM Date: 04 November 2009 Upazila: Sadar, District: Barguna

Sl. No.

Name Designation Responsibilities Duration of Involvement

01. Chaudhury Md. Masum

Executive Director

Policy making and implementation

25 years

02. Chaudhury Md. Munir

Deputy Executive Director

Policy making and implementation

8 months

03. Md. Yusuf Deputy Director

Policy making and implementation

,,

04. Md. Masud Sikder Assistant Director (Training)

Training programme design and organizing

,,

05. Md. Shamim-Al-Mamun

Project Coordinator (REAL)

Project implementation management

,,

06. Md. Jasim Uddin Accountant Following up the project accounts

..

07. AKM Anisuzzaman Field Coordinator (REAL)

Technical support on gardening

,,

08. Faisal Iqbal ,, ,, 12 years 09. Monwarul Kabir

(Tuhin) Accountant (REAL)

Project accounts following up

10. Moabrat Sarker Polash

FO (REAL) Implementation of project activities

11. Md. Mizan ,, ,, 12. Mst Farida Yeasmin ,, ,, 13. Mst Ruma Begum ,, ,, 14. Bidhan Chandra ,, ,,

37

15. Md. Moniruzzaman ,, ,, 16. Md. Shahjalal ,, ,, 17. KM Hasan ,, ,, 18. Md. Shahjalal Milon ,, ,,

2. Place of the session: Head Office of SANGKALPA TRUST

Upazila: Patharghata, District: Barguna Date: 03 November 2009

Sl. No.

Name Age (Years)

Designation Responsibilities Duration of Involvement

01. Mallik Md. Ayub 59 Executive Director

Policy making and implementation

25 years

02. Zillur Rahman 35 TFO (HKI) Technical support 8 months 03. Md. Ektakhigrul

Alam 25 FO Programme

implementation ,,

04. Asaduzzaman 25 FO Programme implementation

,,

05. Md. Saiful Islam 25 FO Programme implementation

,,

06. Md. Musa 26 FO Programme implementation

,

07. Md. Moniruzzaman 30 FC Technical support on gardening

,,

08. Md. Rahim 37 PC Coordination and following-up the project accounts

12 years

3. Place of the session: Head Office of SPEED TRUST

Upazila: Kalapara, District: Patuakhali Date: 04 November 2009

Sl. No.

Name Age (Years)

Designation Responsibilities Duration of Involvement

01. Madhabi Hossain 30 Field Coordinator

Coordination and implementation

8 months

02. Rakib Hossain 35 Field Coordinator

Technical support 8 months

03. Sonjoy Das 25 FO Programme implementation

,,

04. Morjina 25 FO Programme implementation

,,

05. Rashida Khanom 25 FO Programme implementation

,,

06. Azizul Isalam 26 FO Programme implementation

,

07. Monjural Islam 30 FO Programme implementation

,

08. Abul Hossain 37 FO Programme implementation

,

09

Md. Abdullah 30 FO Programme implementation

,

38

4. Place of the session: District Office of SAP Bangladesh

Upazila: Golachipa, District: Patuakhali Date: 03 November 2009

Sl. No.

Name Age (Years)

Designation Responsibilities Duration of Involvement

01. M Masud 37 Project Coordinator (REAL)

Policy making and implementation

8 months

02. M Mamun 42 District Manager

Policy making and implementation

,,

03. Rafiqual Islam 28 Technical Officer (Horticulture)

Programme implementation & technical support

,,

04. Ruhul Amin 28 Technical Officer (Agri.)

Programme implementation & technical support

,,

Annex 4c: (HKI Staff meeting participants)

Sl. No. Name Designation

01. Nazmul Huda

District Coordinator-Patuakhali

02. Aminul Islam

Technical Field Officer (TFO) (Hort)

03. Mohsin Ali Sardar

TFO (Animal Husbandry)

04 Nargis Ara

TFO (Trg.)

05 Wazadul Islam

TFO

06

Moshfikur Rahman Project Assistant

07

Hemayat Hossain District Coordinator-Barguna

08

Golam Maula TFO (Cash for Work)

09

Mofazzol Hossain TFO (P & L)

10

Indira Thakur TFO (Trg.)