Marketing System of Potato in Bangladesh By Tanvir Wahid Lashker.pdf

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    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    MARKETING SYSTEM OF POTATO IN BANGLADESH

    COURSE: SUPPLY CHAIN MANAGEMENT

    INGENIOUS GROUP

    BBA

    DEPARTMENT OF MARKETING

    JAGANNATH UNIVERSITY

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    INTRODUCTIONPotato is considered as a high value crop withhuge potential for both domestic and

    international markets.Though Bangladesh has become a major potato

    producer in the SAARC countries, the status ofthis crop has remained vegetable in the country,what it was four centuries ago.

    A developing country like Bangladesh needsnot only the quantity of food but sufficientquantity and quality of a balanced nutritiousfood.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    Potato is the most consuming vegetables among all.It is very important of its various advantages.

    The word potato may refer to the plant itself aswell as the edible tuber. It is the world's fourth-largest food crop, following rice, wheat, and maize.

    The Spanish introduced the potato to Europe in the

    second half of the 16th century. The staple wassubsequently conveyed by European mariners toterritories and ports throughout the world.

    ABOUT POTATO

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    GLOBAL POTATO ECONOMY

    1991 1993 1995 1997 1999 2001 2003 2005 2007Countries million tonesDeveloped 183.13 199.31 177.47 174.63 165.93 166.93 160.97 159.97 159.89Developing 84.86 101.95 108.50 128.72 135.15 145.92 152.11 160.01 165.41

    WORLD 267.99 301.26 285.97 303.35 301.08 312.85 313.08 319.98 325.30

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    GLOBAL POTATO ECONOMY

    Quantity (tones)

    1. CHINA 72 040 0002. RUSSIAN FED. 36 784 2003. INDIA 26 280 000

    Top potato producers, 2007

    Potato production, by region, 2007

    Harvested

    area

    Quantity Yield

    hectares tonnes tonnes/hectare

    AFRICA 1 541 498 16 706 573 10.8ASIA/OCEANIA 8 732 961 137 343 664 15.7EUROPE 7 473 628 130 223 960 17.4LATIN AMERICA 963 766 15 682 943 16.3NORTH AMERICA 615 878 25 345 305 41.2WORLD 19 327 731 325 302 445 16.8

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    CURRENT POSITION OF POTATO IN BANGLADESHPotato was introduced in this subcontinent in the 16th

    century.

    1920- First commercial production of the crop wasestablished.

    From 1955-85 annual area planted increased from 25,900to 1,11,300 ha with an avg. annual growth rate of 10% .

    In 2008, about 8 million metric tons of potatoes have beenproduced.

    2010-11, export 125 crore taka in 23 countries. Before this

    year the amount of the export was (2009-2010) 23 crore49 lac taka. In this point of view, its increase this time inone year, growth rate 443% (EPB As per the currenttrend, the population in Bangladesh is expected to bearound 172.9 million by the year 2020.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    MARKETING EFFICIENCY OF POTATO

    Efficient agriculture marketing is critically dependenton efficient transport system.

    Weak transport and marketing system are hinderingagriculture development means country development.

    The value or quality of vegetable will decrease rapidlyonce they are harvested and will keep decaying when

    being delivered.

    The revenue of food supplier will depend on thecondition of the products when they are received.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    Urban consuming Area

    Retail Harvesting Area

    COLD STORAGE OWNER

    FARMER

    BIG TRADERS

    (BEPARI)

    COM AGENT

    (ARATDER)

    COMISSION AGENT

    (ARATDER)TRADER

    (PAIKER)

    (RETAILER)

    1. NS & S denote Non Seed & Seed Potato Respectively.

    2. Indicates that potato is traded without storage in cold storage.3. ---- Indicates that potato is traded after storage in cold storage.

    4.Thickness of arrow indicate approximate transaction through differentsource

    PETTY TRADERS

    (FARIA)

    (CONSUMERS

    Existing

    Supply chain

    of

    PotatoIn

    Bangladesh

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    SUPER MARKET SUPPLY CHAIN MANAGEMENT

    In the super market and the chain shop like Agora, Meena Bazar, Swapno, Prince

    Bazar, Big BAzar etc. supply chain is different from the traditional market.

    POTATO FARMERSuper shop (Agora, Meena bazar,

    Swapno)

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    SUPER MARKET SUPPLY CHAIN MANAGEMENT (SWAPNO)

    SWAPNO SUPER SHOPWe visit in the Swapno (Wari) and try to explore their channel.

    Collect potato from SIRAJGANJ and centrally store in a cold store.

    Then they supply it to the their retail outlet as needed.

    In Wari Outlet, they sell everyday 100 kg (Average) potato.

    At present they sell potato at Tk 15 per kg which is 1 taka less from the local market and taka 5 more than the kawran

    POTATO FARMER (SIRAJGONJ) SWAPNO CHAIN SHOPOWN COLD STORAGE

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    Impact of Super Shop in Supply chain

    The cost of collecting potato of a chain shop is verymuch lower than the retailer of the traditional marketwhich is almost half.

    But due to this there are not that much change in thesupply chain of potato.

    Because, they collect potato at a lower price but this lowprice is not passed to the customer.

    Customer pay rate as high as in the traditional market.

    Thats why the customers are not very keen to buypotato from a super Shop.

    There are some regular and target customer who come

    and buy from the Chain shop.Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    POTENTIAL VEGETABLE-POTATO IN BANGLADESH

    2009-10 2010-11

    Export 234.9 1250

    0

    500

    1000

    1500Export of Potato(In MIllion Taka)

    In this point of view, its increase this time in one year, Growth Rate 443%.

    The demand for potato in our yearly is 70lac ton. Against this, the production of potato in this year ismore than 1 crore ton.

    Fiscal Year Amount (In Taka) Countries

    2010-11 125 crore Taka (More than) 23 countries

    2009-10 23 crore 49 lac taka 13 countries

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    DIFFICULTIES

    Inadequate storage/cold storage facilities.

    Lack of proper transportation.

    Lack of policy and financial support forentrepreneur.

    Inadequate power supply to coldstorage, power failure creates disaster every year.

    Lack of co-operation betweenfarmer, entrepreneur and government.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    RECOMMENDATIONS

    Develop new storage facilities withlatest Technology.

    Government Support. Reduce electricity failure.

    Co-ordination among different

    channels. Transportation Development.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    CONCLUSIONAmong all the vegetables potato is one of the most popularbecause of the production of potato is available in ourcountry.

    But due to some unsuitable factors, we are unable to enjoythe maximum benefit from potato that we believe can beachievable if we ensure the best utilization of our resources.

    Farmer should be well rewarded for their effort and

    dedication.Besides that if more super shop can be established then thecustomers have the highest possibility to buy potato in thelowest price.

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University

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    THANK YOUR FOR BEING WITH US

    Tanvir Wahid Lashker|BBA|Marketing|Jagannath University