Financial profitability and value chain analysis of pineapple in Tangail, Bangladesh

Abstract

This study was undertaken to estimate the financial profitability and assess the value chain of pineapple in Madhupur upazila of Tangail, Bangladesh. A total of 100 stakeholders were interviewed randomly using a structured questionnaire to collect primary data. A combination of descriptive, mathematical, and statistical techniques was used to analyze the data. The study depicts that 76.7% farmers used Giant Kew variety for pineapple production. Profitability analysis shows that pineapple production was profitable in the study area. The study reveals that the total value added by the stakeholders to a piece of pineapple was Tk. 38. Among the market actors, wholesalers added the highest value of Tk. 13 per piece (34.2% of total value addition). The study also identified six significant factors, namely, income, farming experience, credit access, market price, labor availability, and lower production of paddy having positive influence on farmers' decision to adopt pineapple production. The study found higher price of inputs, lack of preservation and processing facilities, and lack of operating capital as the major problems for production, value addition, and marketing of pineapple, respectively. The study recommended to ensure reasonable price of the inputs along with better infrastructure, transportation, and processing facilities to overcome the problems. Furthermore, monitoring facilities of government and non‐government organizations should be increased to improve quality of pineapple.

The cost-benefit analysis and constraints of pineapple production in Bangladesh

“…The per hectare net return of pineapple cultivation was Tk.239322 in the study area (Table 1). Approximately Similar findings were found in the work of Uddin et al (2022) and Suhaimi and Fatah (2019) who also worked on pineapple to analyze its significance financially.…”

“…This is because the BCR of pineapple production was more than one. The result is similar with Uddin et al (2022) where the author declared that being a profitable business, pineapple production could contribute to livelihood improvement of farmers.…”

“…In these circumstances, it will be difficult for them to maintain their existing production status in the study area. This point of view is also closely associated with the findings of Uddin et al (2022). Growers claimed the lack of storage facilities as their sixth minor constraint.…”

“…The collected data were analyzed using SPSS. To assess the profitability of different pineapple production methods, we applied net return analysis (Olson and Westra, 2022;Uddin et al, 2022) based on the equation:…”

“…Non-availability of credit in proper time was ranked as the second highest constraint to pineapple production in the study area. This was also identified by Uddin et al (2022) as a major problem for production. Farmers reported that they received loans from BKB with too much complexity such as not getting sufficient amounts at the proper time, collateral requirement, and high transportation costs for two/three times visited due to the unwillingness of that bank to provide agricultural loans.…”