A Value Chain Analysis of Cauliflower and Tomato in Bangladesh

Abstract

Improved agricultural value chains linking rural and urban areas can provide opportunities to initiate development interventions. This paper was aimed at mapping the value chain of cauliflower and tomato along with the identification of internal and external governance structures throughout the chain. Data were collected from 100 farmers and 60 traders, selected through the application of simple random and purposive sampling, respectively. Value chain mapping techniques and marketing margins were used for evaluating the economic performance of each actor. To uncover the farmers’ perceptions of internal and external governance structures, the Likert scaling technique was utilized, which was checked by applying the Mann–Whitney U test. Eleven marketing channels were ascertained for cauliflower and tomato, whereas wholesalers contributed the largest share of gross (32.28% for cauliflower and 31.96% for tomato) and net (57.41% for cauliflower and 48.09% for tomato) marketing margins. The highest return on investment was obtained by Aratdars. The lowest amount of cauliflower (1.51%) and tomato (1.30%) were responsible for direct marketing. The benefit–cost ratio was found to be 1.30 and 1.25, respectively, for cauliflower and tomato. This paper revealed considerable differences among NATP and non-NATP farmers with regard to internal and external governance practices. Despite both groups reporting good internal governance practices from their own perspectives, the negative attitude of NATP and non-NATP farmers toward the existence of good external governance practices created a matter of deep concern. To ensure the farmers’ benefits, good governance practices must be implemented throughout the value chain.