Does COVID-19 affect the flower growers’ wellbeing, profitability, efficiency and technological shifts? An empirical study

Abstract

This study investigates the effects of the COVID-19 pandemic on the satisfaction level of flower farmers, market prices, farm income, profitability, efficiency and technological shifts of flower farmers based on the data collected from 113 sample flower farmers in Bangladesh. Satisfaction level was analyzed using satisfaction index while Tobit regression model was used to identify factors that determine satisfaction level. The profitability of annual and perennial flowers was analyzed using net return and Benefit-Cost Ratio. Meta-frontier DEA approach was used to identify efficiency differences. Farmers are relatively dissatisfied with their monthly income, price of flowers, and availability of buyers. Farmers are relatively dissatisfied with their monthly income, flower prices and availability of buyers. Buyer availability, transportation, market information, and quantity of inputs purchased have a positive effect on farmer satisfaction, while product sales to market intermediaries have a negative effect on satisfaction level. Market prices for flowers have plummeted due to disruptions to the flower supply chain across the country due to nationwide lockdown and shipping disruptions. Profits of annual and perennial flowers have decreased due to lack of customers, falling market prices and disruption of export markets. Furthermore, the Meta technical efficiency was highest before COVID-19 and lowest during COVID-19 compared with the meta-frontier, caused by the rising input prices, decreasing input availability, and suboptimal input usage. The Technology Gap Ratio (TGR) shows how the technology gap widened during COVID-19, suggesting that farmers could produce more during COVID-19 using the same inputs and technologies. • Farmers are relatively dissatisfied with their monthly income, price of flowers, and availability of buyers. • Market prices for flowers have plummeted due to disruptions to the flower supply chain across the country. • Profits of annual and perennial flowers have decreased. • The Meta technical efficiency was lowest during COVID-19.. • The technology gap widened during COVID-19.