Strategies for horticulture development for the Bangladesh market

The Bangladeshi market is worth about US$ 7.3 million, with major part of the market being for apples, mandarin and a small opportunity for the off season vegetables.

The value of apple export has not increased since 1997. In 2004, the value of apple export was US$ 989,000. Although efforts to improve the production management and quality of apples have been one of the major focuses of the MoA, the export earnings have not improved. A market study by the MoA indicates that, despite its proximity to the Bangladeshi market, Bhutan is losing its apple market share. The period of supply for Bhutanese apples in the Dhaka market is August – October when it is competing against cold-storage southern hemisphere supplies from New Zealand, Australia and South Africa. This should favour Bhutanese products. Against this is the fact that it is competing with fresh Chinese products. Bhutan is less competitive for reasons related to the likes of pricing, variety, packaging, entry point into the marketing chain, etc. The strategy to revitalize the apple industry should therefore be:

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  Apple industry needs an overhaul. The current system of managing apple orchards, choice of varieties, etc. is outdated. The current yield of 2.5-4.5 MT/ acre is far below the international yield of 20-25 MT/acre. This has to be achieved by following high intensive production techniques maximizing the returns per acre.
  
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  Utilization of dwarfing/ semi dwarfing root stocks on new varieties of demand in the market need to be planted in high density orchards. Current production technique recommends about 109-120 trees per acre, whereas major apple production areas in Australia and New Zealand are even growing 3,000-5,000 trees in one hectare.
  
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  Replanting and rejuvenation of old unproductive apple trees (trees older than 35 years) with new popular varieties in demand in the markets
  
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  Undertake mass campaigns in all major production areas to improve current production practices
  
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  Improvement in the grading, packing and quality standards to improve the presentation in the target markets (use of fiber board boxes with fillers)
  
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  Remedial actions recommended to improve the Bhutanese apples in the Bangladeshi market include:
  
  1. 
     Reducing the marketing chain so as to protect the product against undue perishability and thus remain competitive against the cold stored products.
     
  2. 
     Being price competitive.
     
  3. 
     Improving packaging and final product presentation through the likes of waxing and socks.
     
  4. 
     Making more frequent smaller loads so as to assist the final seller with lower storage costs.
     
  5. 
     Working higher up the marketing chain, this is more directly with end retailers.
     
  6. 
     Adjusting varieties, especially towards the red elongated types related to the Red Delicious.
     
  7. 
     Internal efforts within Bhutan to boost production by addressing local production problems.
     

Mandarin is among the top ten export commodities till date and generates about Nu. 200 million annually. Total annual production is declining due to citrus greening disease, and other pests and diseases, and poor orchard management practices. The industry is export-oriented as more than 62% of the total production is exported. However, this scenario could be different if all the citrus production areas are easily accessible by road and transportation.

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  Improved orchard management practices need to be advocated in all the major mandarin growing areas by mass campaigns
  
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  Establishment of large demonstration orchards to showcase the improved management techniques like proper training methods, irrigation (S/Jongkhar, Chhukha, Sarpang & Tsirang)
  
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  The citrus industry is currently functioning on one single variety (local mandarin). This has a lot of disadvantage in terms of susceptibility to pests and diseases. Therefore, new varieties depending on the demand from the market need to be introduced and grown in large scale.
  
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  Setting up of collection depots and packing areas besides the border towns need to be identified and established
  
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  Redistribute the abandoned orchards to the landless or poor farmers under the resettlement programme
  
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  Institute legislative or regulatory measures for the absentee orchard owners to comply with the Ministry of Agriculture’s recommendations on land management practices
  
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  Utilize mechanized sorting and packing facilities established at FCB P/ling for all exported produce to improve efficiency and presentation of the produce.
  
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  Growers group marketing efforts like the ones initiated in Panbang and Dagapela for Mandarin export should be encouraged in other major production areas to increase benefits and reduce costs. These will not only improve the bargaining capacity of the growers but also be used to impart other production management skills and input delivery mechanisms.
  

In July 2004 and 2005, AMS undertook trial shipments of summer vegetables and fruits from Bhutan to Dhaka in Bangladesh. Taking all the costs and factors into account, in the opinion of the Ministry and Embassy specialists, the identified Bhutanese vegetables and fruits can be successfully marketed in Dhaka from the end of May to the end of August each year. The vegetables for which the demand is the highest are asparagus, French beans, broccoli, the Bhutanese chilli, cauliflower, ginger, and tomato. The fruits that are in demand at time of the year are peaches and plums. These products are not readily available during the hot summer months in Bangladesh. However, Bangladesh is increasing the range of products that it imports and these products are well known in the market. Bhutanese farmers must be made aware that in order to compete with these off-season imports and some local products, they must supply products of the highest quality that have been harvested at the correct degree of maturity, have the most careful attention paid to post harvest preservation, are properly graded, very carefully packed, and then transported to the market in a refrigerated vehicle or container.

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  Detailed price profiles to be developed as a basis for negotiation with the importers in Dhaka
  
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  FCB may be made the export agent and commence the preparation of the appropriate paperwork.
  
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  A detailed production availability profile to be established for the crops targeted for export. ( this information is available)
  
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  National Post Harvest Centre must advise the growers on:
  

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  Optimum maturity for harvest
  
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  On-farm methods of reducing field heat.
  
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  Preferred temperature and humidity storage conditions.
  

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  Grading standards must be established for the vegetables (mostly quality and grading requirements be provided by the importer).
  
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  Appropriate transport / preferably cool chain are arranged for the movement of the vegetables.
  
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  The Bangladeshi Ministry of Finance to be requested duty-free entrance status for the vegetables.
  

These markets characterizes tiny volumes of extremely high value products e.g. Cordyceps, Matsutake & red rice.

Bhutan has exported matsutake since 1991. Destinations for Bhutanese matsutake are Thailand, Singapore, India, Nepal, Korea, and Malaysia. It is high priced - low volume and thus well equipped to sustain the high costs associated with air transport. This recognizes that for Bhutan as well as a large number of less developed countries, logistics are a major issue. Road transport may be cheaper compared with air but for the cool chain critical for products such as fresh matsutake, road transport presents a number of critical areas where the cool chain can be stretched to the point of breaking. Collection occurs in the rural sector, which is the focus of the Government’s rural enterprise development program.

Fruit crops like passion fruits, guava, peaches, pears, persimmon, and vegetable crops like chilli, tomato, cabbages, cauliflowers, broccoli, peas & beans, asparagus, etc. have also been promoted to a large extent by the MoA, mostly as a crop diversification measure to enhance the income and nutritional intake of the Bhutanese people. Therefore, efforts to continue developing these crops in terms of improved varieties, production management techniques, post harvest and processing capacities and collection of market information will be required to have commercial impact in the long term.

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  The horticulture research and extension efforts need to be streamlined and given more impetus with the setting up of commodity development groups for the major commodities like citrus, potato, apple, vegetables, medicinal & aromatic plants, herbs & spices ( to cover crops like ginger and cardamoms, herbs, etc.), consisting of crop specialists, economists, marketing experts, etc. Horticulture research should be demand driven and therefore should form a part of the development and marketing initiatives.
  
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  Marketing efforts need to be streamlined within the commodity development groups. The marketing division has the overall mandate of development of the agricultural marketing efforts, however, due to the organizational differences, there is no coherent approach to the marketing requirements of the commodities pursued by the different departments.
  
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  Excess land under horticulture – people who have already invested in orchards and have been found to have excess land should be allowed to buy these lands within a prescribed ceiling, instead of eliminating the already invested orchards.
  
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  Provide funding assistance to growers to expand areas, improve productivity, utilize high tech methods of commercializing horticulture like use of large green houses, net houses, drip/ sprinkler irrigation, production of new crops, construction of post harvest and packaging facilities on farm, improved transportation and marketing systems, etc. (e.g. subsidize investments on alternative irrigation systems for horticulture : Govt. provides 40% of the investment cost per acre of horticultural land under improved irrigation).
  

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  Ensure availability of inputs like seeds, fertilizers, plant protection chemicals, etc. at the right time by setting up groups/ associations for input delivery at the production sites at least one in each Dzongkhag.
  
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  Encourage private entrepreneurs to take up specialized services in horticulture like seed & seedling production, pest management, pruning, training, harvesting, packing, grading, transportation etc. by providing incentives like tax exemptions.
  
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  Strengthen the capacity of the Dzongkhags through appointment of horticulture specialists (subject matter specialists) and plant protection supervisors at the Dzongkhag and Geog levels
  
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  NRTI should introduce diploma in horticulture, or undergraduate programme in specialized horticulture skills development subjects rather than focusing on general agriculture extension methods, etc.