Keyword

Flower business, Channel members, Seasonal variation, Profitability.

Abstract

As an emerging sector, the commercial cultivation of flowers is gaining popularity in Bangladesh and creating a new competition of high-quality flower production. This paper examines the price differences practiced by growers and other channel members of the industry which is affected by seasonal variation. Using the evidence collected from 220 respondents of growers and channel members like local traders, wholesalers and retailers, the study finds that the market price of flowers usually remains uncertain and unstable in Bangladesh, and it is mainly associated with its demand and supply in the market during different seasons. Higher price is observed for Rose, Tuberose, Gerbera, and Gladiolus in rainy season when the supply and wastage of perishable flowers fail to match the demand of those flowers. On the contrary lower price is observed in spring when the supply of flowers increases due to favorable weather for production. However, flower traders get more prices by selling Marigold in winter, the time which is suitable for cultivating and harvesting.  Nevertheless, they obtain lower price in summer. Moreover, they receive elevated price in winter for trading Jasmine and poorer in rainy season. This overall market price difference, in turn, affects the profit of the traders. In favorable weather, profits of flowers are found lower due to the additional supply of flowers compared to the demand whereas in adverse weather, extra cost of wastage or post-harvest loss makes the profit lesser again.

This study aims to provide useful policy insights to the policy makers as well as researchers for reducing the seasonal effects on flower trading in Bangladesh. In this way this study will also help the government to realize the importance and develop ways of solving the effects of seasonal variation driven price disparity on fresh flower business.


Full Text : PDF

References

Balamurugan, L.K., Jyothi, T. and Samudhra Rajkumar, C. (2014). Production, post-harvest handling and marketing of cut-flowers in Tamil Nadu, International Journal of Recent Scientific Research, 5(11), pp.2117-2122.
Bangladesh Bureau of Statistics (2016). Statistical Yearbook Bangladesh, Dhaka, Ministry of Planning, Government of the People’s Republic of Bangladesh.
Bangladesh Bureau of Statistics (2017). Statistical Yearbook Bangladesh, Dhaka, Ministry of Planning, Government of the People’s Republic of Bangladesh.
Bangladesh Bank, (2019). Exchange rate of Taka (online). Available at: http://www.bb.org.bd/econdata/exchangerate.php [Accessed 05 Feb. 2020].
Begum, M. (2015). Ornamental Flower: Local and Export Market of Bangladesh, Bangladesh Journal of Tariff and Trade, 1(2), pp 43-53.
Export Promotion Bureau, (2012). Bangladesh: Cut flower exports decline as domestic consumption rises, Export Promotion Bureau Database, 2016.
Financial Express. (2019). Flower business in Jashore blooms in February, Financial Express, [online]. Available at: https://thefinancialexpress.com.bd [Accessed 13 Feb. 2019].
Griffen, M. (1995), Challenging the Tulip, Ceres. The FAO Review (FAO), 27,3, (May-June).
Haque, M.A., Miah, M.A.M, Hossain, S. and Alam, M., (2012). Economics of Marigold Cultivation in Some Selected Areas of Bangladesh. Bangladesh Journal of Agricultural, 37(4), pp. 711-720.
Haridas, S.K. (2010). Evaluating the Performance of Wayanad District Floriculture Society, MBA Project Report, Kerala Agricultural University, Trissur.
Hossain, M.D., Bhuiyan, M.S.R., Hossain, M.S., Paul, D.N.R. and Ullah, M.Z. (2015). Variation in Demand, Supply and Market Price of Different Genotypes of Gladiolus Flower Available in Bangladesh, Journal of Sylhet Agricultural University Bangladesh, 2(2), pp. 275-281.
Hossain, S.Z. (2019). Floriculture business showing robust growth, Dhaka Tribune, [online]. Available at: https://www.dhakatribune.com [Accessed 24 Feb. 2019].
Jahan, H. (2009). Production, post-harvest handling and marketing of cut-flowers in Bangladesh: An agribusiness study. SAARC Journal Agriculture, 7(2), pp.1-14.
Khan, A. (2013). Flower Market Development in Bangladesh. In: National Seminar on Floriculture Development in Bangladesh, Dhaka: Ministry of Agriculture, Available at: https://www.researchgate.net/publication [8 May.18].
Kotler, P. and Keller, K. (2014). Marketing Management, 15th Edition, Upper Saddle River: Prentice Hall, pp.425-426.
Laboni, S. A., Promy, J. A., Abdullah, S.Z. (2019). Export Potentiality of Flower Industry: A Case Study on Bangladeshi Flower Industry, North American Academic Research, 2(11), pp. 251-271.
Mohanan, A. (2015). Economic Analysis of Orchid Flower trade in Kerala, M.S. Thesis report, Department of Agricultural Economics, College of Agriculture, Vellayani, Thiruvananthapuram, Keral, India
Mohiuddin, M. (2016). Flower Business Flourish Floriculture: A Study on Bangladesh. International Journal of Business and Management Invention, 5(10), pp. 09-13.
Mou, N.H. (2012). Profitability of flower production and marketing system of Bangladesh. Bangladesh Journal of Agriculture Research, 37(1), pp. 77-95.
Omar, M.I., Chowdhury, M.M.I., Islam, M.T., Islam, M.R. and Islam, M. (2014). Marketing Efficiency and Post-Harvest Loss of Flower in Bangladesh. Journal of Business and Management, 16(1), pp. 45-51.
Raha, S. K. And Sultana, N. (1995), Marketing Flowers of Flowers in Dhaka City, Bangladesh, Bangladesh Journal of Agricultural Economics, 18(454-2016-36491), pp.43-50.
Raha, S.K. and Siddika, M. (2004). Price spreads in cut-flower marketing: Some evidence from Bangladesh. Bangladesh Journal of Agricultural Economics, 27(2), pp. 87-97.
Rakibuzzaman, M., Rahul, S., Jahan, M. R., Ifaz, M. I. and Uddin, A. J. (2018). Flower Industry in Bangladesh: Exploring Floriculture Potential. International Journal of Business Social and Scientific Research, 7(1), pp. 50-56.
Sangeetha, K. (2005). Marketing of commercial flowers-a study in Palakkad and Thrissur districts of Kerala, Doctoral Dissertation, Department of Rural Marketing Management, College of Cooperation Banking and Management, Vellanikkara.
Singh, S.B. and Punitha, P. (2012).  Entrepreneurship Development through Anthrium Flower-A Case Study of Mizoram, North-East India, Indian Research Journal of Extension Education, 12(3), pp. 74-78.
Singh, R. D., Burark, S. S. and Meena, G. L. (2008).  Marketing Behavior of Marigold Flower Cultivation in Jaipur District of Rajasthan, Indian Journal of Agricultural Economics, 63(3), pp. 383.
Steephan, L. (2011). Changing scenario of Cut Flower Industry in Central Kerala-An Economic Analysis, M. Sc (Ag) Thesis, Kerala Agricultural University, Trissur.
Wardad, Y. (2019). Lower business booms in country-output hits record 3.2 billion pieces last FY. The Financial Express [online]. Available at: https://thefinancialexpress.com.bd [Accessed 04 Feb. 2019].
Yeasmin, S. (2009). Socioeconomic Impact of Commercial Floriculture on Improving Livelihood of Farm Households in Selected Areas of Jessore District. M.S. Thesis, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.