FIL Outreach workshop presentation 5: Fish trader and feed trader survey results
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The document summarizes the results of surveys of fish traders and feed traders in southwest Bangladesh. It finds that most fish markets are privately owned and located in urban areas, and have access to basic facilities like electricity, ice, and roads for transporting fish. The number of fish and feed traders has increased significantly in the last decade. Fish trading deals mostly in carp, while feed trading sells floating feed pellets. Both fish and feed trading were profitable businesses but were negatively impacted by reduced demand during COVID-19, with traders reporting lower sales and incomes.
FIL Outreach workshop presentation 5: Fish trader and feed trader survey results
- 1. Photo Credit Goes Here FISH TRADER AND FEED TRADER SURVEY RESULTS Hazrat Ali, PhD Fellow, Bangladesh Agricultural University & Senior Research Analyst, WorldFish Balaram Mahalder 04 August 2022/Conference Room, Matsya Bhaban, Department of Fisheries, Ramna, Dhaka
- 2. DISTRIBUTION OF FISH MARKET • Assessed 31 markets from southwest and southern districts • Majority of the studied markets were from Satkhira, Bagerhat, Khulna and Barishal • Most of the markets (58%) are privately owned and reminder local government • 71% of market located in urban area 0 1 2 3 4 5 6 7 8 9 Number of markets
- 3. ACCESS TO FACILITIES • All market have access to pakka road to transport fish • Electricity (30 out of 31) • 77% of fish market have access to ice either from factory or seller • No cold storage facilities • 32% of markets had access to running water and reminder use own or public tube-well water 32 97 61 41 0 55 0 10 20 30 40 50 60 70 80 90 100 Running water Electricity Ice factory Ice seller Cold storage Toilets Percentage 0 10 20 30 40 50 60 70 80 90 100 >100 years 1950 1970 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Market built Electricity Running water Ice factoy Ice seller Toilet
- 4. TYPE OF ACTORS OPERATED IN MARKET • Markets create clusters of other business providing supporting services 0 10 20 30 40 50 60 70 80 90 100 Percentage
- 5. TRADER INCREASED FROM 2010 TO 2020 • Number of all fish traders increased over last 10 years • Biggest increase can be found for retailers and wholesaler • Fish trading business growing quicker than shrimp/prawn • Most traders registered but many retailers unregistered 33 66 87 96 0 10 20 30 40 50 60 70 80 90 100 % of traders increased
- 6. DISTRIBUTION OF SAMPLE FISH TRADER 15 23 19 13 30 N=329 Wholesaler Arotder Depot Assembler Retailer
- 7. SOURCES OF WORKING CAPITAL • > 76% of working capital was from earning from business or own saving • Some depots, assemblers and wholesalers received small shared of working capital from upstream traders • Arotders, depots and assemblers also provided cash credit support to supplier to ensure fish supply 62 66 52 56 66 19 18 16 11 11 3 4 7 6 13 5 9 11 2 3 9 1 12 12 3 2 2 13 7 Wholesaler Arotder Depot Assembler Retailer Earning from business Own saving Microfinance Bank Upstream traders Cooperatives
- 8. VOLUME OF FISH/SHRIMP/PRAWN TRADED 517 302 252 24 31 0 100 200 300 400 500 600 Wholesaler Arotder Depot Assembler Retailer Fish traded (ton/year)
- 9. SHARE OF FISH SPECIES SOLD (% OF TOTAL VOLUME) • Carp was major traded fish for wholesaler and arotder; on the other hand, depot and assembler mainly traded shrimp • Retailer sold different type of fish 58 49 4 17 36 10 11 0 8 19 20 26 5 9 38 8 9 82 59 4 4 4 9 6 1 Wholesaler Arotder Depot Assembler Retailer % of total volume Carp Tilapia Other farmed fish Shrimp Prawn
- 10. FORM OF FISH BOUGHT AND SOLD 9.3 21 5.9 53 38 89 76 38 46 58 2 2.9 56 1.2 3 Wholesaler Arotder Depot Assembler Retailer % of volume bought Live Dead, no ice Dead, with ice 0 18 0 10 24 4.3 81 0 25 65 96 1.2 100 65 11 Wholesaler Arotder Depot Assembler Retailer % of volume sold Live Dead, no ice Dead, with ice
- 11. MODE OF TRANSACTION Nobody use mobile financial service due to high charge 0 10 20 30 40 50 60 70 80 90 100 Wholesaler Arotder Depot Assembler Retailer % of traders Payment to supplier Cash Bank transfer Mobile money 0 10 20 30 40 50 60 70 80 90 100 Wholesaler Arotder Depot Assembler Retailer % of traders Received from customer Cash Bank transfer Mobile money
- 12. RETURN ON INVESTMENT Positive return on investment, indicates fish trading profitable business 1 6.4 2.4 7.3 5.5 0 1 2 3 4 5 6 7 8 Wholesaler Arotder Depot Assembler Retailer Return on investment
- 13. DISTRIBUTION OF SAMPLE FEED TRADER • Number of feed traders increased 178% over last 10 years • Highest growth rate southwest region (297%) and lowest in south region (83%) • Traders established from village level market to district city scatteredly indicates easy access to feed for farmers 43 57 N=79 Dealer Retailer
- 14. FISH FEED AND INGREDIENTS SOLD 643 245 0 100 200 300 400 500 600 700 Dealer Retailer Feed sold (ton/year) Dealer sold much higher amount of feed inputs than retailer
- 15. % OF TRADERS SOLD EACH FEED ITEM 0 10 20 30 40 50 60 70 80 90 100 Dealer Retailer
- 16. FLOATING FEED USE EVIDENCE FROM FARM SURVEY 0 10 20 30 40 50 60 70 80 90 100 Fertilizer Lime Sinking feed Floating feed Rice bran
- 17. SHARE OF DIFFERENT FEED TYPE Commercial pelleted feed particularly floating feed shared major part of total volume and sales value for dealer 39 6 26 12 10 18 4 7 12 20 Dealer Retailer % of total volume sold Floating feed Sinking feed Wheat product Rice product Other feeds
- 18. RETURN ON INVESTMENT Positive return on investment, indicates feed trading profitable business 1.13 0.8 0 0.2 0.4 0.6 0.8 1 1.2 Dealer Retailer Return on investment
- 19. MULTIPLE CHALLENGES SQUEEZE PROFITS • Higher input costs + lower demand • Lower turnover and lower income 94 20 88 84 11 86 97 55 73 52 66 99 Impacted by COVID- 19 Difficulties buying inputs Fewer customers Sold less product Sold at lower price Lower income Feed suppliers Fish traders Feed and fish trading business in SW Bangladesh reporting COVID-19 related challenges during 2020
- 20. REDUCED VOLUMES TRADED IN 2020 0 1000 2000 3000 4000 5000 2019 2020 Feed sold per business (t) Feed traders (-23%) 0 50 100 150 200 250 300 2019 2020 Fish sold per trader (t) Fish traders (-24%) Average annual sales for feed and fish traders SW Bangladesh, 2019 and 2020 • ≈25% lower sales in response to lower demand
- 21. CONCLUSIONS • Number of traders (fish and feed) increased rapidly over last decade and distributed from urban to rural area having good road communication facilities to transport input and fish, indicating easy access for farmers • Trading is family owned and operated business and predominantly created employment opportunities for male • Fish or feed trading require large amount of working capital, suggests an easy access of bank loan for them • Trading negatively impacted by COVID-19 by increasing transportation cost and lowering demand, indicates reduce turnover and lower income • However, fish and feed trading still profitable business, need supportive policy environment to ensure resilience (e.g. fish transport exempt from movement restriction during COVID-19)