Consumer-Perception and Quality Assurance of Agro-Products in Bangladesh-

Focus on Organic Foods (Vegetables, Fruits and Crops): Role of Consumer

Protection Laws, the State and Civil Society.

*JANNATUL MAWA NUPUR.

Abstract:
In the recent past a growing interest has been observed by different people e.g. consumers,
producers, development practitioners in quality and organic foods especially vegetables, fruits and
crops. Consumers’ preference for quality food taking is based on a general perception that organic
foods have more desirable characteristics than conventionally-grown alternatives. Human health,
food safety and environmental stewardship, along with several other product characteristics such as
nutritive value, taste, freshness, appearance, and other sensory characteristics influence consumer
preferences. With the growing number of diversified and complex goods, it has become difficult for
ordinary and individual consumers to assess the quality of the products and get the highest value for
the money spent. Consumers often feel frustrated and confused in choosing an item that would ensure
the reasonable value for money. Often they are cheated and deceived in quality, weight and price by
the dishonest seller. Consumer protection is no more a slogan today and it’s the concern of everyone
as all citizens are consumers. While consumerism has become a strong movement and consumer
organizations are highly powerful in the developed as well as in many of the developing countries, a
great majority of the consumers in our country are still in the dark about their basic rights and
obligations as consumers The general objective of this research is to investigate how different
aspects of quality are being ensured by the stakeholders of agribusiness within the Consumer
Protection Laws framework .The study will examine to what extent the Consumer Protection Laws
and the State and Civil Society are effective in order to ensure the quality of agro- products in
Bangladesh. The study will find out the market situation of quality food purchasing by consumers in
Dhaka city and the awareness, perceptions and attitudes of the consumers toward organic foods.

Keywords: Consumer Perception, Quality Assurance, Agro-Products, Organic Foods, Consumer Right,
Consumer Protection Laws, Stakeholders of Agro-products.

The Objectives of the Study

The general objective of this research is to investigate quality ensured by the stakeholders of
organic foods [1] within the Consumer Protection Laws framework .The study will examine to
what extent the Government and the civil society are effective in order to ensure the quality
of agro- products in Bangladesh.

*Senior Lecturer in Marketing, Department of Business Administration, Northern University

Bangladesh

1
Specifically, the purpose of the research may be stated as follows:

• To analyze the current scenario of organic foods consumption and application for
quality assurance within the Consumer Protection Laws.
• To identify the factors that will affect organic foods consumption by the consumers
in Dhaka city.
• To assess the quality assurance of agro products provided by suppliers, manufacturers
(farmers), wholesalers and retailers in Bangladesh.
• To investigate the role of government in Consumer Protection Laws and quality
assurance for the prospect of agribusiness in Bangladesh.
• To estimate the role of educators and other stakeholders for implementing the
Consumer Protection Laws and the prospect of agribusiness in Bangladesh.
1
Four keywords i, e. Consumer Perception, Quality Assurance, Agro-Products, Organic Foods are defined
in the Appendix # 01 (See page 52).

Literature Review:

Lord North Bourne (1939) [2] coined the term Organic Farming in his book “Look to the
Land” (written in 1939, but published in 1940), out of his conception of "the farm as
organism", to describe a holistic, ecologically-balanced approach to farming -- in contrast to
what he called chemical farming, which relied on "imported fertility" and "cannot be self-
sufficient nor an organic whole".

PROSHIKA, with its “Ecological Agriculture Program” (EAP) [3], is the peak organic body
in the country. Since 1978 it began to spread ecological practices among its group members
by growing varieties of seasonal vegetables. It’s EAP has involved around 0.8 million
farmers in organic cultivation across 0.22 million acres of land. Out of these, 0.22 million
farmers started to practice ecological agriculture on 0.08 million acres of land in the last five
years. It has also introduced an organic vegetable marketing project to promote the
consumption of organic vegetables. Between July 1999 and March 2003, it received some
funding support from the World Bank.

Olusegum et al (1990) [4] official quality control system of vegetables and fruit is based on
the principle of product quality assurance at all stages of production – from producer to
consumer. Producers are responsible for product quality and safety.
In 1990 the authors saw a spark of growth of private agribusiness enterprises, which
accelerated in the late part of the decade and continues its growth in the early part of the
2000s. The most visible growth took place in sub-sectors such as poultry, shrimp, potato and
cold storage, fruit processing, and supermarket chains. Several agribusiness trade and
industry associations started to organize themselves in the later part of the 1990s and their
growth continues in the early 2000s.

2
Groff et al (1993) [5] mentioned some key factors that affecting consumer preferences were
freshness, healthiness, flavor, nutrition, safety, appearance, price, environmental effect,
certification, where it is grown, and brand.
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2
http://www.agriculture-industry-india.com/india-agro-statistics, 11.01.2009, 12.05pm-
12.30pm
3
Asian NGO Coalition for Agrarian Reform and Rural Development,“ A Country Paper of
Bangladesh on Promoting Dialogue and Collaboration in Sustainable Agriculture &
Rural Development (SARD) Between NGOs/RPOs and Government”, Food and
Agriculture Organization of the United Nations (FAO-UN), Metro Manila, Philippines,
1978, p 12
4
Ajetomobi.J. Olusegum, F. “Agricultural Market Policy Reforms and Growth in Nigerian
Export Crops”, Nigeria, USA,vol-7,no-9, sl. no.63, 1990, p. 42
5
Groff, B, Samuel, et al, “Organic and Conventional Food: A Literature Review of the
Economics of Consumer Perceptions and Preference”, Organic Agriculture Centre of
Canada, Nova Scotia Agricultural College, 2006, p 65

Hysen, B. et al (1994) [6] older buyers, female and married consumers were more likely to
choose stores offering pesticide- free products.
H. Willer, et al (1998)[7] on the FAO/IFOAM meeting on Organic Agriculture-organic foods
consumption consider that because of their high price, organic foods are relatively unpopular
with consumers in developing countries It notes that market opportunities in high income
countries offer good incentives for practicing organic agriculture, but inadequate incentives
in low income countries.
In Bangladesh, a recent research on organic food consumers was conducted by Hossain,
Sugimoto, Ueno and Rafiul (2007) [8] and they observed that most of the consumers were
aware of the ‘harmful effects of pesticides or chemical fertilizer on human body and
environment’. Due to the lack of knowledge about organic food, they have no option to
normal food.
Asaduzzaman, and Itohara (2008) [9] shows that consumers were highly conscious
regarding their personal health, had medium awareness regarding the environmental hazards
caused by agro-chemicals, are aware, and a few had low awareness. But the supply of
organic food items in the local market was insufficient; and most mentioned that organic rice,
fruits, fish, shrimp, egg and chicken satisfied less than half of their family demand.
Omri Ben-Shahar (2009) [10] the "Myths of Consumer Protection" why he believes the
modern consumer protection movement is largely misguided. Consumer advocates three
things that consumers need: (a) information about products, (b) access to courts, and (c)
remedies for wrongs done to them. In the eyes of the consumer advocate, a consumer cannot
compete with large corporations without these three things.

Government Regulatory Agency: Bangladesh Standard & Testing Institution (BSTI)

The BSTI [11] is the only national standard body of the country recognized internationally.
Main functions of BSTI include:

3
 Development of national standards for agricultural and industrial products and services,
 Issues of certification marks,
 License for quality product and services,
 Testing of products and metrological services.
---------------------------------------------------------------------------------------------------------------
6
B. Hysen, V.Mensur, G. Muje, M. Hajrip, G. Halim, M. Iliriana an B. Njazi, “ Analysis
Of Consumer Behavior In Regard To Dairy Products In Kosovo”, The Journal of
Agricultural Research, Vol. 6 No. 3, 1994, p. 29
7
H. Willer, et.al, “Demand of Research and Development
In OrganicFfarming in Europe”, Organic Agriculture in Rome, Italy, 1998, p 63
8
Hossain, T, Shaikh, et al, “Adoption of Organic Rice for Sustainable Development in
Bangladesh”,Journal of Organic Systems, Japan, 2007, Vol-3 , No-1, P 29
9
Sarker, A, Yoshihito Itohara, Organic Farming And Poverty Elimination: A Suggested
Model For Bangladesh, Journal of Organic Systems, Japan, 2008, Vol-2 , No-2, P 37
10
Shahar, O. Ben,"Myths of Consumer Protection: Information, Litigation, and Access ",
Presents the 2009 Coase Lecture In Law And Economics, The University of Chicago Law
School, .2009, p 23
11
Labeling Act (2006) Ministry of Industry, The Peoples Republic of Bangladesh.

Packaging and Marking Rules

The material shall be packed in suitable well-closed containers. The container shall be legally
marked with the following information:
• Manufacturer's name,
• Recognized trade mark, if any,
• Name and type of material,
• Net content in 'g' of the material,
• Batch or lot number in code or otherwise.
The use of BSTI Certification is governed by the provision of the BSTI Ordinance 1985, and
the rules and regulations made there under.
Consumers' Association of Bangladesh (CAB)
Consumer Association of Bangladesh (CAB) [12], a Consumer Agency is a non- government,
voluntary association established on February 28, 1978. The government recognized it in
1983. It works with the International Organization of Consumer Association (IOCU),
established in 1960. The purpose of the organization is to protect the right of the consumers,
develop and promote awareness among consumers, and to organize the consumers.
ISO 14000 [13] family addresses "Environmental management".
This means what the organization does to:

• minimize harmful effects on the environment caused by its activities, and to

• achieve continual improvement of its environmental performance.

4
Methodology of the study

The illustrations of the objectives of the project above give an idea of the study. This is an
exploratory study, which is qualitative in nature. The main purpose of the study is to
investigate the quality ensured by the suppliers, manufacturers, wholesalers, retailers and
other stakeholders of agribusiness within the Consumer Protection Laws framework and its
practice in Bangladesh agro- market.
Among the various factors the study will attempt to find out the critical success -factors for
this industry through the secondary data analysis. The study will try to find out the strengths
and weaknesses of the industry. It will be done through collection and analysis of secondary
data (e.g. printed materials and digital resources) and primary sample survey data.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
12
Consumer voice (2001) April – June, and January – March, Consumer Association of
Bangladesh
13
Gemma C. Harper, Aikaterini M. “Consumer Perception of Organic Food Production
and Farm Animal Welfare”, British Food Journal, MCB UP Ltd, volume: 104 issue: 3/4/5,
ISSN: 0007-070X 2002, p. 287 – 299.

Research Period:

The study covered the period March 2003- April 2009. The period was very remarkable in
the sense of implementation of consumer rights in Bangladesh market. The period 2009 (Up
to April) was especially remarkable because of the urgent actions taken by the Caretaker
Government and current government to control the quality of consumer products in
Bangladesh. So the period enabled the authors a suitable opportunity which will help to
prepare the study.

Limitations of the Study

• There are no strong and active national organic movements in Bangladesh. Sufficient
secondary data were not available on this topic.
• For the success of the survey, the authors had to play a vital role in carrying out the field
work with shortage of time and fund.
• This study focuses on the selective consumers, wholesalers, retailers, suppliers, only in
Dhaka city, mainly metropolitan area. So, the findings of this study may not reflect the
overall status of organic consumers in Bangladesh, even in greater Dhaka. The sample
size was very selective as the surveys were conducted in the selected locations and the
focus group was only the green buyers (vegetables, fruits and other herbs).
• Some data could not be collected properly too (partially answered or skipped by the
respondents).

5
 Selection of Sample Size

The selection of sample size was made on the basis of the different segments of the industry,
in order to cover the agro-market as whole and 70 consumers are selective respondents
(green-consumers) of agro products in Dhaka City (Metropolitan), selective locations
(superstores, greengrocers, open markets), wholesalers and suppliers in total 70, retailers 50
and the farmers and producers are only 25.

Table-01: Data Selection at a Glance

SL. Categories of Respondents Sample Size Key Spots to Collect Data

1. Wholesalers and Suppliers 70 Mohammadpur Krishi
Market, Karwan bazar, New
Market
2. Producers or Farmers 25 Savar and Gazipur
3. Local Retailers and Super 50 Dhanmondi,Mirpur, and
Store Retailers NewMarket.
4. Consumers and Other 70 Gulshan, Mirpur,
Stakeholders Dhanmondi, University
students, educators,
researchers and other related
publics.
------ Total 215 --------

Quantitative Analysis and Findings

Demographic aspects of consumers

To assess the awareness, perceptions and attitudes of consumers in Organic food market
(here it’s only in Dhaka), it is crucial to know about the Socio-economic profile of
consumers. Because consumers’ purchasing behavior is influenced by cultural, social, and
personal factors. The findings of this study are tabulated below.

Table 02: Consumers’ Age Groups by Gender

Consumers Age Group (Year)

’ Age
Groups by
gender Under 20 20 - 29 30 - 39 40 - 49 50+ Total=70
Total % of 5.7%(4.3% 42.9%(25.7% 22.9%(8.6% 22.9%(7.1% 5.7%(2.9%
100.0%(48.6%)
Total ) ) ) ) )
Note: Parentheses give absolute frequencies
Source: Own Survey result 2008.

6
 Table 02 shows the total sample breakdown in terms of gender and age groups. Most of the
respondents 42.9% were young adult age in-between 20-29 years, followed by 22.9% of both
the age groups 30-39 years and 40-49 years respectively. Among young adults age in-
between 20-29 years most of them are female 52.9% within gender 25.7% of the total
consumers. There are 5.7% consumers who are over 50 years both in male and female. These
participants are treated as the experts, educators, experienced consumers and the social
workers. The similar percentage is also under 20 years also our prospective consumers most
are female.
Table 03: Gender and Marital Status of Consumers

Gender Percent distribution of consumers by Marital status(%)

(1)Married (2) Single (3) Others (4) Total

81 16 3 100 (36)
(1) Male
(2) Female 65 35 0 100 (34)

Total 73 26 1 Total= 70
Note: Parentheses give absolute frequencies
Source: Own Survey result 2008.
Table 03 shows the percentage distribution of consumers in terms of gender and marital
status. Out of 70 consumers 81% consumers are married male. They are the major portion of
our respondents who are concerned enough about the organic food taking and purchasing.
Only 16% are single and purchase the organic foods because of the readiness and easy to
take. On the other hand, 65% consumers are married female and most of them are service
holders. They are also conscious about the organic foods but have some excuses also. 35%
are not married and have a little bit interest about the organic foods taking.
Table 04: Characteristics of Consumers by Occupation and Educational Status.
Educational level of Consumer

Occupation Total
Up to S.S.C H.S.C Passed Under graduate Post
S.S.C Passed graduate

1.Self- employed 12.4%(2.4)

2.Non- 2.9%(0%) 12.5%(8.9%) 2.8%(0%) 14.4%(6.8)

govt.service
3. Govt. service 1.4%(0%) 8.4%(1.4%) 2.8%(1.4%)
4. Business 8.5%(1.4%) 5.8%(6.4%) 1%(0%)
5. Student 2.9%(1.4%)

6. Pensioner 1.8%(1.4%) 14.4%(2.8%)

7. House wife 8.0%(6%)
Total (%) 2.9% 4.3% 22.8% 31.4% 38.6%

7
 Note: Parentheses give absolute number of female
Source: Own Survey result 2008.
Table 04 shows the consumers in terms of occupation and educational status. Only 2.9%
participants are self-employed and they are under graduate. 22% are private service holders and
they have the post graduate degrees. This segment of the consumers is more aware about the
organic foods quality and variety of choices. Only 4% are govt. service holders and they have the
degree of post graduate. Because of the premium price this segment of the consumers are not
able to purchase the organic foods conveniently always.
More than 6% consumers are businessmen are aware about these foods also. 15% consumers are
students of under graduates. These students are representing that in future the demand of the
organic foods will increase and be well accepted to all classes of people. 9% are housewives and
they have not the graduation degrees and the rest 8% are under graduate but they have also the
deep interest about the organic food taking. Because these portion of the total participants are
maintaining the health of the family members.
Table 05 (See Table 05 in appendix) shows that the total sample breakdown in terms of family
size, monthly expenses and professions. The majority 44.3% was from the families of 4-6
members and 2.8% are housewives, 2.9% are self-employed, 11.4% are non-govt. service
holders, 4.3% are govt. service holders, .9% are businessmen. Whereas 37.1% were from small
family members are below 4 and 12.8% are housewives, 1.4% self-employed, 12.9% are non-
govt. service holders, only 4.3% are govt. service holders, 14. % is businessmen. 17.1% were
from large families having 6-8 members, 2.9% are house wives, 5.8% are Non-govt. service
holders, 5.7% are businessmen, 1.4% is students, and 1.4% is pensioners.
The majority, 40.0% spend Tk.15000 – Tk.20000 per month, followed by 24.3% (Tk.10000-
Tk.15000) and 17.1% (Tk.20000-Tk.25000). Surprisingly, monthly expenses of 12.9% were only
below Tk.10000, whereas only 5.7% spend Tk.25000-Tk.30000 per month.
Expectedly, most of the people are spending above Tk.15000 per month come from the
medium and small families (20.0% & 17.1%) who are living in the upper class of the society.
Table 06: Consumers’ Purchasing Status with Gender and Monthly Expenses
Consumers’ Purchasing Status with Monthly Expenses (%)
Monthly expenses (Tk.) Purchasing status
iv) Never
i) Regular ii) Frequent iii) Seldom purchase
i) Below 10,000
2.9% 8.6%
1.4%
ii) 10,000 to15,000 17.1% 7.1%
iii) 15,000 to 20,000 21.4% 18.6% 1.4%
iv) 20,000 to 25,000 8.6% 2.9% 5.7%
v) 25,000 to 30,000 1.4% 2.9%
Total 32.8% 44.4% 14.2% 8.6%= 100%
Note: Parentheses give absolute percentage
Source: Own Survey result 2008.
Table 06 presents that the total sample breakdown in terms of purchasing status and monthly
expenses. Regarding purchasing status 44.4% consumers purchase frequently because they

8
 are conscious about their health and lives. 32.8% consumers are purchasing regularly as a
habit of life. 14.2% consumers purchase seldom because they have less affordability and the
quality products are not always available at convenient places. While 8.6% consumers never
purchase organic foods because they do not really aware about this.
Expectedly, people from upper class 21.4% consumers (monthly expenses above Tk.15000-
Tk. 20000) are more regular and frequent in purchasing organic foods. 24.2% consumers are
frequently and seldom and their income range is Tk.10, 000 - Tk.15, 000. Other income
group also has different attributes in purchasing the organic foods.

Consumers’ Awareness and Usage of Organic Foods

In order to gauge the levels of awareness of consumers on Organic food products they were
first asked what they understood by the term ‘Organic foods’. There appeared to be a
significantly high lack of awareness as out of the total sample, 7.1% said they did not know
or were not sure what the term ‘Organic foods’ means. Another 65.7% of the total sample
said that Organic foods were natural foods, 54.3% said that they were foods without
chemicals / pesticides, 21.4% herbal foods, 11.4% traditional or indigenous foods, while
Organic foods were mentioned with ‘other’ terms by 3% of the total sample. 18% consumers
are under graduate and 23% are post graduate, 24% male and 22% female said that the
organic foods are natural foods, 14% under graduate and 16% post graduate and 8% H.S.C
passed, 20% male and 18% female consumers said the organic products without chemicals
/pesticides. 3% male, 5% female, 1% H.S.C passed, 4% under graduate and 3% post graduate
consumers named the organic foods as traditional or indigenous foods.

Figure 01: Responses of Consumers on Organic Foods by gender and educational

status.
Figure 01: Un de rstanding of 'O rganic Foods by consume rs by diffe re nt e ducation le ve l and by
ge nde r

Natural foods He rbal foods

Products without che micals /pe sticide s Traditional /in dige nous foods
O the rs Don't k now / not sure

30

25 24
23
22
20
20 18 18
16
15 14

10
10 8
7
5 5 5
5 4 4 4
3 3 3
2 2 2
11 1 11 1 1 1
0
Male Female Under-SSC SSC-passed HSC-passed Undergraduate Postgraduate Other

9
 Figure 02: Source of Information to Consumers about Organic Foods by Gender

Figure 02: Source of information to consumers about organic foods by

gender TV Programs / ads
25
22 News papers
20
20 Magazines / books

Taught in school /
15 14 14 college
13 At a promotional /
11 educational event
10 Words of mouth
10
8 8 8
7 7 Superstores /
6
5 5 market
5 Other (Betar, FM
2 2 Radio)
1
Don't know / not
0 sure
Figure 02 show
M ale that the consumers Female
were also asked their sources of information on organic
foods/products. TV programs/adverts (48.6%) and 14% male , 20% are female, Newspapers
(45.7%) and 22% male, 10% female, Magazines/books (30%) 7% male , 14% female, Words
of mouth (30%) and 8% male, 13% female appear to be the most common source of
information across the different ideologies of what Organic foods are. This is followed by
Superstores/market (25.7%) and 7% male, 11% female, school/college teachings (20%) and
6% male, 8% female, promotional/educational events (18.6%) and 5% male and 8% female.
Other sources were mentioned by 10%, and 4.3% were not sure of their source of
information on Organic foods.

Figure 03: Whether the consumers ever consumed or considered

consuming Organic foods

Have consumed Considered consuming No Don't know/Not Sure

49

50

40

30
Sam ple size: 70 15
20
4 2
10

10
 In Figure 03 we can see that consumers were asked whether they have ever consumed or
considered consuming Organic products. Surprisingly, majority of the total sample claimed
they had ever consumed Organic products (70.0%), a significant number (21.4%) had
considered consuming; however 2.9% were not sure or did not know, while 5.7% said no.
Figure 04: The length of the period of Organic purchasing by
consumers
30 1-2 years
(25)
Below
25
1 year
(19)
20

2 - 4 years
15 More than
(12)
4 years
10 None (8)
(6)
5

Figure 04 shows the length of the period of organic purchasing. 25% consumers are using
the organic foods for 1-2 years, 19% are below 1 year, 12% are 2-4 years, and 8% are more
than 4 years. It can be said that very few consumers are using this foods for the long time of
the concept introduced in Bangladesh.
Figure 05: Preffered place of buying the organic foods by consumers Meena Bazar

Agora

Family World

13% Almas General Store

7% 33%
1%
1% Prince Dept. Store

Nandan
10%
3% PQS
3% 6% 23%
New Market

Karwan Bazar

Other

11
Figure 05 shows the place of buying organic foods/products most often the most prefer to
purchase from Meena Bazar 33%, 23% from Agora, 10% from Nandan, 6% from Karwan
Bazar, 6% from Family World, 3% from Prince Dept. Store, and the rest are from New
market, Almas General Store etc. These retail stores are more or less popular to the consumer
to serve the quality goods in a committed form. The suppliers are also conscious to get the
point of the consumers to deliver the superior and comparatively good foods.
Figure 06: Verifying system of organic foods by consumers
Verif ying system

Check the labels

10%
1%
27% Only purchase from specific
shops
Only purchase specif ic brands

32%
Practice ow n Organic f arming

30%
Others

Figure 06 shows the verifying system of organic foods. The health and safety factors
appeared to be the key motivating factors of consumption /purchase followed by taste, and
environment concerns. Consumers were also asked how they would verify that the foods they
are buying or consuming are organic. 32% said they buy or would buy from specific brands
(from superstores) that they know to be organic. 30% that they purchase or would purchase
from specific shops that they know sell organic products, 27% said they would check the
labels, 1% said they practice their own organic farming, 10.0% were not sure or did not
know.
Figure 07: Reasons for consuming organic foods by the consumers:
They are tasty
Reasons for consuming organic foods

They are healthy /

nutritious

They are safe (not

contaminated)
9% 1%2% 16%
They are affordable
15%
Environmental
friendly
4% 27%
Good for
26% management of
illness
Others

No specific reason /
Indifferent

12
There are some reasons to consume the organic foods. Some of the key considerations when
purchasing food products are 27% think that these are healthy and notorious, 26% argued
that these are not contaminated, 16% feel that it is tasty enough, 15% are supporting organic
foods are environmental friendly, 9% are giving preferences on the good management of
illness, 4% are giving priority of affordability, 2% have not any specific reasons to consume
the organic foods.
Figure 08: How often the consumers look at labels to see where the products is made or
grown.

Always frequen

25

20
Figure 08: Analysis of checking label of Organic foods and its origin
Respondents who said that they have ever consumed or considered consuming organic foods
products were also asked how often they check labels to see where a product is made or
grown. 24.3% checked always, 18.6% checked frequently, 20.0% checked sometimes, 5.7%
checked seldom and surprisingly majority 31.4%, checked never.
15
Respondents who said that they have ever consumed or considered consuming organic foods
products were also asked how often they purchase products labeled 'organic'. Majority 30.0%
purchased at sometimes, while 27.1% purchased always. And 22.9% purchased frequently,
but 20.0% purchased never.
17
Figure 09: Awareness of facts on verification method and system, organic logo and local
standards 14
10
13 Yes

5
100%
4
90% 20
0
80% 13
Howoftendoconsumers3
lookat
Further the respondents who mentioned any given verification method as discussed above
were asked whether they trust this method or not. Majority 67.1%, said yes and 4.3% said no.
However 28.6% were not sure or didn’t know whether they trust this method of verification.
All respondents were asked whether or not they felt that there was need for verification
system. Majority 82.9% said yes and 17.1% said they were not sure or didn’t know if there
was a need for a verification system.
Again, all respondents were asked whether or not there were local standards for Organic
products in Bangladesh. Majority 38.6%, said no and 34.3% said yes. And 27.1% were not
sure or didn’t know whether there were local standards for Organic products in Bangladesh.
Figure 10: Who should be responsible for providing this verification
Government Independent certification authority
Companies buying from producers/farmers The producer/farmer himself
Don't know/Not sure

68.6%

2.9%
11.4%
5.7%
Those who felt there was need
11.4%for a verification system were also asked to state that should
be in-charge of providing this verification. Majority mentioned the government (68.6%). Out
of the total sample who felt a need for verification, 11.4% also said it should be provided by
an independent certification body and 11.4% said it should be done by the producer/farmer
himself. Other responses given were companies buying from farmers at 5.7%, and 2.9% were
not sure or didn’t know who should be responsible for providing the verification of Organic
foods.
Figure 11: Consumers’ Premium price would consumer agree to pay for 'Organic' by
comparison with 'Non-Organic'
Figure 09: Price premium

35

35
30 25

25
20
15
7
10
1 2
5 0

0<10% 10% - 19% 20% - 29% 30% - 39% 40% - 49% 50%>100%

14
All respondents were then asked which premium price consumer would agree to pay for
'organic' by comparison with 'Non-Organic'. Expectedly, 50.0% were agreed to pay 0<10%
premium price following by 35.7% at 10%-19% premium price.
Figure 12: Consumers’ Awareness of facts on food insecurity, consumer rights, price
discrimination

Yes

100%
12
90%
80% 8
70%
Further the respondents were also asked whether organic business would rise due to food
insecurity. Majority 71.4% said yes while 11.4% said no. But 17.1% were not sure.
They were also asked whether or not consumers’ rights in Bangladesh have been established.
60%
Expectedly majority 67.1% said no and 17.1% said yes. However 15.7% were not sure or
didn’t know whether consumers’ rights in Bangladesh have been established.
Again 77.1% respondents also said that they had price discrimination at the time of
50%
purchasing Organic foods, only 11.4% didn’t agree, and 11.4% were not sure or didn’t know
about it.
Consumers’ Perceptions and Attitudes toward Organic Foods and Farming
40%
Having been exposed to the statement defining Organic products, the respondents were asked
50
to give a score on a scale of 1 to 10 (where 1 is not important at all, and 10 is very important)
as to how important it would now be to them to consume Organic products. Overall, majority
gave high scores hence a mean score of 8.1. At data analysis stage, the responses for this
30%
question were cross-tabulated with the responses from the usage question so as to see the
importance of consumption by those who had ever consumed, ever considered consuming
and those who had not or never considered consuming Organic products. Interestingly, it
20%
turned out that even for those who had never consumed or never considered consuming
Organic products, it was now quite important to them to consume Organic products after
learning what Organic products are. The mean scores were as follows:
10%
How important is it for you to now consume Organic food products?
Importance score out of 10
Those who had ever consumed 8.3
0%
Organic business will 15
rise due to Food
 Those who had ever considered consuming 8.7
Those who had never consumed or considered 7.4
Again this implies that it is more out of a lack of awareness on Organic products that lends to
low or non-consumption of Organic products. In order to gauge what consumers would most
associate with Organic foods, respondents were exposed to several short statements and
asked to state which one they felt was most suited to Organic foods. The key associations
with the result can be seen in the table below:

Table 07: To what extent would it now be important to you that the products you
consume / use are Organic
Different attributes of Organic foods Rank order(N=70)
1st 2nd 3rd
Is nutritious / healthy 70.0% 24.3% 5.7%
Is fashionable / trendy 25.7% 27.1 47.1
Is affordable 25.7% 42.9% 31.4%
Is safe 58.6% 31.4% 10.0%
Is very tasty 21.4% 54.3% 24.3%
Is traditional 27.1% 10.0% 62.9%
Is for the elite 31.4% 32.9% 35.7%
Is for everyone 18.6% 34.3% 47.1%
Is available 32.9% 48.6% 18.6%

Consumers’ awareness and attitudes on certain facts about Organic products was also tested.
A set of statements was read out to the respondents and they were asked to state whether or
not they did agree or disagree with these facts.

Table 08: Consumers’ Assessments/Evaluations of Organic foods and farming

Evaluation issues Degree of Responses
(SD)Strongly Disagree; (DI) Disagree; (NE) Neutral; SD DI NE AG SA
(AG) Agree; (SA) Strongly Agree
Organic food is safer than ordinary food - 4.3% 28.6 67.1%
%
Organic foods have less pesticides / chemicals 1.4% 2.9% - 70.0 25.7%
%
Organic foods are more expensive than ordinary foods 17.1 11.4 8.6% 54.3 8.6%
% % %
It is worth paying more for Organic foods 18.6 4.3% 21.4 50.0 5.7%
% % %
Organic farming is as sustainable as conventional - 11.4 34.3 30.0 24.3%
farming - % % %
Only 'Greenies' buy Organic foods 12.9 31.4 31.4 20.0 4.3%
% % % %
Organic productions help to improve the environment - 2.9% 4.3% 52.9 40.0%
- %
Organic foods are more nutritious than conventional 5.7% 7.1% 27.1 60.0%

16
foods %
Organic products are overpriced 14.3 17.1 8.6% 44.3 15.7%
% % %
Organic foods look better than conventional foods - 11.4 10.0 52.9 25.7%
% % %
Organic foods has a premium price for genuine benefit - 17.1 12.9 40.0 30.0%
% % %
Organic foods taste better than conventional foods - 1.4% 14.3 34.3 50.0%
% %
Organic farming can produce enough food to feed the 1.4% 15.7 17.1 38.6 27.1%
world % % %
Conventional farming can coexist with Organic 1.4% 5.7% 34.3 54.3 4.3%
farming: % %
It is better to buy an Organic product from abroad (i.e. 28.6 27.1 30.0 11.4 2.9%
Thailand) than to buy a conventionally grown/produced % % % %
product in Bangladesh.

Analysis and Findings from Key Informants

General Business Issues In Relation To Customer Preferences

The key informants were asked to state the three most common issues they encounter in their
business as relating to consumers’ preferences of food products. The following issues were
mentioned by most:
• High quality products
• Service – quick, efficient & professional
• Availability of products / supply
• Price / affordability
• Variety of products to select from
• Consistency of quality and supply
• Origin / source of product – is it credible / trustworthy
Findings and Analysis of data from Retailers
Figure 13: Holding location Asad avenue
Holding location
Dhanmondi-27
Dhanmondi
Farmgate
Gulshan-1
Gulshan-2
Kawranbazar
14% 2% 4% Kazipara
12%
6% Malibag
2%
2%
8% 2% Malibagh
Mirpur-1
8% Mirpur-10
4%
4% 2%
2% Mirpur-2
12% 6% 4%
2% 4% Mirpur
Moghbazar
Mohammadpur
New market
Rayerbazar
Zikatola
17
When the survey was conducted on retailers among 50 retailers 14% were from Zikatola,
12% from Dhanmondi and Mirpur. The remaining retailers are from Kawranbazar, New
market, Rayerbazar and other local areas from Dhaka city.
Figure 14: Year of establishment-
Yearofestablishment

Before1990
24% 14%
4% 1990-1995
10%
1995-2000
2000-2005
48%
2005-2009

Maximum retailers were established in between 2000-2005 and the percentage was 48%
because the concept of organic foods was introduced that time and the retailers treated it as a
consumer consciousness. 24% were in between 2005-2009, 14% were before 1990, 10%
were 1995-2000 and only 4% were 1990-1995.
Figure 15: Location to serve
Location to serve Dhaka
dhanmondi
Dhanmondi
Gulshan

4% 4% 2%
Kawranbazar
10%
2% Malibagh
14% Mirpur-1
Mirpur-10
42%
2% Mirpur-2
4%
4% 4%
2% 6% Mirpur
Moghbazar
Mohammadpur
Tejgoan

18
When the retailers were asked about the location to serve 42% answered the Dhanmondi
location because most of the retail super stores are located here.14% serve to Mirpur because
it is a big residential area and the others are to the different part of Dhaka city

Figure 16: Year of experience or working span of time-

Year of experience or working span of time-

18% 16%

Less than 5 years

5-10 years
10-15 years
24% more than 15 years
42%

Though the retail stores have established later 20% retailers have 5-10 years of working
experience, 12% have 10-15 years of experience, 9% have more than 15 years of experience,
8% have less than 5 years and 1% has more or less experience.

Figure 17: Consumer’s attitudes towards Agro/Green products

Consumers attitudes towards Agro/Green products

4% 2% Healthy / Nutritious
24% 34% Natural
Tasty
High quality
Environment friendly
14% Expensive
22%

19
Consumer’s attitudes towards agro/green products-in that case retailers have observed or
experienced that 34% purchase the agro –green products for healthy / nutritious matter, 24%
are for high quality, 22% for natural issues, 14% for tasty, 4% are for environment friendly
who are conscious for the environment and to save the earth, and only 2% are thinking that it
expensive. These are the common scenery the retailers are got regularly from the consumers
or buyers.

Figure 18: How do your customers identify Agro/Green products that they are buying
from you-?
How do your customers identify Agro/Green products that htey are
buying from you- Arranged on
special shelf/
corner
Havw a logo

16%
Are labeled
12% 44%
Ask for
guidance /
assistance
14% Others
14%

In case of customers identification about agro/green products that they are buying from
retailers- 44% answered customers collect products from the arranged on special shelf/
corner, 14% have a logo, 14% are labeled , 12% ask for guidance / assistance, 16% from
other sources.
Figure 19: Most relevant supply channels for Agro/Green products-

Most relevent supply channels for Agro/Green products

10% 8%
4% Direct sale
10%
Wholesalers
Retailers
Specialized shops
Suppermarkets
68%

20
 Whenever they were asked about the most relevant supply channels for agro/green products-
68% collect the products from wholesalers, 10% from supermarkets, 10% from local
retailers, 8% retailers have their own farms, and 4% have specialized shops.

Figure 20: Types of your purchasing-

Types of your purchasing

12%

12% Suppy contracts

Spot-market
Good stock exchange
54%
other
22%

Whenever they were asked about the types of purchasing- majority of the retailers about 52%
have some supply contracts for repeated purchase for long term supply, 22% from the spot-
market, 12% from good stock exchange, and the rest are from another sources like instant
supply and suppliers. 44% collects from the supplier/wholesalers, 40% are directly from
farmers/producers, 6% are grown directly by self, 6% are from super market and 4% are
from the specialized stores to ensure the regular supply of goods.

Figure 21: Average premium price of your Agro/Green products Vs. Conventional
products-
Average premium price of your Agro/Green products Vs Conventional
products-

8% 2%
32% 0 < 10%
10% - 19%
20% - 29%

40% 30%- 39%

40% - 49%
18%

21
As few consumers can not afford the green products for high price the retailers were asked
about the average premium price of agro/green products vs. conventional products-40% said
that consumers are ready to pay average premium price 20% - 29% more than the regular price,
32% are for 0 < 10%, 18% are for 10% - 19%, 8% for 30%- 39% and 2% for 40% - 49% for
their products.
Figure 22: How do you fix your retail price?

How do you fix your retail price?

12% 4% 18%
Production cost
Competitive price
Brand image
lower Price
30%
36% Others

There are some strategies of fixing the retail price of the agro or green products. 36%
retailers follow the competitive pricing strategies, 30% consider the brand image, 18% use
the production cost, and 12% consider the lower price than the competitive price and the rest
4% may follow other strategies.
Figure 23: How do you understand the supply chain of the Agro/Green products is
providing the products to your shops/stores in right quality and form?
How do you understand the supply chain of the Agro/Green products
are providing the products to your shops/stores in right quality and Ask the
form? producers /
suppliers
Check by self

2%2%
16% 28% Educated by
management /
officials
No
understanding

52% Other

22
In case of the retailers verification system about the supplied goods by the suppliers,
wholesalers and other sources 52% ensure it by checking themselves, 28% ask the
producers / suppliers about the quality, 16% are educated by management / officials, 2%
have no understanding and the remaining 2% have others means.

Figure 24: How much you understand on the supply chain/routs?

How much you understand on the supply chain/routs?

All the supply routes

6%
16%
42% Almost all the supply
routes
Onlyimmediate suppliers

36%
No answer

When they have asked how much one understands on the supply chain/routs- 42% said all
the supply routes, 36% know almost all the supply routes, 16% are informed only immediate
suppliers, 6% not answered. Not all the retailers have the similar pattern of experiences about
the supply chain or the distribution of the green products.

Figure 25: From where do you get your Agro/Green products?

From where do you get your Agro/Green products? Grown directly
by self

Directly from
farmers/produc
6% 4% 6% ers
Supplier/Whole
salers

Super market

40% Specialized
44% stores

23
The sourcing of the finished goods are- 44% collects from the supplier/wholesalers, 40%
are directly from farmers/producers, 6% are grown directly by self, 6% are from super
market and 4% are from the specialized stores to ensure the regular supply of goods.

Figure 26: Do you complement your Agro/Green deliveries with 'non-Agro/Green'

products?

Do you complement your Agro/Green deliveries with 'non-

Agro/Green' products?

16% 16%
Never
12% Always
Frequently
Sometimes
34% Seldom
22%

Either the retailers complement their agro/green deliveries with 'non-agro/green' products-
34% do it sometimes, 22% frequently do it, 16% never follow it, 16% seldom do it if the
situation requires, 12% are very conscious and always try to best compare it for their
customer satisfaction.

Figure 27: What certification system would / do you trust more?

What certification system would / do you trust more?

Government
8%
26%
20% Agro/Green producers
association
Private institution

Other
46%

24
In case of certification system which policy they trust more- 46% retailers rely on agro/green
producers association, 26% follow the government dictation, 20% are guided by the private
institution and 8% rely on other system.

Figure 28: Agro/Green message bearers are (motivation to sell Agro/Green products)

Agro/Green message bearers are ( motivation to sell Agro/Green

products)

Producers

6% 12% Suppliers
18%

Products

40% Manufacturers
24%
Govt. (ministries such as
health, Agriculture)

Who are the agro/green message bearers ( i, e. motivation to sell agro/green products)- 40%
confirms the name of suppliers, 24% supported the products, 18% voted for manufacturers,
12% are for producers and only 6% supported the govt. (ministries such as health,
agriculture).

Figure 29: Why do you purchase the products from your selected distributors?

Why do you purchase the products from your selected distributors?

8% 6%
Right quality
36%
16% Right Price
Transportation facilities
Right response time
Flexibility in order
34%

25
Why do you purchase the products from your selected distributors?-they answered that right
quality (36%), right price (34%), transportation facilities (16%), right response time (8%),
flexibility in order (6%) are the considerable mater for choosing them.

Figure 30: Do you follow any guidelines to provide the green products in proper
quality?
Do you follow any guidelines to provide the green products in
proper quality?

Check the product quality

regularly
8% 6% Warehousing the quality
40% goods
14%
No preservatives or
chemicals
Skilled personnel will be
32% engaged
Others

When they were asked if they follow any guidelines to provide the green products in proper
quality- 40% answered that they check the product quality regularly, 32% warehousing the
quality goods, 14% do not use preservatives or chemicals, 8% have their own skilled
personnel and 6% follow other guidelines.
Figure 31: How can you maintain the quality of products for consumers?

Howcanyoumaintainthequalityof products
for consumers?

Right packaging
8% 24%
22% Right weight
Duedate
24% Nochemicals
22%
Others

26
 Which process they follow to maintain the quality of products for consumers- there are few
strategies they provide to us. 24% believe on right packaging, 24% try to provide right
weight, 22% ensures the products in due date, 22% committed on not to use chemicals and
8% follow others policies for their consumers.

Figure 32: What factors do you consider to ensure the quality of products?
Right
What factors do you consider to ensure the quality of products? ingredients

Control
temperature in
4% the outlet
14% Right
30% ventilation

Germless
container

Usage of
28% hand/shoe
gloves
24%

Normally the considerable factors to ensure the quality of products- 30% retailers depend on
right ingredients, 28% on the right ventilation, 24% on controlling the temperature in the
outlet, 14% uses the germless container, only the 4% believe the usage of hand/shoe gloves
for the quality.

Figure 33: Which factors do you give priority for inventory management system?

Which factors do you give priority for inventory management system?

8%
8% 28%
LIFO
FIFO
According to quality
Others
56%

27
What is the inventory policy for the right management- 56% follow the FIFO method, 28%
choose the LIFO system, 8% take decisions according to the quality, and 8% follow other rules
as the situation requires.

Figure 34: Have you any claim about the insufficient supply of goods?
Have you any claim about the insufficient supply of goods?

10% 4%
26% Lack of transportation
16% Natural calamities
Political unrest
Crops affected by diseases
Not harvested in due time
44%

Usually the claims about the insufficient supply of goods- 44% are tortured by the natural
calamities, 26% face the problem about the lack of transportation, 16% identified the troubles
from the political unrest, 10% claimed that crops affected by diseases, only the 4% have the
problem that the crops are not harvested in due time

Figure 35: What complains do you face from consumers?

What complains do you face from consumers?

Insufficient supply

14% 4%
Low quality
30%
12% High price

Local and imported goods

competition
40%
Not tasty and healthy

28
Consumers have lot of complains and dissatisfaction about the green products. 40% retailers
face the consumers claims about the low quality, 30% claim the insufficient supply, 14% for
local and imported goods competition, 12% for high price, and only 4% said that it is not tasty
and healthy.
What are your suggestions to solve these problems-they make the defense against the
consumers dictated claims34% retailers think that the govt. should monitor terminally, 22%
suggested that the price should be decreased, 16% invites other retailers to increase the quality
of foods, 16% supported to ensure available transportation, and the 12% provided other
suggestions.
Is there any regulatory body to monitor the quality of agro based products?
Every retailer gave the most priority for the existence of the regulatory bodies to regularly
monitor the quality of agro-based products in the market.

Findings and Analysis the Survey on Suppliers and Wholesalers

Figure 36: Location

Location

3% 6% 0%
19% Mohammadpur
24% Dhanmondi
Gazipur
16% Uttara
Azimpur
4%
4% 4% 11% Tejgaon
6% 3%
Mirpur
Sham Bazar
Kawran Bazar
Moghbazar

The survey was also conducted with the suppliers and the wholesalers. 24.3% wholesalers
are from Kawran Bazar, 18.6% are providing goods from Mohammadpur, 15.7% are from
Dhanmondi, and 11.4% are from Gazipur, and from the different part of Dhaka city.

Figure 37: Year of establishment

Year of establishment

20%
27%
Before 1990
1990 - 1995`
1995 - 2000
11% 2000 - 2005
2005 -2009
26% 16%

29
Maximum suppliers and the wholesalers were established in between 2005-2009 and the
percentage was 27.1% because the concept of organic foods was introduced that time and
they treated it as a consumer consciousness. 25.7% were in between 2000-2005, 20% were
before 1990, 15.7% were 1995-2000 and only 11.4% were 1990-1995.

Figure 38: Year of experience or working span of time

year of experience or working span of time

Less than 5 years

5 - 10 years
27% 28% 10 - 15 years
More than 15 years

21% 24%

24.3% suppliers and the wholesalers have 5-10 years of working experience, 27.1% suppliers
and the wholesalers have less than 5 years of working experience, 21.4% have 10-15 years of
experience, and 27.1% have more than 15 years of experience.
Figure 39: Which category of raw materials do you supply?

Which category of raw materials do you supply?

19%

Agro/Green
Non-Agro/Green
19% Both
62%

30
The category of all suppliers and the wholesalers are not similar. 62.9% supply the
agro/green products, 18.6% are doing business with the non-agro/green products and 18.6%
have the both category of supply.

Figure 40: What do you understand by the term 'Agro/Green'?

What do you understand by the term 'Agro/Green'?
Natural foods

Herbal products
4%
20% 26%
Products without
chemicals/pesticides
Traditional/indigenous foods
10%
17%
Don't know / not sure
23%

other

Whenever they were asked about the term 'agro/green', 25.7% answered it by natural foods,
22.9% by the products without chemicals/pesticides, 20% don't know / not sure about the
agro or green products, 17.1% denote it by the herbal products, 10% are by the
traditional/indigenous foods, only the 4.3% meant it by another terms.

Figure 41: Who are your target customers?

Who are your target customers?

Supplier/Wholesaler

6% Retailer
19% 26%

Consumer (end user)

17% Both Wholesaler &

32% retailer
All

31
31.4% suppliers and the wholesalers target retailers, 25.7% target the suppliers/wholesalers,
18.6% supply for both the wholesalers & retailers, 17.1% are directly serving to consumers
and 5.7% are targeting the total market as a whole. In these ways they are covering their total
network.

Figure 42: Which products run comparatively more?

Which products run comparatively more?

20%

46% Agro/Green
Non-Agro/Green
Both on average
34%

45.7% suppliers and the wholesalers answered that agro/green products run comparatively
more, 34.3% are for the non-agro/green, and 20% are supporting both products on an
average. Now a- days consumers are trying to take the environmental friendly products that
will ensure their better health construction.

Figure 43: Source of Agro/Green raw materials for you-

Source of Agro/Green raw materials for you-

6%
4% 3%1% Local/National
Foreign - Asia
Foreign - EU
23% Foreign - North America
63% Foreign - Africa
Other

32
62.9% suppliers and the wholesalers are sourcing of agro/green raw materials from
local/national areas because the local farmers are now efficient enough to produce these
products, 22.9% are from Foreign – Asia, 4.3% are from Foreign – EU, 1.4% is from Foreign
– Africa and 5.7% are collecting from the neighboring countries also.

Figure 44: What are the most common issues you encounter in your business relating to
supply of Agro/Green raw materials?

What are the most common issues you encounter in your business
relating to supply of Agro/Green raw materials?
High quality

Service Effiiency
and effectiveness
Readily available
4% 9% 20%
Price / Afforfability

25% Consistency of
13%
quality & supply
10% Origin / Source of
19%
supply
Varity of materials to
select from

The most common issues suppliers and the wholesalers encounter in their business relating to
the supply of agro/green raw materials are consistency of quality & supply 24.3%, high
quality 20%, price / affordability18.6%, service efficiency and effectiveness12.9%, readily
available 10%, variety of materials to select from different sources 8.6%, origin / source of
supply 4.3%.

Figure 45: Which inventory management policy you follow?

Which inventory management policy you follow?

10%
34%
LIFO
FIFO
No policy

56%

33
What is the inventory policy for the right management- 55.7% follow the FIFO method,
34.3% choose the LIFO system, 10% take decisions according to the quality.

Figure 46: Main implemented action to develop Agro/Green products.

Main implemented action to develop Agro/Green products

24% 24%
New products
New Markets
New technologies
New suppliers
16% 19% New producers
17%

All the suppliers and the wholesalers are not taking similar implemented action to develop
agro/green products. among them 24.3% will offer new products to the new or existing
markets, 18.6% are entering into the new markets with their existing products,17.1% are
utilizing new technologies for highest satisfaction,15.7% are engaging new suppliers
regularly.

Figure 47: Types of inputs utilized in the Agro/Green products.

Types of inputs utilized in the Agro/Green products.

Agricultural raw materials

26%
No inputs

Finished products
11% 60%
3% Agricultural raw material
+ semi finished products

34
Most of the suppliers and the wholesalers (60%) are using agricultural raw materials, 25.7%
are using agricultural raw material and semi finished products, 11.4% are distributing directly
finished products, 2.9% have no inputs for the proper management of the agro/green
products.

Figure 48: Do you follow any guideline to supply the products?

Do you follow any guideline to supply the products?

Ensure the quality

Minimize the
27% 27% transportation cost
Supply products in due
time
Serve to selected retail
6% areas/ centers
13%
10% Maintain the contract
17%
negotiation
No

27.1% suppliers and the wholesalers ensure the quality, 17.15 supply products in due time,
12.9% minimize the transportation cost, 10% serve to selected retail areas/ centers, 5.7%
maintain the contract negotiation, and surprisingly 27.1% have not any specific guidelines to
supply the products to the markets. They take the strategies as the market requires then.

Figure 49: Which problems do you face to collect, stock and sell the raw materials?

Which problems do you face to collect, stock and sell the raw materials?

Lack of supply
33% 29%
Fluctuation in price
Lack of Govt. support
Lower quality
International competition
3% 11%
10% No problem
14%

35
Normally 32.9% suppliers and the wholesalers do not face serious problems to collect, stock
and sell the raw materials to the markets. But others 28.6% face the problems from the lack
of supply, 14.3% are from the lack of govt. support, 10% are from the lower quality of the
raw materials, 2.9% are the pressures from the international competition and 11.4% are in
troubles of fluctuation in price.

Figure 50: What is your opinion?

What is your opinion?

Ensure the right supply

Govt. should patronize

23%
Ensure the right quality
49%
Control the price of
materials
17%
Increase the retail markets
6% 1% 4% and farming areas
No opinion

To solve these problems 17.1% suppliers and the wholesalers suggested that govt. should
patronize in this sector, 22.9% said to ensure the right supply, 4.3% are emphasizing on
ensuring the right quality, 1.4% are suggesting to control the price of materials, 5.7% want to
increase the retail markets and farming areas, and exactly 48.6% are in suitable business
areas and have no opinion.

Issues Taken Into Consideration when Stocking Organic Food

In relation to that the key informants were also asked to state the some common issues they
take into consideration thus when stocking up on food products to sell to their customers.
The following were mentioned most:
• High quality of products
• Demand for the products – is there high demand amongst their customers for that type
of products?
• Availability / supply side issues – is there a reliable and consistent flow from
suppliers so that they do not end up disappointing their customers?
• Price – are these products affordable to them as business people and hence can still
remain affordable to the end consumer even with them making a reasonable margin
from the sale of the products?
• Variety – because customers’ preferences are varied hence try to cater for most needs
and demands

36
These issues were common across the different types of key informants. What emerges here
is that what drives business decisions is customer needs or preferences

Findings and Analysis the survey on Producers or Farmers

Figure 51: Location of production

Location of production

12%
8%
bosila
kolatoli
savar

80%

The survey was also conducted on the farmers and the producers. The sample size was 25
only.80% farmers were collected from Savar, 12% from the Bosila and the 8% are from the
Kolatoli.

Figure 52: Location to serve

dhaka

20%

Frequency
Percent

80%

37
These farmers are supplying their 100% produced goods to Dhaka. The huge traffic area is
Dhaka city so the supplied goods are mostly consumed by these consumers.

Figure 53: Year of establishment-

Year of establishment

16% 20%
Before 1990
1990-1995
1995-2000
24% 2000-2005
24%
2005-2009
16%

Maximum farmers and the producers were established in between 2000-2005 and the
percentage was 24% because the concept of organic foods was introduced that time and they
treated it as a consumer consciousness. 20% were before 1990, 16% were 1995-2000 and
24% also were1990-1995, another 16% were established in between 2005-2009.

Figure 54: Year of experience or working span of time

Year of experience or working span of time

16%
Less than 5 years
48% 5-10 years
10-15 years
24%
more than 15 years
12%

38
24% farmers and the producers have 5-10 years of working experience, 16% have less than 5
years of working experience, 12% have 10-15 years of experience, and the majorities 48%
have more than 15 years of experience. They have the knowledge about the modern and
environmental technologies to produce the products.

Figure 55: What category of products do you produce?

What category of products do you produce?

4%

36%
Crops
Vegetables
Leaves
56% Others
4%

56% farmers produce vegetables, 4% produce crops, another 4% produce different types of
leaves and 36% produce seeds and other crops.

Figure 56: Quality standard certification you use-

Specific production discipline Quality controls Percent

36%

1
2

64%

39
Normally 64% farmers control the quality as per the quality standard and the 36% farmers go
through specific production discipline.

Figure 57: Production cost of the agricultural product should be lower than market
price-

Production cost should be lower than market price Yes Percent

100%

100% farmers are supporting that the Production cost of the agricultural products should be
lower than market price. If they can not earn handsome profit they will not survive in the
market and ensure the right quality of the products.

Figure 58: Major challenges in Agro/Green productions-

High cost of
Major challenges in Agro/Green productions- Agro/Green
inputs

High labor cost

16% 16%
8% Difficulty in
obtaining
Agro/Green
inputs
Difficulty to find
32% enough farm
28% land

All of above

40
32% farmers think high labor cost is the major challenge in agro/green productions, 28% said
difficulty in obtaining agro/green inputs, 16% claim the high cost of agro/green inputs, only
8% found that the difficulty to find enough farm labor another 16% are suffered from all of
these challenges.

Figure 59: Is the product price especially agricultural product higher than neighboring
countries?
Is the product price especially agricultural product is higher than neighboring countries- Yes No
Percent

12%

88%

88% farmers supported that the product price especially agricultural products is higher than
neighboring countries and the rest 12% are not agreed on this statement. There is lot of cost
incurred areas in importing these green products from the neighboring countries.

Figure 60: Agro/Green products related to Agro/Green Business-

Agro/Green products related to Agro/Green Business- Yes No Percent

4%

1
2

96%

41
Whether the agro/green products are related to agro/green business- 96% have huge support
on it and only 4% have negative issues on it.

Figure 61: Quality of Agro/Green product should maintain standard-

Quality of Agro/Green product should maintain standard- Yes Percent

100%

100% farmers have gross support that quality of agro/green product should maintain
standard. This standard should be benchmark standard that are following the developed
countries.

Figure 62: Extensive financing in agricultural sector is required-

Percent

0%

Yes

100%

42
All the farmers (100%) are suggesting that extensive financing in agricultural sector is
required. to ensure the quality and regular supply to the markets require competitive costs for
the agricultural products.

Figure 63: What are the guidelines you follow to produce the agro products?

What are the guidelines you follow to produce the agro products?
Govt. Agricultural
Officers
Organic seeds and
12% 4% Manure
36% Natural pest control
12%

Seasonal Cultivation
4%

32% Buying Seeds from

selected traders
All of above

36% farmers follow the rules and regulations that are provided by the Govt. Agricultural
officers, 32% uses the organic seeds and manure, 12% farmers are till now follow the
seasonal cultivation, 12% farmers are buying seeds from selected traders, 4% farmers are
using natural pest control and the rest 4% are following more or less of the above mentioned
guidelines.
Figure 64: From where have you got the information about the quality of production?

From where have you got the information about the quality of production?

24% 16%
Agriculture officers
NGO
Media
8% Word of mouth
32% All of above
20%

43
The farmers (32%) got the information about the quality of production from the NGOs, 20%
are from the media, 16% are from the agriculture officers, 8% are from the word of mouth
that is from other farmers and 24% are using all of the above sources for collecting the
information.

Figure 65: What is your self strategy to produce better quality of products?
What is your self strategy to produce better quality of products?
Quality seeds

No chemical fertilizer
8% 8%

24% Maintain organic guideline

28%

Proper irrigation

8% 24% Giving intensive care before

and after cultivation
All of above

There are lots of self strategies the farmers are using to produce better quality of products.
28% are giving intensive care before and after cultivation, 24% are not using chemical
fertilizers, 24% are maintaining organic guidelines, 8% are using quality seeds, 8% are
following proper irrigation and the 8% are following any or all of the above methods.

Figure 66: How do you supply the products to the markets?

How do you supply the products to the markets?

16%
36% Spot Marketing
12%
Supply contracts
Selling to local market
Through Suppliers
36%

44
Most of the suppliers are supplying their produced products through the earlier supply
contracts, 36% are selling their products on spot commodity markets, 16% have their
selected and negotiated suppliers and 12% are directly selling to local market for ultimate
consumption.

Figure 67: What factors do you consider to purchase the raw materials?

What factors do you consider to purchase the raw materials?

Organic Seeds

8% 4%
4% Organic Manure

16%
Irrigation

68% Nutration and humadity

of seeds
All of above

Usually 68% farmers are considering the organic seeds as a matter of better quality products,
16% are giving priority to organic manure, 8% are taking care about the nutrition and
humidity of seeds, 4% are only considering the irrigation, and the 4% are following more or
less of the above factors when they purchase the raw materials.
Figure 68: Which policy do you follow to use fertilizer, insecticides and pest controls?

Which policy do you follow to use fertilizer, insecticides and pest

controls?

25%
No chemical fertilizer
No chemical pesticides
50%
Pest control organically
25%

45
When the farmers are farming the organic foods 48% farmers do not use any chemical
fertilizer, 24% are conscious not to use the chemical pesticides, 24% use those pest controls
that are produced organically.

Figure 69: What problems do you face to produce the products in due time?
What problems do you face to produce the products in due time?

Power
12% 8% 4%
Transportation
24% Raw materials
Price descrimination
32% Technology
High labor cost
12% 8% All of above

The farmers are facing lot of problems to produce the products in due time. 32% farmers are
suffering from the unavailability of raw materials, 24% are paying high labor cost, 12% have
the problems of underdeveloped technology, 8% are facing price discrimination in seeds,
fertilizers, irrigation , 8% are tortured by the powerful figures from the society, 4% are
getting problems from improper and unavailability of transportation facilities.
Figure 70: Agro/Green purchasing is first of all a way of life and then a business-
Agro/Green purchasing is first of all a way of life and second a business

8%
20%
Strongly Disagree
Disagree
Neutral
36%
Agree
36%

46
Agro/green purchasing is first of all a way of life and then a business- about this statement
36% are disagree, 36% are neutral, 20% are agree, 8% are not supporting it. Those who are
suffering greatly they can not take this comment easily.

Figure 71: Regulations for chemical pesticides should be stricter than those for
Agro/Green farming-

Regulations for chemical pesticides should be stricter than those for

Agro/Green farming-

4%
32%
Disagree
Agree
Strongly Agree
64%

Regulations for chemical pesticides should be stricter than those for agro/green farming-
whenever they were asked this question 64% are agreed with it, 32% are strongly agree, and
only 4% are disagree.

Figure 72: Agro/Green farming production can produce enough food to feed the world-

Agro/Green farming production can produce enough food to feed the world- Percent

16%

8%
Disagree
Neutral
Agree

76%

47
Agro/green farming production can produce enough food to feed the world- whenever they
were asked this question 76% are agreed with it, 32% are disagreed with it, and only 8% are
neutral to provide any comment.

Figure 73: Conventional farming/production can coexist with Agro/Green Farming-

Conventional farming/production can coexist with Agro/Green Farming-

4% 4% 8%

Disagree
Neutral
Agree
Strongly Agree

84%

Conventional farming/production can coexist with agro/green farming- whenever they were
asked this question 84% are agreed with it, only 4% are strongly agree, 8% are not ready to
answer and 4% are disagree.

It is better to buy Agro/Green products from abroad than to buy a conventionally

grown/produced product in Bangladesh-

It is better to buy agro/green products from abroad than to buy a conventionally

grown/produced products in Bangladesh- whenever they were asked this question only 4%
are agreed with it, 16% are strongly disagree, 8% are not ready to answer and majority 72%
are disagreed with this comment.

The use of biotechnology for genetically modified products is a threat to Agro/Green

farming-

The use of biotechnology for genetically modified products is a threat to agro/green farming-
whenever they were asked this question only 28% are agreed with it, 44% are not ready to
answer and 28% are disagreed with this comment.

48
Figure 74: Humans have the right to modify the natural environment to suit their
needs-
Humans have the right to modify the natural environment to suit their needs

16%

Strongly Disagree
16%
Disagree
Neutral
52%
Agree
16%

Humans have the right to modify the natural environment to suit their needs-whenever they
were asked this question 52% are agreed with it, 16% are not ready to answer and another
16% are disagreed with this comment, 16% not agreed with it all.

Plants and animals have as much rights as human to exist for sake of human welfare-
Plants and animals have as many rights as human to exist for sake of human welfare-
whenever they were asked this question only 28% are agreed with it, 36% are not ready to
answer and 36% are disagreed with this comment.

The balance of nature is very delicate and easily upset-

The balance of nature is very delicate and easily upset-whenever they were asked this
question 44% are agreed with it, 48% are not ready to answer and only 8% are disagreed with
this comment.
Figure 75: No antibiotics are used on Agro/Green farms-
No antibiotics are used on Agro/Green farms-

20%
Disagree
Neutral
12%
Agree
68%

No antibiotics are used on Agro/Green farms -whenever they were asked this question
maximum 68% farmer are agreed with it, 12% are not ready to answer and 20% are
disagreed with this comment.

49
Figure 76: No pesticides are used on Agro/Green farms
No pesticides are used on Agro/Green farms

8% 4%

Disagree
Neutral
Agree

88%

No pesticides are used on agro/green farms-whenever they were asked this question major
farmer 88% are agreed with it, 4% are not ready to answer and only 8% are disagreed with
this comment.

No herbicides are used on Agro/Green

No herbicides are used on agro/green-whenever they were asked this question 56% are
agreed with it, 12% are not ready to answer and 32% are disagreed with this comment.
No hormones are used on agro/green farms-whenever they were asked this question 68%
have voted it, 8% are not ready to answer and 24% are disagreed with this comment.

Conclusion:

Still despite awareness levels being low and by extension consumption incidence,
perceptions and attitudes towards organic foods appears to be quite positive. Once the
respondents are exposed to this, an overwhelming majority say that indeed organic products
are ecologically balanced foods and also give a high score on the importance scale saying
that it would be very important to them if the quality is ensured at all stages of
production(freshness, healthiness, flavor, nutrition, safety, price , environmental effects)-
from producers to consumers. The usage of chemical pesticides has no boundaries and
without the proper dictation the farmers are in quite dark about the quality foods delivery
procedures. The unethical chemical suppliers are making the foods production in great risks
for the long run. On verification systems most feel that there should be some kind of
verification systems for organic products in the region thus this is an issue that should indeed
be pursued and actualized. But from the study it has observed that the monitoring and
regulatory bodies are not so spontaneous to perform its activities. This is only possible when
the government of Bangladesh will set a standard of organic farming to follow in all stages
required by the conscious consumers in Bangladesh. It can be inferred that despite the
existence of the organic message bearers, there may not be enough exposure or perhaps
effective delivery of them hence little or no impact. The suppliers also achieve the
certificates and licenses for joining in the movement of quality foods for the human lives.
Other than the mass-media can take initiatives on a very large scale so that it can make a foot

50
steps for the national or regional impact to increase the perception of organic foods
consumption in Bangladesh.

Recommendations:
In order to address the ways for organic farming and consumption to multiply its impact on
food availability and safety, public and private sector capacities need to be strengthened at
both production and market levels as follows:

At Production Level
• Training and extension should be provided to farmers with basic knowledge of
biological principles and ecosystems processes, and support them in the
implementation and adaptation of sustainable farming practices.
• Participatory research programs should be developed locally i, e, adapted
technologies, particularly in soil fertility management. The issue of increasing soil
organic matter and soil microbial activity and managing timely mineralization and
nutrient availability is complex and particularly demanding in areas where biomass
production is limited due to climatic constraints.
• Organic input production should be increased for compost that requires the
availability of biomass, knowledge of composting techniques and, for larger scale
farms, considerable investments in mechanization. Community-based compost
projects can be designed for the farmers of a village to produce compost together on
one site and learn together to produce a high-quality compos.
• Farming system should introduce comparison trials to establish physical references
for organic agriculture in as many places as possible to give farmers a basis for
decision making in view of a possible conversion to organic agriculture; to back up
local extensions and development projects..

At Marketers Level
• Creating awareness among the producers and consumers about the organic
agriculture. It is possible to improve the level and quality of information through
materials ranging from simple field training, media programs, leaflets, cell phones up
to Web sites and comprehensive information campaigns.
• By increasing information and transparency system among the consumers and other
stakeholders through market studies, market intelligence and business directories,
published for free access on paper, Radio/TV, cell phones and on the Internet.
• Marketers should link the production with the supply that may be either vertical and
horizontal cooperation of players in the supply chain such as producers, traders,
processors and retailers is essential and needs support.
• Marketers should support the creative initiatives that create and develop organic
market initiatives, value chains and farmer enterprises for organizing processing and
marketing of their products, based on successful market initiatives initiated by
producer groups, NGOs or companies
• If the marketers can develop the domestic markets focusing on organic market
initiatives specially to develop the domestic market for organic food products.
• Definitely they should set the reasonable price of the organic products according to
farmers’ production and supply chain cost.

51
 • Marketers should come forward to reduce the certification complexity and costs to
overcome the expense of organic certification and an insurmountable barrier for many
producers.
• All marketers should create locally adapted standards to support trade rules and
favorable business conditions up to comprehensive national action plans in order to
support the development of the organic market.
• Only the marketers can educate the consumers on how best to identify organic
products. Promotion of organic products using a mark or logo to identify them should
also be considered. Informing consumers on where they can buy organic products or
where they are available.
• Media (both electronic-television and radio and print-newspapers) can play important
roles in increasing awareness of farmers and consumers.

References:
Internet

http://www.agriculture-industry-india.com/india-agro-statistics, 11.01.2009, 12.05pm-

12.30pm

http://www.maxcoragro.com/about-us.html, 11.01.2009, 12.30pm-2.00pm

http://en.wikipedia.org/wiki/Quality assurance, 25.01.2009, 4.10pm-4.25pm

http://www.globalissues.org/235/consumption-and-consumerism, 16.02.2009, 1.28pm-

1.55pm

http://www.businessdictionary.com/definition/quality.html, 12.03.2009, 10.20 am -10.40 am

Appendices # 01
Consumer Perception is defined as the process by which an individual selects, organizes,
and interprets stimuli into a meaningful and coherent picture of the world. It can be described
as “how we see the world around us”
In general quality means the measurement of excellence or state of being free from
defects, deficiencies, and significant variations. ISO 8402-1986 standard defines quality as
"the totality of features and characteristics of a product or service that bears its ability to
satisfy stated or implied needs."
Quality policies are to access the customers’ satisfaction through continual improvement of
product quality, product on-time delivery and quick services when the customers require.
The concept of consumerism was available in the world since 1962 which was initiated by
the great American president John F. Kennedy. There he amended four rights at the
Presidential message. These are: (a) the right to safety, (b) to be informed, (c) to choose and
(d) to be heard. UN General Assembly approved later eight rights on 9th April, 1985.
Agro Products embrace a broad all-inclusive category of products related to agriculture. It
includes a comprehensive range of raw and finished goods under the classifications of plants,

52
animals and other life forms. The term 'agro' has stemmed from the Greek word 'agros'
meaning field, which has led to its current usage meaning anything that falls under the
‘agricultural’ category.
Organic foods are those produced and processed through a system that encourages
biological natural processes on the farm, allows farm plants/animals to exhibit natural
behavior and excludes the use of synthetic pesticides, chemical fertilizers, antibiotics and
genetically modified organisms.
Consumers nowadays are becoming concerned about environmental quality and chemical
residues in food, and follow particular diet sets for various (medical or other) reasons. There
are consumers who also are concerned with ‘factory farming’ methods. And, some
consumers believe that a price premium on a product signals a better product.
Consumers in Bangladesh complain that the unrestricted influx of substandard, harmful,
adulterated and imitated goods and fraudulent services in the market are mounting.
---------------------------------------------------------------------------------------------------------------
Schiffman, L.G. and Kanuk, L.L. Consumer Behavior
New Delhi: Prentice-Hall of India Private Ltd., 2004), p.158
Chowdhury, M.A.M. Environmental Marketing Strategies in the U.S.A.
(Dhaka: Friends Publishers, 2006), p. 24
Ibid. p.56
Razia Begum, “The Product Quality Control and the Consumer's Consciousness”, Journal of Marketing,
University of Dhaka, vol-i. June 1998, p. 16
Richard .L. Kohls and Joseph. N.UHL, Marketing of Agricultural Products
(New Delhi: Prentice-Hall of India, 2002) p.39
Acharya, S.S. and Agarwal, N.L. Agricultural Marketing in India
(Kolkata: Oxford and IBH Publishing Co. PVT. Ltd., 2001), p. 17
Neace, M.B.ISO 14000: “The Emerging Global Standard for Environmental Quality and its Impact on
Marketing, International Business and Environmental Management”, School of Business and Economics,
Mercer University, Macon, GA, USA. 1999, p. 36

Appendices # 02
Table 05: Cross tab: Family Size with Monthly Expenses and Professions

53
 Monthly expenses
Profession Above
Below Tk. Tk.10,000 - Tk.15,000 - Tk.20,000 - Tk.25,000 - Tk.
10,000 Tk.15,000 Tk.20,000 Tk.25,000 Tk.30,000 30,000
House
0 .0% 1 1.4% 5 7.1% 2 2.9% 1 1.4% 0 .0%
wife
Self-
0 .0% 0 .0% 0 .0% 1 1.4% 0 .0% 0 .0%
employed
Non-govt.
2 2.9% 0 .0% 5 7.1% 2 2.9% 0 .0% 0 .0%
Family service
size: Govt.
0 .0% 0 .0% 2 2.9% 1 1.4% 0 .0% 0 .0%
Below 4 service
Wage
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
earner
Business 1 1.4% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Student 2 2.9% 0 .0% 0 .0% 0 .0% 1 1.4% 0 .0%
Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
House
0 .0% 1 1.4% 1 1.4% 0 .0% 0 .0% 0 .0%
wife
Self-
0 .0% 0 .0% 2 2.9% 0 .0% 0 .0% 0 .0%
employed
Non-govt.
0 .0% 4 5.7% 3 4.3% 1 1.4% 0 .0% 0 .0%
service
Family Govt.
0 .0% 1 1.4% 2 2.9% 0 .0% 0 .0% 0 .0%
size: service
4-6 Wage
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
earner
Business 0 .0% 0 .0% 2 2.9% 0 .0% 0 .0% 0 .0%
Student 2 2.9% 8 11.4% 4 5.7% 0 .0% 0 .0% 0 .0%
Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
House
0 .0% 2 2.9% 0 .0% 0 .0% 0 .0% 0 .0%
wife
Self-
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
employed
Non-govt.
0 .0% 0 .0% 2 2.9% 2 2.9% 0 .0% 0 .0%
service
Family
size: Govt.
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
6-8 service
Wage .0%

54
 Monthly expenses
Profession Above
Below Tk. Tk.10,000 - Tk.15,000 - Tk.20,000 - Tk.25,000 - Tk.
10,000 Tk.15,000 Tk.20,000 Tk.25,000 Tk.30,000 30,000
House
0 .0% 1 1.4% 5 7.1% 2 2.9% 1 1.4% 0 .0%
wife
Self-
0 .0% 0 .0% 0 .0% 1 1.4% 0 .0% 0 .0%
employed
Non-govt.
2 2.9% 0 .0% 5 7.1% 2 2.9% 0 .0% 0 .0%
Family service
size: Govt.
0 .0% 0 .0% 2 2.9% 1 1.4% 0 .0% 0 .0%
Below 4 service
Wage
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
earner
Business 1 1.4% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Student 2 2.9% 0 .0% 0 .0% 0 .0% 1 1.4% 0 .0%
Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
House
0 .0% 1 1.4% 1 1.4% 0 .0% 0 .0% 0 .0%
wife
Self-
0 .0% 0 .0% 2 2.9% 0 .0% 0 .0% 0 .0%
employed
Non-govt.
0 .0% 4 5.7% 3 4.3% 1 1.4% 0 .0% 0 .0%
service
Family Govt.
0 .0% 1 1.4% 2 2.9% 0 .0% 0 .0% 0 .0%
size: service
4-6 Wage
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
earner
Business 0 .0% 0 .0% 2 2.9% 0 .0% 0 .0% 0 .0%
Student 2 2.9% 8 11.4% 4 5.7% 0 .0% 0 .0% 0 .0%
Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
House
0 .0% 2 2.9% 0 .0% 0 .0% 0 .0% 0 .0%
wife
Self-
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
employed
Non-govt.
0 .0% 0 .0% 2 2.9% 2 2.9% 0 .0% 0 .0%
service
Family
size: Govt.
0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%
6-8 service
Wage .0%

55
 Appendices # 03

Questionnaire Survey: Quality Assurance and Consumer Awareness in

Agro/Green Purchasing in Bangladesh

What is the scenario of consumer awareness in Agro/Green purchasing in Bangladesh? What

should the future of Agro/Green farming/production look like? What are the challenges and
potentials?
As a consumer, please help us understand how you feel about Agro/Green purchasing issues
in general and in particular.

Location / place of interview:___________________________________

Respondent's name:___________________________________________
Address / Phone number/s: _____________________________________
_____________________________________

56
 Interviewer's name: ___________________________________________
Address / Phone number/s: _____________________________________
_____________________________________
I declare that this interview has been carried out Interviewer's Signature:
strictly in accordance with the training / instruction
I received in every respect, with a properly selected __________________________
respondent.
Date:_____________________

Respondents’ Details:

01. Gender
Male Female

02. Marital Status

Married Single Other

03. Age Groups

Under 20 20 -29 30 - 39
40 - 49 50 +

04. Education
Under SSC SSC passed HSC passed
Undergraduate Postgraduate Other_____________
05. Profession
House wife Self Employed Non-Govt. Service
Govt. Service Wage Earner Business
Student Pensioner Other ______________

06. Location: ________________________

07. Family size

Below 4 4-6 6-8
8-10 10+

08. Monthly expenses:

Below Tk.10,000 Tk.10,000 – Tk.15,000
Tk.15,000 – Tk.20,000 Tk.20,000 – Tk.25,000
Tk.25,000 - Tk.30,000 Above Tk.30,000

09. Regarding purchasing ‘Agro/Green’, you are -

Regular Frequent Seldom Never purchase

Details of Survey Response:

57
01. What do you understand by term “Agro/Green purchasing”?
Natural foods Herbal products
Products without chemicals / pesticides
Traditional /indigenous foods
Others__________________________
Don't know / not sure
02. What was your source of information/ get to learn about Agro/Green products?
TV Programs / ads News papers
Magazines / books Taught in school / college
At a promotional / educational event Words of mouth
Superstores / market Don't know / not sure
Other____________________________
03. Have you ever consumed or considered consuming 'Agro/Green products'?
Yes - have consumed Yes - have considered consuming
No Don't know / not sure
04. Which price premium (how much more than the regular price) would you agree to pay
for Agro/Green products by comparison with Non-Agro/Green products?
0 < 10% 10% - 19 % 20 % - 29 %
30% - 39 % 40% - 49% 50% > 100 %
05. What would persuade you buy more Agro/Green products?
Price Packaging Environment friendly
Availability Appearance Quality
Nutrition Safety Display in supermarkets
Stringent regulations Other____________________
06. The length of the period of Agro/Green purchasing-
Half a year 1 year 1 -2 years
2 - 4 years More than 4 years
07. When purchasing Agro/Green, it is important to know who produces it.
Strongly agree Agree Neutral (no opinion)
Disagree Strongly disagree

08. Where do you buy your Agro/Green products most often?

Meena Bazar Agora
Family World Almas General Store
Prince Dept. Store Nandan
PQS New Market
Karwan Bazar Other_________________________
09. Which types of Agro/Green products have you ever consumed / used or considered to do
so?
Dairy products Fruits Vegetables
Fishes Meat Rice
Breads Processed foods Other__________________
10. Why do you / did you consume or why have you ever considered consuming -
They are tasty They are healthy / nutritious

58
 They are safe (not contaminated) They are affordable
Environmental friendly Good for management of
illness No specific reason / Indifferent Others
________________________
11. Purchasing Agro/Green products, what you take into consideration?
Price / affordability Packaging (quality)
Packaging (size) Availability
Health Brand Name
12. Where do you / would you prefer to purchase your Agro/Green products from?
Supermarkets / stores Agro/Green grocers
Open air markets Farms
Kiosks Don't know / not sure
Others___________________________
13. How do you / would you verify or know that the foods you are buying / consuming are
Agro/Green?
Check the labels
Only purchase from specific shops that I know sells Agro/Green products
Only purchase specific brands which I know to be Agro/Green
Practice my own Agro/Green farming
Others__________________________

14. Do you trust your method of verification (mentioned above)?

Yes No Don't know / not sure
15. Do you think there is a need for a system of verification of Agro/Green products?
Yes No Don't know / not sure
16. Who will be responsible for providing this verification?
The government Independent certification authority
Companies buying from farmers The Producers himself
Don't know / not sure Other________________________
17. How after do you look at labels to see where a product is made or grown?
Always frequently Sometimes
Seldom Never
18. How after do you purchase products labeled 'Agro/Green' (organic / Herbal)?
Always frequently Sometimes
Seldom Never Don't know what is 'Agro/Green'
19. Agro/Green products should be identified by a logo -
Yes No Don't know / not sure
20. There are local standards for Agro/Green products -
Yes No Don't know / not sure
21. Agro/Green business will rise due to Food insecurity -
Yes No Don't know / not sure
22. Consumer rights in Bangladesh has been established –
Yes No Don't know / not sure
23. Price discrimination at the time of purchasing of the agricultural products –
Yes No Don't know / not sure

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24. To what extent would it now be important to you that the products you consume / use are
Agro/Green?
(Increasing importance)

1 2 3 4 5 6 7 8 9 10

25. In your own opinion which of these short statements attributes is most suited to
Agro/Green products (also say the 2nd and 3rd most suited to Agro/Green products) ?
Agro/Green products 1st 2nd 3rd
Is nutritious / healthy
Is fashionable / trendy
Is affordable
Is safe
Is very tasty
Is traditional
Is for the elite
Is for everyone
Is available

26. From the following list rank the advantages of purchasing Agro/Green products (1-
highest, 7-lowest)
Advantages 1 2 3 4 5 6 7
Product quality
Product locally
Value / Prices
Produced organically
No artificial ingredients
No pesticides / chemicals
No preservatives
Healthy / Nutritious
Trendy/fashionable
Available

27. With regards to the 'Agro/Green products' rate the following statements:
(SD) (DI) (NE) (AG) (SA)
Strongly Disagree Disagree Neutral Agree Strongly Agree
-2 -1 0 +1 +2

SD DI NE AG SA
Organic food is safer than ordinary food -2 -1 0 +1 +2
Agro/Green products have less pesticides / chemicals -2 -1 0 +1 +2
Agro/Green products are more expensive than ordinary -2 -1 0 +1 +2
products

60
It is worth paying more for Agro/Green products -2 -1 0 +1 +2
Agro/Green farming is as sustainable as conventional -2 -1 0 +1 +2
farming
Only 'Agro/Greenies' buy Agro/Green products -2 -1 0 +1 +2
Agro/Green productions help to improve the environment -2 -1 0 +1 +2
Agro/Green foods are more nutritious than conventional -2 -1 0 +1 +2
foods
Agro/Green products are overpriced -2 -1 0 +1 +2
Agro/Green products look better than conventional -2 -1 0 +1 +2
products
Agro/Green products has a premium price for genuine -2 -1 0 +1 +2
benefit
Agro/Green foods taste better than conventional foods -2 -1 0 +1 +2
Agro/Green farming can produce enough food to feed the -2 -1 0 +1 +2
world
Conventional farming can coexist with Agro/Green -2 -1 0 +1 +2
farming:
It is better to buy a Agro/Green product from abroad (i.e. -2 -1 0 +1 +2
Thailand) than to buy a conventionally grown/produced
product in Bangladesh.

Thank you for your assistance!

Questionnaire Survey: Quality Assurance and Consumer Awareness in

Agro/Green Purchasing in Bangladesh

Producers/Farmers
Respondents’ details:
1. Name: _________________________________________________

2. Location of production: ___________________________________

3. Location to serve: ________________________________________

4. Year of establishment: ____________________________________

5. Years of experience or working span of time: __________________

6. Working capital: _________________________________________

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Details of Survey Response:

01. What category of products do you produce?

Crops Vegetables Leaves Fruits
Herbs Other________________________

02. Major challenges in Agro/Green productions-

High cost of Agro/Green inputs High labor cost
Variable or low yields Difficulty in obtaining Agro/Green
inputs
Difficulty to find enough farm labor Inconsistency of customers demand
03. Quality standard certification you use-
Specific production discipline
Quality controls
ISO 9000
04. Production cost of the agricultural product should be lower than market price
Yes No
05. If Product price especially agricultural product is higher than neighboring countries
products smuggling will rise
Yes No
06. Agro/Green product is related to Agro/Green business
Yes No
07. Quality of Agro/Green product should maintain standard
Yes No
08. Extensive Financing in agricultural sector is required
Yes No

09. Factors you consider to choose the agro products :(Please give name of some factors-
ranking 1 –5)
i) Quality
ii) Profit
iii) Safety
iv) Healthy
v) Others
10. What are the guidelines you follow to produce the agro products?
i) Good seed ii) Organic manure iii) Natural pest control
iv) High natural farming technology v) Others
11. From where have you got the information about the quality of production?
i) Govt. ii) NGOs iii) Prior experience iv) International Technology v) Others

12. What is your self strategy to produce better quality of products?

i) High quality raw materials ii) Profitability iii) Safety iv) Healthy v) Others

13. How do you supply the products to markets?

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 By yourself By wholesalers By retailers By consumers.

14. What factors do you consider to purchase the raw materials?

i) Selected good suppliers ii) Selected brands iii) Selected organic seeds
iv) Selected organic manure v) Organic pest control

15. Which policy do you follow to use fertilizer, insecticides and pest controls?

i) No chemical fertilizers ii) No pesticides iii) No hormonal chemicals iv) No artificial pest
control

16. What problems do you face to produce the products in due time?

i) High labor cost ii) Lack of raw materials iii) Lack of quality seeds iv) Lack of
infrastructural facilities v) High price of raw materials

17. Use the scale below to answer the questions on this page by circling / tick marking the
appropriate number on the right:
(SD) (DI) (NE) (AG) (SA)
Strongly Disagree Disagree Neutral Agree Strongly Agree
-2 -1 0 +1 +2

SD DI NE AG SA
Agro/Green purchasing is first of all a way of life -2 -1 0 +1 +2
and second a business
Regulations for chemical pesticides should be -2 -1 0 +1 +2
stricter than those for Agro/Green farming
Agro/Green farming production can produce enough -2 -1 0 +1 +2
food to feed the world
Conventional farming / production can coexist with -2 -1 0 +1 +2
Agro/Green farming
It is better to buy Agro/Green products from abroad -2 -1 0 +1 +2
than to buy a conventionally grown / produced
product in Bangladesh
The use of biotechnology for genetically modified -2 -1 0 +1 +2
products is a threat to Agro/Green farming
Human beings have the right to modify the natural -2 -1 0 +1 +2
environment to suit their needs
Plants and animals have as much rights as human to -2 -1 0 +1 +2
exist for sake of human welfare
The balance of nature is very delicate and easily -2 -1 0 +1 +2
upset
No antibiotics are used on Agro/Green farms -2 -1 0 +1 +2

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 No pesticides are used on Agro/Green farms -2 -1 0 +1 +2
No herbicides are used on Agro/Green farms -2 -1 0 +1 +2
No hormones are used on Agro/Green farms -2 -1 0 +1 +2

18. What are your suggestions?

i) Govt. should patronize ii) Infrastructural facilities should increase iii) Ensure
regular supply of raw materials iv) Control the price of raw materials v) Ensure the right
quality of raw materials.

Thank you for your assistance!

Questionnaire Survey: Quality Assurance and Consumer Awareness in

Agro/Green Purchasing in Bangladesh
Retailers:
Respondents’ details:
7. Name of the organization: _________________________________

8. Holding location: ________________________________________

9. Location to serve: ________________________________________

10. Year of establishment: ____________________________________

11. Years of experience or working span of time: __________________

12. Working capital: _________________________________________

Details of Survey Response:

01. Regarding Agro/Green and Non-Agro/Green, consumers buy comparatively more
Agro/Green Non-Agro/Green
Both on average Not sure
02. Consumers attitudes towards Agro/Green products
Healthy / Nutritious Natural Tasty
High quality Environment friendly
Expensive Trendy / fashionable
03. How do your customers identify Agro/Green products that they are buying from you?
Arranged on special shelf /corner
Have a logo Are labeled
Ask for guidance / assistance Other_______________________
04. Most relevant supply channels for Agro/Green products
Direct sale Wholesalers Retailers
Specialized shops Supermarkets
Open air markets General food shops / stores
05. Types of your purchasing

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 Supply contracts Spot-market
Good stock exchange Other________________
06. Average premium price of your Agro/Green products vs. Conventional products
O < 10% 10% - 19% 20% - 29 %
30% - 39% 40% - 49% 50% > 100%
07. How do you fix your retail price?

i) Production cost ii) Competitive price iii) Brand image iv) Lower prices v) Others

08. How can you understand that your supply chain of the Agro/Green products is providing
the right products to your shops/stores?
Ask the producers / suppliers Check by self
Educated by management / officials No understanding
Other_____________________
09. How much do you understand on the supply chain / routs?
All the supply routes Almost all the supply route
Only immediate suppliers No answer
10. Where do you get your Agro/Green products?
Grown directly by self Directly from farmers/producers
Supplier/Wholesalers Super market
Specialized stores Other__________________
11. Do you complement your Agro/Green deliveries with 'non-Agro/Green' products?
Never Always Frequently
Sometimes Seldom
12. What certification system would / do you trust more?
Government Agro/Green producers association
Private institution Other__________________
13. Agro/Green message bearers are (motivation to sell Agro/Green products)
Producers Suppliers
Products Manufacturers
Govt. (ministries such as health, Agriculture)
NGOs Other___________________
14. Why do you purchase the products from your selected distributors?

i) Right quality ii) Right price iii) Transportation facilities iv) Right response time v)
Flexibility in order

15. Do you follow any guidelines to provide the green products in proper quality?

i) Check the product quality regularly ii) Warehousing the quality goods iii) No preservatives
or chemicals iv) Skilled personnel will be engaged v) Others
16. How can you maintain the quality of products for consumers?

i) Right packaging ii) Right weight iii) Due date iv) No chemicals v) Others

17. What factors do you consider to ensure the quality of products?

65
i) Right ingredients ii) Control temperature in the outlet iii) Right ventilation iv) Germless
container v) Usage of hand/shoe gloves

18. Which factors do you give priority for inventory management system?

i) LIFO ii) FIFO iii) According to quality iv) Others

19. Have you any claim about the insufficient supply of goods?
i) Lack of transportation ii) Natural calamities iii) Political unrest
iv) Crops affected by diseases v) Not harvested in due time

20. Does cost affect you to fix the sales price of your retail goods?
i) Yes ii) No iii) Others

21. What complains do you face from consumers?

i) Insufficient supply ii) Low quality iii) High price iv) Local and imported goods
competition v) Not tasty and healthy

22. What are your suggestions to solve these problems?

i) Ensure available transportation ii) Increase the quality of foods iii) Price should be
decreased iv) Govt. should monitor terminally v) Others

23. Is there any regulatory body to monitor the quality of agro based products?
i) Govt. ii) Voluntary organization iii) International standard system iv) Local verification
system v) Others
Thank you for your assistance!

Questionnaire Survey: Quality Assurance and Consumer Awareness in

Agro/Green Purchasing in Bangladesh
Suppliers / Wholesalers
Respondents’ details:
13. Name of the organization: _________________________________

14. Holding location: ________________________________________

15. Location to serve: ________________________________________

16. Year of establishment: ____________________________________

17. Years of experience or working span of time: __________________

18. Working capital: _________________________________________

Details of Survey Response:

66
01. Which category of raw materials do you supply?
Agro/Green Non-Agro/Green Both
02. What do you understand by the term 'Agro/Green'?
Nature foods Herbal products
Products without chemicals / pesticides
Traditional /indigenous foods Other___________________
Don't know / not sure
03. Who are your target customers?
Supplier/Wholesaler Retailer Consumer (end user)
Both Wholesaler & Retailer All

04. Which products run comparatively more?

Agro/Green Non-Agro/Green Both on average
05. What are the most common issues you encounter in your business relating to supply of
Agro/Green raw materials?
High quality Service Efficiency and effectiveness
Readily available Price / Affordability
Consistency of quality & supply Origin / Source of supply
Variety of materials to select from

06. Source of Agro/Green raw materials for you -

Local/National Foreign - Asia Foreign – EU
Foreign – North America Foreign – Africa
Other______________
07. Main implemented action to develop Agro/Green products.
New products New markets
New technologies New suppliers
New producers Other_______________________
08. Types of inputs utilized in the Agro/Green products.
Agricultural raw materials No inputs
Finished products Semi finished
Agricultural raw material + semi finished products
09. Which inventory management policy you follow?

i) LIFO ii) FIFO iii) Others

10. Do you follow any guideline to supply the products?

i) Ensure the quality ii) Minimize the transportation cost iii) Supply products in due time
iv) Serve to selected retail areas/ centers v) Maintain the contract negotiation

11. Which problems do you face to collect, stock and sell the raw materials?

i) Lack of supply ii) Fluctuation in price iii) Lack of Govt. support

67
 iv) Lower quality v) International competition

12. What is your opinion?

i) Ensure the right supply ii) Govt. should patronize iii) Ensure the right quality iv) Control
the price of materials v) Increase the retail markets and farming areas.
Thank you for your assistance!

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