MARKET AND VALUE CHAIN ANALYSIS OF SEAWEED IN BANGLADESH

Abstract

Seaweed, a multicellular marine macroalgae, generates valuable resources that are used for a variety of applications, mostly in food and medicine. Surveys were conducted in Cox's Bazar and Bandarban districts between April 2022 and November 2022 to assess the marketing system, farming and marketing expenses, marketing margin, and to analyze the value chain of seaweed. The marketing margin, net return, return on investment, and farmer's shares were determined using many pertinent formulae and procedures. Nine marketing channels were established for promoting and selling seaweed produced in the Cox's Bazar coastal region. Of the identified seaweed marketing routes (a-i), channel ‘e’ was the longest and accounted for the biggest proportion (67%) of the total crop that reached the target customers. Seven participants engaged in seaweed value chain activities were identified, including farmers/wild stock harvesters, local market retailers, farmgate wholesalers, distance market wholesalers, distance market retailers, seaweed product developers, and consumers. The farmers achieved an average net return of 6064.66 Tk. and a return on investment (ROI) of 104.59% by cultivating seaweed in a 24m2 area for a period of 5 months. Although wholesalers in distance markets had the greatest marketing expenses, retailers in distant markets achieved the best marketing margin, net return, and return on investment (ROI) compared to other intermediaries. The distant market merchants contributed the maximum value per kilogram of seaweed, whilst the farmgate wholesalers added the lowest value. As a result of a limited local market and insufficient connection between farmers and distant market participants, farmers were compelled to sell a significant amount of their overall produce at a reduced price to farmgate wholesalers. Hence, the proportion of the consumer's price that goes to the farmer at the retailer level in distant markets is around 64.14%, while the remaining part of over 35% is allocated to market intermediaries. Several solutions were discerned based on the perspectives of seaweed growers and sellers in Bangladesh, aimed at enhancing seaweed growing, market demand, and pricing. The recommendations derived from the perspectives of market participants should be promptly implemented by the appropriate bodies to enhance the seaweed industry.