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 StudyThe 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

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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.

1Four 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.

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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.---------------------------------------------------------------------------------------------------------------2 http://www.agriculture-industry-india.com/india-agro-statistics, 11.01.2009, 12.05pm-12.30pm3 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 124Ajetomobi.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:

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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. 297 H. Willer, et.al, “Demand of Research and DevelopmentIn OrganicFfarming in Europe”, Organic Agriculture in Rome, Italy, 1998, p 638 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 299Sarker, A, Yoshihito Itohara, Organic Farming And Poverty Elimination: A Suggested Model For Bangladesh, Journal of Organic Systems, Japan, 2008, Vol-2 , No-2, P 3710 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 2311Labeling 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.

Methodology of the study

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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

13Gemma 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).

Selection of Sample Size

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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 Data1. Wholesalers and Suppliers 70 Mohammadpur Krishi

Market, Karwan bazar, New Market

2. Producers or Farmers 25 Savar and Gazipur3. Local Retailers and Super

Store Retailers50 Dhanmondi,Mirpur, and

NewMarket.4. Consumers and Other

Stakeholders70 Gulshan, Mirpur,

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 Groups by gender

Age Group (Year)

Total=70Under 20 20 - 29 30 - 39 40 - 49 50+

Total % of Total

5.7%(4.3%)

42.9%(25.7%)

22.9%(8.6%)

22.9%(7.1%)

5.7%(2.9%)

100.0%(48.6%)

Note: Parentheses give absolute frequencies Source: Own Survey result 2008.

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

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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) Male

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

81 16 3 100 (36)

(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.

Occupation

Educational level of Consumer

Total

Up toS.S.C

S.S.CPassed

H.S.C Passed Under graduate Postgraduate

1.Self- employed 12.4%(2.4)

2.Non-govt.service

2.9%(0%) 12.5%(8.9%) 2.8%(0%) 14.4%(6.8)

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%

Note: Parentheses give absolute number of female Source: Own Survey result 2008.

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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

i) Regular ii) Frequent iii) Seldomiv) Never purchase

i) Below 10,0001.4%

2.9% 8.6%

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 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

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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 FoodsIn 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.

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

Figure 02 show that the consumers 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.

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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 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 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

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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 consumerto 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

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:

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Verifying system

27%

30%

32%

1% 10%

Check the labels

Only purchase from specif icshops

Only purchase specif ic brands

Practice ow n Organic farming

Others

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.

Figure 08: Analysis of checking label of Organic foods and its originRespondents who said that they have ever consumed or considered consuming organic foodsproducts 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.Respondents who said that they have ever consumed or considered consuming organic foodsproducts 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.Figure 09: Awareness of facts on verification method and system, organic logo and local standards

13

47

3

20

58

12

70

55

8

7

24

27

19

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Whether trustthe method of

verificationmentioned by

self

If there is aneed for asystem ofverification

Organicproducts

should beidentified by a

logo

There are localstandards for

Organicproducts

Yes No Don't know/Not sure

0

17

19

13

16

14

21

4

22

14

0

5

10

15

20

25

How often do consumers look atlabels to see where a product is

made or grown

How often do consumers purchaseproducts labeled ‘Organic’

Always frequently Sometimes Seldom Never

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 verificationsystem. 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

Those who felt there was need 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'

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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

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. 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 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 FarmingHaving been exposed to the statement defining Organic products, the respondents were asked 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 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 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:How important is it for you to now consume Organic food products?

Importance score out of 10Those who had ever consumed 8.3Those who had ever considered consuming 8.7Those who had never consumed or considered 7.4

15

50

8

12

12

47

11

54

8

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Organic business willrise due to Food

insecurity

Consumer rights inBangladesh has been

established

Price discrimination atthe time of purchasing

of the Organicproducts

Yes No Don't know/Not sure

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 OrganicDifferent 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 47.1Is 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 farmingEvaluation issues Degree of Responses(SD)Strongly Disagree; (DI) Disagree; (NE) Neutral; (AG) Agree; (SA) Strongly Agree

SD DI NE AG SA

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 farming

--

11.4%

34.3%

30.0%

24.3%

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 foods

5.7% 7.1% 27.1%

60.0%

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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 world

1.4% 15.7%

17.1%

38.6%

27.1%

Conventional farming can coexist with Organic farming:

1.4% 5.7% 34.3%

54.3%

4.3%

It is better to buy an Organic product from abroad (i.e. Thailand) than to buy a conventionally grown/produced product in Bangladesh.

28.6%

27.1%

30.0%

11.4%

2.9%

Analysis and Findings from Key Informants

General Business Issues In Relation To Customer PreferencesThe 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

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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-

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

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Year of establishment

14%4%

10%

48%

24%Before 1990

1990-1995

1995-2000

2000-2005

2005-2009

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-

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

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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-?

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-

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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-

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-

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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?

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?

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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?

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?

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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?

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?

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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)

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?

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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?

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?

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How can you maintain the quality of products

for consumers?

24%

24%22%

22%8%

Right packaging

Right weight

Due date

No chemicals

Others

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?

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?

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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?

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?

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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

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

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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

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?

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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'?

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?

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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?

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-

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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?

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?

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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.

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.

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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?

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?

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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?

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 FoodIn 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

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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

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

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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-

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

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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?

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-

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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-

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-

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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?

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-

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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-

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-

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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?

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?

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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?

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?

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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?

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?

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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?

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-

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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- 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-

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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- 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.

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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-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 -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.

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

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

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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.

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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,

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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.158Chowdhury, 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.39Acharya, 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 # 02Table 05: Cross tab: Family Size with Monthly Expenses and Professions

Monthly expenses

Profession Below Tk.

10,000Tk.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

Family size:Below 4

House wife

0 .0% 1 1.4% 5 7.1% 2 2.9% 1 1.4% 0 .0%

Self-employed

0 .0% 0 .0% 0 .0% 1 1.4% 0 .0% 0 .0%

Non-govt. service

2 2.9% 0 .0% 5 7.1% 2 2.9% 0 .0% 0 .0%

Govt. service

0 .0% 0 .0% 2 2.9% 1 1.4% 0 .0% 0 .0%

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Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

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%

Family size:4 - 6

House wife

0 .0% 1 1.4% 1 1.4% 0 .0% 0 .0% 0 .0%

Self-employed

0 .0% 0 .0% 2 2.9% 0 .0% 0 .0% 0 .0%

Non-govt. service

0 .0% 4 5.7% 3 4.3% 1 1.4% 0 .0% 0 .0%

Govt. service

0 .0% 1 1.4% 2 2.9% 0 .0% 0 .0% 0 .0%

Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

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%

Family size:6 - 8

House wife

0 .0% 2 2.9% 0 .0% 0 .0% 0 .0% 0 .0%

Self-employed

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Non-govt. service

0 .0% 0 .0% 2 2.9% 2 2.9% 0 .0% 0 .0%

Govt. service

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Business 0 .0% 0 .0% 0 .0% 3 4.3% 1 1.4% 0 .0%

Student 1 1.4% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 1 1.4% 0 .0%

Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

House wife

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Self-employed

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

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Family size:8 - 10

Non-govt. service

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Govt. service

1 1.4% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Business 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Student 0 .0% 0 .0% 0 .0% 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%

Family size:10+

House wife

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Self-employed

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Non-govt. service

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Govt. service

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Business 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Student 0 .0% 0 .0% 0 .0% 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%

Total

House wife

0 .0% 4 5.7% 6 8.6% 2 2.9% 1 1.4% 0 .0%

Self-employed

0 .0% 0 .0% 2 2.9% 1 1.4% 0 .0% 0 .0%

Non-govt. service

2 2.9% 4 5.7% 10 14.3% 5 7.1% 0 .0% 0 .0%

Govt. service

1 1.4% 1 1.4% 4 5.7% 1 1.4% 0 .0% 0 .0%

Wage earner

0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

Business 1 1.4% 0 .0% 2 2.9% 3 4.3% 1 1.4% 0 .0%

Student 5 7.1% 8 11.4% 4 5.7% 0 .0% 1 1.4% 0 .0%

Pensioner 0 .0% 0 .0% 0 .0% 0 .0% 1 1.4% 0 .0%

Other 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0%

55

9 12.9% 17 24.3% 28 40.0% 12 17.1% 4 5.7% 0 0%

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:___________________________________

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

_____________________________________

Interviewer's name: ___________________________________________Address / Phone number/s: _____________________________________

_____________________________________I declare that this interview has been carried out strictly in accordance with the training / instruction I received in every respect, with a properly selected respondent.

Interviewer's Signature:

__________________________

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 -

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Regular Frequent Seldom Never purchase

Details of Survey Response:

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__________________

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10. Why do you / did you consume or why have you ever considered consuming - They are tasty They are healthy / nutritious 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 sure16. 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 sure21. Agro/Green business will rise due to Food insecurity -

Yes No Don't know / not sure22. Consumer rights in Bangladesh has been established –

Yes No Don't know / not sure23. 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 3rdIs nutritious / healthyIs fashionable / trendyIs affordableIs safeIs very tastyIs traditionalIs for the eliteIs for everyoneIs 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 7Product qualityProduct locallyValue / PricesProduced organicallyNo artificial ingredientsNo pesticides / chemicalsNo preservativesHealthy / NutritiousTrendy/fashionableAvailable

27. With regards to the 'Agro/Green products' rate the following statements: (SD)

Strongly Disagree(DI)

Disagree (NE)

Neutral (AG) Agree

(SA) Strongly Agree

- 2 -1 0 +1 +2

SD DI NE AG SA

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

60

productsIt is worth paying more for Agro/Green products -2 -1 0 +1 +2Agro/Green farming is as sustainable as conventional farming

-2 -1 0 +1 +2

Only 'Agro/Greenies' buy Agro/Green products -2 -1 0 +1 +2Agro/Green productions help to improve the environment -2 -1 0 +1 +2Agro/Green foods are more nutritious than conventional foods

-2 -1 0 +1 +2

Agro/Green products are overpriced -2 -1 0 +1 +2Agro/Green products look better than conventional products

-2 -1 0 +1 +2

Agro/Green products has a premium price for genuine benefit

-2 -1 0 +1 +2

Agro/Green foods taste better than conventional foods -2 -1 0 +1 +2Agro/Green farming can produce enough food to feed the world

-2 -1 0 +1 +2

Conventional farming can coexist with Agro/Green farming:

-2 -1 0 +1 +2

It is better to buy a Agro/Green product from abroad (i.e. Thailand) than to buy a conventionally grown/produced product in Bangladesh.

-2 -1 0 +1 +2

Thank you for your assistance!

Questionnaire Survey: Quality Assurance and Consumer Awareness in Agro/Green Purchasing in Bangladesh

Producers/FarmersRespondents’ details:

01. Name: _________________________________________________

02. Location of production: ___________________________________

03. Location to serve: ________________________________________

04. Year of establishment: ____________________________________

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

06. 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 priceYes No

05. If Product price especially agricultural product is higher than neighboring countries products smuggling will rise

Yes No06. Agro/Green product is related to Agro/Green business

Yes No07. Quality of Agro/Green product should maintain standard

Yes No08. 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) Qualityii) Profitiii) Safetyiv) Healthyv) Others10. 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) Others11. 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

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13. How do you supply the products to markets? 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)Strongly Disagree

(DI) Disagree

(NE) Neutral

(AG) Agree

(SA) Strongly Agree

- 2 -1 0 +1 +2

SD DI NE AG SAAgro/Green purchasing is first of all a way of life and second a business

-2 -1 0 +1 +2

Regulations for chemical pesticides should be stricter than those for Agro/Green farming

-2 -1 0 +1 +2

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

-2 -1 0 +1 +2

Conventional farming / production can coexist with Agro/Green farming

-2 -1 0 +1 +2

It is better to buy Agro/Green products from abroad than to buy a conventionally grown / produced product in Bangladesh

-2 -1 0 +1 +2

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

-2 -1 0 +1 +2

Human beings have the right to modify the natural environment to suit their needs

-2 -1 0 +1 +2

Plants and animals have as much rights as human to exist for sake of human welfare

-2 -1 0 +1 +2

The balance of nature is very delicate and easily upset

-2 -1 0 +1 +2

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No antibiotics are used on Agro/Green farms -2 -1 0 +1 +2No pesticides are used on Agro/Green farms -2 -1 0 +1 +2No herbicides are used on Agro/Green farms -2 -1 0 +1 +2No 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 BangladeshRetailers:Respondents’ details:

07. Name of the organization: _________________________________

08. Holding location: ________________________________________

09. 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

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05. Types of your purchasing 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) Others16. How can you maintain the quality of products for consumers? i) Right packaging ii) Right weight iii) Due date iv) No chemicals v) Others

65

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

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 BangladeshSuppliers / WholesalersRespondents’ 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: _________________________________________

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Details of Survey Response:

01. Which category of raw materials do you supply? Agro/Green Non-Agro/Green Both02. 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!

68