MARKET DYNAMICS AND GRADING CHALLENGES OF MAIZE IN BANGLADESH: A CASE STUDY OF RANGPUR

Market Dynamics and Grading Challenges

Abstract

Demand for maize in Bangladesh is increasing day by day for its diversified use in poultry, fish, and animal feed, processed foods, and export markets. The present study deals with the maize marketing system in Rangpur district with a focus on different categories of intermediaries that participate, and the determination of problems associated with the marketing process. The current study was undertaken in 2024 through face-to-face interviews with 30 maize producers, 40 intermediaries, and five feed millers. Seven marketing channels were clearly identified, involving the following as intermediaries: Farias, Beparis, Wholesalers, and Wholesaler-cum-Aratdars. Profit margins varied across channels. The producer-to-feed miller channel earned a profit of BDT 286, while the producer to wholesaler-cum-aratdar to feed miller channel earned a profit of BDT 503, respectively. Similarly, per maund (40 kg) marketing cost also varied from BDT 145 to BDT 173 in the marketing channels. Beparies obtained the highest return because of their end-to-end processing of maize. The marketing challenges were price fluctuations and nutrient-based grade disparities, to meet the same Metabolism Energy (ME) requirement using Grade B maize, an additional Tk. 22 per maund is incurred. Furthermore, the crude protein analysis demonstrates that balancing the CP content equivalent in one maund of feed requires an additional Tk. 186 when using Grade B maize compared to Grade A maize. This study has pointed out a remarkable influence of marketing channels on profit margins and feeding production costs of feed millers. It suggests focusing on the intermediaries for overcoming the existing marketing challenges and optimizing the maize grading for efficient and cost-effective feed production.