PROJECT TITLE: A research proposal on value chain analysis of major cut flowers in
Kathmandu valley
PROJECT
TYPE: Social Science
KEYWORDS: Value chain, Rose, Gladiolus,
START
ON: January, 2019
FINISH
ON: July, 2019
BUDGET
REQUIRED: 90,000
PRINCIPAL
INVESTIGATIOR:
Miss. Samita Paudel
M.Sc. Agricultural Economics
Institute of Agriculture &Animal science
PG Campus, Kirtipur
E-mail:samitapaudel2050@gmail.com
Table of Contents
A
RESEARCH PROPOSAL ON VALUE CHAIN ANALYSIS OF MAJOR CUT FLOWERS IN KATHMANDU
VALLEY
1
INTRODUCTION
1.1
BACKGROUND
Flower
is a seed-bearing part of a plant, consisting of reproductive organs that are
typically surrounded by a brightly colored corolla and a green calyx. Flowers
have traditional, cultural, and historic values along with the economic
importance. So, floriculture is emerging as a profitable business in Nepal.
Floriculture is a discipline of horticulture that deals with the cultivation of
flowering and ornamental plants for gardens and for floristry, comprising the
floral industry. There are varieties of business related to floriculture;
cut-flowers, foliage, indoor flowers, pot flowers, nurseries, and floristry
accessories. The world flower economy is mainly dominated by the cut flowers.
These cut flowers usually sold in bunches or in bouquets with cut foliage.
Floriculture
business in Nepal is believed to be started by 1950s. However, the organized
and formalized endeavor began in 1992 as the Floriculture Association of Nepal
(FAN). Government of Nepal is supporting to promote it as well. Floriculture
Promotion Policy, 2069 is the milestone in floriculture business in Nepal which
has opened the avenues for the investment and promotion of floriculture in
Nepal. There are 675 enterprises organized for floriculture business promotion
in 38 districts including more than 600 nurseries and 6 wholesale shops. In
2015, the values of flower products are: seasonal flowers produced Rs. 216.8
million, ornamental plant Rs. 381.50 million, cut flower Rs. 204.50 million,
land scape and gardening flower products Rs. 170.40 million, and other flower products
Rs. 67.00 million (FAN, 2016). This is one of the major sectors in providing
job for more than 41,000 people in the job market. Ornamental flowers, cut
flowers and cut foliage production are spread from the southern plains to the
hilly region. Chitwan, Makwanpur, Rupendehi, Jhapa, Sunsari and Mahottari are
major districts in terai plains while Kathmandu, Lalitpur, Bhaktpur, Dhading,
Kavare, Nuwakot and Kaski are hilly districts that grow and trade majority of
the flowers in Nepal (Pun….).
1.2
STATEMENT OF THE PROBLEM
The
commercial cut flower business is booming in Nepal and there are ample
prospects for upgrading it to domestic and export markets. However, various
studies pointed out problems related to production and marketing of cut
flowers. In 2007, the total area under floriculture production was estimated to
be around 80 hectares including 30 hectares under protected sheds. However,
flowers production in protected sheds has been adopted in recent times only.
Similarly, micro-irrigation and high-tech greenhouses are yet to be well
adopted by the growers. Most of the floriculture enterprises are small,
traditional, private and domestically owned. There is a great potential for
expanding production if the internal issues are resolved gradually with public-private
partnership. Annual growth rate of flowers production is 24% while the import
value was 0.4 million in 2014/015 (FAN, 2016). The quantity of importing flower
products has been increasing annually because of higher demand than that of
domestic production. In addition, the floriculture is constrained by higher
cost of production that led to importing larger quantity of flower products.
Although, there is a Floriculture Promotion Policy, 2069, the flower producers
and concerned stakeholders in floriculture are not fascinated and encouraged to
enhance the production and productivity. Thus, it is imperative to encourage
producers, traders, and entrepreneurs involved in floriculture.
Domestic production of cut flower were not sufficient in all
the seasons and about 18-20% of domestic demand of cut flower were met by
imports( MRSP, 2005, Shakya, 2008, Pun, 2007, and Pun, 2004). Cut flower
business was facing problem of poor post-harvest and marketing activities
(Yanai et.al, 2007, PHMP, 2060 B.S., and Pun, 2008).
Problems in floriculture business research and extension gaps
at production level and lack of marketing information on target markets (MRSP,
2005., FAN, 2007., Pun, 2007., and Joshi and Pun, 2008). Poor coordination
among the private and public sectors for the promotion of the floriculture
business (Pun, 2007 and FAN/AEC, 2001). Cut flower is highly perishable and its
visual quality is detrimental of the market and price. Hence persons involved
in marketing chain like grower, traders, transporters, loaders, wholesalers
have their own responsibility contributing to a common goal (PHMP, 2060 B.S.).
There are few studies done on the marketing issues of the
floriculture and cut flower business as well. As far as my knowledge is
concern, the analysis of cut flower business with value chain approach has not
been conducted in Nepal till now.
Thus, this study aims to answer the following research
questions related to the existing cut flower business and its future prospects.
Those are;
- What is the value chain of
the cut flower business sub sector?
- What economic relations are
functioning at different stage of the value chain?
- What are the constraints and
opportunities in value chain of the cut flower business?
- What is the domestic and
international marketing situation of cut flower business?
- What are the key
intervention points for upgrading this sub-sector?
1.3
RATIONALE
It
has been realized the Considerable contribution of the floriculture sub-sector
to the national economy in terms of increase in income and employment and it
can directly help in transferring income from a group of rich classes and
institutions to low income groups and thereby play a crucial part in poverty reduction
(FAN, 2007). It is an intensive type of agriculture and the income per unit area
from floriculture is much higher than any other branch of agriculture if it is
done in a scientific way (Randhawa and Mukhopadhyay, 1986).
In recent years, globalization of agricultural production and
distribution in the context of free regional and bilateral trade agreements,
and even in the context of Nepal’s accession to World trade Organization has
created both challenges and opportunities in marketing. In this regard, Value
chain analysis of cut flower business can be a useful tool to identify efficiency
and competitiveness of a cut flower enterprise and the activities enabling a
competitive market environment. It helps in providing information related to
competitive advantage in terms of cost, value addition, product segment and
upgrading critical success factors for better markets.
Thus, this research study aims to fulfill this information to
much extent so that it can help to enhance floriculture business in a
sustainable manner.
2
OBJECTIVE
OF THE RESEARCH
The overall objective of the research is to analyse value
chain of Cut Flower in order to enhance economic growth of the producers/ entrepreneurs
along with poverty reduction.
The
specific objectives are:
- To examine structure of value
chain map, scale and operation mechanism of different chain actors.
- To analyse the gross margin
and price at an each stage of the value chain.
- To analyse the Strength and
Weakness in the existing value chain, and Opportunities and Threats for
its competitiveness.
- To develop policy and
programmatic recommendation to maximize opportunities for value chain
actors.
3
SCOPE
AND LIMITATION
Scope of this research study were: to investigate, collection
and analyze concrete evidence regarding the value chain of major cut flowers
Gladiolus and rose in Kathmandu valley; to identify the their relationship,
opportunities and challenges in the chain governance; to see how the competitive
advantage of cut flower producers can be enhanced with intervention on critical
success factors. Finally, the study provides recommendations on copping
mechanisms and define role of service providers that would enable sustainable
business environment for producers, traders and related actors.
However, there exists limitation that the market accessibility
and marketing cost to other production areas outside the valley may be
different from Kathmandu valley.
4
RESEARCH
HYPOTHESIS
The
following null hypothesis will be tested during the research study;
- There will be no
significance difference in market price in main and off-season.
- There is no significance difference
in the marketing margin in trading domestic and international markets.
- There is no significance
change in producers share in open and closed production technology.
- There is no significant
difference in the consumer’s preference in the product price and quality.
5
LITERATURE
REVIEW
Floriculture
is an agro-based, labor intensive and business oriented industry for Nepal
(Pandey, 2003).Yanai et al. (2007) reported that the floriculture business has
been flourishing in Nepal only since the early nineties. The private sector’s
enthusiasm and investment in this sector led to growth in consumption in the
domestic market and gradual export to overseas markets. According to Randhawa
and Mukhopadhyay (1986), it is an intensive type of agriculture and the income
per unit area from floriculture is much higher than any other branch of
agriculture if it is done in a scientific way. Similar idea was reported in FAN
(2007) about the considerable contribution of the floriculture sub-sector to
the national economy in terms of increase in income and employment and it can
directly help in transferring income from a group of rich classes and
institutions to low income groups and thereby play a crucial part in poverty
reduction.
5.1
Rose:
Rose
is the most popular cut flower being popular among the youngsters. It is highly
valued for its form, fragrance and endless variety of color with its different
meanings while giving others. There are over 100 species. They form a group of
plants that can be erect shrubs, climbing or trailing with stems that are often
armed with sharp prickles. Flowers vary in size and shape and are usually large
and showy, in colors ranging from white through yellows, reds to nearly black.
Most species are native to Asia, with smaller numbers native to Europe, North
America, and Northwest Africa. Species, cultivars and hybrids are all widely
grown for their beauty and often are fragrant. Rose plants range in size from
compact, miniature roses, to climbers that can reach 7 meters in height.
Species and cultivars are divided into old garden roses (in existence before
1867) and modern roses. Each division has many subgroups. There are many
thousands of cultivars grown as specimens, in the border, as hedges or
climbers, in the rock garden, poly houses or in containers. Some species have
been used in gardens for hundreds of years. They grow best in moderately
fertile, moist but well-drained soil that is rich in humus. The demand of Rose
is 2,500- 4,000 sticks per day, which has been increasing significantly (FAN,
2015).In Nepal, rose cut flower production is currently based in Kathmandu,
Lalitpur, Bhaktapur, Dhading and Chitwan. In these farms, greenhouse is
semi-protected type with drip system/ foggers but lack proper ventilation
system, lack heating and insect net. Although, the area of rose cultivation has
increased since 1992 yet the area is on decline since last 5-6 years (FAN,
2016). The most popular colors of roses in Nepal are red, yellow, pink and
white. The high tech rose cut flower company (Everest Floriculture Private
Limited) introduced nine leading cultivars from the Netherlands. The nine
cultivars are Leonessa, Voodoo, Angelina, Love Unlimited, Sputnik, Cool Water,
Sleeping Beauty, Aqua and Formula One. These are the main source of cultivars
in the country. Besides, several new cultivars were imported from India in the
last decade such as Confetti, Bodo Red, and White Queen etc.
5.2
Gladiolus:
The
name Gladiolus is Latin for small sword and refers to the shape of the leaves,
thus these plants have been commonly called Sword Lilies and Corn Lilies.
Candyman, Dream's End, Prins Claus, American Beauty, Berlew, Bush balland,
Camalton etc are the popular verities of the gladiolus in the world for cut
flower. Gladiolus belongs to family Iridaceous. It consists of about 260
species, of which 250 are native to sub-Saharan Africa, mostly South Africa.
Some of them are also found wild in west and central Europe, the Mediterranean
to southwest and central Asia, and northwest and east Africa. About 10 species
are native to Eurasia and 160 species of Gladiolus endemic in southern Africa
and 76 in tropical Africa. The flowers of unmodified wild species vary from
very small to perhaps 40 mm across, and inflorescences bearing anything from
one to several flowers. The spectacular giant flower spikes being produced
commercially are the products of centuries of hybridization, selection, and
perhaps more drastic manipulation. Gladiolus is favored for its beautiful,
showy flowers. Its flowers grow on tall spikes and are often found in cutting
gardens or in the back along the border (because they are tall). Gladioli have
many different colored flowers, and grow between 2 to 6 feet in height. It is
preferred for cut flowers. Gladiolus bulbs are planted in well-drained soil. In
colder climates, gardeners can store the corms in a frost-free place for winter
and replant them again in spring. Bulbs are planted in the spring once danger
of frost has passed and the soil has warmed. The soil must be loosen to about
12 to 15 inches deep and compost should be mixed in a 2 to 4 inch layer for
good production. Gladioli take about two months to grow and bloom, from the
time they are planted. In Nepal’s hills, it can be planted as early as mid-May.
For commercial production to harvest blooming flowers continuously, it can be
plated continuously in every 2 weeks until mid-June. It keeps continuous
blooming from July through August. After the flowers are done, it needs to dig
up the corms and store them during the winter months. There are different types
of Gladiolus available in the Nepali market such as American Beauty, Berlew,
Bush balland, Camalton etc. Earlier it was considered a crop for temperate
regions and its growing was restricted to the hilly areas. However, with
improved agronomic techniques and better management, the plains area like
Chitwan of the Nepal is also emerged as the major areas for production of
gladiolus. The crop is very sensitive to the frost and cultivated during summer
for high quality production. The trend of cultivation of gladiolus is in open
field. In Nepalese market two types of Gladiolus i.e. single and double are
widely available. It is estimated that the demand of the Gladiolus is
3,500-4,500 sticks per day or about 14, 00,000 sticks per annum in the country.
5.3
Cut Flower business in Nepal
Cut flower’s history is found to be of few years in Nepal (PHMP,
2060). It started from Kathmandu and expanded to Biratnagar, Dharan and
Pokhara, the main market still being Kathmandu. Shakya (2008) stated that the
import of cut flowers has been found significantly substituted by Nepalese
products. The major cut flowers include Gladiolus, Rose, Carnation, Gerbera,
Tuberose, Cymbidium Orchids (including Pleione, Praecox), Chrysanthemum, Aster,
Lily, Anthurium, Bird of Paradise, etc in Nepal. The domestic production now
fulfills more than 80 percent of the cut flower demands while rests are
imported (AEC/FAN, 2007). Earlier, Nepal use to import up to 80 percent of
total flowers demand. The private sector’s enthusiasm and investment in this sector
has led the growth in domestic consumption and gradual export to overseas
markets. The number of small and medium sized commercial growers has increased
from four in 1992 to above 500. These growers employing 2,600 persons
(60%women) in Floriculture developments (Tamang, 2006). Number of problems
associated with the agronomic, pathological, edaphic, and post-harvest have
been increasing along with the area expansion of ornamental crops. Hence, need
of research has been felt over the time. Due emphasis has not being given in
the horticulture research by the government institutions and organizations.
Nevertheless, some works has been culminated in the past by some organizations
and individuals. The area expansion and commercial production potentiality of
various flowers are higher in Nepal because of diversified agro-ecological
settings and increasing physical infrastructures. The commercial floriculture
is still at very primitive stage of establishment and has been facing several
constraints such as inputs, technology development and transfer, credit access,
and flower market, and etc. In developing countries, smallholder farmers are
frequently handicapped by ineffective extension services (Akobundu et al.,
2004) and poor access to agriculture credit (Fletschner, 2008) that lead the
farmers to be inefficient. Such constraints hindered the floriculture and led
to higher quantity of imports of the flower products estimated to be Rs. 40
million in 2014 (FAN, 2016).
5.4
Constraints and Opportunities in Cut
flower business
Yanai et al. (2007) stated the production related problems as
disease and pest, poor quality seed, expensive seed, land unavailability
whereas technology related problems are-lack of knowledge on plant propagation
-lack of knowledge on plant care and management, lack of knowledge on nursery
management, lack of knowledge on quality seed production. Similarly, marketing
related problems are lack of proper price fixation mechanism, lack of marketing
knowledge and information flow, and policy related problems are-lack of clear
policy on priority setting -lack of coordination, lack of appropriate rules and
regulations. In addition, financial related problems as he mentioned are lack
of sufficient fund, difficulty in getting loan from ADB. Pun (2008) also stated
the problems related to post harvest. He stated the poor quality of flowers at
wholesale market was noticed since the primary cause for the loss of freshness
was the heavy exhaustion of flowers during transport as well as harvesting.
There is a limited knowledge post harvest management of cut flower and the
transportation and marketing facilities for fresh products are very poor.
Moreover, Shakya (2008) reported Nepalese floribusiness is suffering with low
competitiveness in international market, lacks support policy to enhance
commercial production and trade, lack of adequate human resources, and low
research and development programs for floribusiness.
On the other hand, Nepal has the advantage of diversified
agro-climatic conditions and high potential to cultivate different types of
temperate, tropical and sub-tropical flowers. Since 2002/03 export of
floriculture products in different forms started to expand in significant
volume to countries such as Japan, USA, Netherlands, Norway and Australia. Experience
gained by exporters so far will be a significant lesson for future expansion
(AEC, 2004). Similarly, several researchers like Pandey (2003), Yanai et. al.
(2007), Pun (2007) and Shakya (2008) reported the opportunities of Nepalese cut
flower business in domestic and foreign market as well.
5.5
Value Chain
The value chain describes the full range of activities, which are
required to bring a product or service from conception, through the different
phases of production (involving a combination of physical transformation and
the input of various producer services), delivery to final consumers, and final
disposal after use. On the other hand extended value chains are much more
complex than general one and there tend to be many more links in the chain (Kaplinsky
and Morris, 2000). Roduner and Gerrits,
(2006) stated value chain analysis (VCA) is about identifying the full
set of economic cost along the VC, to determine where most value is added and
what the relative importance of different actors is (i.e. the formal and
informal governance structure). Value chain analyses include a wide range of
different options; it can be done in a quick way through external experts or it
can be done through an in-depth and participatory identification and reflection
process.
5.5.1
Value Chain Map
Chain mapping is the core of VC analysis. It serves both an
analytical purpose and a communication purpose, as chain maps reduce the
complexity of economic reality with its diverse functions, multiple
stakeholders, interdependencies and relationships to a comprehensible visual
model (GTZ, 2007b). It should clearly visualize
·
The sequence of production and marketing
functions performed
·
The value chain operators taking these functions
·
The vertical business links between the operators
Schipmann (2006) mentioned the five dimensions of value chain
as technical structure, involved actors, territorial structures, input output
structure and governance structure.
5.5.2
Economic analysis of value chains
GTZ
(2007b) reported the economic analysis of the value chain is an important input
into the decision on development objectives and the upgrading strategy. Cost
analyses deliver data that help to create awareness among operators about the
potential for value addition, cost drivers and the leeway for price
negotiations. Economic analyses include assessing: Overall value added
generated by the chain and shares of the different stages, the production and
marketing costs at each stage of the chain, and the cost structure along the
chain stages, and the performance of operators (utilization of productive
capacity, productivity, profitability).
Components
of total value generated by a value chain:
Value-added
= Total sales value - Value of intermediate goods
5.5.3
Value Chain Upgrading Strategy
The
term upgrading denotes the development path of a value chain. Gary Gereffi distinguishes
“product upgrading”, that is the innovation, diversification or improvement of
the final product, and “process upgrading”, which is the improvement of
production and distribution technology and logistics. These forms of upgrading
improve overall efficiency. “Functional upgrading” means the shifting of value
chain functions from one VC operator to another (e.g. shifting primary
processing to farmers). It leads to a different distribution of value added across
the stages of the value chain. An upgrading strategy is an agreement between
chain actors on joint action to upgrade.
5.5.4
Intervention in value chain
From an economic perspective,
donors should only intervene in VCs when there is some sort of ‘market failure’
– a lack of finance or information for example, and when the benefits of
interventions to correct this market failure exceed the costs. A market
failure, e.g. missing competition or unfair power relations, lack of access to information
or finance, is easy to detect in many markets. The benefits resulting from
donor interventions should be benefits not only the economic perspective but
also with a public interest (i.e. food security, poverty alleviation). (Roduner
and Gerrits, 2006)
5.5.5
Sources of Information and tools to analyse Value
chain
SDC (2007)
stated the information sources like interview with key actors of the chain,
literature reviews, statistical reviews, governmental offices, associations and
international sources of marketing information. And, available tools for
analyzing value chain are mapping (economic, functional and performance, trend
analysis and competitiveness analysis, and rapid market appraisals (RMA). While,
Roduner and Gerrits, (2006) stated RMA approach is based on findings in
participatory rural or learning appraisals (PRA / PLA). Trust building and
therefore including key actors from the very beginning lies in the center of
this approach. The key criteria, available tools and sources of information are
basically the same as in an ‘in-depth-study’, but the implementation practice
is different: The information is generated and gathered through local
stakeholders. One of the critical key challenges remains the same in both
approaches: reliability of information.
6
RESEARCH
METHODOLOGY
6.1
Selection of study area
Kathmandu valley along with Kathmandu, Lalitpur and Bhaktapur
districts is selected as a research study site. Mainly nurseries of Chalnakhel,
Kirtipur and Paknajol area of Kathmandu District; Chapagaun and Bugmati of
lalitpur; and Sipadol area of Bhaktapur will be surveyed. On production side and the wholesale and
retail flower shops of Kathmandu and Lalitpur will be studied.
The research study area will be selected purposively as out of
the total 500 nurseries, more than 250 are in Kathmandu valley (FAN, 2005 cited
in Joshi and Pun 2008) and Thapa (1998) also stated the flower industry in
Nepal is highly concentrated only in the Kathmandu valley and this is due to
access to consumer oriented and favorable natural condition. In addition the
existence of most of the star and non star hotels, big business houses,
diplomatic missions and donor agencies, pilgrims and temples help to encourage
such enterprises in Kathmandu rather than other places. In addition, association
of floriculturists and the different level service providers can be easily
accessed within the study site.
6.2
Sampling design and sample size
For the samples of producers, the inventory of nurseries of
the research study areas will be prepared consulting Floriculture Association
Nepal (FAN) and related District Agriculture Development Offices (DADOs) and 30
producers will be selected proportionately for the study. Similarly, 30 retail
shops will be selected for marketing information. Other actors of the value
chain like, input suppliers, wholesalers, middlemen, exporters, consumers, service
providers etc. will be identified as referred by preceding respondents during
survey and also with consultation of FAN. Then the appropriate size of them
will be determined according to availability.
6.3
Sources of information
Both primary and secondary information will be collected
during research study. The primary sources of information are all actors of the
value chain like input suppliers, producers, traders, service providers, key
informants of related sectors. And secondary information will be collected from
different articles, reports, journals, books and internet materials related to
cut flower production and marketing, and value chain approach.
6.4
Methods of data collection
Interviews using semi-structured questionnaires (Interview
schedule) will be done to gather the primary data. At Production level, details
of economic data like production inputs, outputs, production system, costs
involved, price level, forward and backward chain management will be collected
with interview schedule (questionnaire). Similarly, marketing and other stages
of value chain information will be collected with different types of interview
schedule.
Review of different published, unpublished articles, reports,
books, proceedings and journals will be done to gather secondary information
related to the study.
Internet search: As value chain approach is a new concept in
marketing research in our country, the literatures, research reports and relevant
project documents will be searched in the internet using search engines like
Google search.
Observation: Cut flower marketing routes will be tracked down
from the farm to the end users to assess the direct information.
Pre-tested of the questionnaire: The questionnaire prepared
will be pre-tested within 5 percent of the sample size at each level with
related questionnaire and necessary adjustment will be done as per requirement
before field survey
Rapid Market Appraisal (RMA), Key informant interview, focus
group discussion will also be done as necessary.
6.5
Methods of data analysis
Value chain analysis of cut flower will be done using various
analysis tools of value chain approach and relevant economic and marketing
research tools.
d. Input output structure:
Per unit cost, revenue and profit at each stage of the
distribution channel will be analysed.
6.5.2
Quantifying
the basic chain map
Conceptually,
quantifying the basic chain map is quite straightforward. Quantification means
attaching numbers to the elements of the chain map, e.g.
·
Number of Nurseries (possibly differentiating
size of farms and enterprises)
·
Number of jobs and employees for each category
(also according to gender/ethnicity)
·
Prices paid at each chain link between stages
·
Volumes and turnover in each chain stage
·
Shares of product flow of the different
sub-chains / distribution channels
·
Market share of the value chain (percentage of
the sales)
·
Value in the overall market.
6.5.3
Zooming
in: Mapping chain elements and segments
Zooming
of specifying particular parts of the basic Cut flower chain map for more
detail chain segment and economic relationship will be prepared instead of
including too much information in just one.
6.5.4
Special
chain studies
Typical
areas of concern for facilitators of cut flower value chain development will be
studied and prepare specialized chains as necessary.
6.5.5
Economic
analysis of value chains
Economic
analyses include assessing:
·
Overall value added generated by the chain and
shares of the different stages
·
The production and marketing costs at each stage
of the chain, and the cost structure along the chain stages
·
The performance of operators (utilization of
productive capacity, productivity, profitability)
Gross
Margin, marketing margin and prices are calculated and used in analyzing
economic analysis as needed.
6.5.6
Cut
Flower business Upgrading Strategy
Four specific types of upgrading like, Process upgrading for production
efficiency, Product upgrading for qualitative improvement, Functional upgrading for
entry in a new, higher value-added level in the value chain , and Channel upgrading as a pathway that leads to a
new, higher value-added end market will be analysed.
6.5.7
Product
Segments and Critical Success Factors
These
cut flower products will be segmented according to the distinctive market
characters and together with the market size and growth. They can be divided to
domestic markets (individual or institutional), seasonal markets (cultural and
social functions) and export market. Critical Success factors (CSFs) on the
basis of “order qualifying” and “order winning” will be collected, ranked and
end market demand at each market segment will be visualized as a radar chart –
sometimes called a star diagram (with using MS Excel). Critical factors may be
quality, price, delivery reliability, innovation, packaging, specifications
etc.
6.5.8
Intervention
and Leverage points
Identification
of intervention activity for cut flower value chain promotion will be done
addressing the constraints and opportunities from business service assessment and
design most appropriate facilitation activities for intervention.
6.5.9
Competitiveness
position analysis
The
cost of production, transportation costs and other cost will be recorded and
analyse the competitiveness of product according to market segment and market
positioning.
6.5.10 SWOT Analysis
SWOT
analysis of the cut flower business with standard survey too, key informant
interview in the several critical areas. Types of constrains may be analysed in
terms of technology, market access, input supply, management and organization,
policy and finance and infrastructure. And, opportunities may be advantage of
geography and climate, good market and affordable technology.
6.6
Data analysis techniques
The collected data and information will be entered and
analysed using the various statistical packages like MS Excel and SPSS.
7
EXPECTED
OUTCOMES
This
research study aims to explore production and marketing of cut flower through
value chain approach. Further, it will analyse and explain the different actors
at different level.
The
following main outcomes can be expected
from the research study:
- Details of different actors
in cut flower production and marketing and their functional linkage will
be identified.
- Economic and value adding
activities at each stage of the chain will be explored
- Strength, weakness, threats
and opportunities will be identified for further improvement of the chain.
- Intervention and leverage
points will be identified
- Policy makers and donors
will get the points to intervene.
8
BUDGET
SUMMARY:
The require budget for the execution of research is as
follow:
S.N
|
Items
and description
|
Quantity
|
Total
(Rs.)
|
A.
|
Operational
cost
|
|
|
|
Traveling and accommodation during Research
site visit,
|
10 days
|
20000
|
|
Questionnaire preparation
|
5 days
|
5000
|
|
Pre-testing
|
4 days
|
4,000
|
|
Survey
|
60 days
|
30,000
|
|
Photocopy
|
100 copies
|
1,000
|
|
Sub-total
|
|
60,000/-
|
B.
|
Report
Writing
|
|
|
|
Report writing (drafting preparation)
|
30
days
|
15,000
|
|
Final preparation
|
10
days
|
5,000
|
|
Printing, binding
|
|
5,000
|
|
Sub-total
|
|
15000/-
|
|
Total
|
|
75000
|
|
Overhead 10% of total
|
|
7500
|
|
Contingency 10% of total
|
|
7500
|
|
Grand total
|
|
90,000/-
|
9
WORK
SCHEDULE:
The work plan of the proposal will be as follow:
Activities
|
Jan
|
Feb
|
March
|
April
|
May
|
June
|
July
|
Review
of
literature
|
|
|
|
|
|
|
|
Questionnaire preparation
|
|
|
|
|
|
|
|
Pre testing
|
|
|
|
|
|
|
|
Survey
|
|
|
|
|
|
|
|
Data entry
|
|
|
|
|
|
|
|
Data Analysis
|
|
|
|
|
|
|
|
Report writing
|
|
|
|
|
|
|
|
Presentation
|
|
|
|
|
|
|
|
10
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Commerce and Industry (FNCCI), Kathmandu, Nepal.
Akobundu, E., J. Alwang, A. Essel, G. W.
Norton, and A. Tegene. (2004). Does Extension Work? Impacts of A Program to
Assist Limited-Resource Farmers in Virginia.Review of Agricultural Economics
26: 361–372 •
Basnet, R. (2004), B.
Kumar, (2004), Catalytic Role of Institutions for the promotion and Development
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Association Nepal (FAN).
CBS. (2011). Nepal Living Standards Survey:
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Trade Fair-2007. Floriculture Association Nepal (FAN), Kathmandu. Pp 33-37.
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Harvest System for Cut flowers, Souvenir, Floriculture Trade Fair-2004,
Floriculture Association Nepal.
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production and marketing of gladiolus in Nepal. Thesis, M.Sc. Tribhuvan
University. Institute of Agriculture and Animal Science, Rampur. Pp 2-24.
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Nepal. In L.N. Gaire, A.Chhetri (Eds.), S. Manandhar and E.
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Kathmandu. Pp 44-46.
Prasad, S. and U.Kumar. (1998), Commercial Floriculture. Agro Botanica, New Delhi. 46 p.
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vase life of Carnation cut flower. Thesis. M.Sc. Tribhuvan University.
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Pun, U. K. (1995). Present and Future Prospects of Floribusiness in
Nepal. Tribhuvan University, IAAS, Rampur, Chitwan
Pun, U. K. (2007). Import Substitution versus Export Promotion of Flowers
and Floral Products: Opportunities and Challenges. Proceeding of the Fourth
National Agricultural Marketing Conference. Agribusiness Promotion and
Marketing Development Directorate, Lalitpur. Pp 203-208.
Pun, U.K. (2004). Commercial cutflower production in Nepal and status of
four important cutflowers. J.Inst.Anim.Sci.25:17-21.
Randhawa,
G. S. and Mukhopadhyay, A.(1986). Floriculture in India. Allied Publishers. New
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Schipmann, C. (2006).Value chains for a better integration of
smallholders to trade-the case of chilli in Ghana. Thesis M.Sc.
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Shakya, G. (2008). Floriculture Development in Nepal: Opportunities and
challenges. In U.K Pun, L.N. Gaire, A.Chhetri and J.B. Tamang (Eds.).
Floriculture Trade Fair-2007. Floriculture Association Nepal (FAN), Kathmandu.
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Sivakoti, S. (2061BS). A
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Agriculture Development Office (DADO), Kathmandu.
Thapa, B.K. (1998), A study on floriculture enterprises in kathmandu
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B. Baidhya and S. D. Manandhar (eds.). Floriculture trade fair 2054
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