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:
  1. To examine structure of value chain map, scale and operation mechanism of different chain actors.
  2. To analyse the gross margin and price at an each stage of the value chain.
  3. To analyse the Strength and Weakness in the existing value chain, and Opportunities and Threats for its competitiveness.
  4. 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;
  1. There will be no significance difference in market price in main and off-season.
  2. There is no significance difference in the marketing margin in trading domestic and international markets.
  3. There is no significance change in producers share in open and closed production technology.
  4. 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       REFERENCES:

ABPSD, (2007). Statistical information on Nepalese Agriculture 2006/07. Ministry of Agriculture and Cooperative, Nepal. Pp118.
AEC/FNCCI, (2004). Floriculture (a leaflet):  Agro-Enterprise Center (AEC) / Federation of Nepalese Chambers of 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 of Floriculture in Nepal, Souvenir / Floriculture Trade Fair 2004, Floriculture Association Nepal (FAN).

CBS. (2011). Nepal Living Standards Survey: Statistical Report (Volume Two): Central Bureau of Statistics, National Planning Commision, Kathmandu, Nepal.
FAN (2001), Editorial, Souvenir: 1st International Floriculture Trade Fair 2001, Floriculture Association Nepal.
FAN. (2016). Nepalese Floriculture. 19th Flora Expo- 2016. Floriculture Association of Nepal, Kathmandu, Nepal.
FAN/AEC, (2001), A Report of Symposium on Prospective of Floriculture Industry in Nepal. Floriculture Association of Nepal and Agro Enterprise Centre/ Agro Enterprise Center, Kathmandu.
FAN/AEC, (2007). Trade Competitiveness of the Floricultural Sub-sector in Nepal. Floriculture Association of Nepal/ Agro Enterprise Center, Nepal. Pp24-25.
Fletschner, D. (2008). Women's Access to Credit: Does It Matter for Household Efficiency? American Journal of Agricultural Economics 90(3): 669-683. doi: 10.1111/j.1467-8276.2008.01143.x.
GTZ, (2007a). Orthodox Tea in Nepal: Upgrading with value chain approach. German Technical Cooperation/Private Sector Promotion-Rural Finance Nepal (GTZ/PSP-RUFIN). Pp 2.
GTZ, (2007b). Value link manual: The methodology of Value Chain Promotion. 1st ed. Retrieved on April 12, 2008 at website http://api.ning.com/files/PiMcEmG OfyUECsnrRD6fij0Qrg64YSJO4AG76UMTGIE_/VCAGTZvaluelinksmanual.pdf
Joshi, G. R. and U. K . Pun. (2008). The status of Nursery business in Kathmandu Valley. In U.K Pun, L.N. Gaire, A.Chhetri and J.B. Tamang (Eds.).Floriculture Trade Fair-2007. Floriculture Association Nepal (FAN), Kathmandu. Pp 33-37.
Kaplinsky, R. and M. Morris, (2000). A Handbook for Value Chain Research. Retrieved on 15 March, 2008 from webpage http://www.globalvaluechains.org/docs /VchNov01.pdf
MRSP, (2005). A Study on Benefit- Cost Analysis of Ornamental Flowers". Marketing Research and statistics program, Department of Neopal, Lalitpur.
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