consumer perception and quality assurance in agro-products in bangladesh

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Consumer Perception and Quality Assurance of Agro- Products in Bangladesh-Focus on Organic foods Specially Vegetables, Fruits and Crops *JANNATUL MAWA NUPUR. Abstract: A growing interest in quality (organic) foods specially vegetables, fruits and crops purchasing has prompted recently. 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. The general objective of this research is to investigate the consumer perception on organic foods and to what extent the stakeholders of agribusiness are effective to ensure the quality of agro- products in Bangladesh. This study also tries to find out the market situation of quality food purchasing by consumers in Dhaka city. Keywords: Quality Assurance, Agro-Products, organic foods, Stakeholders of Agro-products. 1.0 Introduction 1 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, 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. 1.1 Organic Foods and Consumption 2 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 1

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Page 1: Consumer Perception and Quality Assurance in Agro-Products in Bangladesh

Consumer Perception and Quality Assurance of Agro-Products in Bangladesh-Focus on Organic foods Specially Vegetables, Fruits and Crops *JANNATUL MAWA NUPUR.

Abstract:A growing interest in quality (organic) foods specially vegetables, fruits and crops purchasing has prompted recently. 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. The general objective of this research is to investigate the consumer perception on organic foods and to what extent the stakeholders of agribusiness are effective to ensure the quality of agro- products in Bangladesh. This study also tries to find out the market situation of quality food purchasing by consumers in Dhaka city.

Keywords: Quality Assurance, Agro-Products, organic foods, Stakeholders of Agro-products.

1.0 Introduction1 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, 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.

1.1 Organic Foods and Consumption

2 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.3 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.

1.2 Quality 4 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."

*Senior Lecturer in Marketing,Department of Business AdministrationNorthern University Bangladesh

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5 Quality policies are to access the customer's satisfaction through continual improvement of product quality, product on-time delivery and quick services when the customers require. 6 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.

Bangladesh has some separate laws for protecting the consumer’s interest. The Consumer Protection Laws of the country were amended last in the beginning of the eighties and such laws have become obsoletes in totally changed context. Consumers in Bangladesh complain that the unrestricted influx of substandard, harmful, adulterated and imitated goods and fraudulent services in the market are mounting.

1.3 The Objectives of the Study

The general objective of this research is to investigate quality ensured by the stakeholders of organic foods 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.Specifically, the purpose of the research may be stated as follows:

To analyze the current scenario of organic foods consumption in Bangladesh especially in Dhaka city.

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 and other stakeholders in quality assurance for the prospect of agribusiness in Bangladesh.

1.4 Limitations of the Study

There are no strong and active national organic movements exist in Bangladesh. Secondary data are not much available on this topic.

For the success of the survey, the author has 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 only in Dhaka city, mainly metropolitan area. So the findings of this study do 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).

1.5 Literature Review:

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Lord North Bourne (1939) 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), 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.

7 Amos Lidror Stanley and Olusegum (1990) 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.

Amos Lidror Stanley and Prussia (1990) the delivery of high quality agricultural products is more essential than ever before due to increasing consciousness of quality by consumers. The best way for successful marketing is to offer products of superior quality and consistency. Quality is defined as conformance to a customer's price limited anticipated needs.

In 1990 we 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 latter part of the 1990s and their growth continues in the early 2000s.

Groff (1993) 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.

8 Hysen and Byrne (1994) older buyers, female and married consumers were more likely to choose stores offering pesticide- free products.

BARC (1997) a good soil should have an organic matter content of more than 3.5%, but in Bangladesh most soils have less than 1.7%, and some soils have even less than 1% organic matter Moreover, the continuous and unbalanced use of inorganic nutrients in an intensive cropping system has been considered to be the main cause for stagnating or declining crop productivity. Unless the use of balanced fertilizers and organic matter in soils is seriously considered, sustenance or an increase in productivity can hardly be achieved.

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FAO (1998) 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) 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) 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.

Professor Omri Ben-Shahar (2009) 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.

1.7 Government Regulatory Agency: Bangladesh Standard & Testing Institution (BSTI)

9 The BSTI is the only national standard body of the country recognized internationally. Main functions of BSTI include: Development of national standards in the field of Agriculture and industrial products and services, Issues of certification marks, License for quality product and services, Testing of products and metrological services.

1.8 Packaging and Marking Rules:

The material shall be packed in suitable well-closed containers.The container shall be legally marked with the following information---

• Manufacture'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.

1.9 Consumers' Association of Bangladesh (CAB)

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10 Consumer Association of Bangladesh (CAB), 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, developer promote awareness among consumers, and to organize the consumers.

11 The ISO 14000 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.

1.10 Methodology of the study

The main purpose of the study is to investigate the consumer perception on organic foods in Bangladesh specially in Dhaka city and the quality ensured by the stakeholders of agribusiness in Bangladesh agro- market.Among the various factors the researchers will attempt to find out the critical success -factors for this industry through the secondary data analysis. It will be done through collection and analysis of secondary data (e.g. printed materials and digital resources) and primary sample survey data.

1.10.1 Research Period:

We shall cover the period 2003- 2009 (Up to April). The period was very remarkable in the sense of implantation of consumer right in Bangladesh market. The period 2009 (Up to April) was specially 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 will give us a prominent view which will help us to prepare the study.

1.10.2 Selection of Sample Size

The selection of sample size will be 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).

1.11 Quantitative Analysis and FindingsDemographic Details of ConsumersTo 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.Table 04: Cross tabulation of Professions with Gender and Educational Status

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Gender

Male Female

Educational status Educational status

Under SSC

SSC passed

HSC passed

Under-graduate

Post-graduate Other

Under SSC

SSC passed

HSC passed

Under-graduate

Post-graduate Other

House wife

0 0 0 0 0 0 0 0 6 5 2 0

Self-employed

0 0 0 0 2 1 0 0 0 0 0 0

Non-govt. service

2 0 2 1 14 0 0 0 0 0 2 0

Govt. service

0 1 0 1 3 0 0 0 0 0 2 0

Business 0 0 1 5 1 0 0 0 0 0 0 0

Student 0 1 0 0 0 0 0 1 6 10 0 0

Pensioner 0 0 1 0 0 0 0 0 0 0 0 0

Total2 2 4 7 20 1 0 1 12 15 6 0

2.9% 2.9% 5.7% 10.0% 28.6% 1.4% .0% 1.4% 17.1% 21.4% 8.6% .0%

Table 05 below shows the total sample breakdown in terms of family size and monthly expenses. The majority, 44.3%, were from families of 4-6 members, whereas 37.1% were from small families (below 4). 17.1% were from large families having 6-8 members.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 spending above Tk.15000 per month, come from the medium and small families (20.0% & 17.1%) who are the upper class of the society.

Table 05: Family Size with Monthly Expenses and Professions

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

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%

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

Table 06 below shows the total sample breakdown in terms of purchasing status, gender, and monthly expenses. Regarding purchasing status, 44.3% were frequent, and 31.4% were regular. 15.7% purchased seldom, while 8.6% never purchased Organic foods.Expectedly, people from upper class (monthly expenses above Tk.15000) are more regular and frequent in purchasing Organic foods, 30.0% and 24.4%, respectively.In general, female consumers purchase Organic more than men.

Consumers’ Awareness and Usage of Organic Foods

In 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.

Figure 01 below shows the responses by gender and educational status

Table 07: Understanding of ‘Organic foods’Sample Size Male Female Total

36 34 7051.4% 48.6% 100%

Natural foods 24 22 4634.3% 31.4% 65.7%

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Herbal foods 5 10 157.1% 14.3% 21.4%

Products without chemicals /pesticides 20 18 3828.6% 25.7% 54.3%

Traditional /indigenous foods 3 5 84.3% 7.1% 11.4%

Others 1 2 31.4% 2.9% 4.3%

Don't know / not sure 1 4 51.4% 5.7% 7.1%

The consumers were also asked their sources of information on what Organic food/productsare. TV programs/adverts (48.6%), Newspapers (45.7%), Magazines/books (30%), and Words of mouth (30%) 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%), school/college teachings (20%), and promotional/educational events (18.6%). Other sources were mentioned by 10%, and 4.3% were not sure of their source of information on Organic foods.Details can be seen in the Figure 02 and Table 08 below:

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Table 08: Source of information on what Organic foods areSample Size Male Female Total

36 34 7051.4%

48.6% 100%

TV Programs / ads 14 20 3420.0%

28.6% 48.6%

News papers 22 10 3231.4%

14.3% 45.7%

Magazines / books 7 14 2110.0%

20.0% 30.0%

Taught in school / college 6 8 148.6% 11.4% 20.0%

At a promotional / educational event 5 8 137.2% 11.4% 18.6%

Words of mouth 8 13 2111.4%

18.6% 30.0%

Superstores / market 7 11 1810.0%

15.7% 25.7%

Other 5 2 77.1% 2.9% 10.0%

Don't know / not sure 1 2 31.4% 2.9% 4.3%

On usage, 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.The results are as seen in Figure 03 and Figure 04, respectively below

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All respondents were also asked about the length of the period of Organic purchasing.

Those who said they had ever consumed or considered consuming Organic products were further asked to specify which types of Organic foods these were in particular. Expectedly an overwhelming majority mentioned Organic vegetables (92.9%) and fruits (88.6%), followed by Organic dairy products (44.3%) and fishes (44.3%), which received 35% mention, then Organic breads (40.0%), Organic meat at 32.9% and processed foods at 31.4%, rice and others at 20.0% and 18.6% respectively.

Those who had said they had ever consumed or considered consuming Organic products were also asked where they would prefer to purchase Organic products from. The results are as seen in table below: Table 10: Preferred place to purchase Organic foods

Sample size 70100%

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Supermarkets / stores 5477.1%

Organic grocers 4564.3

Open air markets 2028.6%

Farms 2231.4%

Kiosks 34.3%

Others 22.9%

Don't know / not sure 68.6%

Supermarkets/stores were overall the most preferred 77.1%, particularly true for the capital city. This was followed by greengrocers (64.3%). Farms (31.4%) are more popular than open air market (28.6%), while kiosks were mentioned by 4.3%, and others 2.9%. But 8.6% respondents were not sure or didn’t know where they would prefer to purchase Organic foods from.Those who said they had ever consumed or considered consuming Organic products were also asked about the place of buying Organic foods/products most often from.The results are as seen in Table 11 below

Table 11: Place of buying Organic foods/products most often:

Places/locations Frequency Percent

Meena Bazar 23 32.9

Agora 16 22.9

Family World 4 5.7

Almas General Store 2 2.9

Prince Dept. Store 2 2.9

Nandan 7 10.0

PQS 1 1.4

New Market 1 1.4

Karwan Bazar 5 7.1

Other 9 12.9

Reasons for consumption of the different types of Organic food products were also exploredand these are tabulated below.Table 12: Reasons for consuming or considering of consuming Organic foods:

BASE 70100%

They are tasty 3651.4%

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They are healthy / nutritious 5984.3%

They are safe (not contaminated) 5984.3%

They are affordable 912.9%

Environmental friendly 3448.6%

Good for management of illness 2028.6%

Others 34.3%

No specific reason / Indifferent 57.1%

The health and safety factors appeared to be the key motivating factors of consumption /purchase followed by taste, and environment concerns.This analysis implies that Organic food products should be quite popular with consumers given that some of the reasons most people consume them are also some of the key considerations when purchasing food products in general. Noteworthy however is that price /affordability is the most important consideration (80.0%) when shopping. Hence Organic food products need to be perceived as affordable in order to increase consumption by consumers.Respondents who said that they have ever consumed or considered consuming Organic foodsproducts were also asked how they would verify that the foods they are buying or consumingare Organic. 31.4% 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, 27.1% said they would check the labels, 1.4% said they practice their own Organic farming, 10.0% were not sure or did not know.

Table 13: How to verify/know of Organic foods

Frequency Percent

Check the labels 19 27.1

Only purchase from specific shops 21 30.0

Only purchase specific brands 22 31.4

Practice own Organic farming 1 1.4

Others 7 10.0

Total 70 100.0

All respondents were also asked whether or not it was important to know the source of origin or producer of the Organic products. Respondents who said that they have ever consumed or considered consuming Organic foods

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products 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.The results are shown below in the Figure 06.

Figure 06: Analysis of checking label of Organic foods and its origin

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 need for a verification system.Respondents were also asked whether or not Organic products should be identified by a logo. Majority 78.6%, said yes and 11.4% said no. However 10.0% were not sure or didn’t know whether Organic products should be identified by a logo.

15

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

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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. The results are as seen in Figure 07: below:Figure 07: Awareness of facts on verification method and system, Organic logo and local standards

Those who felt there was need for a verification system were also asked to state who 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 08: Who should be responsible for providing this verificationAll respondents were then asked which premium price would consumer 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.The results are as seen in Table 14 and Figure 09 belowTable 14: Premium price would consumer agree to pay for 'Organic' by comparison with 'Non-Organic'

16

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

Page 17: Consumer Perception and Quality Assurance in Agro-Products in Bangladesh

Premium Price Frequency Percent

0 < 10% 35 50.0

10% - 19% 25 35.7

20% - 29% 7 10.0

30% - 39% 1 1.4

40% - 49% 2 2.9

Total 70 100.0

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. The results are as seen in Figure 10 below.Figure 10: Awareness of facts on food insecurity, consumer rights, price discrimination

17

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

Page 18: Consumer Perception and Quality Assurance in Agro-Products in Bangladesh

Consumers’ Perceptions and Attitudes toward Organic Foods and Farming

Having 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:

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: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. The results are as seen in Table 16 below:

Table 16: Consumers’ Assessments/Evaluations of Organic foods and farming

Sample size70100%

(SD)Strongly Disagree; (DI) Disagree; (NE) Neutral; (AG) Agree; (SA) Strongly Agree

SD DI NE AG SA

Organic food is safer than ordinary food - - 3 20 47- - 4.3% 28.6% 67.1%

Organic foods have less pesticides / chemicals 1 2 - 49 181.4% 2.9% - 70.0% 25.7%

Organic foods are more expensive than ordinary foods 12 8 6 38 6

17.1% 11.4% 8.6% 54.3% 8.6%It is worth paying more for Organic foods 13 3 15 35 4

18.6% 4.3% 21.4% 50.0% 5.7%

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Organic farming is as sustainable as conventional farming

- 8 24 21 17

- 11.4% 34.3% 30.0% 24.3%Only 'Greenies' buy Organic foods 9 22 22 14 3

12.9% 31.4% 31.4% 20.0% 4.3%Organic productions help to improve the environment - 2 3 37 28

- 2.9% 4.3% 52.9% 40.0%Organic foods are more nutritious than conventional foods

- 4 5 19 42

- 5.7% 7.1% 27.1% 60.0%Organic products are overpriced 10 12 6 31 11

14.3% 17.1% 8.6% 44.3% 15.7%Organic foods look better than conventional foods - 8 7 37 18

- 11.4% 10.0% 52.9% 25.7%Organic foods has a premium price for genuine benefit - 12 9 28 21

- 17.1% 12.9% 40.0% 30.0%

Organic foods taste better than conventional foods - 1 10 24 35- 1.4% 14.3% 34.3% 50.0%

Organic farming can produce enough food to feed the world

1 11 12 27 19

1.4% 15.7% 17.1% 38.6% 27.1%

Conventional farming can coexist with Organic farming: 1 4 24 38 3

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.

20 19 21 8 2

28.6% 27.1% 30.0% 11.4% 2.9%

Conclusion:

Still, despite awareness levels being low and by extension consumption incidence, perceptions and attitudes towards organic foods appears to be quite positive. This is evident from the reactions to the working definition or description of organic products. Once the respondents are exposed to this, an overwhelming majority say that indeed organic products are a good thing and also give a high score on the importance scale saying that knowing what they now know, it would be very important to them that what they consume is organic. This is true even of those who have never consumed nor considered consuming organic. On verification systems, most feel that there should be some kind of verification system for organic products in the region thus this is an issue that should indeed be pursued and actualized. The country governments would be crucial in this process or system as most of the respondents view it as the suitable frontrunners in this endeavor. Indeed organic products’ promotional and educational initiatives are lacking in the region as implied by the low awareness and consumption levels of organic foods but more so as evidenced by analysis of the post-test of such promotional and educational activities.

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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. Other than the mass-media ones, most of these initiatives have also not been done on a very large scale so perhaps cannot be expected to have a great national or regional impact.

Recommendation:

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 – provide farmers with basic knowledge of biological principles

and ecosystems processes, and support them in the implementation and adaptation of sustainable farming practices.

Participatory research – develop locally 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 –Increasing access to compost requires 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 comparison trials – 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 Create awareness- introduce producers and consumers to 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.

Increase information and transparency- provide consumers and other stakeholders with information through market studies, market intelligence and business directories, published for free access on paper, Radio/TV, cell phones and on the Internet.

Link production with supply- brings market actors together via networking, trade fairs, food festivals and other events. Vertical and horizontal cooperation of players in the supply chain such as producers, traders, processors and retailers is essential and needs support.

Support creative initiatives- 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 through coaching, capacity building, financial support for first marketing steps and fair credits.

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Develop domestic markets- focus on organic market initiatives specially to develop the domestic market for organic food products. There is a need for accompanying measures such as regional and national promotion activities, development of regional labels and capacity building.

Reasonable pricing- ensure the reasonable market price of the organic products according to farmer’s production and supply chain cost.

Reduce certification complexity and costs- overcome the expense of organic certification, an insurmountable barrier for many producers. There is a need for local certification bodies and participatory guarantee systems.

Create locally adapted standards- support trade rules and favorable business conditions up to comprehensive national action plans in order to support the development of the organic market. Trade should support diversity, fair trade, local solutions for organic production and certification, and local food supply chains.

Educating 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. Availability was a big issue and also information of where consumers can buy organic food.

Media (both electronic-te5levision and radio and print-newspapers) can play important roles in increasing awareness of farmers and consumers.

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