An empirical impact analysis of Agribusiness Development Project of Bangladesh

The aim of the study was to identify the extent of the project objectives are implemented and the impact of the project. The sample size was determinate by using cluster sampling techniques with considering the design effect which was covered 1281 sample from ASA 518, BRAC 347and TMSS 415. Data was collected by pre-determine interview schedule, FGD, KII and observation methods in the year 2016. The collected data were analyzed by descriptive statistics and econometric model using the SPSS software. The result revealed that the project beneficiaries homestead, garden ponds and land on the amount of positive and negative impact on the amount of agricultural land and created employment of 2320 person in the beneficiary entrepreneurs 2104 people full-time and part-time jobs have been created. According to both the groups jobs have been created due to project activities in project area. The project has created 33432 agribusiness entrepreneurs and about three times a job was generated by them and 90524 person’s employment in rural and semi-urban areas. It help to increase monthly income on an average 30.07% which contribute to socio-economic development of the area and economy through providing support to rural poor people and creation rural entrepreneurs. The credit diversion of producers, processors, marketers and input suppliers of beneficiary group was less by 8.09%, 29.01%, 20.37% and 17.80%, respectively. This study has been undertaken as an examining to assess the role and significance of agribusiness in Bangladesh along with the present situation and future prospective. Agribusiness plays a vital role to the increased income realized by the farmers. The study recommended that the agribusiness has positive impact on income of the farmers, increased commercialization and economic development in Bangladesh.


Introduction
Bangladesh is primarily an agrarian country with a low level of economic development and the country is still designated by the World Bank as a low-middle income developing country. Most of the rural people of Bangladesh are engaged in agro-based economic activity. The country has been striving to improve economic performance and reduce poverty and to become a high middle-income country. In this striving, the agricultural sector in general and the agribusiness in particular has the potential to perform a number of critical roles in transforming the country in the desired direction because agribusiness helps the poor people by creating job opportunity to increase their wealth so it is essential for Bangladesh to take special care for agribusinesses. According to the Bangladesh Bureau of Statistics, every year nearly two million agricultural workers or vocational rehabilitation, this is a good opportunity for the agricultural business, which increases rural development in large scale. Employment opportunity for a large part of the rural people can be generated by agribusiness. Demand driven agribusiness activities are the key importance to the economy of Bangladesh. Growth of agribusiness is much higher than the growth of agricultural production but it is insufficient to generate the employment and income growth required to make an important contribution to poverty reduction and overall growth of the rural economy. In this context the Government of the People's Republic of Bangladesh has launched the project entitled, "Bangladesh Agribusiness Development Project" with the financial support from Asian Development Bank to increase economic growth in rural economy and eradication of poverty. The project was administered by the Ministry of Finance for credit part, and Ministry of Agriculture for non-credit part. Department of Agricultural Marketing (DAM) was the executing agency. Project credit activity was done under the Ministry of Finance through two Banks namely BASIC Bank Ltd. and Eastern Bank Ltd. through three selected Non-government Organizations (NGOs) ASA, BRAC and TMSS. The Project has played an important role in increasing employment opportunities and poverty reduction through providing credit support to entrepreneurs in small business in the field of Agribusiness in rural and semi-urban areas of the country. Vast potential exists for promotion of agribusiness in Bangladesh. Skill development is essential with the capital for survival in the business. The project was undertaken to increase employment and reduce poverty through increasing agribusiness activities by providing credit facilities to agribusiness entrepreneurs. In this context the impact analysis was undertaken to study to what extent the project objectives are implemented and the impact of the project. The specific objective of the study was: i) To assess impact of various project activities in increasing employment, women entrepreneurship, access to market facilities, women's empowerment status, household income and assets and overall reduction of poverty of rural and semi-urban areas under the project. ii) To identify in-built strengths and probable opportunities as well internal weaknesses and external threats towards implementation of project activities (SWOT). iii) To provide recommendations towards making agribusiness enterprises more sustainable and more contributory towards improving local and national economy of the country as a whole.

Materials and Methods
The study was carried out in 60 districts of Bangladesh. Total sample size was1281 determinate by using cluster sampling techniques with considering the design effect which was covered from ASA 518, BRAC 347and TMSS 415. Data were collected by pre-tested interview schedule, FGD, KII and case study. Descriptive statistics was used to analyse the impact. In every selected area trained data collectors and supervisor were sent. The supervisors observed the data collection activity of the enumerator and directly or indirectly evaluated them. Supervisor checked every collected question and arranged FGDs at project area. In addition to consultant and field level officers, concerned personnel of IMED also supervised the data collection work to ensure quality of data. Researchers also participated in some FGD and supervised directly or indirectly the data collection work and were insured about quality of data. The data collected through survey were macro analyzed. The data were separated by district, upazila, types and gender and were analyzed. Researcher used MS Access and SPSS computer program for the analysis of data.

Land ownership
Information on land ownership of the beneficiaries before and after joining the project was collected to assess the impact of the Agribusiness Development Project. It appears from the collected data that before joining the project the average size of land was homestead 9.85 decimal, agricultural lands 67.72 decimal, pond 7.75 decimal, garden 4.85 decimal. But after the project, the average size of homestead increases to 10.82 decimal, agricultural land 65.15 decimal, pond 7.84 decimal and garden 6.26 decimal. By analyzing data (Fig. 1a & 1b) findings indicate positive impact on homestead (0.96 decimal), garden (1.41 decimal) and pond (0.09 decimal) and negative impact on agricultural land (-2.57 decimal). It is alarming that the average size of agricultural land of the beneficiaries reduced by 2.57 decimal. But the size of homestead increased by 0.96 decimal with the increase in income of the entrepreneurs. Impact on land could be more prominent if the duration of the project was long. Moreover, the price of land has doubled over the few years and it is beyond the beneficiaries' capacity to purchase land. Positive impact of the project on beneficiaries' homestead, pond and garden and negative impact on agricultural land is evident.

Impact of project on loan availability
It is seen from Fig. 2 that among the respondents of beneficiary group 73.07% producer, 94.38% processors, 73.00% marketers and 91.30 % input suppliers received loan according to their requirements. In control group 36.59% producer, 13.86% processors, 33.41% marketers and 36.95 % input suppliers getting loan according to their requirements. It may be noted that the control group obtained credit from NGOs other than this project. It is apparent from the analysis that credit distribution being one out of 5 project components which facilitate loan availability of the entrepreneurs.
Source: Field Survey data 2016  The average amount of loan of marketers of beneficiary group was Tk. 330523of which Tk. 323483 was invested in enterprise and loan diversion was Tk. 7040 (2.13%). Processor-entrepreneurs of control group borrowed an amount of Tk. 167500.00 of Diversion of credit was higher in control group as compared to beneficiary group which Tk. 12986was invested in enterprise and loan division was 22.5%. The input suppliers of beneficiary group borrowed Tk. 294056 and invested 97.80% in enterprise while loan diversion was 2.20%. In control group the input suppliers' loan was Tk. 17249.38 of which 80% were invested in enterprise and loan diversion was 20%. It is found from the analysis that all the entrepreneurs of beneficiary group except producer entrepreneur invested higher portion of borrowed money in enterprise as compared to control group. Women entrepreneurs invested borrowed loan more in the selected enterprise compared to male entrepreneurs. Diversion of loan was less in project due to training and other facilities provided by the project. Small and medium entrepreneurs complained that banks /financial institutions do not advance credit to them. Many small and medium entrepreneurs could not stand due to lack of credit on the other hand banks/financial institutions opined that credit could not be provided due to non availability of true entrepreneurs. Being profit oriented organization, bank searched for good borrowers for their own interest.

Respondents' opinion about problems in getting loans
Producers (13.53%), processors (20.88%), marketers (11.54 %) and input suppliers entrepreneurs (6.89%) of beneficiary group mentioned that they faced problems in getting loans (Fig. 3). In control group 23.43% producers, 43.48% processors, 51.28% marketers and 38.11% input suppliers opined that they faced problems in obtaining credit. The problems in getting loans were relatively less for the beneficiary. Based on the opinion of the respondents (Fig. 3) of control group the problems were high base interest rate (89.21%), deduction for insurance (42.58%), compulsory savings (59.78%), group loan (71.23%) time schedule of loan repayment (73.42%), delay in credit disbursement (71.24%). On the other hand, the problems faced by beneficiary group were high rate of interest (72.23%), deduction for insurance (23.11%), forced savings (54.0%), group loan (54.0%),) time schedule of loan repayment (65.12%) time gap in between application for credit and the time of getting credit (59.87%).The problems were less in beneficiary group as compared to control group. In implementing the credit program in the project, needs reduction in interest rate, increase grace period, increase loan collection period. On the other hand, beneficiary needs training on credit utilization, record keeping, and technique of repayment of loan installment. In collection of loan the problems were high interest rate, deduction for insurance, compulsory savings, group loan, repayment time schedule, and difference in time between application of loan and receipt of loan.
Source: Field survey data 2016

Fig. 3. Respondents opinion about credit issues
Present condition on receiving loan from more than one source In addition to project 24% producers, 21% processors, 17% marketers and 13 % input supplierentrepreneurs had taken loans from other sources. Among the Producer-entrepreneurs 73% took loan from two sources and 27% from three sources. Seventy six percent processors borrowed from two sources and 32% from three sources. Fifty six percent of marketers took loans from two sources and 44% borrowed from three sources. Out of total input suppliers 68% and 32% entrepreneurs borrowed loans from two and three sources respectively. Some beneficiaries have taken loans for various reasons from more than one source, 31% of them reported inadequacy of credit amount for their requirement. Twenty three percent respondents mentioned family requirement as one the reasons and 13% respondents mentioned delay in disbursement of loan. Loan recycling and persuasion by friends/loan officers were also mentioned by other respondents (Fig. 4). They could not repay their loan in time due to borrowing from many sources. In this context, better results would be gained if the credit distributing organization follows the proper principles during distribution of loan.
Source: Field survey data 2016   (Table 2). In beneficiary group 50% more jobs were created compared to control group due to impacts of different components of the project.

Impact of the project on job creation in sample area
In response to a question 85.16% producer, 93.26% processors, 81.77% marketers and 100% input suppliers mentioned the direct impact of the project on job creation. On the other hand, in control group, 51.42% producers, 50.25% processors, 37.45% marketers and 55.90% input suppliers noted the impact of the project on job creation. (Fig. 5). The number of entrepreneurs was found more in village area than upazila level. In project area, except farming, major part of the total population are involved in industry and business of the small entrepreneurs. So the agribusiness entrepreneurs have become important day by day in rural economy. The entrepreneurs face different problems due to discontinuity of the project. To make the entrepreneurs of the project sustainable through keeping the project continuous, household based micro enterprise-preparing clothes, livestock rearing, developing dairy and poultry farms, supply of required amount of credit with technical training to remove obstacles , improvement of infrastructure, and various efforts to expand new markets for produced goods would bring more positive results. Table 3 shows that the control group monthly income of Producer, Processor, Marketer and Input supplier increased by 40.50%, 26.52%, 54.39% and 20.18% respectively. Marketers were in better position among the control group entrepreneurs. On the other hand, income of Producer, Processor, Marketer and Input supplier increased by 84.35%, 43.53%, 79.88% and 54.12% respectively which are higher than the control group. Producer and marketers were in better position among the entrepreneurs of beneficiary. With the increase in monthly income the standard of living of project beneficiaries also increased.

Impact of the project on receiving right price of entrepreneurs' farm produce
It is the common perception that farmers in Bangladesh are not getting remunerative price of their farm produce. In this context attempt was made to find out the answers why the entrepreneurs were not getting right price for their products. The identified reasons as perceived by beneficiary-respondents were high import of concerned product( 28.51%), small number of buyers (17.10%), high cost of production (43.60%), and presence of broker (15.23%). Higher amount of import, less number of buyer, high cost of production and presence of brokers were considered by 14.26%, 9.5%, 17.30% and 8.12% respondents of control group as the causes of not getting right price of farm produce. So, project activities had no impact on receiving right price of farm produce by the entrepreneurs.
Source: Field survey data 2016

Impact on agricultural marketing
In spite of development of marketing system and infrastructure most of the respondents sold their product at farm and at village market. There is a high tendency to sell paddy and potato at farmer's home or at village market. But 50% respondents informed that they sold fruits and vegetables from the farm. The trend of selling at farm or market does not indicate that farmers are not getting benefit of infrastructure development. Rather Paikar and Faria are coming at village market or framer's farm with van or truck. Thus marketing costs of farmers are reduced. With the improvement of market the farmers are able to sell product at market price at farm or at neighbouring market. It is found that Paikar or Faria used to come to farmer for their own interest. Paikar can transport product from field to market. Table 4 presents that 79% respondents mentioned that number of input sellers increased, 55% respondents opined product quality improved, 81% noted increase in price of production inputs, 65% reported increased production, 49% opined increased employment in processing, bargaining power is increased as mentioned by 53% respondents, 31% respondents reported increased opportunity for marketing of produced farm products and 32 % respondents considered increase in receipt of actual product prices.

Impact on empowerment of women
Agribusiness development project firmly believes that women are the key for salvation of hunger. From this realization various workshops, increase skill, credit distribution and training programmes to change mentality were arranged for empowerment of women. Through these trainings and creation of women entrepreneurs, promotion of dormant potential of women, increase in awareness and efforts are directed for economic freedom. In Agribusiness Development Project women empowerment has been considered at three stages such as economic empowerment, social empowerment and political empowerment. Economic empowerment refers to women full participation in main stream of economic activities. Social empowerment includes decision taking, implementation, mobility, control and enjoys benefits based on equality and full dignity. And political empowerment includes participation of women in all state activities.
In project area the respondents were asked who take decision on children's education, marriage; undertake enterprise, training, acceptance of credit, purchase and sell of assets etc. Beneficiaryrespondents in project area took decision jointly in every aspect. It is seen from Table 5 51.90% beneficiary took decision jointly on marriage of son-daughter while the corresponding figure in control group was only 19.13%. About 29.84% women in beneficiary group took decision on borrowing and using of credit but in control group only 18.11%.
Decision to undertake enterprise is done jointly (51.43%) in beneficiary group but in control group only by 39.78%. Decision on purchase and sale of assets was taken jointly by 43.11% beneficiary while in control group only 10.31%. It appears women's opinions in the case of all indicators were given more importance than that of control group. On the basis of above discussion it can be said that the agribusiness development project has played positive role in women empowerment in project area.

Impact of the project on procurement of family asset
About 36% respondents opined that the project has important role in accumulation of family asset in project area. But 41% respondents did not comment. It is seen from Table 6 that 63%, 72%, 68% and 52% reported that home, mobile phone, clothes, furniture were increased due to agribusiness project. Similarly, motor cycle, livestock ,computer, poultry, power tiller, chair-table were added to family as mentioned by 36%, 26%, 59%, 47%, 5%, and 54% respondents respectively. It is evident from the discussion that the project had positive role in asset accumulation of the beneficiary families. Contribution of agriculture to the socioeconomic development of Bangladesh is immeasurable. Agribusiness Development Project has played very important role in socioeconomic development. At present subsistence farming of agriculture is transforming into commercial agriculture which will lead the country towards medium income level. The various activities of agribusiness development project particularly, creation of entrepreneurs, training, credit distribution, change the market structure of agribusiness products accelerate the process. Continuity of this type programme will play important role in economic development of the country.

SWOT analysis of agribusiness development project
A summary of the SWOT analysis of institutional capacity of the project is presented below:

Strengths Weaknesses
Strengths of the Agribusiness Development project include I. Programmes of Agribusiness Development Project are consistent with the demand for development of standard of poor people. II. Project plays important role in value addition of farm produce III. Under the project various supports are provided such as value chain, linkage development, fair, market linkage, strengthening association, and promotion of marketing. IV. Activeness and experience of project beneficiary were favorable for agribusiness development. V. With the increase in income and job opportunities of the beneficiaries, attitudes for savings are developed which led to increase socio-economic status. VI. In project area people's eagerness to involve in agribusiness was observed. VII. Activities of Agribusiness Development Project play positive role in rural economy.

Weaknesses of the Agribusiness Development project include
I. Interest rate of 27% is very high II. NGOs' activities were not supervised properly due to shortage of manpower at field level. III. Beneficiaries are facing problems to survive in the market due to absence of monitoring after the project period.
IV. More emphasis is put on credit rather than creation of entrepreneurs and improving skills. V. Some entrepreneurs are dropped out as no initiative for further development was taken after expiry of project time VI. No data base of graduate project beneficiary. VIII. Inadequate technical capacity of NGOs workers for promotion of agribusiness. IX. Training was not adequate compared to requirement. X.
NGOs put emphasis on those entrepreneurs who were self sufficient XI. Beneficiaries did not know that it was a government project.

Opportunities Threats
I. Eagerness of local people towards agribusiness increases. II. Government favourable investment policy in agribusiness and agro-based industry. III. Creation of new entrepreneurs in the light of model entrepreneurs for conducting long term agribusiness development programme IV. Development of market linkage through organizing entrepreneurs. V. Make available market information about marketing farm produce for entrepreneurs VI. Conversion of subsistence farming to commercial farming as the consequence of development progrmmes of agribusiness VII. Agribusiness Development Project has created opportunity for beneficiaries to get credit on easy terms I. Interference by local influential person in target wise implementation of project. II.
Shortage of skilled worker of implementing agency at local level III.
Unregulated import of farm produce. IV. Shortage of technical skill of beneficiaries V.
Discontinuity of financial flow for current agribusiness enterprises VI. Weakness in administrative management and lack of coordination. VII. Agribusiness enterprises may be affected by climatic change. VIII. Farm price is not consistent with cost of production.

Source: Field survey data 2016
SWOT analysis is the core base for taking business management decisions. It has four factors strength, weakness, opportunity and risk or threat. Strength and weakness is the internal factors of an enterprise. Opportunity and risk or threat is the external factors of the enterprise. Eliminating weakness, reducing risk/threat and fuller utilization of internal strength and opportunity through creating agribusiness entrepreneurs will add momentum to rural economy of Bangladesh.

Conclusion and Policy Recommendation
Agribusiness Development project is profitable and self-workspace project, which is consistent with government's various policies, such as poverty alleviation MDG, SDG, 7th Five Year Plan, and Vision 2021. Under the project through implementation of various programmes for increasing income and employment opportunities for rural people are provided. As agribusiness includes crops, fisheries, livestock, and poultry sub-sector to implement the project the departments of Agricultural Extension, Fisheries and Livestock services could be included to supervise the project. In future for monitoring the implementation of such type of project by including the concerned departments at upazila level such as agriculture ,fisheries and livestock services through integrated management should be followed. In future such projects should be taken in the light of the principles. Continuity of this type of project is desirable for the development of agribusiness. Agribusiness Development Project is relevance, effectiveness, efficiency, and sustainability for poverty reduction and rural development in Bangladesh. The researcher found that, overall implementation of the project has been successful. Such type of projects needs continuity, rapid publicity and promotion for sustainable development of Bangladesh Policy forward (i) For implementation of this type of projects in future, concerned officers at upazila level .i.e. Agriculture, Fishery, and Livestock services can be included in training program for the entrepreneurs to increase skill and monitoring capacity. (ii) DAM should undertake steps for expansion of national and international markets for marketing more value added products which are produced by entrepreneurs. (iii) Provision for availability of timely and required amount of credit (production and marketing). (iv) Provision should be made for the required amount of loan for the entrepreneurs from same source.
(v) Fuller utilization of facilities of the existing infrastructure. (vi) Arrangement of regular and required training programme for all the entrepreneurs. Training areas are: production, processing, disaster management, and overall marketing policy. (vii) Emphasize the need for research and development, such as marketing research, product development, technology development, especially to reduce costs. Government and donor agencies' assistance in financial and technical aspects will play facilitative role at the initial stage of implementation of these areas. (viii) The loan program is being undertaken by the government different departments. In the future such projects should be taken in the light of the principles. (ix) Development of women entrepreneurs and adoption of effective measures for encouragement training, arrangement of the required amount of credit and creation of women friendly environment need increase in participation of all stakeholders at local level. Loans should not be allotted to those women who are not actually entrepreneurs. (x) For the alleviation of the unemployment problem of Bangladesh, entrepreneurs in agriculture will be created.