value chain analysis and implementation plan of tomato and tomato ketchup in bangladesh
TRANSCRIPT
TERM PAPER ON
VALUE CHAIN ANALYSIS AND IMPLEMENTATION
PLAN OF TOMATO AND TOMATO KETCHUP IN BANGLADESH
SUBMITTER BY
Khaled Bin Arman FBS, BUP
ID No: 1407081 Reg. No. 10009140081
Ev. MBA: Batch 7 Major in SCM (Supply Chain Management)
SUBMITTER TO
Professor Dr. Sreekanta Sheel International Consultant at UNDP, North Korea & Bangladesh
Expertise in Logistics and Supply Chain Course Instructor: Strategic Supply Chain Management
Faculty of Business Studies (FBS), BUP
B A N G L A D E S H U N I V E R S I T Y O F P R O F E S S I O N A L S
Submission Date: August 18.08.2016
Course Title: Sourcing Management (SCM 8602)
ABSTRACT
The purpose of the study was to identify the Pran produce tomatoes value chain and post-
harvest losses in different stages of value chain in Bangladesh. The study also identified the
value addition in ketchup production from Pran tomatoes. The major actors of Pran produce
value chain of tomatoes are identified as tomatoes producers, local market middlemen/forias,
city wholesalers/Arotdars, city/district market retailers and consumers. Almost 90% of the total
Pran tomatoes are supplied to city/district wholesale markets and the rest 10% of the produce is
consumed locally. The major value additions in the Pran produce tomatoes value chain are
transport to local market 20%, middlemen (foria) 30%, city/district market wholesaler/Arotdar
30% and retailer 20%. The losses in the post-harvest marketing chain of Pran produce tomatoes
due to grading and transportation to local market; long transport, packaging, storage at
middlemen (Foria); handling and storage at city/district wholesaler/Arotdar; and city/district
market retailers were found 13%, 4.5%, 10.8% and 8.1%, respectively. The total average loss
was found as much as 36.4%. The ketchup industry collects Pran tomatoes from city/district
wholesale market and add value in loading, unloading, carrying, grading 0.70%, washing &
boiling 0.70%, pulping 1.75 %, preserving 2.10%, pre-process or mixing process 28.07 %,
spices 7.01 %, heat treatment 1.75 %, bottles with label 3.5%, packaging 1.75% and profit
52.6%. The total value addition for 1kg of Pran tomatoes is estimated asTk.285, where price of
1kg tomatoes and its product (six bottles of tomatoes ketchup including ingredients) are Tk.15
and Tk. 300, respectively. For easy preservation and flow of benefits to producers, Pran
tomatoes can be processed into pulp that can reduce the losses of Pran tomatoes in peak
harvest.
ACKNOWLEDGEMENT
At the very beginning, I would like to express our deepest gratitude to Almighty Allah for
giving me the opportunity with strength and patience to carry on this work. In conducting this
study, I have received generous help from many quarters, which I like to mention with
gratitude and great pleasure.
It is a proud privilege to express my deepest respect & heartfelt thanks and sincere appreciation
to my respected instructor Professor Dr. Sreekanta Sheel, International Consultant at UNDP,
North Korea and Bangladesh, Expertise in Logistic and Supply chain, Sourcing Management
course instructor, Faculty of Business Studies, Bangladesh University of Professionals for his
continuous supervision, worthy guidance & valuable suggestions.
Finally, I extend my thanks to all of our well-wishers for their help during this work.
Contents
Contents Page Number Abstract i Acknowledgement ii
Summary 1-3 1. Introduction 4-5 2. Supply Chain Analysis of Tomato Production 5
2.1 Objectives 5 2.2 Methodology 6 2.3 Major Findings 6 2.4 Site Selection 7 2.5 Data Collection 7 2.6 Supply Chain Map 8 2.7 Value Addition Steps for Tomato Production 9
3. Constrains And Opportunity 10 3.1 Major Opportunities 11
4. Implementation Plan for Tomato 11 4.1 Strategy 11 4.2 Objective of Sub-Project 12 4.3 Activities and Targets (Vegetables) 12-15
5. Monitoring and Evaluation 15-16 6. Identification of Tomato Ketchup making procedure 16
6.1 What is Tomato Ketchup 16 6.2 Ingredient of Tomato Ketchup 17 6.3 Processing of Ketchup form Tomatoes 17 6.4 Preparing Tomatoes 18 6.5 Pulping/Semi-Processing of tomatoes Pulf 18-20 6.6 Adding ingredient and cooking 21. 6.7 Removing Air 21 6.8 Filling 21 6.9 Cooling 21 6.10 Labeling and Packaging 22 6.11 Quality Control 22
7. Value Chain and Value Addition of Tomato Ketchup 22-23 8. Conclusion 24 9. Recommendations 25 References 26
SUMMARY
To identify opportunities and constraints in tomato (Lycopersicon esculentum), specifically in
production, post-harvest handling, marketing, human resources concerned with the activities,
finance, policy and environmental issues and to understand strength and weakness of the input
providers and other support service providers, a supply and value chain analysis was conducted
using the data collected from a farmers and other stakeholders’ group meeting in Bhuapur,
Tangail. The main activities done for supply and value chain analysis in Bhuapur were field
investigation in order to collect information on production, demand and supply, acreage,
markets, etc; consultation with farmers, input suppliers, traders, wholesalers, retailers and
officials of DAE. In Bhuapur upazila, winter vegetables are grown. Among the commodities
tomato stands in second position (750 ha) on the basis of production area. Farmers have started
growing vegetables using pheromone traps and other parasitoids. There are about 83 IPM clubs
who are producing vegetables following IPM methods. There is no organized public wholesale
market in tomato. There are four rode side markets where vegetable traders buy, aggregate and
pack by using gunny bags, bamboo made baskets and transport by truck.
Mostly these vegetables are selling to Rajshahi, Chittagong, Dhaka and Sylhet. Interview with
tomato farmer showed that profitability goes up to Taka 25,000 per bigha in growing tomato.
Lack of efficient and organized marketing systems frequently deprives farmers to receive fair
price. Tomato farmers of Bhuapur are not organized and they receive cultivation related
information mostly from neighbor farmers and input dealers. Upazila agriculture extends their
support to the farmers. Farmers procure seeds and other farm inputs locally. However, most
inputs like seeds, fertilizer and pesticides are adulterated resulting in poor quality of produce.
Fertilizers and pesticides adulterated are in terms of poor ingredients.
The value chain analysis was done to identify the actors involved in the supply chain of that
commodity, to improve access of inputs, markets and services by mobilizing the poor farmers
and policy environment towards facilitation of the chain. The value chain had several links
between the farm and the consumer such as procurement, transportation, processing,
commodity storage, conversion packaging, distribution, retailing, and other services. During
the study it comes to the fact that there are opportunities for significant increases in grower’s
returns through judicial management of inputs like use of appropriate quantities of fertilizers
and pesticides (safer method using pheromone etc), harvesting in proper maturity, sorting and
grading etc.
Constituents, The proposed intervention and expected outcome
The major constraints were observed as farmers are not rewarded by fair pricing of their
produces. They are following poor post-harvest management practices in tomato production
and marketing. No collection/processing shed where farmers can assemble their produce, sort,
grade and sale to the trader/whole seller. Farmers often use high doses of fertilizers and
pesticides. They use poor quality of seeds resulting poor yield. Low price of tomato due to
Pre-Intervention Situation Proposed Intervention Expected Benefit
Issues Constraints Production Lack of knowledge on
improved production technologies for safe tomato
Provide demonstration and training on safe production technologies with using pheromone tech.
Health and environmental positive impact will be observed
Post-harvest Management
Post-harvest loss occurred at around 32% in the value chain
Demonstration on sorting, grading, packaging of vegetables, Training on post-harvest management of tomato and ToT for lead farmers on post-harvest management
About 7% post-harvest loss will be reduced
Quality inputs for agril production are not available
Training for the input suppliers and orientation meeting between safe input dealers and CIG members
The farmers will get quality inputs for agril production
Infrastructure Inadequate market facilities
Renting shed with proper equipments
Farmers will get fair price and properly weigh their produce
Market linkage
Inadequate linkage with city traders
Linking farmers with the city traders, wholesalers and superstores through sharing ideas
Consultation meeting with superstores/wholesalers in linking safe vegetables
Contractual marketing developed with 10% incremental profit
Farmers’ Profit
Farmers are not getting sufficient profit due to improper post-harvest and marketing management
Training and extension services;
BCR stands as 1.55 at the existing practices
BCR is expected to be as 1.75
Increment in BCR is 15%
improper post-harvest handling. Adulteration of fertilizer, seeds and pesticides. Inadequate
field sorting, grading and packaging of tomato. There is lack of knowledge on safety and
quality of produce. They usually follow traditional crop management practices for long-time
mainly learned from neighbors. Also they follow advice of manufacturers’ local agents
(dealers) and do not follow appropriate method of pesticide application. The major
opportunities existed are group forming, growing & marketing of safe vegetables and link with
the urban market, making availability of pheromone trap and bio agents, linking farmers with
good input suppliers (seed, fertilizer and pesticides), training for the farmers and service
providers on appropriate use of fertilizers and pesticides so that they can perform judicious
application of inputs accurately.
In the light of the above constraints and opportunities, the activities proposed to be undertaken
on the development of value chain for tomato at Bhuapur, Tangail are demonstrations on
sorting, grading, packaging of the commodity and production of safe tomato, consultation
meeting with superstores/wholesalers in linking safe vegetables, renting of CCC shed for
vegetable for 1 year, development of booklet, leaf let, brochure on safe vegetable promotion,
training on post harvest management of tomato, use of pheromone traps and other bio agents,
ToT for lead farmers on post harvest management, training for the input suppliers, training for
SAAO, UAE etc and consultation meeting with good input suppliers to link with the farmers
and seminar/workshop on marketing, business development and supply chain development.
The constituents and the proposed intervention with expected outcome is presented in the box
shown in Tablet 1.
1. INTRODUCTION
The tomato (Lycopersicon esculentum) is one of the most important vegetable in Bangladesh.
It is extremely perishable and cannot be preserved in Pran stage. Huge post-harvest losses of
the harvested tomatoes occur due to inadequate storage facilities, which brings substantial loss
to the growers and hence to the national economy. Preservation of tomatoes as semi-processing
system not only takes care of the marketable surplus but also ensures the supply of raw
materials for finished products like sauce, ketchup, drink etc. A simple technology of
concentrating tomato pulp kept in locally available containers might be a solution to the
problem of huge tomato loss during harvesting period.
Composition of tomato (per 100gm of edible part)
Moisture (93.1 g) Vitamin A (320 I U) Potassium (114 mg) Protein (1.9 g) Thiamine (0.07 mg) Copper (0.19 mg) Fat (o.1 g) Riboflavin (0.01 mg) Sulphur (24 mg) Minerals (0.6 g) Nicotinic acid (0.4 mg) Chlorine (38 mg) Fibre (0.7 g) Vitamin C (31 mg) Oxalic acid (2 mg) Carbohydrates (3.6 g) Calcium (20 mg) Phosphorus (36 mg) Sodium (45.8 g) Magnesium (15 mg) Iron (1.8 mg)
Tomato is a popular winter vegetable in Bangladesh. It’s sowing and harvesting periods are
mostly confined in mid-August to mid-November and December to mid-January, respectively.
Tomato requires day temperature of 21º – 28º C and cool night temperature of 15º-20º C for
proper fruit setting (Grubben, 1977). The optimum relative humidity of tomato production in
Bangladesh is 70%.
This document is divided into two parts: i) findings of supply and value chain analysis done
during April, 2015 that identified opportunities and constraints in tomato production in
Bhuapur upazila Tangail district; and ii) design of a sub-project to enhance income of
approximately 75 farmers from tomato production organized under NATP component 3
through improvement of farm management and access to market. Hortex Foundation and
Syngenta Foundation are implementing Component 3 of NATP which has 7 sub-projects in 7
Upazilas. Bhuapur of Tangail district is one of the designated 7 Upazilas where Hortex through
its supply and value chain analysis has decided to first intervene on supply and value chain
development of Tomato.
2. SUPPLY CHAIN ANALYSIS OF TOMATO PRODUCTION IN BHUAPUR.
2.1 Objectives
The present study was undertaken to identify the value chain of tomatoes, from farmer up to tomato
ketchup industry and the post-harvest losses of tomatoes through the value chain. To describe the
procedure of making tomato ketchup from Pran ripe tomatoes in industry of Bangladesh. This
study was based on field survey where primary data were collected systematically by means of an
interview schedule from individual actors and by visiting the tomato ketchup industry.
The objectives of supply chain analysis are:
To identify opportunities and constraints in tomato, specifically in marketing, production,
human resources, finance, policy and environmental issues;
To understand strength and weakness of the input providers and other support service
providers;
To design a subproject to be implemented by Hortex and Syngenta Foundation in
collaboration with DAE and other stakeholders to help farmers to enhance production,
productivity and income
To identify Pran produce tomato value chain for ketchup industry,
To determine the value addition in Pran tomatoes and tomato ketchup.
2.2 Methodology
The main activities done for supply and value chain analysis in Bhuapur are as follows:
Field investigation to collect information on production, demand and supply, acreage,
markets, etc for tomato
Consultation with farmers and with officials of DAE;
Consultation with producers and input suppliers etc.
Consultation with traders, wholesalers and retailers of tomato etc.
Organize a validation workshop to present the findings of field investigation and
implementation on activities and methodology of NATP Component 3.
2.3 Major Findings
Production and Sales: In winter vegetables are grown in Bhuapur, Tangail. The major winter
vegetables are Country bean (900 ha), Kakrol (750 ha), Brinjal (350 ha), Radish (120 ha),
Cucumber (600-700 ha), Bitter gourd (300-400 ha), Jhinga (100-150 ha), Barbati (100-150ha).
The summer vegetables grown here are Brinjal (250 ha), Gourd (160 ha), Data (Stem
amaranth) (120 ha) and Bottle gourd (60 ha). Farmers have started growing vegetables using
pheromone traps and other parasitoids. There are about 83 IPM clubs who are producing
vegetables following IPM methods.
Marketing management: There is no organized public wholesale market in Bhuapur. There are
four road side markets where vegetable traders buy, aggregate and pack by using gunny bags,
bamboo made baskets and transport by truck. Mostly these vegetables are selling to Dhaka,
Rahshahi, Sylhet and Chittagong markets.
Profitability: Interview with tomato farmer showed that profitability goes up to Taka 23000/-
to 25,000/- per bigha in growing tomato while the Benefit cost Ratio stands as 1.50. Lack of
efficient and organized marketing systems frequently deprives farmers to receive fair price.
Farmer organization: Tomato farmers of Bhuapur are not organized and they receive
cultivation related information mostly from neighbour farmers and input dealers. Upazila
agriculture extends their support to the farmers.
Input supply: Farmers procure seeds and other farm inputs locally. However, most inputs like
seeds, fertilizer and pesticides are adulterated resulting in poor quality of produce. Fertilizers
and pesticides adulterated are in terms of poor ingredients.
2.4 Site Selection
The study area was selected based on large-scale production of tomato and nearer to the research
station. The selected study areas were Bhuapur, Tangail and Karoan Bazar of Dhaka city. The
maximum production of tomato was 4,685 metric ton from cultivated area of 1025 hectares in
Bhuapur, Tangail.
2.5 Data Collection Data were collected through personal interview and visiting tomato process (tomato ketchup)
industry. During interview of the farmers, each question was explained to them clearly and
tired to found out fact as much as possible. Before taking interview, the whole purpose of the
study was clearly explained to the respondents. Initially many of the respondents were
reluctant to answer the questions. When they were assured that the study was purely an
academic one and was not likely to have an adverse effect on them, they tried to make good
cooperation. The farmers do not keep record about their post-harvest activities. The problem
was confronted by memory recalling technique. Information were also collected from farmers,
consumers and industry level. There are several intermediate levels in between these two
levels. The intermediate levels are middlemen/Forias, wholesalers, retailers etc.
To identify the problems and prospects of post-harvest operation of tomatoes and its bearing on
the farmers were also taken care off. Data related to tomato ketchup production were collected
from Prince group of company Ltd. during 20-28 June, 2016.
2.6. Supply Chain Map: The supply chain map of tomatoes presented below (Figure 1):
Figure 1: Supply chain map of Tomato at Bhuapur, Tangail.
Major Channel
Proposed Channel
Retail Selling / Exporting
Consumption
Input Supply
Production
Primary Marketing Primary Market
(Bazaar)
FARMER
Nursery Technical Support from
DAE/ Research
FARIA
Input Supplier (pesticide, fertilizer)
CONTRACT GROWER
Road Transportation by
Normal Truck
WHOLESALER AT CITY LEVEL
SUPER MARKET
CONSUMER
Supplier
RETAILER EXPORTER
Road Transportation by Truck with Proper
Packaging
2.7 Value Addition Steps for Tomato Production In this study, the actors of the value chain of tomatoes were identified and the incidence of post-harvest losses were also determined throughout the chain using a combination of pre-designed structured questionnaire and written comments provided by produce managers and test of sample of damaged produce. Value chain is a chain of activities. Product pass through all activities of the chain in order and at each activity the product gains some value. The chain of activities gives the product more added value than the sum of added values of all activities.
Improved Tomato Value Chain at Bhuapur, Tangail (For 35 Decimal)
Wholesaler Buying cost (5657kgX12.5),Tk. 90000 Transport (5657kgX1.25),Tk. 3750 Faria (5657kgX0.50),Tk. 2500
PH Loss of Tomato @ 3%,Tk. 2100
Existing Production,Post-harvest and Marketing Practice Transport Value loss for 150.0kg (150.0kgX1.25),Tk. 188
Cost of Production (Tk.)
Yield (kg) Selling rate/kg (Tk.)
Selling Value (Tk.)
Profit (Tk)
Faria's Value loss for150.0kg (150.0kgX0.50),Tk.
75
68030 5000 18 90000 21970 Amount of Tomato to be sold (kg) 4850
CF Ratio= 1.71 Cost of Tomato to be sold, Tk. 96250
Benefit Cost Ratio (BCR) = 1.37 Cost of Tomato per kg 19.85
Profit margin per kg @ 15% 2.98
Selling price to retailer 22.82
Profitability by the farmer = 32.29%
Retailer Buying cost (4850kgX18.67),Tk. 110688
Transport (4850kgX0.75),Tk. 3638
PH Loss of Tomato @ 8%,Tk. 8855
Transport Value loss for 438.98kg (438.98kgX0.75),Tk.
291
Amount of Tomato to be sold (kg) 4462
Cost of Tomato to be sold by the retailer,Tk. 114325
Cost of Tomato per kg 25.62
Profit margin by the retailer per kg @ 20%
5.12
Selling price to retailer 30.75
Consumer Tk. 30.75 per
kg
Land leasing Tk.3000
Land Preparation Tk. 2100
Inputs Tk. 20,030
Production Management Tk. 5700
Harvesting (Labour) Tk. 8750
Post-harvest Management Tk. 4450
Average Yield 5000 kg
Marketing
Seeds Tk 5750
Fertilizer Tk. 11330
Pesticide Tk. 800
Labour Tk. 3150
Urea Tk.1050
TSP Tk. 3500
MP Tk. 1200
Planting, 700Fertilizer & Pesticide, 2450 Sorting, 00
Grading, 800 Packaging, 1000 Transportation, 3500 Bazaar Tax, 150
Weeding, 4200 Irrigation, 1500
Cowdung Tk. 3600
Gypsum Tk. 300
Zink Tk. 600
Boron Tk. 1080
Macha (Trellies)Tk.0 0
A value chain analysis is done to identify the actors involved in the supply chain of that
commodity, to improve access of inputs, markets and services by mobilizing the poor farmers
and policy environment towards facilitation of the chain.
Value chain generally starts with the raw materials supply at the farm level and ends with
consumers who make the choice to buy, or not to buy, the finished product. Any value chain
has several links between the farm and the consumer such as procurement, transportation,
processing, commodity storage, conversion packaging, distribution, retailing, and other
services. During the study it comes to the fact that there are opportunities for significant
increases in grower’s returns through judicial management of inputs like use of appropriate
quantities of fertilizers and pesticides (safer method using pheromone etc), harvesting in proper
maturity, sorting and grading etc.
3. Constraints and Opportunities
The major constraints are presented in the following Table 1: Table 1: Constraints in Tomato in at Bhuapur
Areas of constraints
Constraints Probable solution to remove the constraints
Product and market
Farmers are not rewarded by fair pricing of their produces.
Farmers are following poor post-harvest management practices in tomato production and marketing
Glut due to over production during peak season.
No collection/processing shed where farmers can assemble their produce, sort, grade and sale to the trader/whole seller
Physical improvement through construction of collection and processing shed for trader/wholesaler, which may also be used for grading, packing etc.
Provide training and demonstration (hands on training) on post-harvest management of crops
Facilitate farmer-market linkage activities through making contacts with probable outlets.
Develop market information network system
Technology and production including inputs
Farmers often use high doses of fertilizers and pesticides;
Farmers use poor quality of seeds resulting poor yield.
Farmers produce safe tomato not in a compact area
Low price of tomato Adulteration of fertilizer, seeds and
pesticides Lack of knowledge on improved
PHM technologies Inadequate field sorting, grading
and packaging of tomato Lack of knowledge on safety and
quality of produce
Train farmers on appropriate use of inputs for quality production and PHM technologies and also food safety issues
Organize practical demonstration on appropriate use of pesticides
Develop linkage with quality seed producers/traders to ensure supply of quality seeds
Safe vegetable should be produced in a compact area
Use of bio agents for producing safe vegetables production if price is reasonable.
Areas of constraints
Constraints Probable solution to remove the constraints
Human resource and information dissemination
Farmers follow traditional crop management practices for long-time mainly learned from neighbors.
Limited contact with DAE regarding up to date knowledge or technology.
Inadequately trained on post-harvest management.
Organize groups of farmers to be linked with DAE;
Train farmers on improve farming techniques for quality produce.
Finance Lack of credit facility with easy terms and condition.
MFIs are providing loans to the farming families. MFIs may be encouraged to develop terms and conditions suitable for flower cultivation.
Environmental issues
Over use/misuse of pesticides by farmers. Farmers mostly follow advice of manufacturers’ local agents (dealers) and do not follow appropriate method of pesticide application.
Farmers are trained and encouraged to apply recommended dose of pesticide following appropriate method of application. Organize orientation training for pesticide dealers on proper use of pesticide.
Good contact of farmers with DAE for correct information.
3.1 Major Opportunities
The following are the main opportunities exist:
Group forming, growing & marketing of safe vegetables and link with the urban market
Making availability of pheromone trap and bio agents
Linking farmers with good input suppliers (seed, fertilizer and pesticides)
Training for the farmers and service providers on appropriate use of fertilizers and
pesticides so that they can perform judicious application of inputs accurately
Yields and product quality of existing vegetables can be enhanced by removing constraints
mentioned in Table 1.
Facilitate more contacts with DAE local extension agents
4. Implementation Plan For Tomato
4.1 Strategy The main implementation strategy for this sector will be:
1. Production of tomato using pheromone and other bio-agents to grab expanding super store markets;
2. Improve productivity and quality of tomato
3. Organize farmers to deliver services and help them access to markets;
4. Introduce low cost Post harvest technology for reducing losses and improve produce quality
4.2 Objective of Sub-Project
Accordingly, the objectives of the sub-project to be implemented in Bhuapur are as follows; 1. Introduce and expand tomato production using pheromones and other bio-agents (60
farmers);
2. Orient farmers with appropriate use of pesticides.
3. Improve yield and quality of tomato (60 farmers); and
4. Organize farmers to participate in the project activities.
4.3 Activities and Targets (vegetable)
Table 2: Activities and Targets
Areas of Intervention
Activities Targets Timeline Output Indicator Responsibility
Mobilization of Farmers
Mobilize tomato farmers into groups: Organize 4 CIGs of Kakrol producers
80 farmers and land 25 acres)
May-August 2015
Group formed capacity built
up
Identification & Document-ation of CIGs
SCDC, SCDO,UAO
, SAAO
Identify local Arotdars and
Paikers active in rural markets where
CIG members selling selected Pran produces
At least 15 Local
Arotdars/ Paikers
May-August 2015
Aware about market linkage
Level of understanding
on SCDC
SCDC, SCDO,UAO
, SAAO
Conduct base line survey of the
selected farmers about types of other vegetable produced,
land, major problems, services
required etc.
Organize the farmers in
groups of 20 Survey all
320 farmers
May-August 2015
Base line information
gathered
Report SCDC, SCDO,UAO
, SAAO
Areas of Intervention
Activities Targets Timeline Output Indicator Responsibi-lity
Product and market
Renting of shed for sorting, grading to
link with whole sale market/traders for
better price
Renting one market shed
Organize market
committee to manage the
shed and develop guide line for market management
May-2015
Farmers getting better option to sell their produce
CCC established as
per CIG members’
choice
SCDC, Mkt. Mgt. Com
Contact superstore owners for safe vegetables for market linkage (agreement on
contract buying)
Consultation meeting with 6
superstore owners
May 2015
Strengthening Farmer-
market linkage
MoU SCDC, CIG leaders
Establish linkage with quality input
supplier for growing safe
tomato
One Orientation meeting of
farmers with safe input suppliers
May 2015
Linking & safe inputs availability;
making availability
of safe vegetables
Discussion with quality
input supplier and farmers
SCDC, UAO,
SAAO, CIG leaders
Educate farmers on low cost post-
harvest practices of vegetables
Demonstration on sorting, grading,
packaging etc.)
May-June 2015
Reduced post-harvest
loss
No of farmers demonstrated
SCDC, UAO,
UAAO, CIG leaders
Promotional activities on safe
vegetables
Establish demonstration
and development of
posters, brochure, billboard
May-June 2015
Technology Transferred
Discussion and field visit
SCDC, UAO
Organize visit to high value markets
for the selected CIGs. Markets are
Kawran Bazar, Mirpur whole sale cum retail market,
super market chains etc.
30 members from CIG
May-Dec 2015
Make them aware about
the marketing mechanism and linking
No of farmers & market
visited
SCDC, UAO,
UAAO, CIG leaders
Develop guide lines with strategy for
group marketing in consultation with
CIG members
Guide CIG members about the procedure of
produce marketing
May-Nov 2015
Educate CIGs on
marketing
Field visit and discussion
Mkt expert,
Areas of Intervention
Activities Targets Timeline Output Indicator Responsi-bility
Technology and production including inputs
Set up demonstration trial on sorting,
grading of vegetables
80 farmers
May- September
2015
Knowledge built up, more profit earned
No of demo and
discussion
SCDC experts,
SCDO, DAE Linking farmers with input suppliers (seeds,
fertilizers and pesticides) to source
good inputs
Organize personal
contacts (40 farmers each)
with input suppliers
May 2015
Farmers getting better
inputs
Field visit and discussion
SCDC, UAO
Educate input suppliers for better service delivery of knowledge to the
farmers
Organize training for
input suppliers on production technology(1
batch)
July-August 2015
Improving knowledge
No of service providers trained
SCDC, ToT members
Identify packaging traders and link them
with the CIGs
3-4 packaging company
May-June 2015
Packaging traders
identified and linked with
farmers
Uses of packaging materials
BDS and Logistic experts
Supply of plastic crates for the
introduction of improved packaging system to reduce loss
@ 10 crates/ production
group
May-June 2015
value addition of the
produce, more income
No crates distributed
SCDO, SCDC
experts and DAE
Human resource
and information
dissemination
Develop local trainersin tomato production,
marketing and enterprise
development
TOT on tomato
production for lead farmers (1
batch)
May-June 2015
Knowledge gathered on the aspects
No. of trainee and training
SCDC, UAO, SAAO
Training on sub project activities, implementation
process and monitoring for stake
holders
One day orientation
training for 1 batch with 15
officers of DAE and
SCDO
June-July 2015
Knowledge gathered on the aspects
No. of trainee and training
SCDO, SAAOs, DAE and
SCDC
Provide hands on training on use of
pheromone trap and other bio agents
80 farmers
May-June 2015
Resource person
development
No of trainer developed
SCDC, ToT members
Provide training on post-harvest
techniques to improveshelf life, and to
reduce loss.
80 farmers
June 2015
Development of resource
persons
No of trainer developed
SCDC, ToT members
Areas of Intervention
Activities Targets Timeline Output Indicator Responsibi-lity
Environmental issues
Campaign against over use of pesticides
and chemical fertilizers
Farmer orientation, sharing of
information through leader
farmer and training
May-June 2015
Awareness created on over use of
pesticides and chemical fertilizers
Field visit and discussion
SCDC, UAO, SAAO, CIG
leaders
Monitor the impact of agricultural practices, post-harvest management practices, marketing outlets to stimulate a continuous improvement of supply chain development
Ongoing Project activities duly implemented
Field visit and discussion
SCDC, SCDO, UAO,
SAAO
Business Development
Entrepreneurship development
Identification of potential entrepreneurs
Train them for better performance
Development of training module
Development of guideline on farmer entrepreneurship and management of contract farming
20 Entrepreneurs from CIGs and
others
May-Dec 2015 Skill developed
Performance evaluation
SCDO, DAE, SCDC expert
5. Monitoring and Evaluation
a) Objective level indicators are:
i) Increase in number of farmers using safe methods for producing safe tomato (40 farmers)
ii) Increase in acreage of land used for safe tomato (10 acres)
iii) Increase in sale @ Tk. 65000/- per hectare due to quality assurance through utilization of
proper post-harvest practices during handling and transportation from field to market. The
increment of sale value is for increment of price of tomato from Tk. 15.00/kg to Tk.
17.00/kg (sale value increased 15%).
iv) 80 farmers adopt improved farm management practices
v) 4 CIGs linked to marketing
vi) 15% gap reduced farm gate price and retail price
vii) 80 farmers adopt post-harvest technologies
Viii) Post-harvest loss of the crop reduced around 15%
ix) 40 farmers linked with good quality input suppliers
x) 80 farmers linked with traders
xi) Increment in Benefit Cost Ratio (BCR) is 15%
6. Identification of tomato ketchup making procedure
In this study for identifying tomato ketchup making procedure, the Prince Group Company
Ltd. in Dhaka was selected on the basis of large scale supply of tomato ketchup in the market
and their market demand. The researcher visited the industry, interviewed different types of
workers in different processing stages, and finally talked with the manager administration
about the procedure for producing tomato ketchup. Photographs of different stages of
processing were taken for the study purposes. Necessary co-operation were ensured by both the
workers and the administration of the Prince Group.
6.1 What is Tomato Ketchup?
Tomato ketchup is a secondary processed products of Pran tomato, have come to be consumed
in vast amount today in our home as well as in restaruant and other places as an indispensable
food in our daily living. Ketchup, a tangy, seasoned tomato sauce, is one of favorite
condiments. Although ketchup, also spelled catsup, is used primarily as a relish for
hamburgers, hot dogs, and french fries, it is also a common ingredient for sauces, meatloaf,
beans, and stews.
6.2 Ingredients of Tomato Ketchup Pran tomatoes
sweeteners
water
vinegar(acitic acid, citric acid and sodium benzoate)
salt spices (allspice, cassia, cinnamon, cayenne, cloves, pepper, ginger, mustard and onion) flavorings
onion
garlic
The types of sweetener used are usually granulated cane sugar or beet sugar. Other sweeteners
include dextrose or liquid sugar in the form of corn or glucose syrup. The white vinegar,
commonly 100-grain distilled, helps to preserve the ketchup. The spices commonly used to
enhance the flavor of the tomatoes are allspice, cassia, cinnamon, cayenne, cloves, pepper,
ginger, mustard, and paprika. Some manufacturers believe that whole spices produce a
superior, more mild flavor than ground spices or spice oils. More modern processes use
premixed or encapsulated spices, which are easier to use but more expensive. Whatever the
form, spices must be of a high quality.
The various brands of ketchup have slightly different formulas, which vary primarily in the
amounts of spices or flavorings. Thicker consistencies require a greater ratio of sugar and
spices relative to the tomato juice. Occasionally formulas must be slightly adjusted according
to variations in the acid and sugar content of tomatoes, which occurs with changes in growing
conditions and types of tomatoes.
6.3 Processing of Ketchup from Tomatoes
Ketchup manufacturers must seek out the best quality tomatoes for their product. Tomato
varieties are developed which are superior in color, flavor, texture, and yield. Consistency is an
important factor, as slight variations in tomato characteristics could alter the flavor and color of
the finished product. The steps of process and process diagram of tomato ketchup is shown in
Diagram.
Preparation of tomato
Pulping
Preservation
Adding ingredient an cooking
Filling and cooling
Labeling and packing
6.4 Preparing Tomatoes
Tomatoes are harvested mechanically between June and July. The fruit is commonly conveyed
by water from the trucks into a flume, or an inclined channel. The water method washes the
tomatoes and protects them from bruising while they pass from the truck to the factory. The
tomatoes are sorted, washed, and chopped. Next, precooking, or scaling, in stainless steel vats
preserves the tomatoes and destroys bacteria.
6.5 Pulping/semi-processing of tomato pulf
The chopped and precooked tomatoes are pumped into pulping machines, or cyclones, which
separate seeds, skins, and stems from the pulp. The pulp and juice are filtered through screens
and processed further into ketchup, though some may be stored in a paste for use later in the
year. Preservation of tomatoes as semi-processing system not only takes care of the marketable
surplus but also ensures the supply of raw materials for finished products like sauce, ketchup,
drink etc. A simple technology of concentration tomato pulp kept in locally available
containers might be a solution to the problem of huge tomato during harvesting period. Tomato
pulp after extraction should be strained in mosquito net/bamboo made sieves to remove the
seeds and other coarse fractions. The pulp is concentrated in open cooker as per method
outlined by Bhatia (1982). The pulp is concentrated to 10 degree B (Brix) from the initial TSS
(Total soluble solid) of 4 degree B (Brix) and added citric acid 0.2% and sodium benzoate
(1000ppm). The pulp was filled hot into sterilized bottles followed by further processing of the
filled bottles for 20 minutes in boiling water. The processed bottles were sealed, kept inverted
for 5 minutes. When cool, the mouth of the filled bottles is dipped in molten wax and then the
bottles should be stored in a dry, clean and cool place. PRINCE group also preserves these
pulps by mechanized process and follows the HACCP requirement.
Supplying ketchup to the
consumers directly or by retailers
(Tk. 50-55/bottle ketchup)
Labeling and packing
6 bottle ketchup
(340gm*6)
Filling and cooling
(2240gm)
Adding ingredient and
Cooking (2240gm)
Preservation with chemical
(treatment (800gm)
Preparing tomato pulp
Or pulping (800gm)
Preparing of tomato
(900gm)
Pran tomato from
Market (1 kg)
Flow Chart of Tomato Pulp
6.6 Adding ingredients and cooking
The pulp is pumped into cooking tanks or kettles and heated to boiling. Foaming may occur if
Pran tomato pulp is used, but can be corrected with anti-foaming compounds or compressed
air. Precise amounts of sweeteners, vinegar, salt, spices, and flavorings are added to the tomato
pulp. Most spices are added early in the cooking process. To avoid excessive evaporation,
volatile spice oils and vinegar must be mixed in later. Onions and garlic can be mixed in with
the spices, placed in a separate bag, or chopped and added to the pulp. Salt and sugar may be
added at any stage of cooking though it is better to add sugar later to prevent burning. The
mixture cooks for 30-45 minutes and is circulated by rotating blades installed in the cookers.
The temperature must be carefully regulated to insure absorption of the ingredients without
overcooking, which creates a flat body.
Finishing
Once the cooking is complete, the ketchup mixture passes through a finishing machine.
Finishers remove excess fiber and particles through screens, creating a smoother consistency.
The ketchup passes to a holding tank before further processing. The ketchup may be milled at
higher temperatures and pressures to achieve a smoother consistency.
6.7 Removing air
The ketchup must be de-aerated to prevent discoloration and growth of bacteria. Excess air
might also create unattractive air pockets and impede the closure process.
6.8 Filling
To prevent contamination, the ketchup passes from the receiving tanks to the filling machines
at a temperature not lower than 88°C. The containers are filled with the xxviii
ketchup and immediately sealed to retain the Pranness of the product. Ketchup containers come
in various sizes and shapes, including 340 gm bottles, No. 6 cans, pouch packs, room-service
sizes, and single-serve packets for every 1 kg Pran tomato.
6.9 Cooling The containers must be cooled to prevent flavor loss through stack burning, which occurs when
ketchup stays at high temperatures after cooking is complete. Containers of ketchup may be
cooled in cold air or cold water.
6.10 Labeling and packing
Finally, the ketchup containers are labeled and coded with product information, including
ingredients, date and location of manufacture, and shelf-life. The bottled ketchup may be
inspected again before shipping. The entire process of ketchup manufacturing generally takes
two to three hours.
6.11 Quality Control
Some of the commonly used preservatives during the 19th century included benzoate of soda,
borax salicylic acid, benzoic, and formaldehyde, all of which could pose health risks when
consumed in large quantities. A series of Pure Food Laws beginning in 1979 banned the use of
the harmful preservatives. In 1982, the Bangladeshi government established a "Standard of
Identity" for ketchup as tomato-based. Thus, consumers could tell from the label that the
product was made of tomatoes, since ketchup could also be made from other foods, including
bananas, beets, or mangoes.
The quality of ketchup is insured by taking samples of the product during various stages of
production. Tomato growers must comply with regulations set by the Environmental Protection
Agency and the Food and Drug Administration regarding the use of fertilizers and pesticides.
Increasing concern in the closing decades of the 20th century led to increased use of natural
fertilizers and pesticides. Inspection is necessary of the tomatoes, ingredients, and of all
processing equipment which comes into contact with the product.
7. Value Chain and Value Addition of Tomato Ketchup
The value addition of Pran tomatoes from consumers to city/district market wholesaler/Arotdar
was estimated about 80%. The price at producers level was Tk.7/kg and reached to Tk.15/kg at
city/district market wholesaler/Arotdar level with an value addition of Tk.8/kg (Diagram 4.4).
The ketchup industry collected tomatoes from city/district wholesale market at a price of Tk.
15/kg and added value at different processing activities. The activities include loading,
unloading, carrying, grading 0.70%, washing & boiling 0.70%, pulping 1.75 %, preserving
2.10%, pre-process or mixing process 28.07 %, spices 7.01 %, heat treatment 1.75 %, bottles
with label 3.5%, packaging 1.75% and profit 52.6%. The total value addition for 1kg of Pran
tomato was estimated asTk.285, where price of 1kg tomato and its product (six bottles of
tomato ketchup including ingredients) were Tk.15 and Tk. 300, respectively.
8. CONCLUSION
Conclusions The following conclusions are made, based on the objectives, field observations,
results and interpretations of field data:
The major actors of Pran produce value chain of tomato are identified as tomato producers,
local market middlemen/foria, city wholesalers/Arotdar, city/district market retailers and
consumers.
Almost 90% of the total Pran tomatoes are supplied to city/district wholesale markets and
the rest 10% of the produce is consumed locally.
The value addition of Pran tomatoes from consumers to city/district market
wholesaler/Arotdar is estimated about 80%. The ketchup industry collects Pran tomatoes
from city/district wholesale market and add value in loading, unloading, carrying, grading
0.70%, washing & boiling 0.70%, pulping 1.75 %, preserving 2.10%, pre-process or
mixing process 28.07 %, spices 7.01 %, heat treatment 1.75 %, bottles with label 3.5%,
packaging 1.75% and profit 52.6%. The total value addition for 1kg of Pran tomato is
estimated asTk.285, where price of 1kg tomato and its product (six bottles of tomato
ketchup including ingredients) are Tk.15 and Tk. 300, respectively.
The losses in the post-harvest value chain of Pran produce tomatoes in grading and
transportation to local market; long transport, packaging, storage at middlemen (Foria),
handling and storage at city/district wholesaler/Arotdar
9. RECOMMENDATIONS
The farmers have to maintain balanced harvesting time schedule to avoid harvesting of
over and unripe tomatoes.
To reduce losses, tomatoes have to be transported in plastic casing. Furthermore, plastic
casing should be handled carefully to avoid bruising loss.
For long transport by track bulk loading must be avoided to minimize the total average loss
of tomato.
For easy preservation, Pran tomatoes can be processed into pulp that can reduce the losses
of Pran tomatoes in peak harvest.
For better value addition and flow of benefits to producers, processing of Pran tomatoes
would be encouraged.
Further detail study is needed to identify the appropriate practices for loss reduction in
handling, transportation, storage and processing of Pran tomatoes in the value chain.
REFERENCES http://www.pranfoods.net/, Date. 14.08.2016, Time. 5.20pm
http://www.bau.edu.bd/, Date. 14.08.2016, Time. 5.30pm http://www.bari.gov.bd/ Date. 16.08.2016, Time. 5.30pm Ajay Verma (2003) Post-harvest losses of vegetables: an assessment. Indian Institute of Research, Varansi, India.
BBS (2007) Statistical Year Book of Bangladesh Bureau of Statistics. Statistical Division: Area and Production of Vegetables. BBS. 2008 (Pocket). Production of vegetables. Ferrira, M.D. (2005) Post harvest quality of Pran-marketed tomatoes as a Function of harvest period. UNICAMP/FEAGRI, Faculdade de Engeharia Agricola C.P 6011, 13083-875-Campinas, SP. Brazil.
Gauraha, A. K. (1999) An estimation of post-harvest losses in vegetable Crops. Department of Agricultural and Natural Resource Economics, Indira Gandhi Agricultural University, Raipur-492012 (M. P.), India.
Kharche, D. S. (1998) Post-harvest handling of tomato with special reference to transport, Department of Agricultural Process Engineering, Dr. PDKV. Akola, India.