The Sustainability of Potato Farming in Bangladesh - Term Paper Example

Sustainability Analysis Sustainability Analysis Organization Background International Development Enterprise (iDE) is an international non-profit organization that is committed towards creating an enabling or conducive environment for poor rural households to actively participate in the rural markets (Chen, Lemes, Moorthy, Strickland, & Zhu 2014). iDE majorly is concerned with improving life spiraling poverty out and increasing income to the poor household. According to Egger (2004) reports and statistics, almost three-quarters of people live in poverty, and this is how iDE came to be formed. For almost three decades now, iDE has focused on creating interventions and innovations to create solutions to development problems across the world. This entails innovation of products, business models as well as effective services. Ahmed (2012) argues that most of the poor household across the world depend on small business as well as small farms. Based on this, iDE is always in the front line in helping the poor rural farmers to improve their farming and agricultural productivity. On the other hand, in respect to water and sanitation, the organization is focused on developing sustainable business in provision of water and social amenities. Ideally, iDE focuses on the best way to achieve sustainable production and consumption. More importantly, the organization concentrates on agricultural activities to alleviate poverty among the poor household across countries. The small-scale farmers productivity are achieved through the provision of affordable irrigation equipment, seeds, and range of products that are useful to the farmers. Subsequently, sustainability is never achievable when single-handed. The organization cooperates and engages private companies in maintaining value supply chains. Through its integrated value chain supply, the organization aims to supply and market appropriate farm products that improve high-quality production and market access to the small-scale farmers. The Challenge The population of Bangladesh people has grown quite significantly. To serve this huge number of people with consumer goods such as agricultural goods have then become a great challenge to the small scale farmers. Rashid, Hassan, and Harun‐Ur‐Rashid (2009) noted that, people living in Bangladesh regularly spend most of the time of their lives seeking for shelter, food, fighting for physical survival and constantly worried about their future lives (Rabbani, Siddique, & Islam 2010). Due to this, there exist emerging markets which face both social and ecological challenges. Arguably, income generation, health problems are at the disposal of this people.To deal with the food supply, private companies, as well as small scale farmers, have adopted the current agricultural technology to ensure there is constant food supply to the pyramid consumers in this location. Bangladesh people depend on agricultural products for their survival and their lives. This includes potatoes, tomatoes and other variety of farm crops. Even though potatoes are treated as a staple food in other countries, it is consumed as a vegetable in Bangladesh. As such, potatoes farming is practiced on a large scale with a production of about 7.9million mega tonnes per year (Ahmed 2012). Though sometimes consumed directly without processing, about 10% are converted into consumer processed products. Based on the large consumption of potatoes, its production in Bangladesh has transited from small scale to commercial production. Most of the farmers use the most current agricultural techniques to produce potatoes. They are supplied by both the iDE and the private companies with farm inputs. These include the variety of seeds, fertilizers as well as irrigation equipment. With the iDE efforts, some successes such as the provision of affordable farm inputs have been achieved. On the other hand, the small-scale farmers have boosted their productivity through advanced agricultural techniques to provide the potatoes to the pyramid consumers. However, sustainability of the environment remains a core challenge. The fertilizer used by these farmers constantly affects the environment as well as the lives of the individual. Even though, the farmers are encouraged to use the eco-friendly farming techniques in order to encourage the productivity of potatoes, the market need is higher and implementing sustainability in stages of production becomes difficult. This is an issue of concern to iDE since these fertilizers and the other farm inputs are very detrimental to the environment. Ideally, as much as the provision of food to the people is important both to the government and NGOs, environmental sustainability is more critical than any other thing else. Landrum (2007) notes that the environment should be sustained for the future generations as well as for economic purposes. Achieving sustainability in potato production as well as promoting environmental protection has become not only a challenge to the iDE but also a problem of the government. Based on potatoes production, sustainability is influenced by a wide range of factors varying from internal community factors to the dynamics in the society. This includes government policies, organizational strategies, resources reliability as well as community sense of ownership. Nevertheless, there are structural and emergency situations that also affect sustainability among the world communities’. This prompts for the need for iDE to achieve sustainability in the production of potatoes by achieving a sustainable potatoes value chain. The Context Sustainability is not only a communal problem but also a global problem. Most of the international organizations have developed sustainability policies and interventions. Being part of this strategic team, iDE plays a quite important role in ensuring the companies as well as business organizations meet social and environmental sustainability obligation. This analysis paper oscillates on the roles played by iDE in influencing private sector companies such as Danish in ensuring social and environmental sustainability. More specifically, the paper analyzes the economic and social challenge faced by companies in the commercialization of innovative technologies in the potato chain to cater for the pyramid consumers market segment. Finally, the analysis interrogates on whether collaborating between various stakeholders value chain may have an impact on maintaining sustainability. Even though, iDE puts more efforts in the production of potatoes to achieve sustainable productivity; they are faced with more complex situations in an attempt to fix sustainability interventions which aim to have long-term impacts. Faced with mass consumption, the farmers are forced to use the most available farming methods to supply the pyramid consumers. In this, they don’t mind whether the methods of farming affect the environment or not. Arguably, this makes it very difficult for the iDE to promote eco-friendly production practices in providing to the food needs of the consumers. On the other hand, the lead private company that has the machinery and the capacity to produce commercially has different market segments. Based on the quality of their products and ability to supply to emerging urban markets, the lead private companies neglect the pyramid consumers based on their limited purchase ability. As such, it has become very difficult for the International Development Enterprise to promote the responsible trade between the lead private companies and the pyramid consumers. Literature Review Potato farming in Bangladesh is practiced in large scale. Most potato farmers contract a variety of newly developed systems in production and processing of potatoes. Most of the tomatoes produced are consumed directly since most of the varieties produced are not appropriate for processing. However, the development and growth of potato production has led to a number of sustainability issues to the environment as well as production for consumption to the people. According to Arnold and valentine (2013), the potato farmers are confronted with high prices of farm inputs including the prices of seeds, fertilizers. On the other hand, inaccessibility to credit and lack of information about pest management and disease control are among the issues affecting potato farmers. Keijbets (2008) notes that the farmers react to prices with a reduction in their investments in the tomato business. Consequently, they increase potato prices to the pyramid consumers to the levels that they cannot afford. The production and consumption of potatoes involve a value chain that must be considered before considering any sustainability strategy. According to Ahmed (2012), a half of the potato, seeds are produced and sold to the farmers by the Bangladesh Agricultural Development Corporation. The remaining percentage is imported multiplied and distributed by the private companies. The BADC seed is not directly distributed to the farmers, but the seeds are bought by private dealers who channel it to retails who finally sell it to farmers. The Fertilizers are supplied by private companies as well as the government that offers subsidies on urea to the potato farmers. Berg, and van den et al. (2013) notes that most of the dealers sells both seeds and fertilizers while the retailers are treated as independent businesses that sell in small quantities to the farmers. Even though, iDE encourages the use of organic and environmental friendly fertilizers to the farmers; the private dealers or companies do not distribute enough quantities of organic and balanced fertilizers to the farmers. Despite the several challenges, some sustainable strategies have been implemented to at least ensure there are sufficient production and improvement of potato markets to the farmers. Waeyenberg and Hens (2012) explains that globalization has forced most farmers to use modern technology in production as well as mitigating ways to export their potatoes. Realizing that the global market changes continuously, the farmers has in the past targeted BOP and the international markets. The potato production remains integrated in such a way that it supplies the pyramid consumers with the needed amount of potatoes. Katalyst approach or model has been implemented in potato production. According to Landrum (2007), catalyst model is a market development approach that aims at contributing to increasing income to poor women and men in both rural and urban regions. Ideally, the strategy is implemented to increase the farmers’ competitiveness and small enterprise performance through facilitating changes in input, product and service provision. Bair (2005) notes that this strategy quite usefully worked in potato production in its phase 2 of implementation. Since its formulation, Katalyst approach has contributed significantly to the productivity of potatoes as well as other crops. The approach is being implemented in phases and currently in the third phase where it is being projected to contribute completely to sustainable d agriculture. Ideally, the katalyst’s model works on the premise that, both the private sector and public sector businesses has a role to play in improving enabling environment, ensuring poverty alienation, ensuring competitive enterprise and ensuring sustainable economic growth. According to Tenchio (2013), the approach works through indirectly focusing on achieving certain sustainable changes in regard to market systems. Both the private sector and public sector in connection with intermediaries’ partners to have a long range of long-term interests. Ideologically, the key stakeholder’s partners with the key market players to design and implement key interventions that address underlying market constraints. Some of the implemented interventions include hardening market incentives to encourage the farmers to reach a large number of consumers thereby ensuring sustainability. London, Anupindi, and Sheth (2010) explain that katalyst approach follows a pro-poor approach to production growth and market development. Essentially, the approach makes the over emphasized markets works for the poor (M4P). On the other hand, BOP has been implemented to ensure sustainability of businesses and agricultural production in the base of poor households. The ideology works in that, the private companies and public sector identifies opportunities in the base of the pyramid. The relationship between the key players is effectively embedded with the needs of individuals with regard to distributing products. The companies use the local people to distribute the product and services. The BOP approach is based on the philosophy that there exists a lack of organizational awareness in communities. And there is heterogeneous BOP culture and dialects and their distrust of foreigners in rural BOP culture. Again, given the legal restriction and the physical infrastructure, a wonderful effort is achieved in impeding individuals to distributing products to firms. Landrum (2007) explains that the BOP markets create sustainability through the creation of agency costs that is beneficial to the society. Even though, the agency cost may be mistaken for increased cost of products, however, it is quite important in ensuring constant supply and services to the people. The agency theory is involved in the BOP approach. Further, the internal employer-employee relationship is significantly improved in improving the living standard of people. Even though, BOP can contribute to the sustainability of the economic growth and poverty reduction in the poor rural areas, the implicated costs make it unsustainable strategy. Given that, the agency costs involved increases due to the cooperative effort by the parties involved, it makes the prices of products quite high to be afforded by the pyramid consumers. Critical Analysis Even though, the Bangladesh potato production has experienced massive growth and developments; it still experiences the sustainability issues that the modern enterprises face. The market trends and globalization definitely impose various urgent challenges that are necessary to be mitigated. According to most stakeholders interviewed, agricultural sustainability as well as promoting conservative agriculture is the focus of the most organization. The International Development enterprise is always on the frontline trying to innovate new ways in order to ensure sustainability of agricultural productivity. In their effort, they realize that most farmers use methods of farming that are not consistent with environmental sustainability policies. Again, it has become quite difficult to encourage a responsible relationship between the private companies in an attempt to fulfill the BOP, business model. According to the information gathered, most farmers consider the sustainability of environment quite important though they are a constraint with the need to ensure a conservative agriculture. The recent advancement within the agriculture sector promotes conservative agriculture. Hart and Christensen (2002) note that the improvement in agricultural technology has impoverished productivity significantly to the small-scale farmers in Bangladesh. Ideally, the introduced holistic agricultural system integrates components of CA in improving soil fertility to ensure sustainable growth and development. This drastically reduces costs of production thereby increasing productivity. According to Lagger (2011), CA reduces labor costs which in has significantly boosted the farmers sustainable profitability. Arguably, Bangladesh potato production has significantly improved with the farmers willingness to incorporate the new technologies into production. Almost production capacity has reached 80% for various agricultural products while that of potato has reached 90%. The Role of Private Sector As much as iDE has significant roles to play in sustaining economic growth and development in Bangladesh, the private companies through collaboration with other stakeholders have a magnitude of roles to play as well. Stakeholder collaboration is a vital element in value chains concentration. Potato production in Bangladesh fully depends on the value chains for sustainability of the business as well as the provision of inputs. As such, considering all the stakeholders who contribute significantly to the potato production is quite important. Sustainability of potato production, as well as its supply to the BOP market, is quite important. Collaboration between private firms and the public division generates significant changes in the potato value chain. It creates an enabling environment, facilitates the BOP opportunities ensures sustainable production and consumption of potatoes in Bangladesh. Based on the value chain analysis, it becomes quite evident that these framework conditions. In the potato value chain, the private sector plays a crucial role in providing seeds, fertilizers, farm inputs as well as farm equipment. For instance, the private pesticide companies sell their disease control pesticides alongside the micronutrient fertilizers. Also, the input suppliers usually provide embedded services to the farmers including advice on the correct application of cultivation techniques as well pesticide application to ensuring sustainable production of a variety of potatoes. Subsequently, through the BOP model the sale of potatoes is made in such a way that it contributes to the society immensely. Local varieties of the table potatoes are supplied through the value chain to the domestic market. By adequate and effective implementation of the sustainability production practices, Hall, Matos, Sheehan and Silvestre (2012) note that, the table potato can yield huge returns to the fit the market demands. Cooperation and Engagement of Enterprises Apart from the cooperation between the private sector and iDE, the small enterprises also play a crucial role in achieving sustainability. According to Kistruck (2010), the small-scale farmers, as well as the small enterprises, are the foundation of economic growth and development in Bangladesh. Basically, to sustain development then the contribution of the small businesses must be considered. Notably, they engage in production and at the same time employ individuals. For economy of a place to remain sustainable then all individuals in the society must contribute. Their contribution ensures economical as well as social sustainability. To issues deal with unsustainability then the middle enterprises must rationalize the economy rather than the big enterprises. The katalyst model being implemented by the government supports most of the sustainability programs introduced by the government to ensure productivity in tomato production. Ideally, the strategy promotes incentives and facilitates access to credit funds that boosts the production of potatoes in the state. This is achieved through formal communication within systems to ensure effective start and management of the business. Problems related to sustainability are mitigated and communicated directly to every farmer to encourage using environmentally friendly methods of potato production. New Technologies Even though, it can say that production in Bangladesh is not sustainable, to some extent technologies adopted by the potato farmers promotes environmental sustainability. The various current technologies are implemented to improve productivity. Research and surveys on soil testing have taken center stage in the farming of potatoes. Soil testing is quite important in identifying the missing nutrients in order to use appropriate fertilizers. Arnould and Mohr (2003) explain that soil testing ensures there is the proper dosage of fertilizer as well as the application of the right variety of fertilizer. This leads to retention of soil health for future generation. Actually, the CA machinery designs focus on use most suitable minimum tillage a key profitability to potato production. Besides, the farmers’ implements crop rotations and use crop residue as a way of dealing with the ecological issue being raised in the production of potatoes. On the other hand, new networks to encourage commercialization. The extension officers provide adequate information pertaining to farming as well as made the farmers aware of the best practices. In fact, these practices improve operations as well as instill best crop practices in farmers. Conclusions and Recommendations Economic growth, as well as development, is quite important to the people in Bangladesh. But more importantly, sustainability through income generation is a major concern for the people. iDE supports sustainable growth of the economy. Through various programs initiated by iDE and public sector, potato farming has been improved through innovation and use of business models. Through the implementation of BOP and katalyst models, it becomes sustainable to grow and produce potatoes. This ensures economic sustainable development through income generation through new market access for the potato growers (BoP producers) as well as the lead private sector companies. Environmental sustainability is ensured through precision and conservative agriculture. The social sustainability is achieved through building on social capital created through organizing potato growers into farm business groups. Based on the critical roles played the private sector in potato production, iDE has to ensure there is cooperation among stakeholders to in order to achieve the desired sustainable results. The private lead firms totally engage in inclusive business models as they find an opportunity to engage in profitable business. Ideally, participating in the BOP enables the firms to find opportunities in the underserved markets. On the other hand, provision of adequate inputs makes possible to run sustainable businesses and production. It makes the locals and the BOP producers have access to better quality inputs, technology and improved income to the farmers. Equally, there is the creation of shared value in the potato value chain that is beneficial in a win-win situation for the parties involved. Even though, the iDE as well as private business sectors ensure implementation of various models to ensure sustainability of potato production, there is a need for implementation of more business models to achieve sustainability. Arguably, it is recommendable to introduce and implement the life cycle assessment in the production of potatoes. Akula (2008) explains that Life Cycle assessment strategy is quite vital in achieving production of environmentally friendly products. Use of this tool in the production of potatoes can highly achieve production of high quality table potato as well as improve the productivity of the crop for international consumption. According to Ahmed (2012), most companies that implement the LCA tool are engaged in informing the consumers about the environmental impact of consumption of the product. Again, the consumers are made aware of the Co2 emission in any value chain production line. In introducing this strategy to potato production, it becomes easy to alienate the use of dangerous inputs in the production of potatoes. Instead of using intoxicated fertilizers to improve potato productivity, the farmers shall be encouraged to use organic and balanced fertilizers that are environmentally friendly. Secondly, there is a need for effective communication between iDE, stakeholders, and the potato farmers. Based on the analysis of potato value chain, it was evident that production of potatoes engages a number of stakeholders. Enhancing communication within the system makes it quite easy to ensure cooperation between the parties involved. Albi and Lieberman (2013) emphasizes the need for business communication to ensure sustainability as well as productivity of such businesses. Effective communication within the chain values ensures there is proper coordination of new strategies that ensures sustainability success in the production of potatoes. 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