Identifying value chain trade-offs from fruit and vegetable aggregation services in Bangladesh using a system...

Area of Science:

• Agricultural Economics
• Supply Chain Management
• Food Systems Analysis

Background:

• Bangladesh's agricultural policy prioritizes cereals, potentially limiting fruit and vegetable (F&V) market access for smallholder farmers.
• Smallholder farmers' weak market connections hinder F&V supply, impacting availability in smaller retail markets.
• Existing aggregation schemes often favor wholesale/urban markets due to infrastructure reliance, neglecting rural areas.

Purpose of the Study:

• To investigate the 'Loop' aggregation intervention's potential to enhance F&V distribution to smaller markets.
• To assess the impact of aggregation on farmer benefits and consumer outcomes in retail markets.
• To identify potential trade-offs between consumer access and farmer profitability.

Main Methods:

• Employed a system dynamics modeling approach to simulate Loop's aggregation services in Jashore, Bangladesh.
• Analyzed the interplay between aggregation, market quotas, transport subsidies, and price dynamics.
• Evaluated consumer purchasing patterns and farmer economic benefits under various intervention scenarios.

Main Results:

• Combining aggregation with market quotas, transport subsidies, and price growth showed no negative trade-offs between consumer purchases and farmer benefits.
• Aggregation combined with current price growth increased demand without reducing farmer benefits.
• Standalone and multiple market-oriented interventions demonstrated broader win-win outcomes.

Conclusions:

• Aggregation interventions, particularly when combined with supportive policies, can foster inclusive food systems.
• Targeted strategies can improve F&V distribution to underserved markets, enhancing both consumer access and farmer livelihoods.
• System dynamics modeling offers valuable insights for designing effective agricultural interventions.