Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Sites Suitability using MCE Method and GIS for Poultry Microenterprises and Value Chain Development: A Study in Gazipur District, Bangladesh

Assessment of Sites Suitability for Microenterprises Development Dr. Syeda Khaleda

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Why Assessment of Sites Suitability needed?Agro-based microenterprises (MEs) are many and several subsector/clusters develop in different areas.MEs are highly influenced by physical environment.Not all MEs are located in equally favorable places and equally benefited .They require different level of support .

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Research methodology Sample survey & interview to microentrepreneursQuestionnaire interview to livestock experts Microentrepreneurs survey to cross-check sites suitability Digital data compiled and analyzed using GIS Analysis of digital data to understand distribution of MEs/farms and production in different suitability sites

GIS is an integrated assembly of computer hardware, software and geographic data

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Origin and destination of poultry supply chainWholesale market of chickens in DhakaWholesale market of eggs in DhakaTruck loaded with eggs

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Poultry microenterprises and identification of criteria Spatial economic factors - highways and roads - market places/growth centers - government livestock officesPhysical factors -land and floodingConstraints -rivers and water bodies -location of forests Note: Market means large market places in Gazipur, for input materials, and should not be confused with consumer market for selling eggs/chicken, which is in Dhaka.

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Criteria score classification and standardization using GIS Each factor was classified into 4, ranges of data were selected. Constraint image was incorporated.Each criteria map was reclassified into five and given:a physical score from 0 to 4 scoring levels (4 to 0) of highly favorable, moderately favorable, marginally favorable, unfavorable and constraints.

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Categories of criteria (Factors and constraints) FactorsClass 4Highly favorable Class 3Moderately favorableClass 2Marginally favorableClass 1Unfavorable (currently) 1.Distance to market (m) 1,000-1,500 1,500-2,000 2,000-2,500 0-1,000; 2,500 and above 2.Distance to govt. office (m) 1,000-2,000 2,000-3,000 3,000-4,000 0-1,000; 4,000 and above 3.a.Distance to highways (m) 1,000-1,500 1,500-2,000 2,000-2,500 0-1,000; 2,500 and above b.Distance to roads (m) 250-500 500-750 750-1,000 0-250; 1000 and above 4.Landform and flooding during peak rainfall period (cm deep) High land to medium high land (less than 30) Medium high land (30-90) Low land(90-180) Very low land (180-300) Constraints Rivers, water bodies and forest areas

Criteria for poultry microenterprises

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Highly favorableModerately favorableMarginally favorableUnfavorableConstraintsTotal2.64.25.576.611.0100.0

Suitability of sites for proximity to government livestock office as a percentage of the surface area

5 unions are favored for support services with regard to distance of government livestock offices, and have 10% to 30% of their areas scored as highly favorable.

21 unions have 100% of their area scored as unfavorable.

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Highly favorableModerately favorableMarginally favorableUnfavorableConstraintsTotal4.24.13.976.911.0100.0

Suitability of sites for highways for poultry MEs as a percentage of the surface area

25 unions have no area that scores highly favorable and relatively small areas score moderately favorable to marginally favorable.

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Highly favorableModerately favorableMarginally favorableUnfavorableConstraintsTotal4.76.48.069.911.0100.0

Few unions have highly favorable areas with regard to proximity to market/growth centers. 6 unions have no area that score highly favorable / moderately favorable. Suitability of sites for proximity to markets as a percentage of the surface area

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Highly favorableModerately favorableMarginally favorableUnfavorableConstraintsTotal52.88.210.717.411100.0

Suitability of sites for the factor of flooding land as a percentage of the surface area in Gazipur

Unions in the south-east score unfavorable of more than 70% of their area

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Sites suitability for poultry microenterprises

Highly suitableModerately suitableMarginally suitableUnsuitableConstraintsTotal11.849.919.87.611.0100.0

Suitability of sites for poultry MEs as a percentage of the surface area in Gazipur

17 unions have extensive highly suitable/ moderately suitable sites and occur in more than 70% of the area of those unions.Extensive unsuitable areas are located in the south eastern part of the district.

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Highly suitableModerately suitableMarginally suitableUnsuitableAverage size of farm (sq feet)4150307232351250Average number of birds 2708202520031135Average number of employment3.81.83.01.5Average distance to market as a source of chick (km) 11.7101436.3Average distance to market as a source of feed (km) 1.11.51.52.6Average distance to paved roads from farm (km)0.30.71.03.6Average distance to government livestock office (km)1.02.57.011.3Level of flooding (cm deep) during severe floods 00135211Average selling price of production (BDT/eggs)8.98.88.78.5Average transport cost for feed (BDT/bag of 10 kilograms of feeds)10101516.3Mode of transport used for carrying feedRickshaw vanRickshaw vanRickshaw vanRickshaw van/boat

Comparison of poultry microenterprises

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Constraints in suitability sites Problems related to supply of input materials: availability of quality input materials. Problems related to marketing : absence of direct linkages with markets and opportunity for negotiation. Inadequate support service: inadequate demand driven support services. Inadequate and poor quality infrastructure: unpaved or semi-paved rural roads. Occurrence of natural calamities: regularly affected by natural disasters.Level of suitabilityHighly suitableModerately suitableMarginally suitableUnsuitableDistance to paved roads from farm (km)0.30.71.03.6Distance to government livestock office (km)1.02.57.011.3

Distance of infrastructureLevel of suitabilityHighly suitableModerately SuitableMarginally suitableUnsuitableLevel of flooding (cm deep) during severe floods 00135211

Flooding situation

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Extremely low concentration = 0-0.9 % ; Low concentration = 1.0-1.9 % ; Medium concentration = 2.0-2.9 % ; High concentration = 3.0-3.9 % ; Extremely high concentration = 4.0-5.0 %.

Geographic concentrationVery small = Less than 1,000 birds per farm Small = 1,001 birds 1,500 birds per farmMedium = 1,501 birds 2,000 birds per farm Large = 2,001 birds 2,500 birds per farm Very large = 2,501 birds and above per farmAverage size of poultry MEs/farmPercentage of poultry MEs/farms

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Regionalization is essential: difference in constraints and profitability between suitability sites to help supporters to decide the areas for preferable intervention

Profitability reasons Nearness to market places - facility to buy quality of input materials-lower transportation costs. Road quality and Proximity -road quality decreases towards the remote villages.-unpaved roads spend huge cost and time. -farm located close to road, get competitive price.Size of Microenterprises-large MEs with huge output gets good price-big egg /chicken production gets good pricelarge MEs possess on farm storage and ability to negotiate no credit constraint related to large MEs/farms.Discussions

Transportation of feed using van by muddy road

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Recommendations To reduce the cost in feeding in unsuitable sitesloan agreements with agents at a lower interest rate. agents would supply good quality feed at a reduced price up to the farm-gate.

Improved road :constructing quality roads in unsuitable areas.

Improved land :Keeping a special/additional allocation of funds for preparation of land by filling sand.

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Conclusions

Vast area in the South-East is unsuitable with great concentration of MEs/farms.

This unsuitable area require the greatest effort and cost on priority basis.

Any support would be cost-effective.

The entire framework applied in the research are applicable for other agro-based ME production areas.

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