The Sectors (2014 - 2017)

Despite growth in other sectors of the economy – most notably the ready-made garment (RMG) industry, agriculture remains central to life in Bangladesh. It is estimated that this sector employs 47% of the country’s total labour force, yet only provides 16% of GDP. Because of its central importance - and in order to improve productivity in the sector, agriculture has remained Katalyst’s focus throughout its years of operation.

The project operates in three main agricultural sectors, as outlined below.

  • Fish
  • Vegetables
  • Maize

As well as these three value chains, Katalyst also works on three cross-cutting issues – that is, topics which are not specific to the cultivation of one crop in particular, but which are relevant across all sectors within agriculture. These are as follows:

  • Information Channels
  • Local Agricultural Networks
  • Women's Empowerment

Over the years, the project portfolio underwent a process of concentration and consolidation. Katalyst started working in 19 sectors in 40 locations (referred to as ‘markets’), which were predicted to provide the highest outreach and impact.

Starting with a rather diverse and mostly unconnected portfolio of generic business services and product sectors available in urban and rural areas, Katalyst then made the decision to withdraw from urban business services and focus more on rural sectors.

A second step was made with the introduction of so-called “cross-sectors”. Katalyst had identified the need to work in supporting markets such as seeds (since 2007), fertilisers (since 2008), and irrigation (since 2009) to address constraints in its core sectors. This was later expanded to other cross-sectors such as ICT, packaging, and others. 

Farmed Fish

Demand for fish as a source of relatively cheap protein is rising significantly in Bangladesh. A sharp increase in the urban population and over-fishing of wild species is leading to strong growth in fish farming. As with the vegetable sector, there are challenges in terms of inputs, production techniques and output markets, all of which have been the focus of Katalyst activities in recent years. 

The farming of productive, high-value fish species (HVS) such as tilapia, pangus and koi holds benefits for fish farmers. HVS can be farmed twice a year, which gives farmers the opportunity to increase their income through additional sales. However, smallholder fish farmers do not possess the requisite skills for suitable farming methods. The systemic change that Katalyst promotes in this sector involves making the farmed fish market system more inclusive.

Vegetables

It is estimated that as much as 12% of the rural population is involved in the cultivation of vegetables. This performs two main functions in rural households: 1) they provide valuable supplemental nutrition to the family; and 2) they are also a cash crop that can provide additional income. Historically, horticultural inputs, growing practices and sales markets have all been problematic, hence Katalyst’s involvement in this sector.

Integrated Pest Management (IPM) is a crop protection method that is not only eco-friendly, but also cost-effective, which helps to ensure higher incomes for vegetable farmers. However, until recently, IPM products were not available on the Bangladeshi input supply market. Additionally, smallholder farmers had no knowledge of the profitability or proper application of IPM. Katalyst’s systemic change means making the vegetable market system more inclusive so that smallholder farmers can access IPM products and make the best use of them, leading to increased incomes and improved livelihoods.

Maize

Maize is a relatively new crop in Bangladesh, and its cultivation has grown rapidly in recent years, largely due to growing demand in the fisheries and poultry sectors. With the poultry sector growing at 20% a year, Bangladesh currently imports 30% of its maize demand. Katalyst’s work in the maize sector seeks to bolster domestic supply, thereby reducing the demand for the imported product.

Maize farming offers an opportunity to lift many smallholder farmers out of poverty. However, most smallholder farmers have no knowledge about the benefits of maize farming and effective cultivation methods. Systemic change in the maize sector - facilitated by Katalyst - is changing this situation. There are risks inherent in applying the market development approach, and certain sectors such as maize cultivation are most vulnerable. Studies have shown that cash crops exposed to market fluctuations and failed harvests can also have effects on food security. Risk analysis is a part of sector strategy; studies have shown that even smallholder farmers are thoroughly capable of undertaking their own risk assessments.

In addition to these three value chains, Katalyst also works on three cross-cutting issues – that is, topics that are not specific to the cultivation of one crop in particular, but which are relevant across all sectors within agriculture. These are as outlined below.

Information Channels

Katalyst works in a number of areas to harness the potential of ICT to improve agricultural practice and the lives of farmers.
The advent of even basic modern technologies (such as the mobile phone) has had a significant impact on the lives of rural farmers. For example, Information Channels Technology (ICT) means they now have access to more reliable weather forecasts, and to the market price of the commodities they are growing, which in turn gives them a stronger negotiating position. Katalyst works in a number of areas to harness the potential of ICT to improve agricultural practices and the lives of farmers.

Local Agricultural Networks

Local Agri-business Network (LAN) works across the Katalyst portfolio to address weaknesses in agricultural extension service delivery. Overburdened and under-resourced extension agents, supply-driven national extension programmes, and the farmers’ lack of a collective voice have created a gap between the extension services delivered and the farmer requirements.

Katalyst devised a complementary channel for extension service delivery by leveraging existing traders’ associations and strengthening their skills to create networks with farmer groups. Farmers benefit from improved opportunities to access a diversified range of agricultural services.

Women's Empowerment

As Bangladesh gradually develops new economic sectors, more men are taking salaried jobs, effectively removing them from homestead farming. This makes the role of women in agricultural areas all the more important.

Despite this, farming remains geared towards men, particularly in the areas of decision-making and engagement with market actors. Katalyst has been working in a number of areas to improve the position of women in agriculture and to ensure that they are able to operate effectively.

Portfolio Development

Over the years, the project portfolio underwent a process of concentration and consolidation. Katalyst started working in 19 sectors in 40 locations (referred to as ‘markets’), which were predicted to provide the highest outreach and impact.

Starting with a rather diverse and mostly unconnected portfolio of generic business services and product sectors available in urban and rural areas, Katalyst then made the decision to withdraw from urban business services and focus more on rural sectors.

A second step was made with the introduction of so-called “cross-sectors”. Katalyst had identified the need to work in supporting markets such as seeds (since 2007), fertilisers (since 2008), and irrigation (since 2009) to address constraints in its core sectors. This was later expanded to other cross-sectors such as ICT, packaging, and others.

 

Furniture and Crafts

Katalyst's purpose in the Bangladesh furniture sector was to increase the competitiveness of furniture SMEs and carpentry households for the domestic and export markets. While responding to market demand, firms were expected to adhere to compliance standards, employ environmentally-friendly measures, and proactively encourage employment opportunities for women. Katalyst developed sustainable market mechanisms by stimulating four major changes in the furniture sector:
 

  • increased productivity of furniture enterprises and carpentry households;
  • improved marketing practices for domestic and export markets;
  • enhanced policy advocacy capacity of furniture associations; and
  • craft accessories included as a profitable product line in furniture retailing.


 

Cost-Effective and Eco-Friendly Jute Retting Technique

Katalyst facilitated systemic change in the jute sector by increasing its competitiveness through improved quality, productivity and market access. This ensured a sustainable market mechanism, which allowed Bangladesh to take advantage of the growing demand for jute, both for local and international markets.

Over the years, the drying of rivers and canals in Bangladesh, along with the growth of commercial fish cultivation, have caused water shortages, making access to water for retting purposes increasingly difficult. In collaboration with the Bangladesh Jute Research Institute (BJRI), Katalyst introduced jute farmers to ribbon retting techniques, which are the most cost-effective and eco-friendly techniques available.


 

Better Packaging to Reduce Waste

Katalyst's aim in this cross-sector was to promote the development of a packaging services market that would provide appropriate products and services to the targeted rural market, including the poor. Studies revealed that post-harvest losses of vegetable, fish and fruit hover at around 15%, often rising to as high as 40% for more perishable items. One of the main reasons for this wastage is the inappropriate form of packaging used by many producers. Traditionally, traders have used tukri (a bamboo basket that can hold 320kg) for packaging and transporting tomatoes to the main cities. To minimise waste, Katalyst partnered with Bengal Plastics to introduce plastic crates designed specifically for farmers to transport their produce with minimum spoilage. 

Encouraged by the success of the pilot, Bengal Plastics launched two new types of plastic crates for fish and vegetables in 2012. Within a year, around 13,000 reusable plastic crates had been sold.


 

Potatoes

The potato sector in Bangladesh is still expanding into processing and export. A larger proportion is supplied by smallholder farmers, who will now have better access to quality inputs, particularly appropriate seed varieties and appropriate skills in improved cultivation practices. The retailers and processors, who understand the value that these goods and services can add to their own businesses, will provide quality inputs and information. Farmers now have links to processors and exporters to whom they can sell their produce. Supporting services - such as cold storage and finance - are now more appropriate for the sector. These changes also benefit smallholder farmers growing table potatoes for the domestic market, by improving profitability, quality and productivity. 

Intervention Areas:
 

  • Improved access to quality inputs
  • Promotion of industrial varieties
  • Improved post-harvest management

Prawns

In some areas of Bangladesh and during certain periods of the year, farmers have no source of income other than aquaculture; the climate only allows one cycle of rice each year. With a pond, smallholder farmers can cultivate prawns and fish during the rest of the year, while also growing vegetables on the gher, a traditional farming embankment. Prawn is a high-value cash crop that provides higher profits to farmers than mixed carp or agricultural crops. Prawn cultivation is relatively labour-intensive; feed, gher maintenance and water quality control provides a range of work for labourers.


Katalyst envisioned that improved production and post-harvest handling techniques should be made available to the prawn sector, along with access to higher quality inputs such as commercial feed and hatchery post larvae (HPL). There should also be greater compliance with international standards, a more diversified export market, and better access to finance for value chain actors. With these changes in place, smallholder farmers will employ improved cultivation methods that increase their yields; the market for their product will be less vulnerable; and their incomes will be higher. 

Intervention Areas:
 

  • Availability of quality inputs and improved cultivation techniques
  • Ensuring compliance with international standards
  • Expanding prawn farming into new areas