The explicit aim of the document is to share the work done by Katalyst, a project to support economic growth in Bangladesh for the purposes of alleviating poverty, specifically within the maize sector. This document deals with the experience of Katalyst and its partner, Winrock International (WI), in addressing the underlying causes for the poor performance of maize (which is still a relatively new crop) in the Rangpur region. In some cases, it also illustrates the potential of the market development approach and the challenges faced in its implementation.
Main findings
- Even in a context of strong growth nationally, Rangpur's share of maize production in Bangladesh has increased from 13.6 per cent to 17 per cent
- In two years, Rangpur's output grew by 140 per cent. Farmers switching to maize from other crops have typically doubled their incomes, with those involved in contract farming often gaining more than this
- The biggest gains are for those involved in maize growing directly, often through informal sharecropping arrangements, and who constitute around 5-10 per cent of maize farmers
- Depending on whether farmers switched from other crops or planted on fallow land, winter crop incomes typically increased by 75-100 per cent
- Conservative estimates of the number of farmers affected immediately by interventions are around 5,000. This implies an intervention cost of approximately $16 per farmer
- Maize is known to be slightly more employment intensive than most competing crops. In cultivation, this will result in more employment (and income) for men and, post-harvest, for men and women. In Rangpur using local materials creates some labouring employment locally (65 days of labour per 8MT of compost).
Intervention description
Katalyst currently promotes more than 35 markets in 18 sectors comprised of services such as accounting, marketing and quality management services; manufacturing sectors such as plastics, furniture and agro-tools and machinery and agricultural sectors like pond fishery, vegetables, maize and poultry all within Bangladesh. It also works with business associations to improve the enabling environment for businesses.
In regard to maize, Katalyst and Winrock International had a partnership whereby Winrock’s know-how on maize was combined with Katalyst's market development approach. A range of activities were undertaken over the 12-month intervention period, with the emphasis being on technical assistance rather than financial inputs (total intervention costs were $81,000). Following the principle of 'disruptive stimulation', it introduced organic compost and new varieties of rice to create more space for maize cultivation, while also introducing the principle of contract farming.
Evidence methodology
The document makes explicit the difficulty in assessing Katalyst's contribution when the maize sector throughout Bangladesh experienced a major growth in output. The report therefore looks specifically at:
- Developments in the maize sector of Rangpur, including crop yields, employment levels and improvement in the livelihood of local maize farmers. It also considers economic growth in the region following the beginning of the Katalyst intervention in 2002
- The improvement to crop yields by introducing particular types of organic soil and alternative varieties of rice
- The above is based on analysis of monitoring data
- The document provides some qualitative assessments ‒ based on the experiences of project workers ‒ on the social factors conducive to economic growth, and how the interventions by Katalyst might yet achieve sustainability.
Useful for:
Anyone interested in the market systems approach, specifically within the Bangladeshi agricultural sector. This might include potential investors and partners, as well as development practitioners and researchers.