COMPARATIVE PROFITABILITY BETWEEN ORGANIC AND CONVENTIONAL COUNTRY BEAN FARMING IN NARSINGDI DISTRICT OF BANGLADESH

Abstract

Country bean is a common winter vegetables and farmer can grow it in the field and also in homestead area. In Narsingdi district, country bean is grown with other winter and summer vegetables and also as a solo crop in both organic and conventional farming. The research aims to compare the profitability of country bean farming between organic and conventional in Narsingdi district. Endogenous treatment effect analysis is also used to compare the profitability of organic and conventional farming. 100 organic and 100 conventional country bean farmers were selected for this study. The variable costs for organic country bean production were Tk. 175423.68/ha and Tk. 206182.76/ha for conventional country bean production. Total fixed cost of organic country bean production was Tk. 98529.98/ha and Tk. 71351.93/ha for conventional country bean production. Total revenue, gross margin, and net margin of country bean for organic farming were Tk. 35346.1/ha, Tk.178042.45/ha and Tk. 66597.93/ha respectively. For conventional farming, total revenue, gross margin, and net margin of country bean were Tk. 385705.34/ha, Tk. 179522.58/ha and Tk. 89493.29/ha respectively. The benefit-cost ratio on the basis of variable cost was 1.99 and BCR on the basis of total cost was 1.23 for organic farming. For conventional farming, the benefit-cost ratio on the basis of variable cost was 1.86 and BCR on the basis of total cost was 1.30. The endogenous treatment effect model estimation result indicates that conventional country bean farmers got 22.9% more gross margin than organic country bean farmers. Major problems faced by organic farmers were lack of demand, high labor cost, low price at peak season, lack of storage facilities, lack of middlemen, lack of transportation, lack of marketing facilities, lack of credit facilities, high price of organic fertilizer, high disease damage. However, major problems faced by conventional country bean farmers were high labor cost, low price at peak season, lack of storage facilities, lack of middlemen, lack of transportation, lack of credit facilities, high price of fertilizer, high disease damage. Both organic and conventional country bean farmers suggested some recommendations to solve the problems.