Module 7 - Bangladesh: Autonomous Organization for Facilitating Market-led Export

HORTEX organizes trial shipments of new products or of traditional products to new markets, such as Singapore and the Middle East. While the HORTEX business plan provides a basis for operations, flexibility is maintained to adjust for market developments and interest expressed by importers in particular products. In later stages of the program, HORTEX is likely to concentrate more on quality monitoring and promotion of Bangladeshi horticultural products. Its future role might include the establishment of a recognized trademark and reputation for Bangladeshi products, leading to long-run profitability. Evidence of success will be measured by the number of NGOs and private entrepreneurs that can export profitably without HORTEX services.

Benefits and Impacts

Strengthened partnerships among NGOs and the private sector have resulted in improved extension services that enable farmers to undertake highly profitable, diversified production activities. Market-oriented penetration of export markets has yielded higher farm incomes, with benefits accruing mainly to the poor and with significant multiplier effects throughout the local economy.

Lessons Learned and Issues for Wider Applicability

• As farming systems become more complex and market demand becomes increasingly sophisticated, agricultural extension systems need to become more decentralized to reflect location- and market-specific issues.
  
  
• Cooperation between a technical agency with access to international marketing experience and NGOs that have gained the trust of small-scale farmers can be extremely useful in introducing new higher-value crops in a country dominated by small-scale farmers.
  
  
• Agencies adopting a catalytic role (for example, HORTEX) should focus on providing critical technical services rather than making direct investments in infrastructure.