AAPI 7th Quarterly Report Apr-June 2012 - AAPI (Accelerating ...

producers) households benefiting (27,407 male and 11,614 female). Appendix 5 shows the
households benefiting by upazila.
Value of incremental sales of rice
This is a core FTF indicator. The Scaleup Operational Plan sets targets for
incremental production and value of incremental production but there was no target for value
of incremental sales. The percentage sale of paddy immediately after harvest is determined
within the Gross Margin Survey carried out after each season’s harvest (see below). Table 8
uses the increased value of rice (see below) and the percentage of sales to calculate the value
of incremental sales during Boro season.
Table 8.
Value of incremental sales from the Boro harvest
FTF M&S Aggregate
Increased value of rice (in million US$) 92.38 38.17 130.29
Percentage sale of paddy immediately after harvest (%) 26 46 30
Value of incremental sales of rice (in million US $ ) 24.02 17.56 39.09
Note: Increased value of rice for FTF, M&S and Aggregate are averages of 586 crop cuts taken from farmer
fields.
Gross margin of rice farmers
One of the important core indictors of FTF is gross margin. According to the FTF
definition, the gross margin is the difference between the total value of sales of the
agricultural item and the cost of producing that item excluding the cost of family labor. Land
rent has been included only for those farmers who paid land rent. During Boro 2012, AAPI
conducted a sample survey 7 of the gross margin realized by participating farmers. The results
are presented in Table 9. The finanicial realized gross margin per ha is estimated at US$ 412
from UDP plots against $188 from the broadcast urea plot. This is a significant factor in favor
of UDP technology that reduces cost of fertilizer and is consistent with the anecdotes from
farmers who are encountering high cost of inputs and low farm gate rice prices.
It should be noted that the gross margin analysis is carried out by season. AAPI
completed gross margin surveys for two seasons (Aman 2011 and Boro 2012). An annual
farm gross margin would require either conducting a survey in three seasons and then
summing the seasonal gross margins (i.e. margins realized in each of the three seasons),
7 The survey selected 383 farmers from 51 upazilas (44 in FTF districts and 7 in M&S)
16