Industry and Market Analysis

SDC Agro Ltd. Gears Up for High-End Market Access with DevMaker Consulting’s Support

Integrating smallholder farmers with high-end markets:

SDC Agro Ltd. embarks on a project, “Integrating smallholder vegetable clusters to high-end markets in Faridpur and Rajbari Districts,” with support from Chemonics International and USAID. This initiative aims to train farmers in Good Agricultural Practices (GAP) to produce safe, high-quality vegetables for premium market access. This creates a win-win situation: SDC Agro generates profit, consumers receive safe produce, and producers earn fair prices.

DevMaker Consulting: Building a Profit-Oriented Business Model:

DevMaker Consulting developed a comprehensive business plan for SDC Agro Ltd., including a market research component. They conducted a baseline study among 225 consumers in Dhaka and Faridpur to understand their behavior, demand, price expectations, and challenges related to purchasing fresh, additive-free vegetables.

Consumer Insights:

The survey revealed valuable insights into consumer preferences:

• Purchase frequency: 66% of buyers purchase vegetables 1-3 times a week, while 35% buy daily or 4 times a week.
• Popular vegetables: Gourd (227 responses) was the most popular winter vegetable, while red chili (227 responses) was a common year-round purchase.
• Purchase channels: 54% of respondents buy from local markets, 9% from vegetable vans, 19.5% from both vans and markets, 1.33% from supermarkets, and 1.33% through home delivery.
• Perception of additive-free vegetables: 42% believe they do not buy additive-free vegetables from current markets, 35% are unsure, and 23% believe they do.
• Willingness to pay extra for organic vegetables: 52.4% are willing to pay extra for organic vegetables, 28% are undecided, and 20% are unwilling.

Building a Strong Foundation:

These insights are crucial for SDC Agro Ltd. to:

• Tailor their production: Focus on growing vegetables in high demand.
• Develop effective marketing strategies: Target consumers willing to pay premium prices for safe, high-quality produce.
• Choose appropriate distribution channels: Reach consumers where they already shop for vegetables.

Empowering Farmers, Serving Consumers:

By leveraging DevMaker Consulting’s expertise and the valuable consumer insights gathered, SDC Agro Ltd. is poised to achieve its goals of integrating smallholder farmers into the high-end market, creating a sustainable and profitable business model, and delivering safe, high-quality vegetables to consumers. This initiative will contribute significantly to the development of the agricultural sector in Bangladesh and improve the livelihoods of farmers and consumers alike.