Gross Margin and Factor Analysis of Watermelon Production in Patuakhali District, Bangladesh

Abstract

This study examined the Gross margin and factor productivity of watermelon production in Patuakhali district, Bangladesh. A multi-stage stratified sampling design had been used for the selection of the watermelon growing farmers.  Data were obtained with the aid of a pre-tested structured questionnaire. The socio-economic characteristics of the respondents was described and categorized by Descriptive statistics, Gross margin analysis was used to analyze the cost and returns to watermelon production and Cobb Douglas production function was used to evaluate the input factor productivity. Results showed that the farmers are relatively middle-aged with an average age of 41 years with a sizable number of the respondents (1.7%) having passed through tertiary education. It was also observed that the farmers are typically smallholders with an average farm size of 50-249 decimal. The result of the gross margin analysis showed that watermelon production is profitable with a gross margin of Tk 756 per decimal. The result of the Cobb Douglas production function shows that the coefficients of cost of seed (0.137), cost of tillage (0.227), cost of irrigation (0.304), cost of labour (0.156), and cost of pesticide (0.305) were positively significant at 5% and 1%. The overall factor productivity index is 1.19 implying an increasing return to scale in water melon production in the study area. However, lack of irrigation facility and pesticide were identified as major production constraints.