Value chain and consumer acceptance analysis of different types of cooking oil in Bangladesh

Abstract: The present study explored the potential of regional linkage among oil seed producers, retailers, wholesalers, crushers and consumers, with a particular focus on the production, processing and market systems in the major oilseeds production regions, like Thakurgaon, Dinajpur and Tangail districts of Bangladesh. The key stakeholders of soybean include producers (farmers), input suppliers (such as agro-dealers and corporation), assemblers, collectors, wholesalers, processors and exporters. Farmers typically get inputs, like seeds, pesticides and fertilizers from agro-dealers, corporation or fellow farmers. The oil quality is the most important factor for the majority respondents (60), while 58 consumers expressed the brand name as the key indicator of preference. Some consumers opined that both quality and brand are important in selecting cooking oil. Nearly all consumers used a combination of soybean oil and mustard oil, with a few incorporating olive oil and sunflower oil into their diets. The majority oil users consumed approximately one liter per month, followed by those used half a liter. A significant portion of the households consume up to 2 liters per month. In contrast, soybean oil consumption was significantly higher, with many households use more than 5 liters per month. About 61% of the respondents revealed the health benefits as the main reason for choosing mustard oil. Additionally, 20% of the consumers mentioned the organic nature of mustard oil as the key factor of their selection, while many noted that it enhanced the taste of food. The majority of the respondents prioritized the quality of the product above all other factors, including brand preference. While 50% of the respondents preferred to stick to a single brand, relying on the established credibility and quality of the product, the other 50% frequently switched to different brands. Price plays a significant role, as many consumers select a brand on affordability. When selecting of an oil brand, consumers prioritize company reputation. The mustard oil market varied from 270 BDT/liter to 400 BDT/ liter with an average price of 285- 290 BDT/ liter during the study period in 2024. Half of the consumers thought that the mustard oil price is exorbitant to afford for the commoners. 

Keywords: Value chain, retailer, consumer, wholesaler