Value Chain Analysis of Pineapple: Evidence from Gampaha District of Sri Lanka
Vidanapathirana, R., Wijesooriya, W.A.N., Priyadharshana, W.H.D. and Rambukwella, R.N.K.
ABSTRACT
Pineapple has been identified as a sector with high potential in the world with an increasing
demand. In Sri Lanka, the fruit is grown for the local market as well as for the export market,
hence development of the sector promises lavish returns. The study aims at identifying
challenges, opportunities and entry points in the pineapple sector with reference to the
Gampaha district to provide the basis for identification of critical areas for interventions by
performing a Value Chain Analysis. The channel mapping methodology was used to analyse
the value chain. Quantitative analysis such as gross margins, market margins and value
addition percentage were calculated. The study found that during the first year of cultivation,
planting was the highest cost component while it was plant maintenance in the second year.
It also revealed that considering the total cost for labour, machinery and input, the input cost
was the highest cost component (71%), followed by labour cost (24%). Analysis of marketing
cost and margins of each value chain actors shows that the highest net margin was reported
for retailers (14-20%) whereas farmers’ net margin was 9-13%. Gross margin between
producer and retailer was very high for pineapple. Considering the value addition of
pineapple, raw material cost is the highest cost component for dehydrated pineapple (76%)
and canned products (39%) respectively. Processing and exporting companies grapple with
insufficient raw material supply, lack of credit facilities, high labour cost, high price of quality
packing material and especially high purchasing price of fresh fruits. Many challenges can be
addressed directly by the private sector in partnership with the state.