Agricultural marketing

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Agricultural marketing is inferred to cover the services involved in moving an agricultural product from the farm to the consumer . It is also the planning, organizing, directing and handling of agricultural produce in such a way to satisfy the farmer, producer and the consumer. Production, growing and harvesting , grading , packing and packaging , transport, storage , agro- food processing , distribution , advertisingand dirty. Effectively, the term encompasses the entire range of supply chain operations. However, it is a key function to help these services, by providing competent and able market information.

Agricultural marketing development

Efforts to develop agricultural marketing, particularly in developing countries, specifically developed infrastructure; provision information; training of farmers and traders in marketing and post-harvest issues; and support the development of an appropriate policy environment. In the past, efforts have been made to develop government-run marketing bodies but these have become less prominent over the years. [1]

Agricultural Market infrastructure

Efficient marketing infrastructure such as wholesale , retail and assembly markets and storage facilities is essential for cost-effective marketing, to minimize post-harvest losses and to reduce health risks. Markets play an important role in rural development , income generation, food security, and developing rural-market linkages. Experience shows that planners need to be aware of how to design markets that meet a social and economic needs and how to choose a suitable site for a new market. In many cases, the sites are not suitable for use in the infrastructure built. It is also necessary to be managed, operated and maintained. [2] Most market improvements have been upgraded to infrastructure upgrades and have not been maintained. [3]

Rural assembly markets are located in production areas and primarily serve as places where farmers can meet with traders to sell their products. These may be occasional, such as haat bazaars in India and Nepal, permanent gold. [2] These markets are located in major metropolitan areas, where they are finally chanted to consumers through trade between wholesalers and retailers, caterers, and so on. [4] The characteristics of wholesale markets have had a greater impact on the growth of the economy and the growth of the economy. These changes are organized and managed. [5]

Retail marketing systems in Western countries have been widely used by the modern hypermarket or out-of-town shopping center. In developing countries, there remains scope to improve agricultural marketing by constructing new retail markets, despite the growth of supermarkets. Effective regulation of markets is essential. Inside a market, both hygiene rules and revenue collection activities have to be enforced. Of equal importance, however, is the maintenance of order outside the market.[6]

Market information

Main article: Marketing information system

Efficient market information can be shown to have positive benefits for farmers and traders. Up-to-date information and opportunities for farmers and negotiators. [7] Most governments in developing countries have provided services to farmers, but these have been raised to experience problems of sustainability. Moreover, even when they function, the service is often insufficient to allow them to be marketed. [8]Modern communications open up the possibility for market information services to Improve information delivery technology through SMS on cell phones and the rapid growth of FMradio stations in many developing countries offers the possibility of more localized information services. In the longer run, the Internet can become an effective way of delivering information to farmers. However, problems associated with the cost and accuracy of data collection still remain to be addressed. Even when they have access to market information, For example, the market price quoted on the radio can refer to a wholesale selling price and farmers may have difficulty in translating this into a realistic price at their local assembly market. [9]Various attempts have been made in developing markets, but they have been targeted at traders, commercial farmers or exporters. It is not easy to see how small, poor farmers can generate income Sufficient for a commercial service to be profitable in India ALTHOUGH a new services Introduced by Thomson Reuters Was reportedly used by over 100,000 farmers in icts first year of operation. Esoko in West Africa to support the development of mobile-based tools to businesses.

Marketing training

Farmers frequently consider marketing as being their major problem. However, while they are able to identify such problems, lack of transportation and high post-harvest losses, they are often poorly equipped to identify potential solutions. Successful marketing requires learning new skills, new techniques and new ways of obtaining information. Extension officers working with ministries of agriculture or NGOs are often well-trained in horticultural production techniques but usually lack knowledge of marketing or post-harvest handling. [10]

Enabling environments

Agricultural marketing needs to be conducted within a supportive policy, legal, institutional, macro-economic , infrastructural and bureaucratic environment. Traders and others are reluctant to make investments in an uncertain climate policy, such as those that restrict imports and exports or internal produce movement. Businesses have difficulty operating when their trading activities are hampered by excessive bureaucracy. We can argue that we can not afford to do this, and we need to increase the competitiveness of the market. Poor support institutions, such as agricultural extension services, municipalitiesinefficiently and inadequately exporting export promotion bodies, can be particularly damaging. Poor roads increase the cost of doing business, reduce payments to farmers and increase prices to consumers. Finally, corruption in the marketing chain.

Agricultural marketing support

Most governments have at least one of the following: In the United States the Agricultural Marketing Service (AMS) is a division of USDA and has programs that provide testing, support standardization and grading and offer market services. AMS oversees marketing agreements and orders research and promotion programs. It also purchases commodities for federal food programs. USDA also provides support for agricultural marketing at various universities. In the United Kingdom, support for marketing of certain commodities was provided before and after the Second World War by boards of the Milk Marketing Board and the Egg Marketing Board. These boards were closed down in the 1970s. As a colonial power, Britain established marketing boards in many countries, particularly in Africa. Some continue to exist ALTHOUGH Many Were closed at the time of the introduction of structural adjustment Measures in the 1990s.

Several developing countries have established government-sponsored marketing or agribusiness units. South Africa, for example, started the National Agricultural Marketing Council (NAMC) as a response to the deregulation of the agriculture industry and the closure of marketing boards in the country. India has the long-established National Institute of Agricultural Marketing . These are primarily research and policy organizations, providing services for marketing channels, such as the provision of infrastructure, market information and documentation support. Examples from the Caribbean include the National Agricultural Marketing Development Corporation (NAMDEVCO) in Trinidad and Tobago and theNew Guyana Marketing Corporation in Guyana .

Recent developments

New marketing linkages between agribusiness , large retailers and farmers are gradually being developed, eg through contract farming , group marketing and other forms of collective action . [11] Donors and NGOs are paying increasing attention to ways of promoting direct linkages between farmers and buyers [12] within a value chain context. More attention is being paid to the development of regional markets (eg East Africa) and to structured trading systems that should facilitate such developments. [13] The growth of supermarkets, especially in Latin America and East and South East Asia, is having a significant impact on marketing channels for horticultural, dairy and livestock products. [14] Nevertheless, “spot” markets will continue to be important for many years, requiring attention to infrastructure improvement such as for retail and wholesale markets .

See also

  • Agricultural value chain
  • Food marketing
  • Wholesale marketing of food

References

  1. Jump up^ Abbott, JC (John Cave); Food and Agriculture Organization of the United Nations. Marketing Group (1986), Marketing Improvement in the Developing World: What Happens and What We Have Learned (Rev. ed.), Food and Agriculture Organization of the United Nations, ISBN  978-92-5-101427-1
  2. ^ Jump up to:b Tracey-White, J. [1] , FAO Planning and Designing Rural Markets, Rome, 2003.
  3. Jump up^ Cecilia Marocchino[2], A Guide to Upgrading Rural Agricultural Retail Markets, FAO, Rome, 2009.
  4. Jump up^ Tracey-White J. “Wholesale Markets: Planning and Design Manual” . Rome: FAO . Retrieved 19 April 2017 .
  5. Jump up^ Reardon T .; Timmer P .; Berdegue J. “The Rapid Rise of Supermarkets in Developing Countries: Induced Organizational, Institutional, and Technological Change in Agrifood Systems” (PDF) . Electronic Journal of Agricultural and Development Economics . Retrieved 19 April 2017 .
  6. Jump up^ Tracey-White, J.[3]Retail Markets Planning Guide. FAO, Rome, 1995.
  7. Jump up^ Aparajita Goyal[4], Information, Direct Access to Farmers, and Rural Market Performance in Central India, July 2010
  8. Jump up^ Andrew W. Shepherd[5], Market Information Services – Theory and Practice. FAO, Rome, 1997
  9. Jump up^ Andrew W. Shepherd[6], Understanding and Using Market Information. FAO, Rome, 2000
  10. Jump up^ Grahame Dixie[7], Horticultural Marketing, Marketing Extension Guide 5, FAO, Rome, 2007.
  11. Jump up^ Helen Markelova and Ruth Meinzen-Dick “Archived copy” (PDF) . Archived from the original (PDF) on 2010-07-16 . Retrieved 2009-01-15 . Collective action and market access for smallholders: A summary of findings. CAPRi / IFPRI 2007
  12. Jump up^ Andrew W. Shepherd[8]Approaches to linking to producteurs markets. FAO, Rome, 2007
  13. Jump up^ CTA and EAGC. Structured grain trading systems in Africa (PDF) . CTA . Retrieved 27 February 2014 .
  14. Jump up^ Reardon, T., CP Timmer, CB Barrett, J. Berdegue. “The Rise of Supermarkets in Africa, Asia, and Latin America,” American Journal of Agricultural Economics, 85 (5), December 2003: 1140-1146.