Agricultural Marketing

ByByAnita V. Patil

Agricultural Marketing

Agricultural Marketing means all activities involved in the flow of Agricultural produce from the production points commencing from the stage of harvest till these reach the ultimate consumers viz grading, processing, storage, transport, distribution and all other functions involved in the process

Peculiar Characteristics of Agricultural produce, result in very complicated marketing system

Bulkiness Perishability Seasonality Variation in quality Dispersed production Variation in supply according to demand Required processing for consumption

Importance of Agri-Marketing Agri Optimisation of resource use & output management Increase in farm income Widening of markets Growth of agro-based industries Price signals-production according to needs Adoption & spread of new technology Employment creation Better living Creation of utility-form, processing,place, time utility Addition to national income

Present Marketing System

Sale in villages Sale in Mandis Co-operative sales arrangement Sale in regulated markets (APMCs) Sale to Govt.

Problems of Agri-Marketing AgriDefective crop planning Lack of organization among cultivators Forced sales Inadequate storage facilities Inadequate means of transport Lack of market information Insufficient grading & standardization Long chain of middlemen Multiplicity of market charges Malpractices in the market Regulated markets restricted development of direct and free marketing, smooth raw material supplies to agro-processors, information exchange and adoption of innovative marketing systems and technologies

Govt. measures to improve agriagri-marketing system

Organization of regulated markets Grading & Standardization Use of standard weights Go down & storage facilities Dissemination of market information Directorate of marketing & inspection Govt. purchases & fixation of support prices National Institute of Agricultural marketing Fruit & vegetable marketing

New role of Agri-Marketing Agri Increase in agricultural output & marketed surplus Increase in urbanisation & income level Changes in the pattern of demand of farm products & their derivatives Linkage to overseas market Changes in the form & degree of govt. intervention in agri markets Now marketing starts right from the time of decision making to what to produce, which variety to produce & how to prepare the product for marketing

Alternative Marketing Practices

Group Marketing Co-operative Marketing Direct Marketing Contract Marketing Futures Trading/Forward Contract Subscription Marketing & CSA farms E-Commerce

Group Marketing
Group marketing includes, joint planning, funding, implementation, pricing, sharing risk equally in the marketing and reaping the benefit of collective bargaining. This indirectly results into more returns and economizes the marketing cost. To develop entrepreneurial skill Improve bargaining power Reducing the risks involved due to price uncertainty To make available bulk supply To reduce the marketing cost

CoCo-operative Marketing
This marketing system is pursued through cooperative societies registered under Cooperative Societies Act. This system is pursued on the principle of self help by mutual help. To improve bargaining power of the farmer members To get quality input Presence makes the market more competitive To enhance the profit To have backward and forward linkage Make presence in remote areas and involve small and marginal farmers Collective ownership of marketing infrastructure such as cleaning,grading, storage, processing, outlets etc. Collective distribution Credit accessibility

Direct Marketing
Farmers come into direct contact with the consumers and receive the payment directly from the consumers. Make the marketing channel shortest Reduces marketing cost and maximises farmers share Eliminate middle men Direct communication with consumer / buyer Requires minimum infrastructure Understanding of consumer requirement Availability of fresh and quality produce within the shortest reach of consumer

Contract Marketing
Contract Marketing, is a type wherein the industry or perspective buyer enters into a contract with the farmer and promises to buy the farmers produce at a pre-negotiated price under pre-negotiated conditions. In this process farmers are assured of an established market and a fixed price for their produce. Farmer is contracted to plant the contractors crop on his land. Harvest and deliver to the contractor, a quantum of produce, based upon anticipated yield and contracted acreage. This could be at pre-agreed price. The contractor can supply the farmer with selected inputs Thus, under the contract marketing, contractor supplies all the inputs required for cultivation, while the farmer supplies land and labour.

Futures Trading/Forward Contract

1. Futures Contact is highly standardized contract. 2. Organised through exchange/association. 3. Contract entered is for standard variety known as Basic Variety. 4. Units of price quotation and trading are fixed.. 4. Delivery period specified. 5. Seller may deliver the goods at exchange or other prespecified centres. 6. In Futures Market, actual delivery of goods takes place only in a few cases. 7. Mostly transactions are squared up before due date of maturity of contract and contracts are settled by payment of differences without any physical delivery of goods.

SUBSCRIPTION MARKETING AND CSA FARMS

CSA first premiered in the U.S. in the late 1980s, it has revolutionized thinking about how farmers and consumers can participate in a local food system based on mutual trust. Subscription marketing describes any of a variety of arrangements in which the farmer agrees to deliver a certain quantity of produce to the consumer on a regular basis throughout the season for a set price. CSA is a more organized and defined form of subscription marketing in which consumer-members invest in the farm operation by paying up-front for the harvest. They share in many of the risks of crop failure, but also share the benefits. Many CSA farms ask members to commit time and labor to the operation. This not only lowers costs, but also allows members to learn more about what it really means to grow food.

E-Commerce
According to WTO E- Commerce is production, distribution, marketing, sale or delivery of goods and services by electronic means. The world is becoming one whole market.The E.Com. environment is going to be characterized by free flow of trade . Commercial transactions may be divided into three main stages (1) Advertising & searching stage (2) Ordering & payment stage (3) Delivery stage. India got internet connectivity in 1989 . There is a good scope for expanding customer base, coupled with quicker service & immediate delivery.

Marketing Planning
Current Marketing Situation Opportunity and issue analysis Objectives Marketing strategy Action programs Projected profit and loss statement controls

Record keeping for efficient marketing & exports

Annual crop planning, daily schedule preparation Water and fertilizer application management. Soil, water, plant, pesticide residue analysis reports Land information with scanned photographs and document Day-to-day activity record maintenance. Water requirement, fertilizer, pesticide dose, spray mix, calculations. Auditor friendly reports (Reports as required in EurepGAP format). To keep track of crop planting - cultivation - harvesting Marketing history of multiple farm produce to be carried out at specified intervals for each crop. Financial transactions, assets, liabilities, income, expenses details to get various financial reports.

Scientific Marketing -10 Commandments

1. Bring the produce after cleaning 2. Sell different qualities of produce seperately 3. Sell the produce after grading 4. Keep abrest of market information 5. Packaging of standard weights 6. Avoid immediate post-harvest sales 7. Patronise co-operative marketing societies 8. Sell the produce in regulated markets 9. Choose the right varieties 10.Minimise chemical residues

I.T.in Agriculture
Weather Information Best Farming Practices Market Information Crop Information Soil Testing Feedback Farmer Information Information on State & Central Govt. Schemes. News Questions & Answers

Use of Internet


   

  

Provides the up-to-date information on the arrivals and prices of agricultural commodities in different markets. Guides the producers to take right decision, when, where and how to market their produce. Educate the producers/traders about the post harvest management a. Harvesting care b. Techniques to minimise losses during post harvest period. c. Value addition to the produce by proper cleaning, processing, packaging, storage and transportation. Orient the producers/traders about prevailing price trends, demand and supply situation etc. Orient the producer regarding the importance of grading, cooperative/group marketing, direct marketing, contract farming, futures trading etc. Provides the information about the sources of credit availability, various Govt. schemes, policies, rules and regulations etc.

Agri Web-Portals Webwww.agroindia.org www.agribuzz.com www.cainc.org www.ipmnet.org www.cgiar.org www.fao.org www.gcpf.org www.iisc.ernet.in www.iatp.org www.kisanworld.com www.aiua.org www.agroindia.com www.agribusiness.com www.farmer bid.com www.agbioworld.org www.apeda.com www.kisan.india.com www.agriwatch.com