Agriculture marketing includes all the processes, channels and services involved in moving a agricultural produce from the producer to ultimate consumer. And in this system comes some problems at different levels of production and selling. The following article will try to sum up them in brief;
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OUTLINE OF THE TOPIC
a) Introduction
b) Problems of Agri Marketing
c) Possible Solutions
d) Cross Reference
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Problems with Agri marketing system in Pakistan
- 40% of agricultural produce is wasted in marketing.
- Damages during picking, harvesting and poor practices.
- No staying power
- Low margins, seasonality and high perishability being the distinct features of this industry the access to seed capital and working capital is not easy.
- No storage facilities
- Poor transport and communication facilities
- No grading, packing standards.
- Prevailing packaging system lacks requisite quality and shelf life.
- Lack of knowledge of quality parameters and standards.
- Multiplicity of laws and regulatory authorities affect the growth of industry.
- Very high difference in price between the farmers’ realisation and consumer. even for the fresh produce. In processed food the high price of raw materials, excessive spoilage, inefficient and costly transportation, high cost of finance due to high taxes and duties leads to low demand of processed foods.
- Impediment in the flow of credit from financial institutions to the food processing industry due to the improper understanding of this sector to attain the required level of imparting skill.
- Pakistani brands of processed food are yet to be established in the international market.
- Competition with imported goods in the wake of liberalization of world trade.
- LACK OF ORGANIZED MARKETING
- The marketing facilities for agricultural products in Pakistan are still far from satisfactory level.
- Our cultivators can not get just prices for their produce due to defective marketing organization.
- Moreover the chain of middlemen between the producers and ultimate consumers take a heavy share of their produce.Thus the cultivators do not take much real interest in increasing their product too.
- Weak database and lack of market intelligence.
- Lack of participation by people, local bodies, NGOs, farmers’ organisation and industrial association.
Possible Solutions
1. TRAINING
- Training and capacity building are key. Developing the marketing and entrepreneurial skills of farmers to enable them to adapt to changing markets.
2. ACCESS TO THE INPUTS
- Improving access to inputs in remote areas, and with resource-poor farmers, almost certainly requires innovative approaches to promote the development of commercial input supply networks, to avoid undermining such development with ill-conceived input subsidies, as well as group approaches and strengthening informal seed systems. Credit may have a role, but is not the pre-eminent factor it is often assumed to be.
3. AGRO-PROCESSING TECHNOLOGIES
- The key issues concerning marketing interventions based on the development or introduction of agro-processing technologies are that the technologies must be appropriate (in terms of cost, level of skill required and cultural factors, such as their acceptability to women), and there must be market demand for the end-product.
- Accurate and timely marketing information is needed by all stakeholders in the marketing chain (including input suppliers, producers, transporters, credit providers and traders).
- Broader ‘marketing’ information, as opposed to simple market price information, is most useful.
5. CREDIT PROGRAMMES
- There is considerable expertise in micro-credit – both good and bad.
- Other rural finance interventions with direct relevance to agricultural marketing include outgrower schemes (for input credit and marketing services) and inventory credit.
- The success of both depends on careful planning and research, and appropriate commercial linkages.
6. MARKETING LINKAGES
- Facilitating linkages between individuals or groups of farmers and private sector stakeholders is very important, yet often neglected.
- Building on existing private sector marketing channels is important
- Most importantly, it contributes significantly to the potential sustainability of marketing activities.
7. HOLISTIC APPROACH
- Isolated marketing interventions are unlikely to succeed. A holistic approach to marketing and enterprise development, looking at the whole range of marketing constraints and solutions, has been shown to be more successful in enabling farmers to participate in the market.
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Cross-Reference:
Find more this and more articles from Shakil Shaukat at:
http://pakiagriculture.blogspot.com/
email: [email protected]
1. TRAINING
Training and capacity building are key. Developing the marketing and entrepreneurial skills of farmers to enable them to adapt to changing markets.
2. ACCESS TO THE INPUTS
Improving access to inputs in remote areas, and with resource-poor farmers, almost certainly requires innovative approaches to promote the development of commercial input supply networks, to avoid undermining such development with ill-conceived input subsidies, as well as group approaches and strengthening informal seed systems. Credit may have a role, but is not the pre-eminent factor it is often assumed to be.
3. AGRO-PROCESSING TECHNOLOGIES
The key issues concerning marketing interventions based on the development or introduction of agro-processing technologies are that the technologies must be appropriate (in terms of cost, level of skill required and cultural factors, such as their acceptability to women), and there must be market demand for the end-product.
4. MARKETING INFORMATION
Accurate and timely marketing information is needed by all stakeholders in the marketing chain (including input suppliers, producers, transporters, credit providers and traders).
Broader ‘marketing’ information, as opposed to simple market price information, is most useful.
5. CREDIT PROGRAMMES
- There is considerable expertise in micro-credit – both good and bad.
- Other rural finance interventions with direct relevance to agricultural marketing include outgrower schemes (for input credit and marketing services) and inventory credit.
- The success of both depends on careful planning and research, and appropriate commercial linkages.
6. MARKETING LINKAGES
- Facilitating linkages between individuals or groups of farmers and private sector stakeholders is very important, yet often neglected.
- Building on existing private sector marketing channels is important
- Most importantly, it contributes significantly to the potential sustainability of marketing activities.
7. HOLISTIC APPROACH
Isolated marketing interventions are unlikely to succeed. A holistic approach to marketing and enterprise development, looking at the whole range of marketing constraints and solutions, has been shown to be more successful in enabling farmers to participate in the market.
