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Contributor : FAO-AGS (2008-02-28 15:04:33)
Understanding Markets: market research and intelligence
The Proposition
Markets are rapidly changing, reflecting globalization, concerns on food quality and safety and the dynamic growth of modern food distributors and retailers. Understanding markets and requirements for access to modern distribution channels requires information, but if existing information service providers are not revamped and restructured, no progress can be made.
Rational and Recommended Response (Click here to read)
Update on the debate
The debate has so far has differentiated between different types of market information as well as areas where the private sector could contribute. The participants have also recognised that market information should be considered in conjunction with other types of support that includes market infrastructure, roads, capacity building, etc. in order to have an impact. It was also recognised that it is not just an issue of the availability of information but that the information provided to farmers must be relevant to their specific needs, timely and accurate. Participants recognised the lack of sustainability of public information sources and recognised that the private sector has a role to play as a provider of market intelligence. Christian Fischer’s contribution summed up the issues very succinctly.
The focus of debate will now move on to the following questions.
Current focus of the Debate
We recognise the importance of market information and market research to promote agribusiness development but how relevant is the information provided?
What kind of market information or research is needed by farmers and entrepreneurs?
Do you know of any experience in public-private partnerships for the delivery of market information?
Do you know any examples of ´good practices´ in providing market information?
35 Comments
Vinay Chand , (2008-04-04 15:36:14)
I like this use of the word networking because there is nothing like example. Farmers pay attention to what their farmer neighbours are or are not achieving. This can be an argument for what I call gentlemen farmers that is people who have come into farming with the express intention to transfer technology and appreciation of marketing opportunities. A successful deal by one farmer may lead to others wanting to profit from his success. Mind you, again, if a working extension service existed it could set up demo farms on the existing farms.
Attitudes and culture are the key factors here. Farmers stay with what they are doing because any farming system over time usually establishes links with traders who buy and that establishes a practice that is seen to be woking. The traders translate market infomation with a pure offer to buy at spcified prices and farmers, especially small farmers, want just that, someone willing to buy at a viable price.
To be fair to farmers, they often have little option but to sell to the peron who has leant them money for inputs, crop cycle and social financing. They are cash starved and usually do not have the luxury to ponder over prices in distant markets that they cannot physically reach and do not have the means to wait for a buyer willing to pay higher prics.
I like this use of the word networking because there is nothing like example. Farmers pay attention to what their farmer neighbours are or are not achieving. This can be an argument for what I call gentlemen farmers that is people who have come into farming with the express intention to transfer technology and appreciation of marketing opportunities. A successful deal by one farmer may lead to others wanting to profit from his success. Mind you, again, if a working extension service existed it could set up demo farms on the existing farms.
Attitudes and culture are the key factors here. Farmers stay with what they are doing because any farming system over time usually establishes links with traders who buy and that establishes a practice that is seen to be woking. The traders translate market infomation with a pure offer to buy at spcified prices and farmers, especially small farmers, want just that, someone willing to buy at a viable price.
To be fair to farmers, they often have little option but to sell to the peron who has leant them money for inputs, crop cycle and social financing. They are cash starved and usually do not have the luxury to ponder over prices in distant markets that they cannot physically reach and do not have the means to wait for a buyer willing to pay higher prics.
Mark Lundy , (2008-04-04 14:53:35)
I think differentiating between market information and the capacity to understand and act on that information is important. On the issue of information per se, our experience in Latin America is that buyer contact information, volume and quality requirements, payment and potential interest in doing business with new suppliers is far more important than just prices. Prices are useful for trends if time series exist but without the specific buyer contacts (this includes negotiating capacity and social capital), effects are limited.
In terms of capacity to act, our experience points to the need for information intermediaries who not only disseminate information but also help farmers and farmer associations make sense of this information. The use of information kiosks by Tradenet in Africa is a good example of this. The information providers are, themselves, businesspeople whose survival depends on being effective at helping their clients understand and access new or improved markets. Information brokers can be community members -- we have worked with people ranging from adolescents to the elderly -- with the interest and capacity to learn new things, "translate" these into local conditions and make them actionable.
I think differentiating between market information and the capacity to understand and act on that information is important. On the issue of information per se, our experience in Latin America is that buyer contact information, volume and quality requirements, payment and potential interest in doing business with new suppliers is far more important than just prices. Prices are useful for trends if time series exist but without the specific buyer contacts (this includes negotiating capacity and social capital), effects are limited.
In terms of capacity to act, our experience points to the need for information intermediaries who not only disseminate information but also help farmers and farmer associations make sense of this information. The use of information kiosks by Tradenet in Africa is a good example of this. The information providers are, themselves, businesspeople whose survival depends on being effective at helping their clients understand and access new or improved markets. Information brokers can be community members -- we have worked with people ranging from adolescents to the elderly -- with the interest and capacity to learn new things, "translate" these into local conditions and make them actionable.
Martin Hilmi , (2008-04-04 11:31:17)
Robert puts forward a good point about the need to address ‘marketing’ information and ‘marketing’ research, not only market information and market research. Farmers and entrepreneurs interestingly do practice different types of marketing research, if it can be called as such in the formal sense of the meaning. Even within such categories, as farmers and entrepreneurs, different types of marketing research are practiced. For example there is literature recognition, even though scant, that concerns entrepreneurial marketing and hence entrepreneurial marketing research. There is also literature about how micro, small and medium enterprises vary in there practice of marketing research. One of such methodologies is based on ‘networking’ and ‘social capital’: a determined category of farmers, i.e. the so called entrepreneurial farmers, tend to practice an ‘informal’ marketing research that uses social networks and this tends to be of very high effectiveness, not only in terms of information generated and its quality and reliability, but importantly in the value on the overall market-orientation on the farmer’s enterprise. Further the marketing research carried out is highly motivated and the marketing research methodology used, is far from scientific, but does in the cases examined and from field interviews, work well.
What I think needs to be considered first is the category of farmer and entrepreneur who needs marketing information. Is the farmer an entrepreneurial farmer? Is the farmer more an administrative type of farmer? Is the farmer a more manager type farmer? This is also applicable to entrepreneurs: Is the entrepreneur a more entrepreneurial type or a more managerial type?
Once this has been ascertained and defined and along with the particular contextual environment in which operations take place, then can the practice of marketing research be ascertained and hence its efficiency and effectiveness.
Robert puts forward a good point about the need to address ‘marketing’ information and ‘marketing’ research, not only market information and market research. Farmers and entrepreneurs interestingly do practice different types of marketing research, if it can be called as such in the formal sense of the meaning. Even within such categories, as farmers and entrepreneurs, different types of marketing research are practiced. For example there is literature recognition, even though scant, that concerns entrepreneurial marketing and hence entrepreneurial marketing research. There is also literature about how micro, small and medium enterprises vary in there practice of marketing research. One of such methodologies is based on ‘networking’ and ‘social capital’: a determined category of farmers, i.e. the so called entrepreneurial farmers, tend to practice an ‘informal’ marketing research that uses social networks and this tends to be of very high effectiveness, not only in terms of information generated and its quality and reliability, but importantly in the value on the overall market-orientation on the farmer’s enterprise. Further the marketing research carried out is highly motivated and the marketing research methodology used, is far from scientific, but does in the cases examined and from field interviews, work well.
What I think needs to be considered first is the category of farmer and entrepreneur who needs marketing information. Is the farmer an entrepreneurial farmer? Is the farmer more an administrative type of farmer? Is the farmer a more manager type farmer? This is also applicable to entrepreneurs: Is the entrepreneur a more entrepreneurial type or a more managerial type?
Once this has been ascertained and defined and along with the particular contextual environment in which operations take place, then can the practice of marketing research be ascertained and hence its efficiency and effectiveness.
Robert V. Bishop , (2008-04-04 06:18:12)
I noticed the first topic is "understanding markets". It is much more important to understand ´marketing´ than ´markets´. Focusing on already established markets puts oneself(your thinking) in a small box, and closes the door to many opportunities such as ´creating´ new markets/niches/etc. and addressing customers in unconventional/innovative ways.
It also seems to me the organizers are still in the old school ´commodity´ mindset. Our primary goal should be improving producers well-being/wealth/earnings/livelihoods not their competitiveness. Sometimes ´cooperation´/´social networking´ yields higher returns than ´competition´. ´Beating´ the competition is seldom the answer and leaves all involved ´battered´. I noticed there are no topics on guilds/producer groups/"marketing clubs" (very popular among farmers in USA). Why?
I noticed the first topic is "understanding markets". It is much more important to understand ´marketing´ than ´markets´. Focusing on already established markets puts oneself(your thinking) in a small box, and closes the door to many opportunities such as ´creating´ new markets/niches/etc. and addressing customers in unconventional/innovative ways.
It also seems to me the organizers are still in the old school ´commodity´ mindset. Our primary goal should be improving producers well-being/wealth/earnings/livelihoods not their competitiveness. Sometimes ´cooperation´/´social networking´ yields higher returns than ´competition´. ´Beating´ the competition is seldom the answer and leaves all involved ´battered´. I noticed there are no topics on guilds/producer groups/"marketing clubs" (very popular among farmers in USA). Why?
Mhemet Sukur , (2008-04-03 10:34:14)
In response to Fischer, I do agree that medium to large size processors and retailers need to carry out marketing research and more importantly derive value and give value to the information collected, but I do also firmly believe that smallholders need to do the same. If one side of the value chain is highly knowledgeable about marketing matters, and has the resources and time to do it, also smallholders trading in the same value chains need such information.
Depending on local circumstances and their background, many smallholders, do already carry out marketing research, not in a formal manner, but in an variety of informal manners. Some have tried to code and categorize such activities in literature and in guidebooks, for example the ILO has produced a little training manual on Rapid Market Appraisal for smallholders, this possibly in an attempt, to change the views of governments and donors, but also as training material to be used by them for smallholders. The success of such initiatives seems to have been weak up until now, this most probably as Chand states, as from his field experiences,’ Governments just do not give it enough priority to pay for it and donors are often the main impediment’. The cultural change can and is important in my view, How can this cultural change be started?
Further in training do you think that the practice of marketing research and the valuable information deriving from it needs to become a centre piece of farm business management? Would more marketing research prominence into a wider context of farm business management training be one of the many possible starting points?
In response to Fischer, I do agree that medium to large size processors and retailers need to carry out marketing research and more importantly derive value and give value to the information collected, but I do also firmly believe that smallholders need to do the same. If one side of the value chain is highly knowledgeable about marketing matters, and has the resources and time to do it, also smallholders trading in the same value chains need such information.
Depending on local circumstances and their background, many smallholders, do already carry out marketing research, not in a formal manner, but in an variety of informal manners. Some have tried to code and categorize such activities in literature and in guidebooks, for example the ILO has produced a little training manual on Rapid Market Appraisal for smallholders, this possibly in an attempt, to change the views of governments and donors, but also as training material to be used by them for smallholders. The success of such initiatives seems to have been weak up until now, this most probably as Chand states, as from his field experiences,’ Governments just do not give it enough priority to pay for it and donors are often the main impediment’. The cultural change can and is important in my view, How can this cultural change be started?
Further in training do you think that the practice of marketing research and the valuable information deriving from it needs to become a centre piece of farm business management? Would more marketing research prominence into a wider context of farm business management training be one of the many possible starting points?
Christian Fischer , (2008-04-03 04:25:04)
Farmers in developing countries may need functioning markets first before they need “market research”. And even then, even in developed countries there is little evidence that farmers actually use formal market research. However, farmers need, as any other business, and perhaps even more so, general business (management) advice. Yet we should be careful to not confusing this with the need for specialised market information.
Medium-sized and large food manufacturers and retailers are the ones who should conduct market research. In particular, they should be familiar with the fundamental marketing-research techniques, such as (i) market and customer segmentation (for sales and profit optimisation), (ii) pre-sales market-potential estimation (for investment decision-making), (iii) post-sales demand analysis (for marketing-mix optimisation), (iv) customer-preference measurement (for product development/optimisation), and (v) competitor benchmarking (for strategic positioning). These techniques are all crucial in well-functioning consumer-goods markets. However, farmers in developing countries may have other worries.
Farmers in developing countries may need functioning markets first before they need “market research”. And even then, even in developed countries there is little evidence that farmers actually use formal market research. However, farmers need, as any other business, and perhaps even more so, general business (management) advice. Yet we should be careful to not confusing this with the need for specialised market information.
Medium-sized and large food manufacturers and retailers are the ones who should conduct market research. In particular, they should be familiar with the fundamental marketing-research techniques, such as (i) market and customer segmentation (for sales and profit optimisation), (ii) pre-sales market-potential estimation (for investment decision-making), (iii) post-sales demand analysis (for marketing-mix optimisation), (iv) customer-preference measurement (for product development/optimisation), and (v) competitor benchmarking (for strategic positioning). These techniques are all crucial in well-functioning consumer-goods markets. However, farmers in developing countries may have other worries.
Vinay Chand , (2008-04-03 01:15:08)
I agree with you David on the crucial importance of the Extension staff in the process. Sukur is perhaps wrong in seeing it as a rational process, that is the private sector did not take over the role, the Governments allowed extension to die or rather killed it off under extremely misguided thinking. I do very much like Sukur´s observation that perhaps it is a cultural change we need to seek and that is the right response to David´s challenge of how do we turn that around.
It is so difficult to do that. I just tried unsuccessfully in Kyrgyzstan on behest of the Government which wanted to use donor money to promote a public-private initiative but cannot overcome the deep seated bias on the part of the development funding agency officers. I am now going to try in Cambodia. Governments just do not give it enough priority to pay for it and donors are often the main impediment. The latter is very ironic.
I agree with you David on the crucial importance of the Extension staff in the process. Sukur is perhaps wrong in seeing it as a rational process, that is the private sector did not take over the role, the Governments allowed extension to die or rather killed it off under extremely misguided thinking. I do very much like Sukur´s observation that perhaps it is a cultural change we need to seek and that is the right response to David´s challenge of how do we turn that around.
It is so difficult to do that. I just tried unsuccessfully in Kyrgyzstan on behest of the Government which wanted to use donor money to promote a public-private initiative but cannot overcome the deep seated bias on the part of the development funding agency officers. I am now going to try in Cambodia. Governments just do not give it enough priority to pay for it and donors are often the main impediment. The latter is very ironic.
Mhemet Sukur , (2008-04-02 16:48:34)
Two important points raised by Viny and further question by David, marketing information is a good that has a great value, if we see in developed countries the private sector has taken over a lot of this role and government has provided the enabling environment, not only with infrastructure, but with checks and balances in the system. Why has this happened and when and for what reasons? Can this be applicable to marketing systems in developing countries?
Further in countries in development can the approach be top down or bottom up or on both fronts? Taking the issue to policy level is important, but further how to make it a ‘valuable element’ to policy-makers to act upon and other stakeholders, is another question. If seen from a purely economic point of view , i.e. improving resource efficiency and efficiency along the agrifood chain is common sense, but there is more required, what could be possible ‘enticers’ to create change at policy level? The same is valid from the bottom up perspective, where marketing research and its information, is possibly not understood to its full potential, both by smallholders and others in the value chain and also by extension workers etc, and enterprising entrepreneurs, who could possibly make a good business out odf it. But what can give it value over and above the common sense economic perspective?
Would it be useful to see marketing research as a ‘cultural’ change and from there move up the ladder to reorientation and the necessities of public support and public- private finance?
Two important points raised by Viny and further question by David, marketing information is a good that has a great value, if we see in developed countries the private sector has taken over a lot of this role and government has provided the enabling environment, not only with infrastructure, but with checks and balances in the system. Why has this happened and when and for what reasons? Can this be applicable to marketing systems in developing countries?
Further in countries in development can the approach be top down or bottom up or on both fronts? Taking the issue to policy level is important, but further how to make it a ‘valuable element’ to policy-makers to act upon and other stakeholders, is another question. If seen from a purely economic point of view , i.e. improving resource efficiency and efficiency along the agrifood chain is common sense, but there is more required, what could be possible ‘enticers’ to create change at policy level? The same is valid from the bottom up perspective, where marketing research and its information, is possibly not understood to its full potential, both by smallholders and others in the value chain and also by extension workers etc, and enterprising entrepreneurs, who could possibly make a good business out odf it. But what can give it value over and above the common sense economic perspective?
Would it be useful to see marketing research as a ‘cultural’ change and from there move up the ladder to reorientation and the necessities of public support and public- private finance?
David Kahan , (2008-04-02 10:27:50)
Vinay,
You raise two excellent points. the first, is the important role of public sector extension services - and their reorientation to provide advice on marketing. Secondly, the need for public sector financial support. I seems that in most, if not all developing country contexts, this is a necessary prerequisite for farm commercialisation but is not always a government priority and is very rarely supported by donors. How can we turn this around?
Vinay,
You raise two excellent points. the first, is the important role of public sector extension services - and their reorientation to provide advice on marketing. Secondly, the need for public sector financial support. I seems that in most, if not all developing country contexts, this is a necessary prerequisite for farm commercialisation but is not always a government priority and is very rarely supported by donors. How can we turn this around?
Vinay Chand , (2008-04-01 18:03:11)
In response to your question David, farmers need to know what from amongst their portfolio of activitites and allocations can be developed. In other words, possible ways of increasing income and livelihood that are within their reach. Plausible directions for diversification or value addition that ideally spring from their farming system but not necessarily restricted to that.
Market research can help identify possibilities and can help provide information that will help the farmer chose. But the problem with this is the way in which such information is to be communicated. An Extension service appears the ideal way. Computer centres located at trading depots is a much less effective way. The second problem is who pays and the answer there too has to be someone on behalf of smallholders, ideally farmer groups or extension services and both would need state funding in developing countries.
In response to your question David, farmers need to know what from amongst their portfolio of activitites and allocations can be developed. In other words, possible ways of increasing income and livelihood that are within their reach. Plausible directions for diversification or value addition that ideally spring from their farming system but not necessarily restricted to that.
Market research can help identify possibilities and can help provide information that will help the farmer chose. But the problem with this is the way in which such information is to be communicated. An Extension service appears the ideal way. Computer centres located at trading depots is a much less effective way. The second problem is who pays and the answer there too has to be someone on behalf of smallholders, ideally farmer groups or extension services and both would need state funding in developing countries.
David Kahan , (2008-04-01 13:03:09)
We recognise the relevance of market information but also its limitations. The topic has to be viewed more broadly as the provision of market intelligence or market research services. Farmers need information on prices, market channels, levels of demand, enterprise profitabilty etc. The problem of getting the private sector to provide this information is the ability and willingness of farmers to pay. This requires information that is specialised and tailored to the needs of entrepreneurs. What other information is needed and most likely to be demanded?
We recognise the relevance of market information but also its limitations. The topic has to be viewed more broadly as the provision of market intelligence or market research services. Farmers need information on prices, market channels, levels of demand, enterprise profitabilty etc. The problem of getting the private sector to provide this information is the ability and willingness of farmers to pay. This requires information that is specialised and tailored to the needs of entrepreneurs. What other information is needed and most likely to be demanded?
Kyaw Myint , (2008-03-27 10:22:49)
Market information is important for both public and private sectors. In Myanmar the private sector is involved in market information dissemination. The public sector´s goal is to distribute up-to-date market information to farmers. However, it experiences problems in doing this.
One private sector company makes available market information for anyone who has mobile phone or internet facilities. However, users need to pay for its services. Moreover, small-scale farmers can neither afford mobile phones nor pay the cost of market information.
The private sector supplies what the customers want and is involved in innovative provision of accurate information on a timely basis.The private sector relies on its own budget and balancing costs and returns is an important issue. The public sector relies on the government budget and does not consider costs and returns. The main constraint faced by public sector is limitation of budget.
In some cases, up-to-date market price dissemination cannot benefit farmers. If a farmer has current market information, he or she has a negotiation power with traders. However the farmers cannot take advantage of this opportunity and cannot send their produce immediately because the nearest market is often far from their producing areas. In addition, farmers cannot efficiently manage their marketing under the present situation of poor roads, high cost of transport and long-distance transportation. Thus, improvement of infrastructure is essential in developing countries.
Extension services could play an important role to advise farmers to make a decision when to sell, where to sell, what to produce, what variety and quality required by traders or agro industry, and whether to store or not. Traders and agro-industry link business -to-business in domestic markets and receive market information from their buyers on international markets regarding what quality is required, what certification is needed i.e. organic certification, such as GLOBALGAP, GI certification, ISO certification , and what type of value added product is more demanded. Business people compete on markets and are not interested in sharing all detailed information with others. However, they do share information, such as quality, variety and better control of food safety among market participants along the value chain.
Market information dissemination alone cannot assist farmers and extension workers have an important role to play to link farmers to traders, agro industry, and agro processors.
Market information is important for both public and private sectors. In Myanmar the private sector is involved in market information dissemination. The public sector´s goal is to distribute up-to-date market information to farmers. However, it experiences problems in doing this.
One private sector company makes available market information for anyone who has mobile phone or internet facilities. However, users need to pay for its services. Moreover, small-scale farmers can neither afford mobile phones nor pay the cost of market information.
The private sector supplies what the customers want and is involved in innovative provision of accurate information on a timely basis.The private sector relies on its own budget and balancing costs and returns is an important issue. The public sector relies on the government budget and does not consider costs and returns. The main constraint faced by public sector is limitation of budget.
In some cases, up-to-date market price dissemination cannot benefit farmers. If a farmer has current market information, he or she has a negotiation power with traders. However the farmers cannot take advantage of this opportunity and cannot send their produce immediately because the nearest market is often far from their producing areas. In addition, farmers cannot efficiently manage their marketing under the present situation of poor roads, high cost of transport and long-distance transportation. Thus, improvement of infrastructure is essential in developing countries.
Extension services could play an important role to advise farmers to make a decision when to sell, where to sell, what to produce, what variety and quality required by traders or agro industry, and whether to store or not. Traders and agro-industry link business -to-business in domestic markets and receive market information from their buyers on international markets regarding what quality is required, what certification is needed i.e. organic certification, such as GLOBALGAP, GI certification, ISO certification , and what type of value added product is more demanded. Business people compete on markets and are not interested in sharing all detailed information with others. However, they do share information, such as quality, variety and better control of food safety among market participants along the value chain.
Market information dissemination alone cannot assist farmers and extension workers have an important role to play to link farmers to traders, agro industry, and agro processors.
Brajesh Singh , (2008-03-25 14:13:15)
No doubt about the impacts of market informations. Its very much relevant in countries like India also where majority of land holding with marginal farmers. Look at the prices of agricultural commodities, over last two years prices have doubled for majority of grains. The price rise at consumer level has also percolated down to farmers´ level. May be farmers´ realization has exactly not matched consumers´ exchequer. I don´t deny that still a huge gap is there between a progressive and a typical rural farmer.
In India there are few good examples for providing market informations to the farmers. The well documented ITC´s e-choupal initiative has been aclaimed world over. Here information and communication technology has empowered the rural farmers with the relevant informations of demand-supply and price situation of not only India but whole world. I would put forward a classical example here. In 2007 the wheat farmers of India got the information that govt. will procure higher amount this season at higher prices. The progressive farmers collected the stats on demand -supply and concluded that the wheat price will rise further. Most of them withhold their produce. As a result govt was able to procure only half of what they proposed.
One more example i would put forward for public - private partnership on market information desimination. Multi Commodity Exchange of India Ltd. and India Post (Indian Govt. Postal Deptt)has opened "Gramin Suvidha Kendras at various Post Offices where they are desiminating agricultural price, both spot and futures prices. Futures prices is helping the farmers in planning their crops (for more information pls look www.mcxindia.com)
No doubt about the impacts of market informations. Its very much relevant in countries like India also where majority of land holding with marginal farmers. Look at the prices of agricultural commodities, over last two years prices have doubled for majority of grains. The price rise at consumer level has also percolated down to farmers´ level. May be farmers´ realization has exactly not matched consumers´ exchequer. I don´t deny that still a huge gap is there between a progressive and a typical rural farmer.
In India there are few good examples for providing market informations to the farmers. The well documented ITC´s e-choupal initiative has been aclaimed world over. Here information and communication technology has empowered the rural farmers with the relevant informations of demand-supply and price situation of not only India but whole world. I would put forward a classical example here. In 2007 the wheat farmers of India got the information that govt. will procure higher amount this season at higher prices. The progressive farmers collected the stats on demand -supply and concluded that the wheat price will rise further. Most of them withhold their produce. As a result govt was able to procure only half of what they proposed.
One more example i would put forward for public - private partnership on market information desimination. Multi Commodity Exchange of India Ltd. and India Post (Indian Govt. Postal Deptt)has opened "Gramin Suvidha Kendras at various Post Offices where they are desiminating agricultural price, both spot and futures prices. Futures prices is helping the farmers in planning their crops (for more information pls look www.mcxindia.com)
N S PARTHASARATHY , (2008-03-25 06:07:26)
In my experience, often it is not the availability of market info that is the problem. One, they are too general reducing their applicability to a specific variety of produce or producing area. Two, they are provided in a form and format that cannot be readily assimilated by the producing farmer to enable him to exercise his choice meaningfully to sell or wait or to take production decisions. Private sector could play an important role in interpreting market info to the farmer. Competition among private sector operators could help reduce the risk of misinterpretated info to suit the operator´s needs but such competition could also carry the risk of violation of pre-planting contracts and diversion of produce. If only government´s extension machinery were stronger, more motivated, better compensated, better provided with transport and better trained it could act as impartial interpreter of market info and marketing advisor. The County agents in the US used to play this role very effectively.
In my experience, often it is not the availability of market info that is the problem. One, they are too general reducing their applicability to a specific variety of produce or producing area. Two, they are provided in a form and format that cannot be readily assimilated by the producing farmer to enable him to exercise his choice meaningfully to sell or wait or to take production decisions. Private sector could play an important role in interpreting market info to the farmer. Competition among private sector operators could help reduce the risk of misinterpretated info to suit the operator´s needs but such competition could also carry the risk of violation of pre-planting contracts and diversion of produce. If only government´s extension machinery were stronger, more motivated, better compensated, better provided with transport and better trained it could act as impartial interpreter of market info and marketing advisor. The County agents in the US used to play this role very effectively.
Peter Steele Consultant Agricutlural Engineer, FAO/UN [ www.fao.org ] (2008-03-20 11:22:00)
Good example of marketing information - you ask?
Lots of poor examples available, of course. Take blanket making. Working in support of a food security project - and servicing >90,000 people in some isolated hill country in East Africa recently we were searching around for some novel agro-enterprises to explore from which to boost income. Sheep & wool harvesting was an obvious one given the resilience of local stock and the small quantities of wool produced annually. NGOs and others had made effort to boost the productivity of home-based weaving, etc. Yet just 65km away in the *only* local town the country´s largest blanket factory continued to manufacture largely on the basis of imported used/synthetic fibres - which, of course, provided incredibly cheap inputs (for selling into really low cost local markets). Add a small quantity of wool to the blanket mix, however, and you boost the thermal value of the product. Everyone gains. Neither factory nor farmers/traders/NGOs had investigated this market opportunity. How to understand the lack of information exchange? Entrenched attitudes in local industry? No urban/rural linkages? Inadequate TA from public services? No enterpreneurs?
What thoughts? Peter Steele, Rome. 20/03.
Good example of marketing information - you ask?
Lots of poor examples available, of course. Take blanket making. Working in support of a food security project - and servicing >90,000 people in some isolated hill country in East Africa recently we were searching around for some novel agro-enterprises to explore from which to boost income. Sheep & wool harvesting was an obvious one given the resilience of local stock and the small quantities of wool produced annually. NGOs and others had made effort to boost the productivity of home-based weaving, etc. Yet just 65km away in the *only* local town the country´s largest blanket factory continued to manufacture largely on the basis of imported used/synthetic fibres - which, of course, provided incredibly cheap inputs (for selling into really low cost local markets). Add a small quantity of wool to the blanket mix, however, and you boost the thermal value of the product. Everyone gains. Neither factory nor farmers/traders/NGOs had investigated this market opportunity. How to understand the lack of information exchange? Entrenched attitudes in local industry? No urban/rural linkages? Inadequate TA from public services? No enterpreneurs?
What thoughts? Peter Steele, Rome. 20/03.
Vinay Chand , (2008-03-19 19:22:30)
In 30 years of Consulting in a large number of developing countries I have never come across a small farmer who would gain by being informed of prices a hundred miles away or a thousand miles away. In fact, the reality for most of them is that they get pair a price at farm gate or road side that is a fraction of the wholesale market price or usually even of the local market, for between the farmer and the consumer are collectors, accumulators, transporters, markets, primary and secondary wholesalers, supermarkets,and retailers. Of course, the farmer would like to be able to avail retail prices that may be over ten times what he gets paid or wholesale prices that are usually over 5 times what he gets paid but it is a dream.
It is not price information on distant markets that is of any use but rather the small farmer´s negotiating power viz the person offering to buy from him or the person who has leant him money and he must sell to. By focussing on the dream, we would miss out on offering practical improvement. Fayaz is right in that information can be directed at the extension service, where it exists, to help the farmer understand his options and to take advantage of them.
In 30 years of Consulting in a large number of developing countries I have never come across a small farmer who would gain by being informed of prices a hundred miles away or a thousand miles away. In fact, the reality for most of them is that they get pair a price at farm gate or road side that is a fraction of the wholesale market price or usually even of the local market, for between the farmer and the consumer are collectors, accumulators, transporters, markets, primary and secondary wholesalers, supermarkets,and retailers. Of course, the farmer would like to be able to avail retail prices that may be over ten times what he gets paid or wholesale prices that are usually over 5 times what he gets paid but it is a dream.
It is not price information on distant markets that is of any use but rather the small farmer´s negotiating power viz the person offering to buy from him or the person who has leant him money and he must sell to. By focussing on the dream, we would miss out on offering practical improvement. Fayaz is right in that information can be directed at the extension service, where it exists, to help the farmer understand his options and to take advantage of them.
Fayaz Ahmad , (2008-03-19 11:41:11)
The best source of market information in the developing countries are the market functionaries who provide market information to the famer not only about the prices but also help them in providing them information about the different techniques like how to harvest and how to reduce the pre and post harvest losses. similarly they also provide information about the proper timings of supply.
One of the example of the public private partnership was established in Pakistan where the agriculture extension department, fuit and vegetable development board and private sector people like commission agents were involved. the price information collected from different markets by the members of fruit and vegetable development board were being transfered to agricutlre extension and it was their job to display it on the main boards
The best source of market information in the developing countries are the market functionaries who provide market information to the famer not only about the prices but also help them in providing them information about the different techniques like how to harvest and how to reduce the pre and post harvest losses. similarly they also provide information about the proper timings of supply.
One of the example of the public private partnership was established in Pakistan where the agriculture extension department, fuit and vegetable development board and private sector people like commission agents were involved. the price information collected from different markets by the members of fruit and vegetable development board were being transfered to agricutlre extension and it was their job to display it on the main boards
Chido Makunike , (2008-03-18 21:22:44)
In the last year or so there have been several new African efforts to provide basic market information to farmers. Most are based on the explosive growth in cell phone penetration across Africa, even to rural areas. Details vary across the different countries where these information services are being tried, but they generally involve a paid but affordable SMS price service to farmers.
This makes it possible for farmers to now know if there is a better price for their crops some distant away from them, rather than having to settle for whatever price is being paid at the local market or by itinerant middlemen.
Long distances between rural settlements and major markets, the high cost of transport, lack of local storage/processing facilities, bad roads and the difficulty of communication often force farmers to sell to the nearest and earliest bidder.
It is too early to say how useful and sustainable the cell-phone based market information models are. This will partly depend on whether the information service providers find it profitable.
A weakness of these services so far is that the information they avail is mainly just about relative prices in one area versus those in another. This is obviously useful but limited market information.
One example of the limitation is that even if a farmer gets to know of higher prices for his produce a hundred kilometres away, that is not particularly helpful if he does not have access to affordable transport to take his goods there.
But still, even a subsequent decision to sell locally based on calculating the transport costs of the distant market is empowering the producer by opening up his mind to more options, and to the possibility of a much bigger market. This helps to make him/her think more commercially in general. It also puts him in a stronger position to bargain locally; to say to a middle man, "I know the price you are offering me is too low, I will hold on to my produce for a better offer."
SMS subcribers who are buyers now also have an inexpensive way to find out what produce is available where, and at what price.
If WiFi-based internet access could be expanded into rural Africa, even with just 10% of the success of cell phones, this would truly make possible a revolution in the depth and breadth of market information available to rural farmers.
All kinds of smallscale rural consulting businesses could then open up to download and make available to groups of farmers all kinds of market and technical information from across the globe. This is a tremendous latent business opportunity waiting for some Internet Service Provider to wake up to and exploit, with both money-making and developmental potential.
In the last year or so there have been several new African efforts to provide basic market information to farmers. Most are based on the explosive growth in cell phone penetration across Africa, even to rural areas. Details vary across the different countries where these information services are being tried, but they generally involve a paid but affordable SMS price service to farmers.
This makes it possible for farmers to now know if there is a better price for their crops some distant away from them, rather than having to settle for whatever price is being paid at the local market or by itinerant middlemen.
Long distances between rural settlements and major markets, the high cost of transport, lack of local storage/processing facilities, bad roads and the difficulty of communication often force farmers to sell to the nearest and earliest bidder.
It is too early to say how useful and sustainable the cell-phone based market information models are. This will partly depend on whether the information service providers find it profitable.
A weakness of these services so far is that the information they avail is mainly just about relative prices in one area versus those in another. This is obviously useful but limited market information.
One example of the limitation is that even if a farmer gets to know of higher prices for his produce a hundred kilometres away, that is not particularly helpful if he does not have access to affordable transport to take his goods there.
But still, even a subsequent decision to sell locally based on calculating the transport costs of the distant market is empowering the producer by opening up his mind to more options, and to the possibility of a much bigger market. This helps to make him/her think more commercially in general. It also puts him in a stronger position to bargain locally; to say to a middle man, "I know the price you are offering me is too low, I will hold on to my produce for a better offer."
SMS subcribers who are buyers now also have an inexpensive way to find out what produce is available where, and at what price.
If WiFi-based internet access could be expanded into rural Africa, even with just 10% of the success of cell phones, this would truly make possible a revolution in the depth and breadth of market information available to rural farmers.
All kinds of smallscale rural consulting businesses could then open up to download and make available to groups of farmers all kinds of market and technical information from across the globe. This is a tremendous latent business opportunity waiting for some Internet Service Provider to wake up to and exploit, with both money-making and developmental potential.
Vinay Chand , (2008-03-18 19:30:50)
In the private sector there is a huge industry that supplies market intelligence and information although general suppliers, i.e. those who issue regular survey results, are normally targeted at a catagory of end-users such as the advertising industry or a stage within the value chain such as retailers or wholesalers although sites like Agriwatch in India cater to a number of sectors. This form of information collection is still largely national and rather shallow when covering a region or the world. Then those who want specific coverage commission market research and that has been my main business for over 30 years. The bigger the Corporation, generally tghe more it spends on market information.
In the public sector in developing countries, some have and disseminate wholesale market prices at one or more markets and this is the case in India. The best cooperation between the public and private sectors is when the public sector commissions research for general distribution. The other example of intervention in the area is the collection of information by Commodity Boards for general distribution although mostly it is general information it sometimes targets particular sectors. There are a number of good examples of the latter in India.
In the private sector there is a huge industry that supplies market intelligence and information although general suppliers, i.e. those who issue regular survey results, are normally targeted at a catagory of end-users such as the advertising industry or a stage within the value chain such as retailers or wholesalers although sites like Agriwatch in India cater to a number of sectors. This form of information collection is still largely national and rather shallow when covering a region or the world. Then those who want specific coverage commission market research and that has been my main business for over 30 years. The bigger the Corporation, generally tghe more it spends on market information.
In the public sector in developing countries, some have and disseminate wholesale market prices at one or more markets and this is the case in India. The best cooperation between the public and private sectors is when the public sector commissions research for general distribution. The other example of intervention in the area is the collection of information by Commodity Boards for general distribution although mostly it is general information it sometimes targets particular sectors. There are a number of good examples of the latter in India.
Dr. Damian Ihedioha , (2008-03-18 11:30:03)
The best way or example of markets information is to know what people want. The best marketer is that person that knows what people want, or what they are in need of.
The best way or example of markets information is to know what people want. The best marketer is that person that knows what people want, or what they are in need of.
Christian Fischer , (2008-03-17 01:09:01)
A good example of a well functioning, easily accessible and publicly organised market-information provider may be Germany’s ZMP (www.zmp.de/info/zmpinf13.asp). “ZMP collects, processes and distributes market and price information for all important agricultural and forest products. Advisory opinions and scientific expert opinions round up the competence profile. In addition, ZMP is active in market research for the target groups of the German agriculture and food industry. … ZMP receives financial donations from the German Sales Promotion Fund, the German Timber Promotion Fund and the German federal states. The marketing of its own publications helps to keep the need for donations within limits.” Thus, the provided information is not free of charge but the costs for accessing it are reasonable.
Another good example is certainly USDA’s website, thought this may not be a public-private partnership.
Apart from this, a good practice would also be if public universities/research institutes would offer to train private-sector marketing professionals (in special seminars, weekend course, etc.) on a continuous basis. Only full-time academics/researchers can keep in touch with the latest developments in market trends, data sources, statistical methods, software etc. However, these “public servants” need then to pass on their knowledge and skills to the private-industry analysts who generate their own, private market intelligence. While this knowledge transfer is not easy in practice, it seems to work in other fields (e.g., in the finance profession). In Europe, the Mediterranean Agronomic Institute of Zaragoza (www.iamz.ciheam.org) offers advanced courses in market research for agribusiness professionals.
A good example of a well functioning, easily accessible and publicly organised market-information provider may be Germany’s ZMP (www.zmp.de/info/zmpinf13.asp). “ZMP collects, processes and distributes market and price information for all important agricultural and forest products. Advisory opinions and scientific expert opinions round up the competence profile. In addition, ZMP is active in market research for the target groups of the German agriculture and food industry. … ZMP receives financial donations from the German Sales Promotion Fund, the German Timber Promotion Fund and the German federal states. The marketing of its own publications helps to keep the need for donations within limits.” Thus, the provided information is not free of charge but the costs for accessing it are reasonable.
Another good example is certainly USDA’s website, thought this may not be a public-private partnership.
Apart from this, a good practice would also be if public universities/research institutes would offer to train private-sector marketing professionals (in special seminars, weekend course, etc.) on a continuous basis. Only full-time academics/researchers can keep in touch with the latest developments in market trends, data sources, statistical methods, software etc. However, these “public servants” need then to pass on their knowledge and skills to the private-industry analysts who generate their own, private market intelligence. While this knowledge transfer is not easy in practice, it seems to work in other fields (e.g., in the finance profession). In Europe, the Mediterranean Agronomic Institute of Zaragoza (www.iamz.ciheam.org) offers advanced courses in market research for agribusiness professionals.
Michele Iarossi , (2008-03-13 14:33:20)
Private sector has already involved in disseminating market information. We need to collect good practices and replicate them. I would like to share with you all the news below I read on the internet:
Wireless solution to improve agro-supply chain
Infosys Technologies Ltd (India) said it has partnered with ACDI/VOCA, a non-profit international development organization that promotes broad-based economic growth, to develop information and communication technology- enabled application to improve efficiencies in the agro supply chain in India.
The application tackles supply chain management from profiling of farmer clusters to crop planning, scheduling, tracking and forecasting, the company said. It allows farmers to access technical information including database searches, region-specific weather updates and market information like daily sales volumes and average prices. It minimizes inventory requirements, reduces waste and allows retailers and farmers to be better integrated, the company added.
Binod H.R., Senior Vice-President & Head - India Business Unit, Infosys, said: “Maintaining on-time, programmed delivery of fresh produce from a large and scattered production base is a complex and critical operation. This solution gives the organised retail sector access to a reliable small holder production base. It thereby decreases farm-to-market losses, currently estimated at 30 to 40 per cent on certain products.”
The application comprises wireless software applications that are accessible on handheld devices, enabling agents to address information gaps constraining vegetable and fruit farmers and enabling other supply chain participants to monitor and control the back-end and front-end supply chain functions. It also enables wholesaler/retailer or other intermediaries to optimise cost by allowing large procurement, efficient transportation management and enabling intelligent crop production management.
Private sector has already involved in disseminating market information. We need to collect good practices and replicate them. I would like to share with you all the news below I read on the internet:
Wireless solution to improve agro-supply chain
Infosys Technologies Ltd (India) said it has partnered with ACDI/VOCA, a non-profit international development organization that promotes broad-based economic growth, to develop information and communication technology- enabled application to improve efficiencies in the agro supply chain in India.
The application tackles supply chain management from profiling of farmer clusters to crop planning, scheduling, tracking and forecasting, the company said. It allows farmers to access technical information including database searches, region-specific weather updates and market information like daily sales volumes and average prices. It minimizes inventory requirements, reduces waste and allows retailers and farmers to be better integrated, the company added.
Binod H.R., Senior Vice-President & Head - India Business Unit, Infosys, said: “Maintaining on-time, programmed delivery of fresh produce from a large and scattered production base is a complex and critical operation. This solution gives the organised retail sector access to a reliable small holder production base. It thereby decreases farm-to-market losses, currently estimated at 30 to 40 per cent on certain products.”
The application comprises wireless software applications that are accessible on handheld devices, enabling agents to address information gaps constraining vegetable and fruit farmers and enabling other supply chain participants to monitor and control the back-end and front-end supply chain functions. It also enables wholesaler/retailer or other intermediaries to optimise cost by allowing large procurement, efficient transportation management and enabling intelligent crop production management.
Vinay Chand , (2008-03-11 13:03:10)
There is quite a lot of useful market intelligence out there. However, it is mostly too aggregated to be useful to individual processors or exporters. The latter need specific information that they must collect or pay for. Unfortunately, the more developed the economy and the bigger the Corporation, the more they understand teh value of this. In developing countries part of the technology that is lacking is an appreciation of the marketing function as such and of information. Marketing is too often simply seen as selling and information as some sort of secret list of willing buyers that is possesed out there and needs to be accessed.
Since individual firms may not have the funds to pay for or collect specific targeted information, it can be paid for by the state or through aid in the early stages.
As far as the farmers are concerned, they need extension staff to work with them by bringing the implications of development and growth potential to them and the countries need to encourage the evolution of enterprises that can connect the value chain to exploit the information. there are very good models for this.
There is quite a lot of useful market intelligence out there. However, it is mostly too aggregated to be useful to individual processors or exporters. The latter need specific information that they must collect or pay for. Unfortunately, the more developed the economy and the bigger the Corporation, the more they understand teh value of this. In developing countries part of the technology that is lacking is an appreciation of the marketing function as such and of information. Marketing is too often simply seen as selling and information as some sort of secret list of willing buyers that is possesed out there and needs to be accessed.
Since individual firms may not have the funds to pay for or collect specific targeted information, it can be paid for by the state or through aid in the early stages.
As far as the farmers are concerned, they need extension staff to work with them by bringing the implications of development and growth potential to them and the countries need to encourage the evolution of enterprises that can connect the value chain to exploit the information. there are very good models for this.
Christian Fischer , (2008-03-11 02:56:27)
Market information is most useful when private and specific. This is the kind of information which professional traders (and processors) need and use. If information is public and general, making extra money from it is an illusion. However, public information may help to avoid the exploitation of ignorant and weaker market players (e.g., small-scale farmers). This is where existing market information systems have a role to play, in particular in developing countries. As markets become deeper and wider (i.e., more functionally specialised and differentiated), market intelligence is increasingly generated by third-party service providers.
Public policy in this domain should continue to aim at providing basic market information to all market participants to ensure that markets clear at favourable terms for all (or the majority of) players. This is of public interest since it ensures economic sustainability. In some markets, policies must probably also be implemented which aim at making sure that all (the majority of) market participants are actually able to understand the information provided and to make good decisions. But in any case, mobilising resources on improving the information infrastructure should only be started once rudimentary markets exist. Information is the oil that lubricates the market machine. Without a machine, who needs oil?
Market information is most useful when private and specific. This is the kind of information which professional traders (and processors) need and use. If information is public and general, making extra money from it is an illusion. However, public information may help to avoid the exploitation of ignorant and weaker market players (e.g., small-scale farmers). This is where existing market information systems have a role to play, in particular in developing countries. As markets become deeper and wider (i.e., more functionally specialised and differentiated), market intelligence is increasingly generated by third-party service providers.
Public policy in this domain should continue to aim at providing basic market information to all market participants to ensure that markets clear at favourable terms for all (or the majority of) players. This is of public interest since it ensures economic sustainability. In some markets, policies must probably also be implemented which aim at making sure that all (the majority of) market participants are actually able to understand the information provided and to make good decisions. But in any case, mobilising resources on improving the information infrastructure should only be started once rudimentary markets exist. Information is the oil that lubricates the market machine. Without a machine, who needs oil?
Edgar Smith , (2008-03-10 19:00:06)
Bill,
The question that needs to be answered is who is best positioned and resourced to provide the information on markets ( prices, demand, delivery conditions, access requirements such as traceability and certification, competitors etc) that farmers, exporters and SMEs are producing or interested in? Additionally, once the information is available will the recipients be able to interpret it and use it in a meaningful way without prior training/advisory support?
Edgar
Bill,
The question that needs to be answered is who is best positioned and resourced to provide the information on markets ( prices, demand, delivery conditions, access requirements such as traceability and certification, competitors etc) that farmers, exporters and SMEs are producing or interested in? Additionally, once the information is available will the recipients be able to interpret it and use it in a meaningful way without prior training/advisory support?
Edgar
Bill Samuel , (2008-03-10 16:40:34)
Market information is the subject of a Forum in itself. There are many problems with government information services and information technology will not solve many of them. In fact, it may make matters worse if it leads to more rapid dissemination of inaccurate information.
But don´t most of the comments so far miss the point of the Proposition? The Forum is about Agro-industries and I feel that the Proposition is mainly addressing government agencies such as trade promotion bodies, rather than domestic market information services. Perhaps such bodies are largely ineffective but, realistically, they can only do so much. Companies wishing to acess export markets cannot rely on generic information generated by the government sector as it can never provide sufficient detail. There is no substitute for personal visits to the intended market or, resources permitting, for the use of the services of professional market researchers.
Market information is the subject of a Forum in itself. There are many problems with government information services and information technology will not solve many of them. In fact, it may make matters worse if it leads to more rapid dissemination of inaccurate information.
But don´t most of the comments so far miss the point of the Proposition? The Forum is about Agro-industries and I feel that the Proposition is mainly addressing government agencies such as trade promotion bodies, rather than domestic market information services. Perhaps such bodies are largely ineffective but, realistically, they can only do so much. Companies wishing to acess export markets cannot rely on generic information generated by the government sector as it can never provide sufficient detail. There is no substitute for personal visits to the intended market or, resources permitting, for the use of the services of professional market researchers.
Edgar Smith , (2008-03-08 20:44:29)
Perhaps we need to think more broadly and speak aboutthe need for marketing information and not just consider market information which is essentially understood as price information. Production has to be market led and farmers need to know the requirements in potential markets ( what is required, when, how much, who are the buyers and when do they want suppplies and in what packaging and what are the prices that can be expected) and not only prevailing prices. To be competitive agro industries have to know the characteristics of the markets they intend to supply and this requires market research... into requirements, access conditions, competitors etc. Who can supply this marketing information and whether it is collected individually or by the public sector ( MIS units or private information suppliers)is the question to be answered. Many Governments believe that market information should be provided as a public good to support the entrance of farmers and SMEs and exporters into new markets and, in relation to local markets, to provide counterveiling power to farmers/enterprises in negotiating with ´middlemen´. Public information provision open to all at no cost has proven to be unsustainable in most developing countries and MIS units have been created, often donor supported, only to become moribund or to collapse completely after donor support has ended... in view of this what is the way forward??
Perhaps we need to think more broadly and speak aboutthe need for marketing information and not just consider market information which is essentially understood as price information. Production has to be market led and farmers need to know the requirements in potential markets ( what is required, when, how much, who are the buyers and when do they want suppplies and in what packaging and what are the prices that can be expected) and not only prevailing prices. To be competitive agro industries have to know the characteristics of the markets they intend to supply and this requires market research... into requirements, access conditions, competitors etc. Who can supply this marketing information and whether it is collected individually or by the public sector ( MIS units or private information suppliers)is the question to be answered. Many Governments believe that market information should be provided as a public good to support the entrance of farmers and SMEs and exporters into new markets and, in relation to local markets, to provide counterveiling power to farmers/enterprises in negotiating with ´middlemen´. Public information provision open to all at no cost has proven to be unsustainable in most developing countries and MIS units have been created, often donor supported, only to become moribund or to collapse completely after donor support has ended... in view of this what is the way forward??
Ramesh S Arunachalam , (2008-03-08 17:16:22)
Timely and accurate information is the key. The farmer is cheated so often because he/she lacks appropriate and timely information. In places, where this has been available, the prices have increased at least by 10 - 20%. Three ways of expanding access to information is through mobiles (huge penetration in rural areas and among even small farmers), internet at Kiosks (like choupals or rural business centres etc) and of course satellite TV. Mobiles especially have great potential
Timely and accurate information is the key. The farmer is cheated so often because he/she lacks appropriate and timely information. In places, where this has been available, the prices have increased at least by 10 - 20%. Three ways of expanding access to information is through mobiles (huge penetration in rural areas and among even small farmers), internet at Kiosks (like choupals or rural business centres etc) and of course satellite TV. Mobiles especially have great potential
Betina Edziwa , (2008-03-08 14:37:22)
Market information is critical but in some countries espcially in developing countries the existence of such infomation has been scattered and left to the middle men who have been taking advantage of the small scale farmers. As much as the system may need to be
revamped where it was exisiting there is need to create it where its not functional or non-existing.
Market information is critical but in some countries espcially in developing countries the existence of such infomation has been scattered and left to the middle men who have been taking advantage of the small scale farmers. As much as the system may need to be
revamped where it was exisiting there is need to create it where its not functional or non-existing.
Vinay Chand , (2008-03-05 18:30:13)
The proposition is entirely academic. First of all, there is a great hype about market information that is available except for wholesale prices in main markets and even that information is collected in a few countries.
Secondly, wholesale prices are nearly completely useless to smallholders who are unable to exploit that information and deal with prices that are far removed from main market wholesale prices.
This thinking that IT can somehow help eradicate poverty through distributing market information is a major distraction and a complete illusion.
The proposition is entirely academic. First of all, there is a great hype about market information that is available except for wholesale prices in main markets and even that information is collected in a few countries.
Secondly, wholesale prices are nearly completely useless to smallholders who are unable to exploit that information and deal with prices that are far removed from main market wholesale prices.
This thinking that IT can somehow help eradicate poverty through distributing market information is a major distraction and a complete illusion.
Kit le Clus , (2008-03-05 16:36:35)
However vital good and relevant market information is, it is not the only key to the proper operation of markets. Markets equally need adequate infrastructure and competitive trading.
However vital good and relevant market information is, it is not the only key to the proper operation of markets. Markets equally need adequate infrastructure and competitive trading.
Deris Hlophe , (2008-03-05 08:53:04)
Market information is very vital for marketing agriculture products and its timely transmition is also important due to that most of the agriculture products are perishable. For developing the required market information this need the participation of both private and public sector espectially in the development infrastructure like access roads, communication networking, etc.Capacity building among the domestic farmers is also important especially for knowing the different standards for different markets.
Market information is very vital for marketing agriculture products and its timely transmition is also important due to that most of the agriculture products are perishable. For developing the required market information this need the participation of both private and public sector espectially in the development infrastructure like access roads, communication networking, etc.Capacity building among the domestic farmers is also important especially for knowing the different standards for different markets.
Siobhan Kelly , (2008-03-04 14:40:22)
It is common knowledge that solutions to information problems are unlikely to come from the public sector exclusively. The nature of the information problems that farmers and entrepreneurs face require linkages with ICT media and commercial sponsors. It is necessary to encourage the private provision of market information and promote the cooperative sharing of information between farmers and traders. I suppose that the issue is how to best encourage this? Any suggestions.
Siobhan
It is common knowledge that solutions to information problems are unlikely to come from the public sector exclusively. The nature of the information problems that farmers and entrepreneurs face require linkages with ICT media and commercial sponsors. It is necessary to encourage the private provision of market information and promote the cooperative sharing of information between farmers and traders. I suppose that the issue is how to best encourage this? Any suggestions.
Siobhan
Martin Hilmi , (2008-03-03 12:27:04)
Market information alone and importantly if not contextualized to particular and local necessities, especially in the case of smallholders, has very little value. Market information that is of use to smallholders has very particular connotations. Market information, for example, that maybe of use to partially-commercial farmers or new to commercial farming will need to be very different from that destined to more entrepreneurial farmers. Public sector initiatives have provided for some results, but the providing of simple price data is far from what a market information system is all about. There is a clear need also in this aspect to have a joint effort between the public and private sector, including many infrastructure issues, and there is a need for creating business services, which can support such an important factor as market information.
Market information alone and importantly if not contextualized to particular and local necessities, especially in the case of smallholders, has very little value. Market information that is of use to smallholders has very particular connotations. Market information, for example, that maybe of use to partially-commercial farmers or new to commercial farming will need to be very different from that destined to more entrepreneurial farmers. Public sector initiatives have provided for some results, but the providing of simple price data is far from what a market information system is all about. There is a clear need also in this aspect to have a joint effort between the public and private sector, including many infrastructure issues, and there is a need for creating business services, which can support such an important factor as market information.
David Kahan , (2008-03-03 11:55:04)
Experience with market information has been mixed. Although market information is both a private and public good, the public sector often takes on the responsibility to design systems. There is evidence, however, that these are often unsustainable. Moreover, market information is only part of a broader information set that includes market intelligence and the need for farmers and entrepreneurs to have the required skills to use the information effectively. Market information by itself is not very useful.
Experience with market information has been mixed. Although market information is both a private and public good, the public sector often takes on the responsibility to design systems. There is evidence, however, that these are often unsustainable. Moreover, market information is only part of a broader information set that includes market intelligence and the need for farmers and entrepreneurs to have the required skills to use the information effectively. Market information by itself is not very useful.
