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Tapuwa Mashangwa
MARKETING information is an important tool for decision making at all the stages right from farm production to ultimate consumption for all the participants in marketing channel. Marketing information is essential for producers in market led production. It is equally important for other market participants for trading and also for consumers.
It is important to bring out improvement in market information scenario by linking all agricultural produce wholesale markets. For example in India they have launched an agricultural marketing research and information network scheme through directorate of marketing and inspection (DMI).
Market extension is a vital service that can be used to enlighten the farmers about proper marketing and improving their awareness in various aspects of post-harvest management for efficient and cost effective marketing.
The benefits of market extension are that it: provides the up-to-date information on the arrivals and prices of agricultural commodities of different markets; helps the producers to take right decision, when, where and how much to produce and market the same efficiently; educates the producers/traders about the post‐harvest management, that is, (harvesting care, techniques to minimize losses during post‐harvest period and value addition to the produce by proper cleaning, processing, packaging, storage and transportation.); orients the producers/traders/consumers about price trends, demand and supply situation.
Market extension also orients the producer regarding the importance of grading, proper storage, co‐operative/group marketing, direct marketing, contract farming, future trading etc. and it provides the information about the sources of credit availability, various government schemes, policies, rules and regulations.
The role of government in managing markets is on the decline worldwide and it is not easy to bring major changes in the traditional marketing system. The only way to modernize marketing is to promote alternative marketing system that may operate parallel to and in addition to a traditional marketing system. The purpose of the proposed alternative marketing is to promote modern trade practices, which in turn will pave way for transparency and efficiency in market.
Various forms of alternate marketing include: direct marketing; marketing through farmer’s interest group; setting up of terminal markets; forward and future market; e‐commerce; setting up of mega markets and setting up negotiable warehouse receipt systems.
Direct marketing is another innovative concept, which involves marketing of produce by the farmer directly to the consumers/processors without any middlemen.
Direct marketing enables producers and processors and other bulk buyers to economize on transportation cost and improve price realization. It also provides incentive to large scale marketing companies i.e. processors and exporters to purchase directly from producing areas.
The benefits of direct marketing are that: It increases profit of the producer; it helps in market oriented production; it minimises marketing cost; it encourages distribution efficiency; it promotes employment to the producer; direct marketing enhances the consumer satisfaction-since the farmer bring the produce in a manner acceptable to consumer; it provides better marketing techniques to producers; it encourages direct contact between producers and consumers and it encourages the farmers for retail sale of their produce.
Tapuwa Justice Mashangwa, a young entrepreneur based in Bulawayo, Founder and CEO of Emerald Agribusiness Consultancy. He can be contacted on +263739096418 and email: [email protected]
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