Rural Management _2_ by RushenChahal


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									Agriculture Marketing System
   Understanding agriculture marketing system
   Key players (stakeholders) involved in
    agriculture marketing system
   Interest of these key players?
   Are these interest conflicting in nature?
   If yes, how to reconcile the conflicting
   “Perform Stakeholder Analysis”

                    Prof. Rushen Chahal
What is stakeholder analysis?

   It is an approach for understanding a system
    by identifying the key actors or stakeholders
    in the system, and assessing their respective
    interests in, or influence on, that system.
   Stakeholder analysis is useful for assisting in
    decision-making situations where various
    stakeholders have competing interests and
    stakeholder needs must be appropriately
                      Prof. Rushen Chahal
Who are Stakeholders
   Stakeholders are those who have rights
    or interests in a system.
   Stakeholders are any group or
    individual who can affect, or is affected
    by the achievement of the
    organisation’s purpose. It includes
    interested parties as well as affected
                   Prof. Rushen Chahal
   Stakeholders can be individuals, communities, social
    groups, or organisations.

   For example, stakeholders in agriculture marketing
    policy might include farmers, traders, agri-business
    firms, processors, support service providers,
    consumers, and Government agencies

                        Prof. Rushen Chahal
    Stakeholder Analysis – Approach

   Develop purpose of analysis and initial understanding of
    the system
   Identify key stakeholders
   Investigate stakeholders’ interests, characteristics and
   Identify patterns and contexts of interaction between
   Assess stakeholders’ power and potential roles
   Assess options and use the findings to make progress

                              Prof. Rushen Chahal
      Characteristics of Stakeholders

   Location - rural/urban dwellers
   Ownership - landowners/landless, managers, staff, trade
   Function - producers/consumers,
    traders/suppliers/competitors, regulators, policy makers,
    activists, opinion-formers
   Scale – small-scale/large-scale, local/international
   Time - past, present, future generations

                             Prof. Rushen Chahal
Four R in Stakeholder Analysis
   Role of each stakeholder in the system
   Rights, Responsibility, Revenue
    (Benefit) and Relationship

                  Prof. Rushen Chahal
Stakeholders and their Interests
   Farmers: Highest possible returns from
    the sale of their produce
    - Maximum price, unlimited quality
    irrespective of quality
   Consumers: Highest food value at the
    lowest possible price
    - Low price, limited quantity of high
                    Prof. Rushen Chahal
Stakeholders and their Interests
   Middlemen: Earn the greatest profit
    - low purchase price, high quality, high selling price,
    low cost of operation, reliable supply

   Government: Consistent to macro-economic policies
    - Equitable distribution, food security, natural
    resource conservation, low pollution, employment,
    foreign exchange earning

   How to reconcile these conflicting interests? – One of
    the primary task of agriculture marketing system.

                         Prof. Rushen Chahal
Stakeholders and their Interests
   Each players think in its own interest having
    short run perspective
   But in the long run, no player can survive
    without others
   Evolve a long run relationship among the
    players allowing each group to take care of
    its interest – Is it possible?
   Probably yes! Recent strategic partnership
    models between farmers, government,
    corporate houses can provide high hopes in
    Indian context.
                     Prof. Rushen Chahal
            Laws and
           Govt. Policies                                   Domestic and
                                                           Global Economy

                                                                       Science and
Customs and                                                            Technology
                      The Food Marketing System :
                      • Firms, organizations
                      • Product flows, distribution channels
                      • Management and Marketing Activities

                                                                Consumer Tastes
                                                                and Preferences
  Infrastructure (transport,
communication, education etc.)

                                     Prof. Rushen Chahal

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