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AGRICULTURE MARKETING SYSTEM - ximb

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					Agriculture Marketing System
n   Understanding agriculture marketing system
n   Key players involved in agriculture marketing system
n   Interest of these key players?
n   How to reconcile the conflicting interests?
n   “Perform stakeholder analysis”
Agriculture Marketing System
n   Production sub-system:
    - farmers
n   Distribution sub-system:
    - traders, wholesalers, retailers, transporters,
    processors (middlemen)
n   Consumption sub-system:
    - consumers
n   Regulatory sub-system:
    - Govt. organizations
What is stakeholder analysis?

n   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.
n   Stakeholder analysis is useful for assisting in decision
    -making situations where various stakeholders have
    competing interests and stakeholder needs must be
    appropriately balanced.
When to Use it
n   Stakeholder analysis may be used at a variety of
    levels and purposes:

n   Institution or business - to examine the health of an
    organization and plan changes
n   Project or program – to design, steer and monitor a
    project
n   Particular decision – to predict the consequences of a
    decision, and plan to deal with them
Who are Stakeholders
n   Stakeholders are those who have rights or interests
    in a system.
n   Stakeholders are any group or individual who can
    affect, or is affected by the achievement of the
    organisation’s purpose.
n   It includes interested parties as well as affected
    parties.
Stakeholders
n   Stakeholders can be individuals, communities, social
    groups, or organisations.

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

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


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

n   Role of each stakeholder in the system
n   Rights, Responsibility, Revenue
    (Benefit) and Relationship
Assess Stakeholder Power and Potential


 n   Different degrees of power to control decisions
 n   Different degrees of ‘potential’ to contribute, or
     ‘importance’, to achieving a particular objective in the
     system
Power
n   Stakeholder power can be understood as the extent
    to which stakeholders are able to persuade or coerce
    others into making decisions, and following certain
    courses of action.
n   Power may derive from the nature of a stakeholder's
    organization, or their position in relation to other
    stakeholders.
Potential
n   Potential to affect, or to be affected by, policies and
    institutions resides in particular characteristics
    specific to context and location – such as knowledge
    and rights.
n   These stakeholders’ problems, needs and interests
    are likely to be the most ‘important’ for many
    initiatives to improve policies and institutions
    processes.
Stakeholders and their Interests
n   Farmers: Highest possible returns from the sale of
    their produce
    - Maximum price, unlimited quality irrespective of
    quality
n   Consumers: Highest food value at the lowest possible
    price
    - Low price, limited quantity of high quality
Stakeholders and their Interests
n   Middlemen: Earn the greatest profit
    - low purchase price, high quality, high selling price,
    low cost of operation, reliable supply

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

n   How to reconcile these conflicting interests? – One of
    the primary task of agriculture marketing system.
Stakeholders and their Interests
n   Each players think in its own interest having short
    run perspective
n   But in the long run, no player can survive without
    others
n   Evolve a long run relationship among the players
    allowing each group to take care of its interest – Is it
    possible?
n   Probably yes! Recent strategic partnership models
    between farmers, government, corporate houses can
    provide high hopes in Indian context.
Recent Initiatives
n   Direct purchase from farmers by trading or
    processing companies (avoiding mandis)
n   Market Information system
n   Backward integration of firms
n   Promoting Farmers Interest Groups
n   Conducive policy environment by govt.
n   Partnership between input, output and credit delivery
    systems
n   Agriculture exports
            Laws and
           Govt. Policies                           Domestic and
                                                   Global Economy

                                                               Science and
Customs and                                                    Technology
  Values
                      The Food Marketing System :
                      • Firms, organizations
                      • Product flows, distribution channels
                      • Management and Marketing
                      Activities
 Competition
                                                        Consumer Tastes
                                                        and Preferences
   Infrastructure (transport,
communication, education etc.)

				
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posted:8/2/2013
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