AGRICULTURAL MARKETING -TRAINING FOR STAFF

AGRICULTURE MARKETING INITIATIVES IN JSYS

(Udayakumar S. Kollimath, Marketing Specialist, SPU Bangalore)


The Karnataka Community Based Tank Management Project, while restoring the tank system focuses on a range of activities to achieve holistic development affecting all the stake holders. The institutionalization of the tank system has begun a new “economic development” process and as a result substantial capacity building activities have been designed to provide “sustainability” to the Tank Management Institute. Prominent among them is agriculture. The project interventions are aimed at improving the agriculture productivity in the command area. What is more important other than inducting improved technology in the farming practices is providing orientation to the command area farmers is to take up agriculture as a “business enterprise”. The Agriculture Committee which is formed within the Tank Management Institute to address the issues related agriculture needs further to be strengthened with business concepts.

The Executive Committee should ensure that the Agriculture committee takes up all the issues that affect the command area farmers. It is necessary that they conduct SWOT analysis and identify areas which need attention to improve the profitability. Some of the issues that the committee should take into consideration before developing an agribusiness plan are:

1. Market research
2. Building the data base of the land characteristics
3. Documenting available infrastructure
4. Line department linkages
5. Availability of the water
6. Capital acquisition plan
7. Human resource plan
8. Procurement of inputs
9. Risk mitigation plan
10. Good Agriculture Practices
11. Market information
12. Finance management
13. Supply Chain Efficiency
14. Marketing

Market Survey: Market survey should take into account the opportunities that are available to the farmers of the tank command based on the available infrastructure such as proximity markets, availability of input agencies, processors, and expected market demand, availability of finance, consumer preferences etc.

Building the data base of land characteristics: It is important to know the unique features of the lands available in a particular tank command. The soil survey reports of both micro and macro nutrient will help deciding the right mix of crops that could be grown and also help in relating to factors such as color, taste and aroma of the products grown in the command area
Infrastructure: This could be thrashing yard, godowns, roads and markets, information centers Raitha Sampark Kendra (RSK), Financial institutions, input agencies, water storage structure, processing facilities.

Line Department linkages: The facilities available from different line department such as Horticulture, Agriculture, Sericulture, Agriculture Marketing Board, APEDA, KVK, Surgar Research Institute, Spices Board, Coconut Board and Forestry Department, Weights and Measurements, Banks need to be available at the TMI which shall facilitate in developing a right business plan.

Water: The quality of water affects the crop hence report providing information on the quality of water is a strong necessity. The quality of water will also affect the quality of the crop hence in this regard before embarking on the business plan both quality and quantity of water is to be borne in mind.

Capital acquisition plan: Since the investments are different for each crop it is necessary to have the knowledge of investment components and the precise capital that is required at different stages of the crop. This will enable to develop a more reliable business plan.

Human Resources Plan: Different crops have varying needs of labour. While planning a crop enterprise it is necessary to take into account the labour available in the village and an estimate of the total labour requirement for taking up a crop enterprise or combination of different crop enterprises. This should be based on the current wage rates prevailing in the market.

Procurement plan: The crop enterprises need different inputs such as seeds, organic manures, equipments, fertilizers, plant protection chemicals, biopesticides. It is indeed necessary to have a procurement plan for the above in order to develop a good business plan.

Risk Mitigation Plan: Agriculture is subjected to risks due to climatic factors and hence proper risk cover needs to be planned and hence linkage with companies such as Iffco-Tokio, General Insurance has to be established.

Good Agriculture Practices: Since the market prices are dependent on the quality of the produce it is necessary to follow good agriculture practices developed by University of Agriculture Sciences. There are standards such as EUREPGAP for exports. It is necessary the tank management institute develops a internal quality manual on the lines of HACCP (Hazard Analysis and Critical Control Points) and other food safety aspects. Such an exercise helps in building a new market segment.

Market Information: This is central to the success of an agribusiness plan. Timely information on prices of inputs, minimum support prices, rates for services, godown rentals, transportation rates and prices of commodities is necessary. Information portals providing information on agriculture. Magazines and periodicals with news on market information need to be collected and analyzed to prepare a better business plan.

Finance Management: Success of any enterprise depends on the proper management of finance. Hence proper forecast for finance needs to be developed taking into account the need of capital at different stages of the crop/crops.

Supply Chain Management: The entire supply chain right from the time the crop enterprise is taken up in the farm and until the product reaches the consumers hand needs to be understood by carrying out “value chain analysis” which shall improve the chain efficiency and improve the margins.

Marketing: The four P’s ( Product, Place, Price and Promotion) of marketing need to be applied to generate proper margins which make agriculture a viable proposition. Agriculture sector offers huge opportunities to build the brand as each geographical area has something unique to offer in terms of crops hence product differentiation could be achieved by properly understanding the uniqueness of the product. Some of the characteristics could be taste, flavour, aroma, colour etc. The product could be even marketed through specialized agencies through contract farming.

UDAYAKUMAR KOLLIMATH