Agriculture Marketing System

1
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
  interests?
• Perform Stakeholder Analysis

2
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 balanced.

3
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
  organisations purpose. It includes interested
  parties as well as affected parties.

4
Stakeholders

• 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

5
Stakeholder Analysis Approach

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

6
Characteristics of Stakeholders

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

7
Four R in Stakeholder Analysis

• Role of each stakeholder in the system
• Rights, Responsibility, Revenue (Benefit) and
  Relationship

8
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 quality

9
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.

10
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.

11
Laws and Govt. Policies
Domestic and Global Economy
Science and Technology
Customs and 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.)