ESIP Environment Oriented Satellite Image Processing Platform ( Middleware Extension)
Market Oriented Extension Service
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Transcript of Market Oriented Extension Service
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Market Oriented Extension Service
Berhanu Gebremedhin, Scientist, ILRI
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Three key elements in market oriented agriculture
• Improved technology and practices
• Information/Knowledge
• Skills
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Commercial transformation of smallholder agriculture
• Commercial transformation of agriculture in Ethiopia
• Market oriented agriculture?
– Market orientation in production planning
– Market participation in output markets
• Why commercial transformation? – Better income and wealth accumulation
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Commercial transformation • Commercial transformation requires
extension service include:– Promotion of improved technologies and
practices– Advising and supporting farmers to produce
profitable market oriented commodities– Facilitating market linkages– Provision of market information– Building marketing and agribusiness capacity of
farmers – Facilitating organization of farmers to conduct
collective marketing
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The production-oriented extension• Historical emphasis on food security through own
production
• Extension: technology and production oriented
• Lack of awareness about market-oriented extension
• Lack of capacity to provide market-oriented extension (MOE)
• Training of DAs and SMSs oriented towards production technologies and productivity– Marketing, agribusiness, farm planning and management,
market oriented extension methods mainly missing.– Mid career program good start
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From Production-oriented to Market-oriented extension
• Shift towards commercialization implies attention to:– market-oriented production planning– Input and output marketing support services
• Hence, commercial transformation requires expanded mandate of the extension service– aim is to support to rural households and their
enterprises to earn better income– Need to combine technology promotion and productivity
enhancement with market support
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Promoting Market Oriented extension • Raise awareness about the importance of MOE
and
• Build the capacity to provide MOE service
• Enhance understanding of front-line workers about market-oriented production, agricultural marketing and value chains
• Equip extension agents with tools and methods of market-oriented extension
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What is market-oriented extension?• Total effort of extension service to:– Advise and support farmers to plan and produce
profitable commodities using appropriate technologies and practices
– Build marketing capacity of producers
– Collect and communicate market-related information
– Identify profitable markets and buyers
– Link farmers to buyers
– Facilitate and support collective marketing
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Key Principles of market-oriented extension
• Business principle
• Commodity development approach
• Based on value chain framework
• Bottom-up and participatory
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Roles of the market-oriented extension agent
• Facilitator of identification of profitable commodities
• Promoter of agricultural technologies• Supporter and advisor of business plan
development• Facilitator of linkages with input
suppliers, credit providers, transporters, processors, and output buyers
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Role (2)
• Builder of marketing capacity• Collector, processor and disseminator of
market information• Repository of technical and market related
information• Facilitator and supporter of collective
marketing• Facilitator of market infrastructure
development and market service development
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Facilitating the supply of market information
• Market information:– All the information about the buying and selling of
agricultural products– More than just information on prices and quantities
• Market information service: – The function of collecting and processing market data
systematically and continuously, and of making it available to market participants in a form relevant to their decision-making.
• Market information becomes more important in distant markets and as market orientation of farmers increases
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Identifying market opportunities
• Fundamental considerations:– Current and future size of the market
– Current and predicted profitability of the market
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Types of market opportunities
• Exiting products, existing markets
• Existing products, new markets
• New products, existing market
• New products, new markets
• Niche marketing
• Organic marketing
• Diversifying export markets
• Brand promotion
• Encouraging local consumption
• Adding value
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Facilitating collective marketing• Common marketing problems faced by
smallholders– Low volume of supply and high per unit marketing
cost– Quality and standard problem– Storage problem– Transportation problem– Low marketing skills– Little prior contact with buyers– Low bargaining power– Inadequate market information
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Advantages of collective marketing
• Economies of scale• Maintaining product supply• Improving product quality• Maintain existing markets• Develop new markets
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Activities in collective marketing
• Identification of markets• Identification of quality attributes• Ensuring produce quality standards• Developing market infrastructure• Perform marketing functions
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Organizing farmers for collective marketing
• Formal collective marketing
• Informal collective marketing
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Key considerations to avoid collective marketing failure
• Right to supply
• Quality assurance
• Side-selling
• Profit sharing arrangements
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THANK YOU!