Creating the agricultural advertising and marketing sector | Print Version

Agricultural coverage formulation

Sri Lanka has a number of coverage paperwork largely duplicated one into one other because of formulation of a brand new coverage with out reviewing the prevailing coverage. There have been circumstances the place new coverage paperwork had been ready when the Minister modified even in the identical authorities. The error has been recognized by the current authorities and planning to organize a steady coverage doc after an indepth evaluation of the prevailing insurance policies (Vistas of Prosperity and Splendour, 2019). Additionally it is very uncommon to organize a purposeful plan to implement the methods given within the coverage paperwork. There have been few purposeful plans however no monitoring. It’s a undeniable fact that no plan and no monitoring means no progress. Regional expertise exhibits international locations have effectively planning and monitoring techniques. India is now implementing the thirteenth financial growth plan whereas Malaysia is working the twelfth financial plan after independence. In different international locations, the planning course of begins effectively prematurely and all of the stakeholders are concerned in planning. Furthermore, annual monitoring takes place and progress reviews are submitted to the parliament yearly. A brand new plan is ready each 5 years. The Nationwide Planning Division (NPD) is chargeable for making ready and monitoring of financial plans that features agriculture. There must be a purposeful plan explaining actions, accountable companies and time-frame to understand the plan. Equally, there must be a sound monitoring system. Both the NPD or the proposed Planning and Implementation Fee ought to instantly come beneath the President as envisaged within the Vistas of Prosperity and Splendour. It may be a accountable company for planning, implementing and monitoring of agricultural advertising and marketing insurance policies.

Market-led manufacturing planning

Though the necessity of commercialisation of agriculture was proposed in a number of coverage paperwork, the achievements are unsatisfactory. On this regard, agriculture must be transferred to agribusiness and farmers into agro-entrepreneurs to go well with with the aggressive financial surroundings. Equally, the manufacturing oriented extension system must be transferred to the market oriented extension system. Extension service ought to be capable to information what to develop, when to develop, the right way to develop, when to promote, the right way to promote and at what value.

The marketing-pull strategy is revolutionary as towards marketing-push strategy that means producing a product after which pushing it to the buyer. For the marketing-pull strategy, there must be a market-led manufacturing plan monitored by Agrarian Service centres (ASCs). ASCs must be upgraded as enterprise growth centres. Agricultural graduates must be absorbed to the extension service and duty must be given to them to develop agriculture within the designated space. Month-to-month requirement of manufacturing of every commodity might be estimated by taking knowledge on per capita consumption and inhabitants from the Division of Census and Statistics. Month-to-month extent required to supply the amount might be computed with common yield of every crop. Having recognized the required extent it may be allotted for every ASC contemplating agronomic elements akin to soil and local weather. ASCs ought to monitor the manufacturing plan and report back to the divisional agricultural committee chaired by the Divisional Secretory who’s accountable to report back to the District Secretary. From there, info must be handed to both the NPD or proposed fee at nationwide stage. Below this course of it doesn’t want to attend to take actions till the media raises the advertising and marketing issues.

Agricultural worth chain upgrading

The present agricultural worth chain is lengthy and fragmented and has no transparency. Merchants disguise their margins. Each participant within the chain should know others transactions. A well-functioning worth chain requires enterprise belief and collaboration of every participant within the chain. The proposed mechanism to rectify this case is a public-private partnership (PPP). Though it has been widespread now and applied in Sri Lanka just lately the German Improvement Institute (GDI) advised the PPP strategy for efficient agribusiness in Sri Lanka in 2006. Though the PPP strategy is being applied in Sri Lanka its success is uncertain primarily because of the absence of a clear info movement. Therefore it’s proposed to implement a clear info movement on amount, high quality and value to determine enterprise belief amongst gamers particularly farmers. There must be an efficient and environment friendly agro worth chains to scale back price, to supply worth added merchandise, handy merchandise and exportable merchandise.

Sustainable farmer collective motion (formal)

Though farmer organisations have being applied because the Nineteen Eighties in several varieties akin to farmer organisations, producer teams, farmer cooperatives and farmer corporations primarily by way of donor help and concerned in several companies akin to Division of Agriculture, Deparment of Irrigation, Division of Agrarian Improvement, Division of Cooperatives and Mahaweli Improvement Authority their sustainability is questionable. Collective farmer actions both formal or casual are wanted to unravel advertising and marketing issues confronted by farmers and enhance their livelihoods. Success tales particularly in Central America and Mexico present the necessity for presidency help frequently as a result of there’s a very long time lag (seven years in some circumstances) to self-sustain farmer organisations. Additionally the expertise in Japan and Korea pointed to the necessity of vertical integration for efficient farmer organisations. Success tales of producer corporations established since 2002 by amending the Corporations Act 1956 in India reveal that dedication of each members and employees is the foremost success issue adopted by participation, communication and managerial expertise. Small Farmers’ Agribusiness Consortium (SFAC) established in 1994 by the Ministry of Agriculture acts as facilitating company for formulating producer corporations and farmer producer teams in India. Contemplating all these features, it’s proposed to offer full authority to the Division of Agrarian Improvement to create, develop and maintain farmer organisations as a result of it has a community required for this job and authorized authority. It’s needed to determine a farmer-driven worth chain that’s succesful to compete with current purchaser pushed worth chains. Poor management, lack of entrepreneurship expertise and political affect have been recognized because the poor efficiency of farmer organisations in Sri Lanka and corrective actions have been already made to coach farmer organisations on entrepreneurship. Proof exhibits that coaching is insufficient and steady authorities help is required to maintain farmer organisations.

Sustainable farmer collective motion (casual)

Along with formal collective actions, casual collective actions must be promoted as a result of they’re extra profitable in Sri Lanka and Central America. The lead farmer- enterprise mannequin applied by supermarkets in Central America is profitable because of low price to the grocery store. On this mannequin, supermarkets have hyperlinks with the lead farmer who’s accountable to offer required amount with assured high quality. The lead farmer has a community with different farmers. In Sri Lanka, the Cargills’ enterprise mannequin has registered farmers with out written settlement and it’s functioning effectively primarily because of sturdy enterprise belief established by Cargills by paying increased costs, offering expertise and credit score amenities. Sri Lankan supermarkets can apply the lead farmer-business mannequin.

Authorities procurement system

Though open financial insurance policies are dominant as we speak all of the international locations within the area have state organisations akin to Nationwide Meals Authority (NFA) within the Philippines, BULOCK in Indonesia, FAMA in Malaysia and NAFED in India concerned in agricultural advertising and marketing. In Sri Lanka, Paddy Advertising and marketing Board (PMB) exists for buying of farm merchandise. All these organisations had been established throughout the closed financial interval and proceed upto now even at a loss. It has been confirmed that the personal sector isn’t working agricultural advertising and marketing techniques successfully primarily because of lack of curiosity and excessive price. Additionally it is argued that existence of presidency organisations have a huge impact on agricultural advertising and marketing as a result of it provides a sign of “authorities readiness” to the personal businessmen. Nonetheless, the sustainable procurement system (SPS) is being practiced in lots of international locations so as to minimise their antagonistic affect on the Treasury on one hand and to enhance meals safety, employment and livelihoods however. Denmark and Sweden launched the inexperienced procurement system (GPS) to advertise inexperienced merchandise. African international locations akin to Malawi and Ethiopia present faculty feeding programmes by way of authorities procurement. Public distribution system in India hyperlinks with public procurement. Thailand has a system of offering necessities to authorities institutes akin to hospitals and safety forces by way of authorities procurement. Equally, the federal government procurement system is now working in collaboration with small and medium enterprises (SMEs). Primarily based on these success tales the federal government procurement system in Sri Lanka must be revised to keep up SPS. Farmer organisations can function as gathering centres of the PMB and medium and small mills can course of paddy into rice. PMB can distribute rice to the federal government companies at a value on par with the open market. Additionally it is essential to revise the PMB laws to allow it to obtain different merchandise particularly natural merchandise. PMB might be renamed as Meals Advertising and marketing Authority (FMA).

Agro-product labelling

Since Sri Lanka has reached the high- center revenue nation standing shoppers favor to buy protected, nutritious, comfort agro-products. On this backdrop, product labelling might be promoted as revolutionary advertising and marketing technique to extend demand for agro-products. It’s an revolutionary in addition to aggressive advertising and marketing technique used to distinguish the product from rivals. Modern agro-entrepreneurs within the nation akin to some rice millers, meals processors and dairy producers utilized labelling and they’re extremely profitable because of rising brand-loyal prospects. In Sri Lanka, labelling isn’t widespread in international agro-food worth chain besides tea as a result of the nation primarily exports unfinished merchandise. It might be price making use of in cinnamon exports as a result of Sri Lanka is the primary producer contributing round 70 p.c of the world manufacturing. Additionally it is potential to undertake labelling Sri Lankan spices because of historic recognition within the international market. High quality is a prerequisite for labelling as a result of quality- acutely aware shoppers create demand for packed/labelled merchandise. Promotion of labelling for export is proposed within the Vistas Prosperity and Splendour coverage doc.

Promotion of agro-entrepreneurship

Since Sri Lanka is in need of agricultural entrepreneurs, worth addition and competiveness have been main points for many years. The affect of that is extreme when it comes to assembly home demand and promotion of exports. International worth added index and aggressive index ranks Sri Lanka beneath India, Malaysia, Philippines and Thailand and simply above the Bangladesh. Many international locations akin to India and Indonesia established enterprise incubation centres to advertise agricultural entrepreneurship. Some agricultural schools akin to Rajarata College have technological incubation centres. These centres must be targeted on manufacturing of agro-entrepreneurs as effectively.

Direct advertising and marketing

Conventional commodity advertising and marketing channels don’t present enough returns for farmers to keep up viable likelihoods. Direct advertising and marketing to shoppers permits farmers to acquire a better share of client value. Nevertheless, this chance isn’t but tapped by many farmers regardless of being potential shoppers throughout the group. Below the group supported agriculture (CSA) system practiced in lots of international locations, farmers instantly promote merchandise to the group. Farmers’ markets, agro-tourism and digital markets are extensively utilizing direct advertising and marketing instruments as we speak on the planet.

Digitalisation of financial centres

Many of the agricultural merchandise are distributed by way of financial centres. Operational effectivity of financial centres which is the important thing within the fashionable advertising and marketing might be improved by introducing an digital advertising and marketing system much like India. In India, farmer’s merchandise are weighted electronically, public sale is held on-line and merchandise are transported by the organised transporters. All regulated agricultural markets in India have on-line wholesale enterprise.

Transportation of agro-products by way of railway

The worth chain evaluation exhibits excessive transport price in agricultural product distribution. This may be decreased by way of rail transport which is in operation efficiently in India. Transport price was in a position to cut back by one-third with rail transport in India. In Sri Lanka flower and vegetable transportation takes place on a person foundation on a small scale utilizing railway. Transportation of agricultural commodity by way of railway is without doubt one of the proposals given within the Vistas of Prosperity and Splendour coverage doc as effectively. As a pilot, this may be applied from Jaffna to Colombo.

Components for assured value

Decline in agricultural commodity costs throughout the harvest time is a essential difficulty in each developed and creating international locations. Introduction of a assured value is one mechanism utilized in lots of international locations together with Sri Lanka. Nevertheless, setting a assured value is on an advert hoc foundation in Sri Lanka. There isn’t any value system and no particular time interval for asserting it. It’s proposed to undertake a system that’s money price plus added enter price to the household labour and 50 p.c revenue which is analogous to India.

(The author is a Senior Lecturer, Division of Agricultural Programs, School of Agriculture, Rajarata College of Sri Lanka. He might be reached at [email protected])