Business approach where customers' needs and wants are identified through market research before designing or offering a good or service
Financing: In almost any production system there are inevitable lags between investing in thenecessary raw materials (e.g. machinery, seeds, fertilizers, packaging, flavorings, stocks etc.)and receiving payment for the sale of produce. During these lag periods some individual orinstitution must finance the investment. The question of where the funding of the investment is tocome from, at all points between production and consumption, is one that marketing mustaddress.Grading : It is important to have a grading system, which accurately describes products in auniform and meaningful manner. Grades and standards contribute to operational and pricingefficiency by providing buyers and sellers with a system of communicating price and productinformation. By definition, commodities are indistinguishable from one another. However, thereare differences between grades and this has to be communicated to the market. By the samemeasure, buyers require a mechanism to signal which grades they are willing to purchase andat what premium or discount. Prices vary among the grades depending upon the relative supplyof and demand for each grade. Since the value of a commodity is directly by its grade, disputescan and do arise.Standardization: is concerned with the establishment and maintenance of uniform measurementsof produce quality and /or quantity. This function simplifies buying and selling as well as reducingmarketing costs by enabling buyers to specify precisely what they want and suppliers tocommunicate what they are able and willing to supply with respect to both quantity and qualityof product. In the absence of standard weights and measures trade either becomes moreexpensive to conduct or impossible altogetherProcessing: Most agriculture produce is not in a form suitable for direct delivery to the consumerwhen it is first harvested. Rather it needs to be changed in some way before it can be used. Ofcourse, processing is not the only way of adding value to a product. Storing products until suchtime as they are needed adds utility and therefore adds value. Similarly, transporting commoditiesto purchasing points convenient to the consumer adds value. In short, any action, which increasesthe utility of the good or service to prospective buyers, also adds value to that product or service.
Information technology should be able to provide answers to questions like what and how muchto produce, when to produce, in what form to sell, at what price to sell, when to sell and whereto sell. This kind of information to the farmers with ‘press a button’ on the computer on acontinuous updated basis. Then and only then, the much talked about IT revolution would bebeneficial to farmers.
No organization can sit still and expect things to be the same month after month, year after year.At some point, something will happen to change your assumptions. And almost every decision (especiallya strategic decision) is based on certain assumptions. Over time, these assumptions fall apart and if youfail to adjust with a continuous flow of new intelligence, then you will be forced to react in a way thatmakes it difficult to compete. Therefore, Market Intelligence can help test and validate your assumptions.Competitive intelligence also fills in gaps, covering areas that you failed to consider in your assumptions.And ofcourse, competitive intelligence can yield some basic benefits
Mass Media Support to Agricultural ExtensionOver the last few years mass media has seen a phenomenal growth in thecountry both in terms of reach and advance in technology. This medium has not beenexploited to its full potential for the purpose of agricultural extension. A concerted andwell-coordinated effort now needs to be made to use the electronic media in theExtension strategy by strengthening infrastructure facility, capacity building of theprogram producers and to increase quality and quantity of agriculture programs. Someof the major constraints perceived are as follows:Major Constraints Inadequate capacity building for program producers of Doordarshan and AllIndia Radio. Lack of dedicated TV channel for agriculture. Lack of convergence and sharing of resources of mass media and ICT attemptsin agriculture by public, private and NGO sectors. Absence of orientation in agriculture for program producers of private TVchannels.36 Lack of orientation in agriculture for professionals of print, ICT and traditionalmedia. Lack of digitization of real time information. Lack of expertise in content development for agricultural programs. Inadequate broadcasting and telecasting facilities to cover large number farmers Limited time available for agricultural programsStrategies Capacity building for program producers of Doordarshan and All India Radiohave to be strengthened. Expertise in content development may be developedbased on SREPs. Increased frequency of telecast of success stories of farmers Capacity building program for professionals of private TV channels and printmedia may be organized Community radio stations may be established in villages linking KVKs or othersuch institutions
Diversification triggered by the adequate market support. It onlyindicates the strong commercial sense of the farmers in marketing.
During last 50 years emphasis was given on
PRODUCTION-LED EXTENSION (PLE)
India become self reliant on food production.
But the farmers at individual level are not realizing
remunerative prices for their produce
They prone to sell their produce “AS IS WHERE” basis.
Globalization of the market demanded for paradigm shift
i.e. from production to market led production.
There are different changes took place at global level
which stress the need for opting market-led extension in
a large scale
Changed consumer preference
Revolution in ICT
New trade opportunities within and outside the country
To meet these
Farmers need to transform themselves from mere
producers-sellers in the domestic market to producers
cum sellers in a wider market.
To achieve this, The questions confronting the farmers are
What to produce ?
When to produce ?
How much to produce?
When and where to sell ?
At what price to sell?
In what form to sell?
NEED FOR EXTENSION
Conversion of P-L-E into M-L-E
Orientation of extension system with knowledge and skills
related to the market.
Minimization of production cost.
Introduction of export oriented product.
Modernization of wholesale markets or new markets with
new Agricultural policy.
Need of market led extension in India
90% of effort is Production oriented
Only 10% on Marketing/Post harvest phases
Single intervention that can enhance income by 20-
Farmer share in consumer price is 25-30%
source : Ministry of Agriculture, Government of India, 2001 ( Draft )
OBJECTIVES OF SEMINAR
• To understand the concept of Market-Led extension
• To understand the objectives of Market-Led extension.
• To study the evolution of Market-Led extension
• To review the case studies related to Market-Led extension.
Market led Extension is the market ward orientation
of agriculture through extension includes agriculture &
economics is the perfect blend for reaching at the door
steps of farming community with the help of appropriate
Identification of customer needs and wants before
offering a service
(Text book )Market-Led Extension-Dimensions and Tools 9
Need of crisis in extension
1. Knowledge input crisis
2. Efficacy crisis
3. Credibility crisis
4. Reorganization crisis
Superiority of latter over the former
ASPECTS PLE MLE
1. Purpose Transfer of Technology Optimum returns out of the
2. Expected results Adoption of POP High returns to investment
3. Famer viewed Producer Agripreneur
4. Focus Seed to Seed Rupee to Rupee
5. Linkages R-E-F R-E-F extended by market
6. Importance of Not important Important
Dimensions of market-led extension
Market oriented production
Use of Technology
MARKETING MIX FOR AGRICULTURE
MARKETING PLAN FOR AGRICULTURE
OBJECTIVES OF MARKET LED EXTENSION.
Conversion of Agriculture sector into profit oriented
Strengthening R-E-F linkages – between various
departments at various levels.
Strengthening market linkages to farmers – IT
application in Agricultural marketing.
Wider use of electronic mass media for Agricultural
Conversion of Agriculture sector into profit
Private trade is 80% marketed surplus
Direct marketing “farmer – consumer “ is negligible
Due to lack of proper handling at farm gate lead to 30 %
F&V, 7% grains, 10% spices loss before reaching market
Rs 50,000 crores /year lost due to poor marketing chain
source : Ministry of Agriculture, Government of India, 2001 ( Draft ) 16
F u n c t i o n o f MLE for converting Agriculture
sector into profit oriented business
Storage of farm produce
The process of collecting, interpreting, and
disseminating information relevant to marketing
decisions is known as market intelligence
Why we need MI in agriculture
Reduce the level of risk in decision-making
Seller finds out what the customer needs and wants
What products are right for the market
What will be the price
Need of IT application in Extension
Over 50% of farmers do not have access to extension
44% have some access.
22% has access through media
(Radio 13% and TV 9%).
Lack of information hinders transfer of technology.
Only 40% of the Indian farmers are reached by extension
Source: National Sample Survey Organization (NSSO) , 2005/7 20
Sources of marketing
Notice boards of APMCs
Websites for market information
2. NETVET informatio
4. Commodity India
10. e- CHOUPAL
11. Commodity Board
Required information to extension
system and farmers
Suitability of land to various crops/enterprises
Crops in demand in near future
Market prices of crops
Availability of inputs
Desired qualities of the products by consumers
Market price differences
Role of Electronic mass media in MLE
Capacity building through programs
Telecast of success stories of farmers
Capacity building program for professionals of private
TV channels and print media organize
Community radio stations in villages linking KVKs
Role of extension personnel in light of
1. Doing SWOT analysis.
2. Organization of Farmer Interest Group(FIG).
3. Enhancing the Capabilities of local established groups.
4. Enhancing the communication skills of farmers.
5. Establishing market linkages between farmers groups,
markets and processors.
Role of extension personnel in light of
6. Helping in production and marketing plan.
7. Educating farmers to establish agriculture as enterprise
8. Educating farmers about direct marketing
9. Capacity building of FIGs
10. Expose the farmers to acquire complete market
EVOLUTION OF CONCEPT OF
MARKET LED EXTENSION
EVOLUTION OF CONCEPT OF MARKET
The transition from Legiitimizer-led extension to
Market-Led extension is quiet eventful in the country
Legitimiser–led extension (before independence)
Focussed mainly on rural development
Some of the attempts include
Scheme of Rural reconstruction- Daniel Hamilton -
Sevagram attempt – Mahatma Gandhiji -
Shriniketan - Rabindranath Tagore -
Marthandam project - Spencer Hatch -
Etawah pilot project - Albert Mayor -
State-led extension (after independence)
Central and State governments took responsibility
Grow more food campaign................................... 1947
Community Development Programme.............. 1952
National Extension Service...................................
Intensive Agriculture Development Programme....1965
Intensive Agriculture Area Programme............... 1965
High Yielding Varieties Programme.......................
Drought Prone Area Programme......................... 1971
Broad based extension programme...................... 1991
Agriculture Technology Management Agency..... 2000
Farmer /Group-led extension
Reasons for emergence of location specific Group-led
Disenchantment with government officials dominance
Executive led institutional set up
Unsustainability of public fund
Executive led extension programme
Self Help Group
Farmer Field Schools
Started in Kerala in the year 1993
As an experiment by combining SHGs and market oriented
The GOI in collaboration with MANAGE Hyderabad as
successfully pilot tested MLE with ATMA in 7 states and 28
Some of the developments are
Rythu Bazaars (Rythara Santhe)
Case study I. Market-led Extension, an
Experience with Rubber board in India
The companies were importing rubber from other
countries due to high quality and low price
Local producers were in trouble
Factories was operating at low capacity utilization
Capacity was 40 tonnes/day
Were operating at 10 tonnes/day
KRISHNA KUMAR, A.K., 2004, Market-Led Extension-An experience with Rubber Board, Paper
Presented in work shop on Market-Led extension, MANAGE, Hyderabad, 1-21 December.2004 34
To tackle this situation,,,,,,,,,,,,,,
Established Rubber Producer Societies (RPS)
Linking gross root level organization like SHGs to
Trained the producers on producing high quality rubber
Created infrastructure facility.
Productivity increased Upto 40%
70% of rubber is processing now
20-30% increase in farmer income
Farmers realizing 90% of terminal market price
Case study 2. Market-led extension
strategies for promoting vegetable
cultivation in Uttarkhand
Low price for produce
Marketing was uncertain
The local government modified the extension strategy.
Provided information regarding marketing.
Trained farmers regarding marketing.
SHAILESH KUMAR., AND SHARMA, G., 2007, Market-Led Extension strategies for Promoting
Vegetable cultivation in Uttarkhand, Agricultural Extension Review 3(1&2):137-139 37
Case study 3.Market-led partnership -
FIGs and Chitoor Poultry Association.
Groundnut is the main crop in Chitoor
ATMA made diversification of the farmers into maize
Poultry association and FIGs were linked with buyback
ATMA conducted 22 awareness camps and 6 exposure
visits to Karnataka.
Poultry association provided 2 MT of poultry manure to
networked farmers free of cost.
CHARYULU, A.S., 2007, Private-Public relation in Market-Led extension: Case studies. Academic
Publication, National Institute of Agricultural Extension Management, Hyderabad 39
Area expanded to 1150 hectares from 60 hectares.
The average income from maize was raised to 20000 rupees
The focus of the extension functionaries need to
be extended beyond production. Farmers should be
sensitized on various aspects on quality, consumer’s
preference, market intelligence, processing and value
addition and other marketing information. This
would certainly promote and motivates farming
community towards profitable agriculture.
The world has changed..
So as We..
Then Why not ..
THANK YOU 42
A group of small and marginal farmers combined
together as a producer group in order to reduce the
production cost, better adoption of technology,
marketing of the produce
Nasik for Grapes
Nagpur for Mandarins
Kullu for Apple
SWOT of marketing
Strengths = Demand of products, High Marketability, Good priced
Weakness = Low demand products. Less marketability areas,
less priced markets.
Opportunities = Export opportunities, Appropriate time of selling
Threats = imports, Perishability of products
Increasing Farmers Income
90% of effort is Production oriented
Only 10% on Marketing/Post harvest
Single intervention that can enhance
income by 20-30%
source : Ministry of Agriculture, Government of India, 2001 ( Draft )