Fourth International Fourth International Conference on Agricultural Conference on Agricultural Statistics Statistics (ICAS – 4): Advancing (ICAS – 4): Advancing Statistical Integration and Statistical Integration and Analysis (ASIA) Analysis (ASIA) Agricultural Statistics: The Sri Agricultural Statistics: The Sri Lankan Experiences of Developing Lankan Experiences of Developing Agricultural Marketing Agricultural Marketing Information Service for Small Information Service for Small Farmers Farmers
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Fourth International Conference on Agricultural Statistics (ICAS – 4): Advancing Statistical Integration and Analysis (ASIA) Agricultural Statistics: The.
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Fourth International Fourth International Conference on Agricultural Conference on Agricultural
Statistical Integration and Statistical Integration and Analysis (ASIA)Analysis (ASIA)
Agricultural Statistics: The Sri Agricultural Statistics: The Sri Lankan Experiences of Developing Lankan Experiences of Developing Agricultural Marketing Information Agricultural Marketing Information
Service for Small FarmersService for Small Farmers
Agricultural Statistics: The Sri Agricultural Statistics: The Sri Lankan Experiences of Developing Lankan Experiences of Developing Agricultural Marketing Information Agricultural Marketing Information
Service for Small FarmersService for Small Farmers
T.A.DharmaratneT.A.Dharmaratne
Research Fellow Research Fellow
Agrarian Research and Training Institute Agrarian Research and Training Institute
**Sri Lanka is an Island which content of 65,00 s.k.Sri Lanka is an Island which content of 65,00 s.k.
*The total population of the county is 20 million*The total population of the county is 20 million
*The per capita income of the country is 1100 US $*The per capita income of the country is 1100 US $
*GDP contribution of agriculture is 18 percent*GDP contribution of agriculture is 18 percent
What is marketing information system? The What is marketing information system? The FAOFAO[1][1] definition is as follows. definition is as follows.
““A service, usually operated by the public sector, which A service, usually operated by the public sector, which involves the collection on a regular basis of involves the collection on a regular basis of information on prices and, in some case, quantities of information on prices and, in some case, quantities of widely traded agricultural products from rural widely traded agricultural products from rural assembly markets, wholesale and retail markets, as assembly markets, wholesale and retail markets, as appropriate, and dissemination of this information on a appropriate, and dissemination of this information on a timely and regular basis through various media to timely and regular basis through various media to farmers, traders, government officials, policy makers farmers, traders, government officials, policy makers and others, including consumers”and others, including consumers”..
[1][1] Market Information Services: Theory and Practice, by Andrew W. Shepherd, FAO Market Information Services: Theory and Practice, by Andrew W. Shepherd, FAO Agricultural services Bulletin 125, 1997, Rome Agricultural services Bulletin 125, 1997, Rome
Moreover, as Moreover, as Kotler'sKotler's[2][2] definition says, a marketing information system is more definition says, a marketing information system is more than a system of data collection or a set of information technologies: than a system of data collection or a set of information technologies:
"A marketing information system is a continuing "A marketing information system is a continuing and interacting structure of people, equipment and interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate, and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate and distribute pertinent, timely and accurate information for use by marketing decision makers information for use by marketing decision makers to improve their marketing planning, to improve their marketing planning, implementation, and control".implementation, and control".
[2][2] Kotler, P., (1988) Kotler, P., (1988) Marketing Management: AnalysisMarketing Management: Analysis Planning and Control, Prentice-Hall p. Planning and Control, Prentice-Hall p.
102102..
Sri Lanka is essentially an agrarian Sri Lanka is essentially an agrarian economy as society and basically economy as society and basically depends on agricultural production. It is depends on agricultural production. It is therefore; essentially that the therefore; essentially that the "Agricultural Information" thrust "Agricultural Information" thrust should lay grater emphasis on the should lay grater emphasis on the transfer of production and marketing transfer of production and marketing information from the relevant information from the relevant institutions to its actual users.institutions to its actual users.
HARTI
Ministry of Agriculture
Government
Television, Radio and other Electronic Media
News Papers and Printed Media
Private Market
Food Security Committee
Cabinet Ministers of the Government
Farmers
The President Policy Makers in the Government
Benefits from that agricultural marketing information Benefits from that agricultural marketing information system should includesystem should include..
A) Improved bargaining position for farmers, exporters and other agribusinesses A) Improved bargaining position for farmers, exporters and other agribusinesses that become well informed of current prices and market conditions.that become well informed of current prices and market conditions.
(B) Competitive pressures among traders should bid-up farm gate prices.(B) Competitive pressures among traders should bid-up farm gate prices.
(C) More orderly marketing of commodities should lessen surpluses, which (C) More orderly marketing of commodities should lessen surpluses, which contribute to Post harvest losses.contribute to Post harvest losses.
(D) Better balance of supply and demand between deficit and surplus locations and (D) Better balance of supply and demand between deficit and surplus locations and in-and off-season marketing periods.in-and off-season marketing periods.
(E) Improved recognition of profitable sales there by providing timely incentives (E) Improved recognition of profitable sales there by providing timely incentives and alteration to supplies conditions.and alteration to supplies conditions.
Market Information SystemMarket Information System
Table 14: Farmgate Prices of Food Commodities in Selected Producing areas (Rs/Kg)
Week 34: 17 - 23 August 2007
Monthly Food Information Bulletin Vol.1 January 2007 No.01
Marketing Food Policy and Agribusiness Division Hector Kobbekaduwa Agrarian Research and Training Institute
114, Wijerama Mawatha, Colombo 07.
Imported Quantity & CIF Price of Potato
0
10000
20000
30000
40000
November December January
Month
Qu
an
tity
(M
t)
23
24
25
26
27
28
CIF
Pri
ce
(Rs/k
g)
Quantity (Mt.) CIF price (Rs/kg)
Highlights Estimated paddy production of maha 2006/07 has declined by 8.71% compared to the actual paddy production of previous maha. The highest decline of paddy cultivation was noted for rain fed farming (14%) followed by major irrigation (7%). The highest price increase of paddy (18%) was reported in Embilipitiya and Hambantota. The extent of potato cultivation has decreased in Nuwara Eliya while that of Badulla has increased. Expected production of vegetables from Nuwara Eliya would be low in coming months. The extent of maize cultivation in maha 2006/2007 was exceeded 40,000ha and this was recorded the highest extent in the recent past.
Oct 41.09 38.77 31.08 33.20 30.02 31.47 28.79 29.66
Nov 42.65 39.31 32.82 34.93 30.60 34.12 30.09 31.62
Dec 44.43 40.78 36.30 37.83 31.94 36.30 31.92 34.10
Retail price of Rice at Colombo & Suburbs Market (Rs/kg)
Samba 2
28.00
33.00
38.00
43.00
48.00
53.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2005 2006 2007
Nadu 1
20.00
25.00
30.00
35.00
40.00
45.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2005 2006 2007
Raw Red
20.00
25.00
30.00
35.00
40.00
45.00
2005 2006 2007
Raw White
16.00
21.00
26.00
31.00
36.00
41.00
2005 2006 2007
ConclusionConclusion
There are major obstacles to improving “agricultural There are major obstacles to improving “agricultural marketing statistics”, but also many opportunities. The main marketing statistics”, but also many opportunities. The main
massage is perhaps a questioning of whether the right massage is perhaps a questioning of whether the right balance of strategies has been found for “agricultural balance of strategies has been found for “agricultural
Marketing information systems”. In developing countries Marketing information systems”. In developing countries agricultural decisions are taken by the small farmers based on agricultural decisions are taken by the small farmers based on the local level market information. This is in spite of the fact the local level market information. This is in spite of the fact
that in the process of economic liberalization and that in the process of economic liberalization and globalizations, agricultural markets in many countries have globalizations, agricultural markets in many countries have
been linked, integrated and influenced by the global market. been linked, integrated and influenced by the global market. Thus, empirical evidences show that the individual farmer Thus, empirical evidences show that the individual farmer
decisions are not helpful in managing their economic decisions are not helpful in managing their economic efficiency and profitability without information on production efficiency and profitability without information on production
and marketing in their own countries as well as of the and marketing in their own countries as well as of the international market. To be effective individual farmers in a international market. To be effective individual farmers in a
small developing country like Sri Lanka should not take small developing country like Sri Lanka should not take decisions regarding production and marketing without decisions regarding production and marketing without
considering the situation in the international market like the considering the situation in the international market like the cost of production, supply trends, international prices etc to cost of production, supply trends, international prices etc to
Free imports and exports are prime policy instrument and strategy for the development of agricultural markets in liberalized economies that we found in almost all countries. Therefore, farmers can not take any decisions on “what to
produce, how to produce, where to produce and when to produce without sufficient information. Due to lack of information farmers will not be in a position to plan their production in line with market demand and schedule
their harvest so that they have the price advantage in providing produce to the market at off-peak times, unable to decide to which niche markets they should cater their produce and have the bargaining power to negotiate on a more even
footing with traders. Sri Lanka experiences confirm the situation of this asymmetry of marketing information that hinders their ability to change from
subsistence orientation to market orientation
Sri Lanka is a unique country that the cost of production in Sri Lanka is a unique country that the cost of production in most of agricultural commodities is higher than many other most of agricultural commodities is higher than many other countries in the South Asia as well as in some of countries in countries in the South Asia as well as in some of countries in East Asia. When compared to the cost of the production of East Asia. When compared to the cost of the production of Indian farmers, Sri Lanka farmers spent twice or more for Indian farmers, Sri Lanka farmers spent twice or more for
cultivation of potatoes, rice, chilies onions and some variety of cultivation of potatoes, rice, chilies onions and some variety of pluses. In comparing production cost, this holds for many pluses. In comparing production cost, this holds for many
other countries in the region. It is important to note that the other countries in the region. It is important to note that the Sri Lanka has already been entirely liberalized and allow free Sri Lanka has already been entirely liberalized and allow free imports and exports of agricultural commodities. Therefore, it imports and exports of agricultural commodities. Therefore, it is imperative that Sri Lanka farmers should have fuller access is imperative that Sri Lanka farmers should have fuller access basic agricultural marketing information at the regional as well basic agricultural marketing information at the regional as well
as global level. Without such information they cannot make as global level. Without such information they cannot make correct decisions on what to produce, how to produce, when correct decisions on what to produce, how to produce, when and where to produce. It is understood that the marketing and where to produce. It is understood that the marketing
information are not only few of “prices and production date” information are not only few of “prices and production date” but it has many facets. but it has many facets.
Thus Sri Lanka should have a marketing information system Thus Sri Lanka should have a marketing information system including “agricultural statistics.” Such an “agricultural including “agricultural statistics.” Such an “agricultural
statistics” system, marketing information should cater for the statistics” system, marketing information should cater for the need for international comparison of cost of production, prices need for international comparison of cost of production, prices
by crop, and timing of availability, demand etc. Such by crop, and timing of availability, demand etc. Such information should be available widely and shared by information should be available widely and shared by
partnering countries to benefit equally and reach common partnering countries to benefit equally and reach common development objectives. Therefore, researchers, statisticians, development objectives. Therefore, researchers, statisticians, academicians and policy makers have to play a major role in academicians and policy makers have to play a major role in
creation and dissemination of market information. In this light, creation and dissemination of market information. In this light, one would recommend rethinking and restructuring of one would recommend rethinking and restructuring of agricultural marketing information systems which are agricultural marketing information systems which are applicable for economic and agricultural globalization.applicable for economic and agricultural globalization.