Home: Agricultural Economics: MARKETING AND TRADE
About marketing and trade
by Phumlani Mentani
“In the past, the big fish used to eat the small fish. Now things have changed: the fast fish eat the slow fish. They hatch and spread everywhere, in the North and in the South; in the East and in the West.”
Marketing Services
Access to markets/information, fair participation, retaining and repositioning into sustainable markets are one of the critical concerns of the marketing service division. To achieve this the overall purpose of this division is skewed towards the identification of market opportunities and risk through research, to disseminate such information through appropriate channels and making sure that it reaches the intended target groups and lastly to facilitate the uptake of the identified opportunities by individuals/groups in the agricultural value chain.
Market Risk (Market Intelligence and New Industries)
Market Intelligence
Very few emerging farmers participate in commercial markets due to lack of access to market information and understanding of how the market operates. The inability to access agricultural marketing information has denied most emerging farmers the opportunity to effectively plan and market their produce. Furthermore lack of access to market information is one of the contributing factors to the slow development of market opportunities. As a result a majority of emerging farmers are still trapped in vicious cycle of poverty charecterised by low economic returns.
To curb the above challenges, the Vegetable Market Information Reports (in the form of pamphlets) and Vegetable Market Price Analysis Report are released as usable quarterly outputs. Specifically, market information provides information on issues that affect and/or determine the marketing of vegetable which may include the following:
- marketing channels
- marketing requirements
- price formation
- packaging and packing requirements
- sending warning systems on seasonal price trends
In further addressing the lack of agricultural market information, the division also coordinates the implementation of the National Department of Agriculture (DoA): integrated agricultural marketing system (MIS) project at provincial level. The system is intended to provide information to farmers, particularly the beneficiaries of agrarian reform programmes to enable them to plan their production and marketing activities on an informed basis. For more information the system can be accessible via the internet at www.agis.agric.za/mis/.
The division is also involved in a joint rural food price monitoring project with the National Agricultural Marketing Council (NAMC), Statistics SA, National Department of Agriculture (DoA): Directorate Marketing and other Provincial Departments of Agriculture. The main purpose of the food price monitoring is to monitor the prices of specific food items in rural and urban areas throughout the country on monthly basis. The published food price trends and the food cost review can be accessed from the National Agricultural Marketing Council website.
http://www.namc.co.za/pages/published.htm.
For specific information on the above services, enquiries can be directed to:
Mr. Modise Moloi
modisem@elsenburg.com
Tel: +27(0)21- 808 5206
Fax: +27(0)21- 808 5210
Cell: +27(0)-836432656
New industries
The search for new sources of energy independence has led to growing support for the new industries, in particular biofuels. Particularly for the Western Cape, biofuels represent a new market opportunity. On the other hand, large-scale production will undoubtedly have major environmental impacts, not to mention the potential impact on food supplies and prices. The division is also in support of the developing new industries (currently biofuels) for the importance of the developing initiatives in the Western Cape.
More details may be directed to the
Director: Dr Dirk Troskie
Email:dirkt@wcape.agric.za
Tel: +27-(0)21-8085190/ Official Cell: +27-(0)82 658 6018
Fax: +27-(0)21-8085210
Agribusiness Linkages
The access to sustainable input and output markets has been one of the debatable facets that need speedy interventions. Besides market information related problems, lack of access to markets can also be attributed to a lack of inability of the emerging farmers to pursue marketing activities (marketing skills) that could link them with the market. These marketing skills are pivotal aspects during contract development processes and can also influence the level in which the emerging farmers participate in the market.
To provide the relevant services the marketing division focuses on a twofold approach that aims at facilitating the mainstreaming of the productive LRAD projects and non LRAD into the modern food markets.
The processes of linking the farmers with the markets are being facilitated through contract development and amongst them include the following:
- Searching for the contracting parties
- facilitation of contract negotiations
- Coordinating the group projects to meet the required quality and quantity requirements
- Facilitating the enforcement of contract
- And monitor the relationship between the parties.
In pursuit of these activities the division has established a working relationship with the ECI-Africa by reaching a memorandum of agreement (MOA) to enhance the success of Agribusiness linkages. It is envisaged that this joint efforts will double the number of success stories that could have been achieved in its absence.
For specific information, enquiries can be directed to:
Mr Zibzibelen@elsenburg.com
Tel: +27(0)21- 808 5208
Fax: +27 (0)21- 808 5210
Official Cell: +27-(0)82 907 3396
Agricultural governance structures
Limiting the challenges of emerging farmers to access the markets can be done in a number of ways, ranging from improving market intelligence, coordination of the market actors to improving the efficiency of the supplier organisations that have been chosen as a tool to access the market.
Efforts to mobilise the underprivileged farmers especially the primary producers, in furthering their interests through collective action approach can progress only if there is a clear understanding of the nature, potential scope and possible success factors for the farmer organisations, in particular agricultural cooperatives.
To implement these services the division provides advice on the following areas:
- Promotion of farmer organisations
- Formation of agricultural cooperatives and other similar farmer organisations
- Organisational structures
- Dynamics on the systems of governance
- Management activities
- And other farm model related matters
With regard the institutional environment that creates, support and guides the efforts on agricultural entrepreneurial development, the division also contributes to the national and provincial cooperative related strategies that aim at promoting a variety of viable and sustainable agricultural enterprises.
For specific information, enquiries can be directed to:
Mr Phumlani Sphiwo Mentani
Email: phumlanim@elsenburg.com
Tel: +27 (0)21- 808 773
Fax: +27 (0)21- 808 5210
Official Cell: +27-(0)82 6796 417
Products Differentiation and Niche Products of the Western Cape
The food consumption trend towards more diverse products with a strong cultural value is creating more opportunities for the emerging producers to move away from low value agricultural production into niche markets. The inability of the emerging farmers to identify niche markets and also to differentiate their products in the markets has been one element that kept them out of the competitive markets.
To come into terms with these challenges the marketing division promotes the recognition and the marketing of the agro-food products that are rooted in the use of the local resources (e.g. Honeybush tea, Karoo lamb, Rooibos tea, Boer goat, ostrich products etc.), in particular through the use of geographical indication system (GIs).
For more information on the Geographical Indication you may contact the:
Director: Dr Dirk Troskie
Email:dirkt@wcape.agric.za
Tel: +27-(0)21-8085190
Fax: +27-(0)21-8085210
Official Cell: +27-(0)82 658 6018
Phumlani Sphiwo Mentani
Email:phumlanim@elsenburg.com
Tel: +27-(0)21-8087733
Fax: +27-(0)21-8085210
Official Cell: +27-(0)83 6796417
Enquiries about Niche products can be directed to the:
Acting Programme Director: Mrs B Matoti
Email:bongiswam@elsenburg.com
Tel: +27-(0)21-8085213
Fax: +27-(0)21-8085210
Official Cell: +27(0)829028626
Current projects
- Vegetable market Analysis for emerging vegetable producers in the Western Cape
- Integrating resource poor farmers into agrivalue chains
- The development of the emerging agricultural cooperatives in the Western Cape
- Evaluating different farming models in the Western Cape
