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Marketing of Agriculture inputs
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Consumable inputs
1. Plant food ( manures and fertilizers)
2. Soil amendments ( calcium and gypsum)
3. Agro chemicals for plant protection ( pests anddiseases)
4. Seeds ( high yielding, hybrid , and improved varieties)5. For power generation (diesel, oils, petrol and
electricity)
6. Feed ( cattle, poultry)
7. Veterinary medicines
8. Simple hand held farm tols ( pavadas, sickles )
9. Packing material ( gunnies, rope , twine)
10. Others ( bamboo articles like baskets , etc)
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Durable inputs
1. Farm implements ( tractors, harvesters , powertillers)
2. Irrigation equipments (motors, pump sets,sprinklers)
3. Construction materials ( cement, bricks, zinc /asbestos for roofing)
4. Transportation equipments ( bullock carts,tractors, trailers, mini trucks)
5. Farm animals ( bullocks , cows , poultry,sheep)
6. Others ( tires)
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Characteristics of agro inputs
Product User Use
1. Consumable
/capital input2. High/low value
3. High/Low
volume
4. High / low cost5. Mgf/ locally
produced
6. High / Low
shelf life
1. Planters and
big farmers2. General
farmers
3. Dealers
1. Irrigated / dry /
rainfed farms2. Cash/ food
crops
3. Progressive /
traditional
farmers
4. Market
oriented /
subsistence
farming
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Fertilizer Market
Consumption depends upon
Profitability of farming
Availability of irrigation facilities Introduction of technology
Availability of fertilizers
Prices of fertilizers
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Product1. No maneuverability is possible
2. Supply N, P, K
3. Under ECA , FCO fertilizers have to be marketed onlyby generic name & not by any trade or brand name
4. Manufacturer's add their companys name to generic
name eg Mangala Urea ( MangaloreC
hemicals &fertilizer ltd) , SPIC ( Southern PetrochemicalIndustries corp)
5. Also use symbol or a logo
6. Mention specifications on packaging
7. Some manufactures granulate fertilizer created withneem which release nutrients slowly for a long lastingaction
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Price
1. Till recently under control of government including margins to
channel members2. At best companys may offer volume discount or off season
discounts to their dealers
3. With progressive decontrol prices have shot up almost doubled in
case ofDAP. Government had to provide subsidy to he farmers to
satisfy them.
Distribution
1. Under ECA and FCO government empowered to allocate
territories and allocate quantum
2. Traditionally cooperatives & agro industries corporation played a
significant role but with progressive decontrol private trade has alotaken to fertilizer distribution in a big way due to attractive margins
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Promotion
1. Interpersonal and group contact
House to house
Small farmers groups
Training programs
2. Mass media
Vernacular press
Literature- pamphlets , folders
Radio esp after krishi darshan
Visual hoarding
Posters Panel painting on bullock carts
Participation in fairs , exhibitions
AV vans
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SWOT analysis of Fertiliser Market
Strengths
1. Better irrigation facilities
2. Growing population
3. Use at nascent stages
Weakness
1. Controlled market
2. Huge subsidies
3. Increase in raw materialused for production
Opportunities
1. 85% consumption from
200 districts only
2. Research on dry land
farmings
Threats
1. Bio- fertilisers
2. Organic farming
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Agrochemicals
Product
1. Formulators free to manufacture and market any combination or
concentration of insecticides & pesticides from basic chemicals
2. Free to give any trade or brand name
3. Require applicators IFFCO provides them for free
Price
1. Not controlled by government
2. Reputation counts while setting the prices Rallis , Bayer , Ciba
3. Government subsidies given in case of serious pest or disease
attack
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Place
1. Definite shelf life
2. Low volume high value chemicals have to be made
available at the time of pest disease attack.small no of
formulatos who cater local need supply the product in
time
3. The very characteristic of product do not require
elaborate distribution network. 80000 retailers
4. Dust form applied in large quantities max 5o kgs
pack, liquid form dilution with water- max size 5
litres.
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Agrochemicals
Strengths
1. Competitive cost of production of raw material
2. Key producers have direct access via distribution to the market.
3. Process of consolidation of Indian manufacturers already
commenced under global impact
Weakness
1. Likely restrictions on use of Organo Phosphorus Esters onspecific crops / indications in certain developed countries mayadversely affect the demand for this sector thereby loweringcapacity utilisation.
2. Toxic to human beings
3. DDT already banned
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Opportunities
1. Huge potential in Indian Market exists as the per capita agrochemicals
consumption in India is much lower than the World average.2. International companies could use India as production base for domestic
market and outsourcing, provided proper IPR regime is in place.
3. It is also possible to employ resources to focus on investment in basic
research and development programmes to discover new molecules, safer
formulations and processes.
4. Harmonisation of regulatory processes, especially registration, will
reduce the risk of investment for both Indian companies and MNCs.
5. Value sharing by the Indian producers in the area of raw materials,
manufacturing, distribution and entering into collaboration arrangements
with MNCs could be of mutual advantage.
6. Potential for use of Biotechnology in the manufacture of agrochemicalscan lead to tapping the growing global market for Bio-pesticides.
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Threats
1. Large capacity for Organo Phosphorous compound are being set
up in China; with economies of scale pushing domestic prices
downwards.
2. Weak registration laws for new products will adversely affect bothIndian producers and MNC producers in India due to imports of
these products from China as an alternate source.
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Seeds
Traditionally seeds market was in the hand of government and
responsibility of evolving new variety of seeds rested with the
government agencies like agriculture state universities and
agriculture research stations
MNCs like Monsanto, Pet Seeds of USA, ITC, Pioneer havechanged the scenario from self sufficiency to exports.
LPG policies also give importance to the food processing industries
eg Pepsi
Many cos like ITC, Reitzel India engaged the business of
cultivation, processing and sales of vegetables and fruits ordomestic as well as exports.
Latest addition is he genetically modified seeds
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Cattle , Poultry and Aqua seeds
The farmers who have taken dairy and poultry
farming have to necessarily purchase seeds
from organized manufacturer because it takes
care of balanced nutrition Aqua farms for breeding & harvesting shrimps
are catching fast in the country due to export
opportunities.
Such animal based activities also create a
demand for veterinary medicines.
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Tractors and Power tillers
The determinants in tractor purchase decision include
1. Area of land holding
2. Nature of land holding
3. Types of crops grown and number of crops grown in ayear
4. Availability of loan facilities
5. Possibility of hiring out the services of the tractor to
others6. Requirement of tractor for transport of produce to
market and inputs to farms
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From marketing point of view
1. Loan availability from banks
2. Personal selling
3. trouble free services- relatively few
breakdowns4. Availability of spares, for easy repairs
5. After sales service
6. Resale value of tractors
7. Training on how to use tractors
8. Fuel efficiency
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Marketing of agricultural
Produce
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Characteristics of agriculture
Produce
Bulkiness
Perishability
Wide variety differences Dispersed production
Processing needs for consumption
Seasonality Comparative advantage
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Functions of the intermediaries
Collection and assembling
Financing
Grading and standardisation Storage
Transportation
Processing
Wholesaling
Retailing