Agricultural Marketing and Processing

An efficient marketing system is essential for the development of the agricultural sector. Inasmuch as it provides outlets and incentives for increased production, the marketing system contributes greatly to the commercialization of subsistence farmers. With few exceptions, governments have recognized the importance of liberalizing agricultural markets. From a situation of dominant state control, countries have turned to the promotion of market-oriented economic activities carried out by the private sector.

In promoting private sector marketing systems, governments initially need to examine all existing policies, rules and regulations, with a view to minimizing conflict with successful private sector operations. Once these issues have been addressed, attention can be turned to specific government actions to facilitate private sector marketing. Such action can include: (i) identification of constraints to promote marketing sector development and the formulation of policies, strategies and programmes to alleviate or resolve these; (ii) support to the development of marketing infrastructure (wholesale and retail markets, storage); (iii) support to the private sector in facilitating access to finance for marketing (inputs and crops); (iv) the development of an appropriate legal environment conducive to private sector marketing; and (v) ensuring that private sector marketing is not disrupted by, e.g. the injudicious use of food aid for untimely release of food security reserves; (iv) the provision of support services such as market information and marketing extension and (vii) recognition and promotion of trade associations and development of dialogue with such associations.

In line with the gradual shift from subsistence to commercial farming, the post-production system composed of the post-harvest and agro-industry sectors, has a major role to play in the socio-economic development of many countries. Easy to understand technologies are essential as well as information, experience, equipment and/or models and methods that will enable the post-production entrepreneurs to take advantage of market prices, and to plan for the future with confidence, contributing to food security and economic well-being.

The following (far from exhaustive) list identifies areas in which FAO, upon government request, can provide general and country-specific guidance, either as part of FAO's Regular Programme or within a project framework:

development of appropriate policies to promote and sustain competitive marketing systems for farm inputs and outputs, including the design of transition measures and the sequencing of marketing liberalization;
promotion of trade associations and of mechanisms to ensure regular government dialogue with the private sector;
harmonization of the legal and regulatory framework with market economy requirements and the preparation of legislation to protect free-market trade;
establishment of an effective, low-cost service capable of providing commercially useful market information;
planning of cost-effective improvements to wholesale, retail and assembly markets for crops and livestock and the financing of such infrastructure;
strengthening of marketing and post-harvest knowledge of extension workers;
improvement of urban food distribution systems, and of linkages between urban areas and rural producers;
filling of existing gaps in technology application and knowledge in the small-scale rural agro-industry and the post-harvest sectors; and
promotion of, and support for an effective post-production sector in rural and/or peri-urban areas.

SEE NORMATIVE FRAMEWORK:

Marketing Extension Training (TCP)

SEE PROJECT EXAMPLE:

Desarrollo Frutihorticola en el Distrito ____ de Riego de____ (TCP)

USEFUL FAO LINKS: