PRINCIPLES FOR MARKET ORIENTATION
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CTA. 1996. PRINCIPLES FOR MARKET ORIENTATION. Spore 61. CTA, Wageningen, The Netherlands.
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The goal of market orientation is to improve rural incomes and the quality of rural life. Market orientation relates not only to farmers but to all sections of the chain involved in food and agro-industry including the important services sector....
The goal of market orientation is to improve rural incomes and the quality of rural life. Market orientation relates not only to farmers but to all sections of the chain involved in food and agro-industry including the important services sector. Competitiveness is a very complex notion or concept. It may be defined as the ability to maintain a sustained and profitable presence in a given market. Apparent competitiveness will depend upon the degree of government subvention and the extent to which hidden costs are excluded from any appraisal. Individual businesses can only work within the framework which policy-makers create and put into position. These frameworks could include appropriate emphasis on the role of farmer groups. The need to derive returns from the market applies to small as well as large farms. For social, land-use and other reasons policy-makers may within their framework provide support to small farmers. But this does not absolve such farms from including in their family business goals the pursuit of improved market returns. If they do not do this they will find themselves becoming more marginalized. Market orientation in the context of trade liberalization and adjustment involves seeking value-added. This may be by improved agronomy, storage, processing, handling and packaging at various or all points along the chain to the level which the market will reward. It applies to domestic as well as export markets. An understanding of market orientation should be part of the education and training of all in the web or chain, not only farmers but researchers and service providers at national, regional and international level. There is a need for research programmes and priorities within them to reflect market demands. Effective communication amongst all concerned is fundamental to the development of productive relationships. This embraces not only market and price information to farmers but the wider concept of communication. It is usually better to build on and improve existing structures and systems where these are capable of appropriate adaptation rather than to develop entirely new structures and systems. There is an urgent need for new leadership in the different stages of the commodity production chain. Leadership should not be imposed but encouraged to grow by adjusting conditions to permit its development. Policy-makers have a role in setting the framework; it is important that planners and advisers are made aware by farmers and other trade organizations of the impact of their policies; and that policy impacts are monitored. This communication is crucial.
SubjectsMARKETING AND TRADE;
- CTA Spore (English)