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Module-4 Shivam

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DR.D.Y.

PATIL COLLEGE OF AGRICULTURE BUSINESS


MANAGEMENT,AKURDI, PUNE-44
(AFFILIATED TO MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI)

Student Ready Programme (2020-21)


Name: Shivam Ashok Unde
Reg. No.: ABMP-2017/75
Credit: 0+4
Project Title : Marketing services for farmers
Agri-Business Specialist: Prof.
Coordinator: Dr. S.N .Patil
DI’s Nominees: Prof. Tai. Deokate
1. Introduction
• Agricultural marketing covers the services involved in moving
• an agricultural product from the farm to the consumer . These services
involve the planning, organizing, directing and handling of agricultural
produce in such a way as to satisfy farmers, intermediaries and consumers.
Numerous interconnected activities are involved in doing this, such as
planning production, growing and harvesting, grading, packing and
packaging, transport, storage, agro - and food
• processing, provision of market information, distribution, advertising
and sale.
• Effectively, the term encompasses the entire range of supply chain
operations for agricultural products, whether conducted through ad hoc
sales or through a more integrated chain, such as one involving contract
farming .
• Agricultural. Marketing has a important role as all aspects related to
logistics of agricultural goods and services are covered under it.
• Farmer
1.2 Importance of marketing Services
• Provides raw materials for industries.
 
Provides food grains for the entire population and fodder for cattle.
 
Provides a base for expansion of internal market of a country.
 
Helps in the expansion of international market also when
marketable surplus found in excess of the demand of a country,
fetches a considerable amount of foreign exchange.
 
At present, most of the farmers sell their produce through village
level markets, fairs, mandies; co-operative societies and government
also purchases agricultural produce direct from farmers.
1.3.Identify various Function & Role of facilitative
services
• Marketing functions: In modern marketing, the agricultural produce has to undergo a
series of transfers or exchanges from one hand to another before it finally reaches the
consumer. This is achieved through three important marketing functions namely
• Assembling (Concentration)–
• Preparation for consumption( processing)
• Distribution
• Grading and Standardization :
• Grading is the sorting out of the commodities into different groups on the basis of size,
variety, taste, quality, colour etc. Such separation may or may not conform to established
standards. Whereas standardization fixes the grades and does not allow them vary from
season to season and year to year.
• Processing :
• Processing is the conversion of farm produce into more consumable form
• Transportation
• Storage :
• Storage is the holding of produce from time of production until needed by the consumers. Storing
creates time utility. Storage helps to spread out market supply
• Packaging:
• Packaging is the packing or covering the product in such sizes and pattern as to be most Marketable.
• Distributing:
• It relates to dispersing, retailing and marketing of produce. Distribution bridges the
gap between the wholesalers and large number of consumers.
• Government bodies like FCI, NAFED, APEDA, NCDC plays an important role in
marketing of agricultural produce at national level.
• And at state level SWC, SFCI, MASAMB, MCDC, Tribal development corporation
play significant role in procurement of food grains at MSP which is declared by the
government.
• The NAFED works for ensuring there is an wide network co-operative marketing of
agricultural produce at national level.
• The objectives of the NAFED is to organize, promote and develop marketing,
processing and storage of agricultural, horticultural and forest produce, distribution of
agricultural machinery, implements and other inputs, undertake inter-state, import and
export trade, wholesale or retail as the case may be and to act and assist for technical
advice in agricultural, production for the promotion .
• The APEDA helps the farmers to export their agricultural produce and also provides
subsidies and required assistance so as to encourage the farmers to export their
produce and gain good returns.
• At state level MSAMB plays crucial role as in procurement of pulses and food grains
at MSP and ensuring to provide a guaranteed marker to their produce and also
providing online platform for selling their produce at some web portal like
bs.msamb.com
• Direct selling :
• . In performing direct sales, it is very important to abide by the set rules and
regulations, to produce products of superior quality, and to awake consumers buying
behavior by introducing the products.
• Direct selling can be seen in weekly markets, direct selling helped many of farmers in
lockdown to sell their produce directly to customer.
• Today, most food moves from the farm gate to the consumer through a highly
efficient system that takes advantage of economies of scale and specialization to keep
processing and distribution costs low.
• FPO’s like shayadri Agro Farms introduced fruit basket and vegetable basket to the
customers in urban area at reasonable cost this helped them to gain new market.
• Most producers devote their time to what they know best, planting, growing and
harvesting food, leaving the processing and marketing to agri-business.
• However, selling directly to consumers is growing in popularity with some producers.
There are many direct marketing opportunities available to farmers, including
roadside markets and farmstands, farmer’s markets and public markets, pick-your-
own, cooperatives, community supported agriculture, direct sales to restaurants and
stores, and agricultural tourism and on-farm recreation, gift baskets and mail order,
and e-marketing.
• Indirect selling :
• Indirect selling mainly includes middlemen’s, agents, arhtiyas and etc this
middlemen generally hold the produce and also incure their charges.
2. Objectives
• To study assembling of agricultural products
• To study the packaging aspect of the selected commodity
• To study the branding aspect of the selected commodity
• To study the online marketing service aspect of the selected
commodity
• To study about promotional strategies .
• To study about brand registration of the selected commodity.
• To study problems and suggestion
3. Information of Farmer
Name Of The Host Farmer Ajith Gavali
a) Sex  Male
  
b) Age  38

c) Education  HSC

d) Category of the host farmer  Medium (3ha)


Taluka : Shirur , District
e) Address  
- Pune
f) Commodity selected Tomato , Muskmelon
4. Selection of Specific Commodity
• 1. The Selected Farmer Cultivates different crops and the following crops
are used for the study purpose only

• The first crop selected is Tomato which is cultivated in the season rabbi by
the farmer which are later sold to the agents , wholesalers , or taken into the
APMC market.
• Variety: Abhinav
• Area: 0.6 ha
• The second crop selected is Watermelon which is cultivated in summer
season by the farmer and which is later sold in the Market by the farmer in
cities and towns where there is more demand for the season. As it is a
seasonal crop.
• Variety: Sugar queen
• Area: 0.4 ha
Characteristics present suggested
Marketing Producer -> agent / trader -> retailer • Producer -> consumer.
channel -> Producer. • Producer-> retailer ->
consumer
• Producer -> processing
unit -> consumer
Grading Only basic grading practices Grading the commodity
followed. according to standard norms.
Packaging Primarily level of packaging. • Palatalizing the
watermelons.
• Packaging the produce
according to requirement
of forward linkage.
• Packaging should be done
according to requirement.

Branding Not practised. • Using tag for branding of


watermelon.

Promotional Contacting directly to wholesalers. • Through social media


strategy • Directly contacting
processing units
• E-commerce
Sr no. particulars Cost for watermelon in Cost for tomato in Rs.
Rs. (per kg) (Per kg)
1 Cost for farmer
1.Cost of production 3.4 6.30
2.Transportation 0.70 0.90
3.Loading & 4.Packaging 0.80 1.10
Subtotal 4.9 8.30
Price at which it is sold to APMC 10 10.50
2. Cost of APMC
1.Commision charges 0.45 0.75
2.Loading charges 0.70 0.80
3.Transportation & 4.packaging 0.35 0.35
Subtotal 11.50 12.40
Price at which it is sold to retailer 14.00 14.50
3. Cost of retailer
1.Marketing charges 0.45 0.40
2.Transportation 0.30 0.15
3.Storage 0.20 0.20
subtotal 14.95 15.35
Price at which it is sold to customer 20.00 20.00
4. Total marketing cost 14.95 15.35
4.1. Assembling of Agricultural
Commodities
• Collection of produce for sale in mandis or larger markets is called Assembling. Assembling is of
two types:

• Bringing together of smaller amounts of produce for greater convenience and economy in
buying,
• transporting or processing.

• Assembling occurs in the distribution of finished products. Wholesaler buy from many
processor to have on hand the commodities wanted by retailers to supply the consumers.

• Assembling of Tomato :

• assembling of tomato is done at backyard of farmer.

• Sometimes it is also done by itinerant agent and also by wholesaler

• Assembling of Watermelon :

• assembling of watermelon is done on the farm by farmer & family.


4.2 .Grading of Product According to Norms
• Grading is the sorting out of the commodities into different groups on the basis
of size,
• variety, taste, quality, color etc. Such separation may or may not conform to
establish.
• standards. Whereas standardization fixes the grades and does not allow them
vary from season to season and year to year. Grading and standardization are
used interchangeably.

• Advantages of Grading and standardization


• Uniformity between markets is provided.

• It helps to deal with uncertainty of market.


• It helps the farmer to get new market base as there is an great demand for
graded agricultural produce.
• Market values are better understood.
• Commodities can be bought and sold without previous examination
• Bulk quantity of product can be stored
• Shelf life of product is increased
• Grading of tomato :
• According to Weight
• 1.A : 50-60gm (Hard) Big in Size and Red/Green in colour
• 2.B : 40-30gm (Somewhat hard) yellowish red in colour
• 3.C : Small in size (Soft) red in colour.

• Grading of watermelon :
• 1 .A : watermelon weighing from 2 to 6 kg and having firm
shape and clean surface
• 2. B : watermelon weighing below 2 kg.
• 3. C : watermelon having uneven shape, spots and yellow
patches.
5.3 Branding of products
• Branding is the marketing practice of actively shaping your brand.
• That’s the basic definition, but there is so much more that goes into it.

• Branding is what your business needs to break through the clutter and grab
your ideal customer’s attention. It’s what transforms first-time buyers into
lifetime customers and turns an indifferent audience into brand evangelists.
It’s what you need to stand out, make an impact and take your business to
the next level.

Elements of packaging are :


• Design
• Identity
• Logo
• Marketing
• Strategy
• Advertising
6. Information on Packing Materials Study of Identify Appropriate
Packaging Size.
• Appropriate packing material :
• For tomato packing is done into the plastic crates which has capacity of
storing 30 kg of tomato and its standard size is 540 x 360 x 290 and are
rectangular in shape.
• They can also be packed in plastic bags of different sizes for selling in less
quantity
• Appropriate packing size
• Packing is usually done in crates of 30 kg capacity
• Size of crate is 540 x 360 x 290 & shape is rectangular.
• Appropriate packaging design :
• For tomato , information of nutritional content and brand name sticking tape or
printed bags or plastic cartons should be used for packing tomato in different
quantity.
• For water melon, the tag or sticker could be used of brand name or must be
wrapped into plastic wrap and sticker must be placed on it of mesh should be
used with price and brand name and Qr code on it
6.1 Registration of brand
• Procedure involved in Brand Name Registration are :

1. Brand Name Search: A Brand Name search is the first step in the Brand Name
registration procedure.

2. Filing of Brand Name Registration Application: The second step in the Brand Name
registration procedure is filing of Brand Name registration application after getting the
positive search report.

3. Examination of Brand Name Registration Application: Third step in the Brand Name
registration procedure is issuance of examination report by the Registration office.

4. Publication of Mark in Trademark Journal: Fourth step in the Brand Name registration
procedure is the publication of the brand in the Trademark journal.

5. Trademark Registration:

6. This process can also done through online portal, as APEDA has started to provide
assistance for creating a brand.
6.2 Brand name of product
• Ideally, while finalizing a brand name, we should keep in my mind the following
points :

• Meaningful: It communicates your brand essence, conjures an image, and cultivates a


positive emotional connection.

• Distinctive: It is unique, memorable, and stands out from your competitors.

• Accessible: People can easily interpret it, say it, spell it, or Google it. (Even if you
have an unusual or bizarre name, it must be understandable.)

• Protectable: You can trademark it, get the domain, and “own” it, both legally and in
the general consciousness.

• Future-proof: It can grow with the company and maintain relevance—and be adapted
for different products and brand extensions.

• Visual: You can translate/communicate it through design, including icons, logos,


colors, etc.
Suggestions form packing and branding

1. For tomato these following type of cartons or plastic bags can be used with
brand name on it

2. For watermelon stickers or boards with brand name can be used for direct
selling to customer
6.3.Promotional Strategies for commodity
• Promotional activities that should be carried out by farmer are :
• Marketing of commodities should be done through various social media
platform like whatsapp, face book and also Instagram as to attract more
customers.

• Should build good relation with agents , wholesalers

• Promoting produce through contacting the agents directly.

• Providing updates to wholesalers about harvested tomato and harvest


according to requirement e.g. ripe , raw , medium ripe
• Establishing contact by directly contacting the processing units and providing
watermelons to juice making companies like Reliance.
• Contracting with companies like Frito-Lay/ PepsiCo for providing tomatoes
• Direct selling of watermelons in urban areas can give high price for the yeild
Online Marketing
• Online marketing is necessary in todays date, as it helps to directly reach to end consumer i.e.
customer.

• Have suggested Online marketing of wheat on platforms like flip kart , amazon

• Online marketing of watermelon could be done on a web portal started by MSAMB which is
bs.msamb.com .

• While selling Agricultural produce in APMC farmer should prefer E-NAM ( Electronic –
National Agricultural Market)
• It assurance transparency and the amount is directly transfered into bank account of farmer.
• Kisan market , farm fresh , on this online platforms farmer can easily register and sale
their produce.
• Linking to such web portals and registration has become easy now a days and can be done
within minutes.

• Creating a own web-portal will also benefit, but a large customer base is needed who will
visit daily to this online portal, but if wide range of products are made available throughout
the year it will eventually attract more customer base.
8.Transportation & Facilitative services
• Transportation is important as agricultural produce is perishable in
nature and has to be transported in market in time.

• Means any road, bridge, tunnel, overpass, ferry, airport, mass


transit facility, vehicle parking facility, port facility, or similar
commercial facility used for the transportation of persons or
goods, together with any buildings, structures, parking areas,
appurtenances, and other property needed to operate such
facility; however, "transportation facility" does not include a
commercial or retail use or enterprise not essential to the
transportation of persons or goods.
• As both the commodities are picked from farm by the agent
many of the times the transportation is done by agents.
• Due to these the transportation cost is almost nil.
• Transportation of Tomato and watermelon is carried out by
pick-up truck and also by motorcycle.
9. Problems and suggestions
Problems Suggestions
Delay in payments Advance payment at least 20% should
be collected
Less prices for produce Should sell direct to the consumers in
urban years in weekly bazar
High cost of seeds Under ANNA SURKSHA ABHIYAN
government has started providing
subsidies on seeds.

Capital investment for branding and Government subsidies are available for
advertising promotion , packing, branding PM
SUKSHMA KHADYA UDOY UNAYAN
YOJNA

Limited market reach Online marketing can be done through


face book, whatsapp, India mart to
expand market in various regions
10. Summary and Conclusion
• Tomato & Watermelon both has great demand in urban
areas, and many suggestion and related guidance was
provided to farmer.
• From the study the point of view I noticed there is lack of
basic infrastructure in rural area’s as there is no facilities
for proper storage, processing and undeveloped
infrastructure of marketing services.
• Pandemic has reduced the risk taking ability of farmer .
• Solution on this could be developing clusters basically
district wise, which will include storage, processing,
grading and many other facilities.
11. Experience Gained
• Gained knowledge about various marketing strategies
• Problems faced by the farmers
• How grading is carried out of the produce
• Marketing channel of the produce
• How social media can help in marketing of agricultural products
THANK YOU !

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