ifdc aiard annual conference 2011 agro-dealer development: developing and emerging markets by john...
Post on 21-Dec-2015
213 Views
Preview:
TRANSCRIPT
IFDC
AIARD Annual Conference 2011 Agro-Dealer Development:
Developing and Emerging Markets
by
John Allgood - IFDC
IFDC
Raw Material Supplier
Basic Manufacturer
Broker/Importer
Wholesaler Dealer Farmer
Agriculture Input Market Value Chain (Fertilizer)
Agro-Input Dealers provide the final value chain link with farmers.
The volume of products handled by agro-dealers is very high. In 2009, farmers worldwide used 162 million mt of plant nutrients or ~425 million mt of fertilizers.
IFDC
Key Functions of Agro-Dealers
Product Supply—Timely, Quality, Package Size
Promotion/Education—Advisory Services on Proper Use, Safety Issues, Post-Harvest
Pricing—Price Determination Physical Distribution—Transportation, Storage
Macro-Environmental Factors—Government Policy, Literacy Rates, etc.—Influence the role of Dealers
IFDC
International Fertilizer Price Trends
IFDC
Agro-Dealers’ Influence on Fertilizer Prices at the Farm Level Is Low
Source: IFDC 2000
IFDCThe IFDC Approach to agro-dealer development is within
the overall organizational philosophy on agriculture development which encompasses two basic premises:
Improved use of agricultural inputs such as fertilizers, high-quality seed and crop protection products is necessary (+ water) to sustainable improvement in agricultural productivity per unit of land.
Efficiency in resource utilization can be maximized by employing and market-oriented approach to development.
GOAL: To foster the development of agro-dealers so that they may effectively service farmers’ immediate and long-term agricultural input needs.
Increased agricultural productivity/improved economic returns to farmers from input use.
Long-term economic gains to farmers.
IFDC
Key Factors in Design of Interventions
Program Goal/Objective Dealer Development Is a Major Component Dealer Development Is Primary Dealer Development Is Complimentary
Situation Analysis Stage of Development of Agro-Input Markets Marketing Environment: Macro and Micro Role of Public/Private Sector Stakeholder Interest
Resource Availability Funds Program Duration Opportunity to Leverage Resources
IFDC
Some Examples of Dealer “Shops”
IFDC
Uganda Dealer
IFDC
Nigeria Dealer
IFDC
Afghan Dealer
IFDC
Bangladesh Dealer
IFDC
Key Focal Areas and Intervention Activities
Technical Knowledge Transfer
Business Acumen Development
Business Linkage Development
Strengthening Support Systems
Create the Opportunity for Systemic, Market-Led Development
IFDC
Technical Knowledge Transfer
Improve Dealer’s Knowledge and Understanding of Agricultural Input ProductsField performance characteristicsSafe use, handling, storageProper application = best performance & + economic returnsProblem analysis
IFDC
Technical Knowledge Transfer (Continued)
Capacity Building Interventions:Classroom-type trainingCollaborative field demonstrations and field days“One-on-one” technical support
Promotion Support to Build DemandDemonstrationPoint-of-purchase materialsPromotional giveawaysTrade shows/agricultural fairs
IFDC
IFDC-Agri-Input Dealer Training in Malawi
IFDC
IFDC
Business Acumen Development
Strategy: Improve dealer’s knowledge and skills for business management Management Marketing – planning Finance and accounting – Recordkeeping and
understanding total cost of “doing” business Credit management
Capacity Building Interventions Classroom-type training Direct technical assistance Provide resource materials – handbooks, wall
hangings, technical, leaflets
IFDC
Business Linkage Development
Strategy: Develop and strengthen business relationships along the value chain Logistics planning Market information Technology introduction Credit opportunities
Capacity Building Interventions Classroom-type training/workshops Study tours/trade missions Agricultural fairs Public-private partnerships Trade/market intelligence bulletins
IFDC
IFDC
Strengthening Support Systems
Strategy: Improve the public and private support systems that impact dealer performanceSystems That Impact Dealer Performance
Technology introduction Market information Policy (policy advocacy) Education Credit
Intervention Policy analysis – Constraint identification/recommended reforms Associations Training trainers Credit
IFDC
Farmers Training
IFDC
Monitoring and Evaluation
Ideally, each intervention should include an M&E component to assess:Progress in Achievement of Performance Targets
Training Programs Completed Dealer Handbooks Developed/Disseminated Wall Hangings Prepared Disseminated
Progress In Achievement of Results Number of New Dealers Established Improved Advisory Services for Farmers Geographic Extension of Dealer Networks to Remote Areas
Impact Increased Competitiveness Increased Sales
IFDC
Key Lessons Learned
Understand the challenge – “One approach serves all” philosophy doesn’t work
Emphasize stakeholder participation – public sector, NGOs, PPPs
Direct, one-on-one assistance and group participation with hands-on interaction are particularly effective in agro-dealer training
Continuity and direction of support are crucial
IFDC
“…agriculture is our wisest pursuit, because it will, in the end,
contribute most to real health, good morals and happiness.”
Letter from
Thomas Jefferson to George Washington - 1787
IFDC
Thank YouThank You
top related