pmr&fpr training notes final doc-1

7/31/2019 PMR&FPR Training Notes FINAL Doc-1

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Participatory Market Research (PMR)

&

Farmer Participatory Research Approaches

Training for Swisscontact & VETA Partner Organizations

Malisa, E.T.N & Mhagama, Anthony

20th-21stDecember 2011

At Glonency88 Hotel, Morogoro


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SDAS and FPR/PMR Background

Swisscontact, the Swiss Foundation for Technical Co-operation and the Vocational Education and Training

Authority (VETA) are currently implementing Skills Development for the Agricultural Sector (SDAS) pilot

project in selected districts of Morogoro Region. SDAS facilitates the development and delivery of

agricultural skills development training activities to smallholder farmers in order to increase their

agricultural productivity. It also engages unemployed rural youth in agriculture through the formation of

learning groups and the delivery of training activities that include essential life skills.

Capacity building of Partner Organizations (POs) for the purpose of bridging existing knowledge gaps in

relation to activities being implementedis among other commitments of Swisscontact (SC)& VETA. Access to

market is one of areas of interest to all SC POs involved in the implementation of Skills Development in

Agriculture Sector (SDAS) project. In the course of linking farmers and youths with markets, the POs have

been facing important challenges and hence the need for training and experience sharing among the POs

on the subject. In this regard, SC & VETA organized a two days training on participatory market research for

the POs as detailed below.

Training Information

Goal and learning outcomes

Course Training on Participatory Market Research(PMR)

Purpose To provide SDAS partners with the skills needed to design tools and facilitate

participatory market research activities for smallholder farmers and youth in the

project area for enhanced access to market.

Structure This was a 2 days residential training. The training involved sharing among the

POs on how they have previously facilitated farmers and/ or youth to market

their produces. The training wasconducted in English as well as Kiswahililanguage since the market survey questionnaires to be developed in the future

will be in Kiswahili.

Target Group Facilitators, field coordinators and extension officers from nine SDAS partners in

2011 that are directly involved in the delivery of training for smallholder farmers

and youth. Two representatives from each PO were invited to participate. In this

regard, 20 (16 male, 4 female) representatives from 9 POs (shown below)

participated.

Goals/Learning

Outcomes

At the end of the training, participants to be able to:

Appreciate different Farmer Participatory Research (FPR) approaches suchas Participatory Technology Development (PTD), Participatory Variety

Selection (PVS) and Participatory Innovation Development (PID)

Use different commonly applied market research and marketingterminology


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Facilitate the application of basic market skills with the farmers/youthgroups

Assist farmers/youth in conducting SWOT analysis for the selected agro-enterprise/sector

Carry out simple gross-margin calculations to determine profitable sub-sectors in their areas

Facilitate market visits for farmers to expose them to different situationsand opportunities

Develop simple tools/questionnaires for conducting market research Analyse together with farmers/youth the crop/sector selection criteria Evaluate crop or agro-enterprise options available for the farmers/youth Facilitate the identification of available market opportunities for the

farmers/youth inside and outside their localities

Methodology The trainers made use of different participatory training methods such aspresentations, plenary discussions, word puzzles, group energizers, group

activities and individual PO presentations.

Trainers Malisa, E.T. from UMADEP- SUA and Anthony Mhagama from Swisscontact TZ

Venue The training took place in Morogoro at Glonency 88 Hotel located along Dar es

Salaam- Morogoro highway adjacent to J.K.Nyerere Farmer's show grounds

(Nanenane) in Morogoro Municipality.

Costs Venue, equipment, stationary, food and accommodation were borne bySwisscontact and VETA. Partner organizations were responsible for transport to

and from the training venue. As per SC policy, allowances or per diems were not

paid for participants.

Evaluation Group assignments and plenary feedback discussionwere used to evaluate the

training.


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1. Understand and applysome basic marketing terminology in PMR

Participatory market researchdefinition and terms

Participatory market research aims to capacitate farmers/youth in procedures for collecting and analyzing

market information, and evaluating and selecting enterprise options.

Market

Market is a public place where buyers and sellers make transactions, directly or via intermediaries

Marketing

Marketing refers to delivery of customer satisfaction at a profit or process by which individuals or group

get what they need or want through creating and exchanging products and value with others

The first rule of marketing for small scale farmers is to produce what you can sell, instead of trying tosell what you have produced

To achieve the rule:- Know what consumers are demanding in the marketplace- Know how laws ofdemand and supply affect prices, price trends and volumes being sold- Know how can interpret these in terms of own market opportunities

Demand

Demand is the quantity of products or service desired by buyers.

Factors influencing demand include: price, quality, availability and awareness of the product

Supply

Supply is the quantity of products or services that the market can offer


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Four marketing variables (4 Ps)

Four marketing variables, also referred to as 4 Ps are Product, Price, Place, Promotion

The question that should in the end be answered is on how to increase revenues using the 4 Ps?

Market linkage

Market linkage refers to linkage between producers and buyers/end users. In some instances it also

involves service providers to end-users.

The aim of market linkage is to create leveled playing field, long-term win-win situation among parties

The critical functions in facilitating market linkages in agriculture sector are:

Access to markets Access to inputs Access to relevant extension services

Note that in this process there may be a facilitator. In this regard the facilitator acts as a catalyst or an

honest broker

Sub sector analysis

Sub sector analysis involves selection of sub sector, understanding market players, roles and

interrelationships, identification of constraints and opportunities, determining solutions and identification

of service providers.

Value chain

Value chain is a vertical alliance or strategic network between a number of independent business

organizations within a supply chain. Aim is to achieve a more rewarding position in the market. Sub sector

analysis and value chain development concepts are interrelated.


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Value chain development

Value chain development is deliberate developmental initiative to promote potential value chains

Supply chain

Supply chain is the entire vertical chain of activities. From gate to plate, farm to fork

Co-operative

Co-operative is a horizontal alliance that may involve performing more than one function in the supply

chain e.g. a group of sunflower producers collaborating to achieve processing.

Collective marketing

Collective marketing involves agreement from all members that a group conducts sales on their behalf,

and that members pay brokerage fees. Main components: Product, market, transport, funds.

Skills needed: Collective marketing, management, financial control, training on packaging, production,

grading and standards

Contract farming

Agreement between farmers and processing and/or marketing firms for the production and supply of

agricultural products under forward agreements, frequently at pre-determined prices.

2. Facilitatemarket linkageSub-sector selection


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Aim:To determine viable sub sector

3. The processof sub sector selectionSub sector listing and ranking

Ask farmers/youths to list available subsectors in their area

Let them develop ranking criteria

Criteria are such as: Employment opportunity, possibility of expansion, market at farm gate, SWOT

(strengths, weaknesses, opportunities, threats) and GM(gross margin).

4. Facilitate SWOT analysisSWOT analysis is a technique for understanding your (community) strengths and weaknesses, and for

looking at the opportunities and threats you face. Used in a business context, it helps you carve a

sustainable niche in your market. Used in a personal context it helps you develop your career in a waythat takes advantage of your talents, abilities and opportunities.

It is a tool to help community to identify the advantages and disadvantages of the subsector by analysing

the internal forces (Strengths & Weaknesses) and external forces (Opportunities & Threats)


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Using SWOT framework, you can assess yourself and your competitors and develop a strategy that helps

you distinguish yourself from your competitors so that you can compete successfully in your market.

Note: At this stage SWOT analysis based on available information

Strengths

What advantages does your subsector has What do you do better than anyone else in the subsector What unique or lowest cost resources do you have access to What do people in your market see as your strengthsWeaknesses

What could you improve in relation to the subsector? What should you avoid? What are people in your market likely to see as weakness? Are your competitors doing better than

you?

Ensure you face unpleasant truths as soon as possible

Opportunities

Where are the good opportunities facing you? What are the interesting trends are you aware of?

- Look at your strengths and ask yourself whether they open up any opportunity- Look at your weaknesses and ask yourself whether you could open up opportunities by

eliminating them

Threats

What obstacles do you face? What are your competitors doing? Are required specifications for your product changing? Is changing technology threatening your position? Could any of your weaknesses threaten your business?SWOT Matrix

Opportunities Threats

Strength Using strengths to use opportunities Using strengths to avoid threats

Weakness Removing weaknesses to use opportunities Removing weaknesses to avoid threats

As you conduct SWOT analysis remember the following:

Focus on positive and negative aspects of each sub sector For negative aspects, search for positive ways to overcome them If it is not possible to overcome them, go to another subsectors

5. Facilitate gross margin analysisSimplified gross profit

Gross profit = Sales minus Direct costs


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- Direct costs e.g. cost of seeds- Indirect costs e.g. cost of a ploughTo be able to understand and distinguish between direct and indirect cost, consider the following:

- If I produce nothing, do I still face these costs? (if yes = Indirect)- If I double production, do the costs increase too? (if yes = Direct)Simplified gross profit gives an indication of profitability of the sub sector

Simplified gross margin

Is simply expressing gross profit in percentage over sales

Example: Case of sunflower production by a farmer field school in Kitete ward, Kilosa in 2011.

Direct costs (Tshs) Sales (Tshs) Gross margin (GM)

Plot hire 20,000

Land prep 35,000

Planting 15,000

Weeding 42,000

Thinning 15,000

Harvesting 30,000

Winnowing 20,000

Empty bags 10,000

Transportation 10,000

197,000 650,000 69%

Thus;

GM = GP x 100

Sales

Where,

GM = Gross margin

GP = Gross profit

Exercise: Consider the following information and state with reason the most interesting sub sector

Sub sector Cost (Tshs) Sales (Tshs) GM

Sunflower 197,000 650,000 69%


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Pineapple 120,000 200,500 40%

Maize 150,000 350,000 57%

Answer: Sunflower is the most interesting subsector because it has higher margin

Interpretation

For each shilling you put in sunflower, you get an additional 69% back The higher the GM the better!Note that at this stage GMA is based on locally available information!

Subsector ranking

Scale: 1=Low, 2=Moderate, 3=High

Employment Possibility of

expansion

Market SWOT Gross margin

Ginger

Banana

Local chicken

Mango

Oranges

Pineapple

- Ask the participants to assign against each sub sector a scale with reference to each criterion- In summing up, the sub sector scoring higher will be considered the most highly ranked and hence

preferred

Decision on sub sector selection

Based on SWOT analysis, gross margin analysis and other criteria agreed upon, the sub sectors are

selected in order of priority, where the highly ranked sub sectors are considered highly prioritized.

Number of sub sectors to select is subject to possibility of facilitating meaningful engagement in the same.

6. Carry out market opportunities analysisParticipatory market survey

Participatory market survey is usually preceded by Rapid Market Survey to identify areas (potentialmarkets) to be visited

Aim:

To explore on available markets and finding reliable and profitable market for identified products To generate information to be used in sub sector analysis


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Possibility of expansion (refer SWOT findings)The next steps involve organizing farmers/youth to produce for the market

See UMADEP experience in linking farmers with markets for more information and practical cases onmarket linkage (in a separate document)

8. Overview of Farmer Participatory Research (FPR) ConceptFarmer participatory research (FPR) is an approach that involves encouraging farmers to engage in small-

scale experimentation so that they can adapt new technologies and spread them to other farmers.

The advantages of small-scale experimentation or "learning by doing" have been demonstrated in the

spread of both traditional and recommended technologies, such as maize and cassava growing and

soybean cultivation and use.

In addition to adaptations of introduced innovations, farmers' experiments have been used to evaluate

new crop varieties and observe the results of new practices and procedures as in the use of diffused light

storage of potatoes by farmers.

Figure: Elements of FPR approach

9. Participatory Technology Development (PTD)Involving developing, improving the local, existing farming technologies for example in clearing the field

in most cases farmers tends to slash the grasses and burn (slash and burn) while a good practice would

be slash and use the grasses as mulch materials to cover the top soil and conserve moisture or

contribute to soil fertility once the cover grasses decays.


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Today there has been a need for participatory approaches in agricultural technology approaches. The

TOT model (see below) is a one-way process where technologies developed by scientists are passed on

to extension services to be transferred to users. The TOT model seeks to sell (disseminate for adoption)

a product (technology) by identifying potential customers (homogeneous groups of farmers) and

improving the advertising (social marketing for extension). However, it fails to feed the clients views

that might make the product more relevant back to its research and development department. The

main weakness of this model is that it does not involve farmers in identifying the constraints and

adapting the research to local conditions.

Figure: ToT model

Figure: The FFS Model of PTD- Good practice!

10.Participatory Variety Selection (PVS)Farmers try out a range of say seed varieties (e.g. maize seed variety TAN250, TAN254, TAN222.) treated

under the same field conditions. Farmers later observe and record things like husk size, how many seeds

dies, days to germinate, shoot and other criteria for selection set by farmers themselves. Finally they


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14.List of participants to the 2 days training sessionsS.No. Name Organization Contact

1. KolethaMwelangombe CVM/APA [email protected]

2. Davie Kitururu NgomaAfrika [email protected]

3. L. Chen MEBTI [email protected]

4. Emmanuel Lekule MEBTI [email protected]

5. Stephen Majumba KDC [email protected]

6. Plato Lyakinana KDC [email protected]

7. Heri Rashid UMADEP [email protected]

8. Nicholaus Solomon UMADEP [email protected]

9. Hugo Kunguru SAT 0763 021016

10. Aurelian Chuma SAT 0718 775982

11. Peace Myugi CVM/APA [email protected]

12. AlectedLwinga ENVIROCARE [email protected]

13. Sabina Nafisa ENVIROCARE [email protected]

14. Abdul Lukanza YOA [email protected]

15. MushumbaAvitus YOA [email protected]

16. Desmond Mgombela CARITAS [email protected]

17. Maya Davie Ngoma Africa [email protected]

18. Baraka Mwago Swisscontact [email protected]

19. Anthony Mhagama Swisscontact [email protected]

20. Emmanuel Malisa UMADEP [email protected]

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