Market information systems

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Market information systems (otherwise known as market intelligence systems, market information services, or MIS, and not to be confused with management information systems) are information systems used in gathering, analyzing and disseminating information about prices and other information relevant to farmers, animal rearers, traders, processors and others involved in handling agricultural products. Market information systems play an important role in agro-industrialisation and food supply chains. With the advance of information and communication technologies for development (ICTs) in developing countries, the income- generation opportunities offered by market information systems have been sought by international development organizations, non-governmental organizations (NGOs) and businesses alike.

Contents

Types of market information systems

There is a wide variety of market information systems or services. OECD countries have traditionally emphasised the importance of information provision for the agricultural sector, a notable example being the service provided by the United States Department of Agriculture (USDA). Such systems are widely used in order to increase the transparency and the volume of information flowing through the supply chains for different agricultural products. The ability of market information systems to provide a valuable service was strengthened with the development of the Internet and the advance of electronic commerce (business-to-business (B2B), consumer-to-consumer, etc.). Industry structure, product complexity and the demanding nature of agricultural transactions are considered determining factors for the development of B2B electronic commerce in agriculture. [1]

Agricultural market information in developing countries

In developing countries, market information initiatives are often part of broader interventions and part of the agricultural marketing and agribusiness development strategy that many governments are actively engaged in. It is commonly understood that long transaction chains, lack of transparency, lack of standards, and insufficient access to markets for products has perpetuated low incomes in predominantly agrarian economies. Early attempts at market information provision in developing countries involved government bodies in collecting price information, and arranging for this to be disseminated via newspapers and radio stations. The information provided was often not very accurate and usually reached farmers too late to be of practical use. Governments often attempted to cover far too many locations and many services either collapsed after initial donor assistance came to an end or managed to struggle along with little impact. [2] [3] Furthermore, it was soon recognised that it was not enough just to supply market information to farmers. They needed assistance in understanding how to use that information. [4] [5]

However, donor organizations, such as FAO, the IICD, USAID, DFID, and the Bill and Melinda Gates Foundation, remain committed to improving the efficiencies within the supply chain through greater information provision. The recent surge of mobile phone usage in developing countries has provided an opportunity for innovative projects to leverage this new distribution channel to get critical market data into the hands of farmers and traders, taking advantage of the SMS capacity of phones. Using the so-called "push" method recipients of information are identified on a database and automatically receive messages of relevance to them. Alternatively, the "pull" method enables farmers and traders to interrogate the database of the MIS. A farmer can send an SMS with the product and location he is interested in (e.g. tomatoes;Nairobi) and receive an immediate reply. Several projects by Reuters, [6] Nokia, [7] Esoko, [8] KACE, [9] Manobi, [10] AgRisk [11] and others have demonstrated the impact that such information can have, but the sustainability of such services has unfortunately been limited. [12] Amongst donors there is a renewed interest in promoting regional trade, particularly in Africa, and market information is seen as an important way of achieving this. Examples of donor-supported services are RATIN for East Africa and RESIMAO for West Africa.

Nevertheless, it remains unclear whether MIS can be delivered on a profitable basis by the private sector, given the difficulty of fully covering costs, or on a sustainable basis by the public sector, given the latter's history of gathering inaccurate data and disseminating it badly. [13] [14] To try to address some of these problems, a new approach makes the buyers responsible for uploading the price information via SMS, and facilitates trade by creating a capacity for sellers to contact individual buyers. Others question whether formal systems are still necessary when farmers can just contact traders by phone. Work in Bangladesh, India, China and Vietnam found that 80% of farmers now own cell phones and they use these to speak to multiple traders about prices and demand and to conclude deals. [15] A study in the Philippines [16] found that farmers using cell phones reported improved relationships with their trading partners, possibly because the ability to compare prices made them trust their buyers more. Studies in Niger [17] and India [18] demonstrate the impact of cell phones in reducing price variations and creating greater equilibrium among markets. Introduction of internet kiosks and cafes that provide wholesale price information to farmers has been shown to enhance the functioning of rural markets by increasing the competitiveness of local traders in India. [19]

Related Research Articles

Agribusiness is the industry, enterprises, and the field of study of value chains in agriculture and in the bio-economy, in which case it is also called bio-business or bio-enterprise. The primary goal of agribusiness is to maximize profit while satisfying the needs of consumers for products related to natural resources such as biotechnology, farms, food, forestry, fisheries, fuel, and fiber.

<span class="mw-page-title-main">The Fairtrade Foundation</span> Charity promoting and licensing Fairtrade certification in the United Kingdom

The Fairtrade Foundation is a charity based in the United Kingdom that aims to help disadvantaged producers in developing countries by tackling injustice in conventional trade, in particular by promoting and licensing the Fairtrade Mark, a guarantee that products retailed in the UK have been produced in accordance with internationally agreed Fairtrade standards. The foundation is the British member of FLO International, which unites FLO-CERT, 25 National Fairtrade Organisations and 3 Producer Networks across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.

<span class="mw-page-title-main">Smallholding</span> Small farm, often for a single family

A smallholding or smallholder is a small farm operating under a small-scale agriculture model. Definitions vary widely for what constitutes a smallholder or small-scale farm, including factors such as size, food production technique or technology, involvement of family in labor and economic impact. There are an estimated 500 million smallholder farms in developing countries of the world alone, supporting almost two billion people. Smallholdings are usually farms supporting a single family with a mixture of cash crops and subsistence farming. As a country becomes more affluent, smallholdings may not be self-sufficient. Still, they may be valued for providing supplemental sustenance, recreation, and general rural lifestyle appreciation. As the sustainable food and local food movements grow in affluent countries, some of these smallholdings are gaining increased economic viability in the developed world as well.

<span class="mw-page-title-main">Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)</span>

The Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA) was established in 1983 under the Lomé Convention between the African, Caribbean and Pacific Group of States and EU member states. Since 2000 CTA has operated within the framework of the ACP-EU Cotonou Agreement with a mission to “strengthen policy and institutional capacity development and information and communication management capacities of ACP agricultural and rural development organisations. It assists such organisations in formulating and implementing policies and programmes to reduce poverty, promote sustainable food security, preserve the natural resource base and thus contribute to building self-reliance in ACP rural and agricultural development.”. The centre is closed in 2020, after the end of the Cotonou Agreement and the subsequent end of its financing.

<span class="mw-page-title-main">Fairtrade Canada</span> National non-profit certification and public education organization

Fairtrade Canada, formerly TransFair Canada, is a national non-profit certification and public education organization promoting Fairtrade certified products in Canada to improve the livelihood of developing world farmers and workers. It is the Canadian member of FLO International, which unites 24 fair trade producer and certification initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.

Information and communication technology in agriculture, also known as e-agriculture, is a subset of agricultural technology focused on improved information and communication processes. More specifically, e-agriculture involves the conceptualization, design, development, evaluation and application of innovative ways to use information and communication technologies (ICTs) in the rural domain, with a primary focus on agriculture. ICT includes devices, networks, mobiles, services and applications; these range from innovative Internet-era technologies and sensors to other pre-existing aids such as fixed telephones, televisions, radios and satellites. Provisions of standards, norms, methodologies, and tools as well as development of individual and institutional capacities, and policy support are all key components of e-agriculture.

<span class="mw-page-title-main">International Development Enterprises</span> US-based nonprofit organization

iDE, formerly International Development Enterprises, is an international nonprofit organization that promotes a business approach to increasing income and creating livelihood opportunities for poor rural households. iDE was founded in 1982 by Paul Polak, a Denver, Colorado psychiatrist who promoted the concept of helping poor people become entrepreneurs instead of simply giving them handouts. Originally, iDE was devoted to the manufacture, marketing, and distribution of affordable, scalable micro-irrigation and low-cost water recovery systems throughout the developing world. iDE facilitates local manufacture and distribution of these products through local supply chains that sell to farmers at an affordable price which they can repay in one growing season. This strategy allows farmers to grow higher value and surplus crops, and in turn links them to high-value crop markets where they can realize profits from their higher yields. Recently, their success is in the promotion of sanitation products to decrease the practice of open defecation leading to diarrheal disease.

The term food system describes the interconnected systems and processes that influence nutrition, food, health, community development, and agriculture. A food system includes all processes and infrastructure involved in feeding a population: growing, harvesting, processing, packaging, transporting, marketing, consumption, distribution, and disposal of food and food-related items. It also includes the inputs needed and outputs generated at each of these steps.

<span class="mw-page-title-main">Agricultural marketing</span> Process of moving agricultural products from the farm to the consumer

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.

Participatory Web 2.0 for development was a term coined around 2007-2008 to describe new ways of employing legemvweb services, in order to improve information sharing and collaborative production of content in the context of development work. Emerging developments in participatory Web and user-generated content platforms were seen to create conditions by which actors in development could easily relate to other stakeholders, have selective access to information, produce and publish their own content and redistribute pieces of content released by others. At this time, new social tools, such as wikis, blogs, and other user-generated content platforms, were first being considered for their ability to help development actors integrate, combine, aggregate, generate, moderate and mediate content. In a typical Web2forDev scenario data and/or functionalities from a number of free/low cost online applications are combined and served as mashups thus ensuring a wide range of online services at low cost. The term is no longer used in the development informatics or ICT4D fields.

<span class="mw-page-title-main">Wholesale marketing of food</span> Role and operations of agricultural wholesale markets

The consumption and production of marketed food are spatially separated. Production is primarily in rural areas while consumption is mainly in urban areas. Agricultural marketing is the process that overcomes this separation, allowing produce to be moved from an area of surplus to one of need. Food reaches the consumer by a complex network, involving production, assembly, sorting, packing, reassembly, distribution and retail stages. In developing countries the linkage between the producer and the retailer is still usually provided by assembly and wholesale markets, where wholesale marketing takes place using a variety of transaction methods. Recent years have seen an expansion of wholesale marketing in European and former CIS countries. On the other hand, the growth of supermarkets in many regions has seen the development of direct marketing and a reduced role for wholesale systems.

<span class="mw-page-title-main">Post-harvest losses (grains)</span> Ways in which grain losses can occur and ways of addressing problems

Grains may be lost in the pre-harvest, harvest, and post-harvest stages. Pre-harvest losses occur before the process of harvesting begins, and may be due to insects, weeds, and rusts. Harvest losses occur between the beginning and completion of harvesting, and are primarily caused by losses due to shattering. Post-harvest losses occur between harvest and the moment of human consumption. They include on-farm losses, such as when grain is threshed, winnowed, and dried. Other on-farm losses include inadequate harvesting time, climatic conditions, practices applied at harvest and handling, and challenges in marketing produce. Significant losses are caused by inadequate storage conditions as well as decisions made at earlier stages of the supply chain, including transportation, storage, and processing, which predispose products to a shorter shelf life.

<span class="mw-page-title-main">Committee on Sustainability Assessment</span>

The Committee on Sustainability Assessment (COSA) is a global consortium of development institutions that work collaboratively to advance sustainability learning with systematic and science-based measurement. COSA applies a pragmatic and collective approach for using scientific methods to develop indicators, tools, and technologies to measure the distinct social, environmental, and economic impacts and are applied in performance monitoring, evaluation, return on investment (ROI) calculation, and impact assessment. COSA has a public mission to open its scientific methods and metrics up to widespread use.

<span class="mw-page-title-main">Gender and food security</span>

Gender inequality both leads to and is a result of food insecurity. According to estimates, women and girls make up 60% of the world's chronically hungry and little progress has been made in ensuring the equal right to food for women enshrined in the Convention on the Elimination of All Forms of Discrimination Against Women. Women face discrimination both in education and employment opportunities and within the household, where their bargaining power is lower. On the other hand, gender equality is described as instrumental to ending malnutrition and hunger. Women tend to be responsible for food preparation and childcare within the family and are more likely to be spent their income on food and their children's needs. The gendered aspects of food security are visible along the four pillars of food security: availability, access, utilization and stability, as defined by the Food and Agriculture Organization.

Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date. More commonly, however, contracts outline conditions for the production of farm products and for their delivery to the buyer's premises. The farmer undertakes to supply agreed quantities of a crop or livestock product, based on the quality standards and delivery requirements of the purchaser. In return, the buyer, usually a company, agrees to buy the product, often at a price that is established in advance. The company often also agrees to support the farmer through, e.g., supplying inputs, assisting with land preparation, providing production advice and transporting produce to its premises. The term "outgrower scheme" is sometimes used synonymously with contract farming, most commonly in Eastern and Southern Africa. Contract farming can be used for many agricultural products, although in developing countries it is less common for staple crops such as rice and maize.

An agricultural value chain is the integrated range of goods and services necessary for an agricultural product to move from the producer to the final consumer. The concept has been used since the beginning of the millennium, primarily by those working in agricultural development in developing countries, although there is no universally accepted definition of the term.

<span class="mw-page-title-main">Agriculture department (Punjab, Pakistan)</span> Ministry of Punjab, Pakistan

The Agriculture Department is a department of the Government of Punjab, Pakistan. It is responsible for legislation, policy formulation, and development of agriculture sector in Punjab.

<span class="mw-page-title-main">E-NAM</span> Government of India online agri-commodities marketplace

National Agriculture Market or eNAM is an online trading platform for agricultural commodities in India. The market facilitates farmers, traders and buyers with online trading in commodities.

Digital agriculture, sometimes known as smart farming or e-agriculture, are tools that digitally collect, store, analyze, and share electronic data and/or information in agriculture. The Food and Agriculture Organization of the United Nations has described the digitalization process of agriculture as the digital agricultural revolution. Other definitions, such as those from the United Nations Project Breakthrough, Cornell University, and Purdue University, also emphasize the role of digital technology in the optimization of food systems.

<span class="mw-page-title-main">Sustainable Development Goal 2</span> Global goal to end hunger by 2030

Sustainable Development Goal 2 aims to achieve "zero hunger". It is one of the 17 Sustainable Development Goals established by the United Nations in 2015. The official wording is: "End hunger, achieve food security and improved nutrition and promote sustainable agriculture". SDG 2 highlights the "complex inter-linkages between food security, nutrition, rural transformation and sustainable agriculture". According to the United Nations, there were up to 757 million people facing hunger in 2023 – one out of 11 people in the world, which accounts for slightly less than 10 percent of the world population. One in every nine people goes to bed hungry each night, including 20 million people currently at risk of famine in South Sudan, Somalia, Yemen and Nigeria.

References

  1. Leroux, Wortman Jr, and Mathias Dominant Factors Impacting the Development of Business-to-Business (B2B) [ permanent dead link ] e-Commerce in Agriculture
  2. Andrew W. Shepherd, Market Information Services: Theory and Practice, FAO, 1997
  3. FAO (2017). Building Agricultural Market Information Systems: A literature review (PDF). Rome: FAO. ISBN   978-92-5-109738-0 . Retrieved 1 October 2019.
  4. Andrew W. Shepherd, Understanding and Using Market Information. FAO, Rome, 2000
  5. "Introduction to agricultural market information systems" (PDF). CTA. Retrieved 25 June 2020.
  6. Reuters Market Light, India
  7. "Nokia's Life Tools" (PDF). Archived from the original (PDF) on 2011-06-06. Retrieved 2009-04-11.
  8. Esoko
  9. KACE Kenya [ permanent dead link ]
  10. "Manobi". Archived from the original on 2012-12-06. Retrieved 2009-04-12.
  11. Agrisk
  12. Shepherd, Andrew. "LESSONS FOR SUSTAINABILITY Failing to scale: ICT4Ag-enabled services" (PDF). CTA. Retrieved 26 August 2024.
  13. ICT in Agriculture, Module 9, Archived 2014-02-22 at the Wayback Machine World Bank, Washington D.C. 2012
  14. Shepherd, Andrew (2018). Assessing the quality of agricultural market information systems: A self-assessment guide. Rome: FAO. ISBN   978-92-5-130460-0 . Retrieved 24 April 2018.
  15. B. Minten, T. Reardon and K. Chen, 2011, “The Quiet Revolution of ‘Traditional’ Agricultural Value Chains in Asia: Evidence from Staple Food Supply to Four Megacities.” Mimeo, International Food Policy Research Institute, Washington DC.
  16. J. Labonne and R.S. Chase, “The Power of Information: The Impact of Mobile Phones on Farmers’ Welfare in the Philippines.” Policy Research Working Paper No. 4996. Washington, DC: World Bank.
  17. Jenny Aker,The Impact of Cell Phones on Grain Markets in Niger Archived 2008-07-25 at the Wayback Machine ; University of California, Berkeley, Feb. 2008
  18. The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector Robert Jensen, August 2007
  19. Aparajita Goyal,Information, Direct Access to Farmers, and Rural Market Performance in Central India July 2010

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