Marketing Improvement in the Developing World: What Happens and What we have Learned

246 Pages·1986·21.92 MB·English

by  John Cave Abbott, Food and Agriculture Organization of the United Nations. Marketing Group

MARKETING
IMPROVEMENT
IN THE
DEVELOPING
WORLD
MARKETING IMPROVEMENT
IN THE DEVELOPING WORLD:
WIAT HAPPENS
AND WHAT WE HAVE LEARNED

KSB.

SXL5-K5B-OASN
FAQ Economic and Soctal Development Series No. 37

Marketing improvement
in the developing world:

what happens
and what we have learned

by J.C. Abbott

and colleagues of the

Marketing Group,

FAQ Marketing and Credit Service

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1984
Revised edison, 1986

‘The designations enplove and he presen of ate
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ISBN 92.

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Nations, The book may st be reprodce
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wicleur impart by ay ethos proses, without
the copyright loleer. Aplications for such peumsion, wih ate ent
(OF he purpose sind extent ofthe reproduction deated, shoud be addresed! tothe Director,
Pablications Disision, Food and Agucultwce Organ zation the Unica Nations, Vie delle Tete

rence a
Acknowledgements

thor would like to thank all those whose work bas gone ince this
book, in particular the FAO marketing field officers lo whom it is dedi-
cated, J. Coudert, H, Creupelandt, A.A. El Sherbini, M. Fenn, S.L. Gal-
pin, G. Holsten, D. Link, L. Lorinez, W. Lumholtz, H.J. Mittendorf,
PJ. Nelson, P, Newhouse, E. Reusse, A. Scherer, F. Shah, W. Shreck-
enburger, A. Silva, H. Spink, R. Spinks, H. Steppe, §.M. Tayler. P.ter
Hofstede, A. Thomson, S. Van Recs and K. Wiercr all contributed directly
or via reports and working papers. Apologies arc offered for changes
made in editing their material into the text
Preface

This book is concemed with food and agricultural marketing improve-
ment in practice. It draws directly on FAO experience in assisting
Member Nations in the developing regions over the period 1955-80.
For many of these years, there were $0 10 100 FAO advisers and consul-
tants working on a wide range of marketing issues. Their long-term goal
‘was to build up the capacity of these countries to solve their own prob-
lems

Marketing isa highly dynamic subject. {ts problems do not disappear
as development proceeds. Indeed, they may become more intricate and
complex. The need for training personnel to staff marketing enterprises
and services will continue.

Jn many ways this book follows on from the FAO Marketing Guide
No. 1, Markering Problems and Improvement Programmes, first pul
lished in 1958. Readers may find it convenient to refer to the frst part of
this guide for a simple statement of matketing principles. A luller cover-
age of economic. pricing. markesing and development concepts is avail-
able in Agricultural Economics and Marketing in the Tropics; FAO col-
laborated in the publication of this text, in 1978, with the Longman
Group, London. Readers seeking background on economic and market-
ing relationships may refer to this text. Meanwhile, a glossary of market
ing terms in eormmon use has been provided at the end of this book.

Marketng Lmprovenect in the Developing World isalso designed for
the use of policy-makers and marketing leaders in the developing coun-
and 19 assist ald agencies and other organizations and institutions
concerned with the development process. Officers of banks, commercial
enterprises and other institutions engaged in developing country apera-
tions will also benefit irom the experience assembled in this text.

The “Issues for discussion” section at the end of each chapter is
designed to ensure that students become familiar with the structure of
food and agricultural marketing in their own country. Since much of the
information may not be reacily available, instructors will have to make
arrangements for it to be built up through successive inquiries. Students
should pardieipate in these inquiries as far 2s time permits. When answers
to all the factual questions are in the ha ctor. they shoul
vit

be held back until after aninitial round of discussion. In any event. all stu-
dents should be required to make at least one set of direct interviews and
site visits in each subject area. Instructors will need to contact enterprises
in advance to arrange for student visits Stress may be laid on the advan-
tage for those enterprises of a wider understanding of the realities of mar-
keting in their country.

‘Some strategic marketing enterprises may be reluctant to cooperate.
Inthis event, students should be taken through the exercise of building up
a dossicr on their operations by inquirics of other knowledgeable people
(competitors, suppliers and customers): and from relevant official and
unofficial sources, including press cuttings, which should be collected reg
ularly by the instructor.
Contents

Acknowledgements v
Preface vil
Food and agricultural marketing improvements !
Marketing asavoncept U
‘What todo toimprove marketing 2
Some equity issues 10

Issues fordiscussion 1S

References, 16
2. Building up goverament support services 7
Decisions by the uninformed 17
urveys leading to action in Inde 2
Practical initiatives in Sierra Leoni
Policy formation in East Arica %
Preparation of marketing investment projects 30
Market informationservices
Whatwehaveleamed dO
issues for discussion 44
References 4
3._ Training staff for marketing enterprises and services 4
Assessing training needs 47
‘Seminars to create awarenes 32
Fellowships (o study in other countries 55
Pre-service marketing training programmes $6
In-service training él
Whatwe have learned ra}
Issurs fardiscussion fi

Referens 68
4. Foodgrains u
Managing the market with 10 percentof the crop n
Arbitrary decisions 7
Establishing a grain marketing agency in Somalia @
Botswana Agricultural Marketing Board 83
‘The humid tropics 86
‘Long distances in the Sahel 88
Flelping low-income consumers 90
Whar have learned 9
Issuesfordiscussion
Referens 99

5.__Fruitand vegetables 101
Centralized grading and pac! 101
Benefiting from climatic advantage 107
Matching supplics to market demand 113
Processing 116
Need for llexible marketing organization 12

vhatwe have learned ren

Issuesfordiscussion 26

References

28

6._Livestack und ment 2

‘Strengthening existing marketing systems 29
‘Channelling supplies to the new rich of the Near East 140
Exploiting alimited export potential 146
‘Meeting consumers’ needs behind a vellofreligious Gapproval 150
‘Whatwe have learned 154
Issues fordisenssion 158
Referen 159

7,_Fertitizers and other inputs 151
Organizing an effective distribution system 161
Extending fertilizer distribution channels in India 13
Ensuring that small farmersure wellserved (Kenya) 7
Helping the Farruer obtain supplies irom the lowest-cost

source (the Caribbean) 179
‘What we have learned 18]
Issues fordiseussion Is
References ‘18S

‘8. Markets and marketing enterprises 1387
Rural assembly markets 187
‘Wholesale distribution markets 195
Indigenous entrepreneurs 203
‘Government-sponsored enterprises 209
‘Whatwe have learned i
Issuesfordiscussion
Referens 23

Glossury ms