5 Steps in Developing Market-Based Enterprises

Rural organizations like cooperatives help develop agricultural production. One of the main concerns in this area is the marketing of agricultural products. Rural producers most of the time has to ERP accounting systemgrapple with the issue of low farm gate prices of their products during harvest. It is in this context that farmers’ cooperatives should develop their competency in marketing to ensure their efficiency and sustainability.

1. Identify agricultural commodity
The first step is to identify agricultural commodities with buyers. It will be a problem later if the farmers produce crops without buyers. This is what usually happens to those planting traditional crops. The more ideal initiative is to plant high-value crops in addition to the traditional crops.

2. Ensure volume and quality
Through the cooperatives, the farmers should project bigger volume of production and to ensure quality of their products to command better prices. The cooperatives should design a loan product or a service that will provide inputs and technical assistance to the farmers.

3. Forge a marketing agreement
With a projected volume of production, the farmers through their cooperatives should work out a marketing agreement to fix the floor and ceiling price of the products. They can bargain with the traders or the agents of institutional buyers.

4. Institution-building towards marketing proficiency
The cooperatives involved should focus their skills development and institution-building in acquiring marketing skills and building marketing infrastructure. The process should be documented into a manual that will guide future leaders and staff how to go about in marketing.

5. Developing marketing staff
Purposive development of personnel to focus on marketing will enable the cooperatives to move strategically as a marketing institution. As the number of skilled staff increases, the capacity of the cooperatives will also grow.

 

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