Thursday, June 19, 2014

AGRICULTURE MARKETING

AGRICULTURE MARKETING
Agriculture marketing is one of the most important part of developing the local and national economy. It has a great influence in facilitating the means of foreign exchange and also provides jobs and livelihood for the people. Indeed, in enhancing the rapid growth to any nation that has adopted good agricultural measures for making general infrastructure and providing for the well-being to the populace. Thus, if someone claims that the thriving of the whole national and international economy hinges upon the prosperity in this sector then its properly tends to be true. With this and much more in mind, Islam offers the agricultural sector a special consideration and impatiently enjoins Muslims to benefit as much as they can from the bounties of Almighty Allah, which He has widely bestowed on the earth. This can clearly appeared in numerous Qur’anic verses from which are the following: “It is He who has spread out the earth for his creatures. Therein is fruit and date palms, with spatters and husked corn and scented herbs. Then which of the favours of your Lord will you deny?” (Q 55: 10-13). “Then let man look at his food, how we pair forth water in abundance, then we split the earth into fragments and produce therein corn and grapes and nutritious plants” (Q 80: 2-28)

What is mean by agricultural marketing? Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. Numerous interconnected activities are involved in doing this, such as planning production, growing and harvesting, grading, packing, transport, storage, agro- and food processing, distribution, advertising and sale. Some definitions would even include “the acts of buying supplies, renting equipment, (and) paying labor", arguing that marketing is everything a business does. Such activities cannot take place without the exchange of information and are often heavily dependent on the availability of suitable finance.Marketing systems are dynamic; they are competitive and involve continuous change and improvement. Businesses that have lower costs, are more efficient, and can deliver quality products, are those that prosper. Those that have high costs, fail to adapt to changes in market demand and provide poorer quality are often forced out of business. Marketing has to be customer-oriented and has to provide the farmer, transporter, trader, processor, etc. with a profit. This requires those involved in marketing chains to understand buyer requirements, both in terms of product and business conditions.In Western countries considerable agricultural marketing support to farmers is often provided. In the USA, for example, the USDA operates the Agricultural Marketing Service. Support to developing countries with agricultural marketing development is carried out by various donor organizations and there is a trend for countries to develop their own Agricultural Marketing or Agribusiness units, often attached to ministries of agriculture. Activities include market information development, marketing extension, training in marketing and infrastructure development. Since the 1990s trends have seen the growing importance of supermarkets and a growing interest in contract farming, both of which impact significantly on the way in which marketing takes place.

How agriculture marketing is developing? Well-functioning marketing systems necessitates a strong private sector backed up by appropriate policy and legislative frameworks and effective government support services. Such services can include provision of market infrastructure, supply of market information (as done by USDA, for example), and agricultural extension services able to advise farmers on marketing. Training in marketing at all levels is also needed. One of many problems faced in agricultural marketing in developing countries is the latent hostility to the private sector and the lack of understanding of the role of the intermediary. For this reason “middleman” has become very much a pejorative word.

            Efficient marketing infrastructure such as wholesale, retail and assembly markets and storage facilities is essential for cost-effective marketing, to minimise post-harvest losses and to reduce health risks. Markets play an important role in rural development, income generation, food security, developing rural-market linkages and gender issues. Planners need to be aware of how to design markets that meet a community's social and economic needs and how to choose a suitable site for a new market. In many cases sites are chosen that are inappropriate and result in under-use or even no use of the infrastructure constructed. It is also not sufficient just to build a market: attention needs to be paid to how that market will be managed, operated and maintained. In most cases, where market improvements were only aimed at infrastructure upgrading and did not guarantee maintenance and management, most failed within a few years.Promoting market orientation in agricultural advisory services aims to provide for the sustainable enhancement of the capabilities of the rural poor to enable them to benefit from agricultural markets and help them to adapt to factors which impact upon these. As a study by the Overseas Development Institute demonstrates, a value chain approach to advisory services indicates that the range of clients serviced should go beyond farmers to include input providers, producers, producer organisations and processors and traders.Farmers frequently consider marketing as being their major problem. However, while they are able to identify such problems as poor prices, lack of transport and high post-harvest losses, they are often poorly equipped to identify potential solutions. Successful marketing requires learning new skills, new techniques and new ways of obtaining information. Extension officers working with ministries of agriculture or NGOs are often well-trained in horticultural production techniques but usually lack knowledge of marketing or post-harvest handling. Ways of helping them develop their knowledge of these areas, in order to be better able to advise farmers about market-oriented horticulture, need to be explored. While there is a range of generic guides and other training materials available from FAO and others, these should ideally be tailored to national circumstances to have maximum effect.


The availability of prompt and reliable market information about what is happening in the market, what quantities are arriving and what prices are quoted for different commodities considerably improves the decision making capability of the farmers and strengthens their bargaining power.  At present, the information is disseminated through various media like radio, newspapers, blackboard display and public address system at Wholesale Market yards.   The information provided by these methods has a  limited use and does not help much to the farmers in taking decisions in marketing of their produce.   The farmers are also not able to know about the prices prevailing in other markets, as the Market Committees are able to disseminate information mostly in respect of their own markets.   The farmers are, therefore, left with no alternative but to dispose off their produce in the nearest market, even at uneconomic prices.   Further, the market intelligence data are presently compiled in registers, which are difficult to maintain. It is also difficult to analyse the voluminous information thus collected for making decision. Therefore, a need has been felt to improve the existing market information system by linking all the important Wholesale Markets in the States and Union Territories, the State Agricultural Marketing Boards,  and State Agricultural Marketing Directorates,  under Agricultural Marketing Information Network, by installing  computer facilities and connecting with NICNET for  Internet and Intranet services.

During the Arab Agricultural Revolution, a fundamental transformation in agricultural practice tied in with significant economic change. This transformation involved diffusion of many crops and plants along Muslim trade routes, the spread of more advanced farming techniques, and an agricultural-economic system which promoted increased yields and efficiency. In addition to significant changes in economy, population distribution, vegetation cover, agricultural production, population levels, urban growth, the distribution of the labour force, and numerous other aspects of life in the Islamic world were affected. The economic system in place in Muslim areas during this time incorporated reformed land ownership rules and labourers' rights, combining the recognition of private ownership and the rewarding of cultivators with a harvest share commensurate with their efforts also improved agricultural practices. The cities of the Near East, North Africa and Moorish Spain were supported by highly structured agricultural systems which required significant labor inputs. Such regional systems were often significantly more productive than the agricultural practices in most of Europe at the time which relied heavily on grazing animals and systems of fallowing.


The demographics of medieval Islamic society varied in some significant aspects from other agricultural societies, including a decline in birth rates as well as a change in life expectancy. Other traditional agrarian societies are estimated to have had an average life expectancy of 20 to 25 years, while ancient Rome and medieval Europe are estimated at 20 to 30 years. Conrad I. Lawrence estimates the average lifespan in the early Islamic Caliphate to be above 35 years for the general population, and several studies on the lifespans of Islamic scholars concluded that members of this occupational group enjoyed a life expectancy between 69 and 75 years, though this longevity was not representative of the general population. The early Islamic Empire also had the highest literacy rates among pre-modern societies, alongside the city of classical Athens in the 4th century BC, and later, China after the introduction of printing from the 10th century. One factor for the relatively high literacy rates in the early Islamic Empire was its parent-driven educational marketplace, as the state did not systematically subsidize educational services until the introduction of state funding under Nizam al-Mulk in the 11th century. Another factor was the diffusion of paper from China, which led to an efflorescence of books and written culture in Islamic society, thus papermaking technology transformed Islamic society (and later, the rest of Afro-Eurasia) from an oral to scribal culture, comparable to the later shifts from scribal to typographic culture, and from typographic culture to the Internet. Other factors include the widespread use of paper books in Islamic society (more so than any other previously existing society), the study and memorization of the Qur'an, flourishing commercial activity, and the emergence of the Maktab and Madrasah educational institutions.

            What are the views of the Islamic scholars on agriculture marketing? The word ‘market simply means the place or all the market structure for selling and buying. While the word ‘marketing’ is known as ‘Bai’ ’, denotes the realtionship between the buyer and the seller. In the Islamic perspective, the word quietly expresses the buyer’s desire/need towards the product and the ability of the seller to fulfill that desire/need through transferring his products to the buyer in return of another product by barter or in cash and all conducted under the perscriptions of the Sharia. Let us examince one or two among the Islamic definitions and scope of Bai’. Sheikh Afzal-ar-Rahman rightly said: “According to the Muslim jurists, exchange is defined as the transference of one’s goods in return for the goods or another by mutual consent”. Thus, “Bai” or “Sale” are defined as: “The delivery of a definite object which possesse legal value in exchange for something equivalent in value ( called the price)” by Professor A.J. Doi. From this two definitions, it is clearly that the market is a means of human mutul interaction and a physical station of the continuance of supply and demand. If it is governed by appropriate rules and regulations, it would definitely keep the socio-economic equilibrium of any nation from collapsing.


            Futhermore, in Islam, the market is considered as the very aspect physically exposes the greatness and benevolence of Allah between His creations. It is a mirror to see Allah’s wisdom of creating mankind at different capacities of earning and wanting. A glance at the periodical fluctuations of the market also ensures that. This can also be boldly observed through the following verses: “It is We who portion out between then their livelihood in the life of this world. And we raise some of work from other” (Q 80:2-28). He also says: “O you who believe, eat not up your property among yourselves in vanities. But let there be amongst you traffic and trade by mutual good will” (Q 4:29). He also said: “Allah has permitted trade and forbidden usury” (Q 2:275). “O you who believe! When you deal with each other in transactions involving future obligations in a fixed period of time, reduce them to writing, let a scribe write down faithfully as between the parties. But if it can be a transaction which you carry out on the spot among yourselves there is no blame on you if you reduce it not to writing” (Q 2:282). These verses and a lot of others indicate that the scope of the market, in the Islamic perspective, is be governed by mutual consent and must be regulated by high moral standards to ensure stability, prosperity and complete the physical and spiritual development of both the producer and the consumer.

            Lastly, this highlights a number of significant issues. The introductory part deals with the importance of the agriculture sector and Islamic point of view on the right ownership. While the main body  tackles the basic principles governing the marketing of agriculture produce in Islam and also western country are boldly discussed. It is also stated about the Arab Agriculture Revolution which it is developed and transformed. Likewise, the distribution of the products and marketing channels which the product passes through up to the ultimate consumer are all summarily treated. Of course, the importance of weight and measurement in agricultural products is very important. It, undoubtedly, needs a strong regulation for assuring justice and for the benefit of the people. For this reason, it is considerably touched upon. Conclusively, it would good for the producer to adopt new techniques that can help his industry grow immensely from small scale something to larger, as the Muslim is encouraged to achieve his goal of earning halal and disseminat goodness to other beings.

 http://en.wikipedia.org/wiki/Commercial_agriculture



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