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Profitability and Marketing of Income Generating Activities (IGA) for ...

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Study on <strong>Pr<strong>of</strong>itability</strong> <strong>and</strong> <strong>Marketing</strong> <strong>of</strong> <strong>IGA</strong> <strong>of</strong> Ultra-Poor under IFSUP Final Report<br />

packaging it, <strong>and</strong> making it ready <strong>for</strong> use by the consumer. They want a larger share <strong>of</strong> these<br />

revenues. They may also want to reduce the losses <strong>and</strong> price fluctuations associated with<br />

perishable <strong>and</strong> seasonal fresh produce.<br />

The focus <strong>of</strong> interventions here is there<strong>for</strong>e to:<br />

Develop market outlets.<br />

Invest in facilities <strong>for</strong> storage, processing, packing, marketing <strong>and</strong> distribution<br />

Invest in the development <strong>of</strong> pr<strong>of</strong>essional staff, with more complex managerial <strong>and</strong><br />

administrative skills.<br />

Design <strong>and</strong> implement management systems (operational procedures, logistics<br />

management).<br />

Promote farmer cooperatives with joint processing <strong>and</strong> marketing, etc; develop<br />

organizational trust <strong>and</strong> discipline.<br />

4. Developing co-ownership over the chain<br />

The goal <strong>of</strong> this intervention strategy is similar to vertical integration, but goes further in that<br />

it implies that farmers organize themselves in recognized, visible business organizations,<br />

capable <strong>of</strong> penetrating existing markets, developing new products or markets, or diversifying<br />

their activities. It also means they can conduct a dialogue with consumers to identify<br />

dem<strong>and</strong> <strong>and</strong> hence improve the product. Such farmers’ organizations can negotiate lucrative<br />

prices <strong>and</strong> take a fair share from the chain.<br />

Enter into joint ventures downstream in the chain <strong>for</strong> the development <strong>of</strong> new<br />

consumer product lines<br />

Develop <strong>and</strong> market br<strong>and</strong>ed consumer products<br />

Develop farmer groups into business cooperatives, in co-ownership with processors<br />

<strong>and</strong> retailers that can initiate or negotiate research <strong>and</strong> development initiatives <strong>for</strong><br />

the benefit <strong>of</strong> the entire value chain.<br />

MATRIX 35

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