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The Use Of Market Information To Adjust Program
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Agricultural products are subjected to the market forces of supply and demand. If there is an oversupply of a product on the market, the prices tend to be below. The opposite is also true; if there is an undersupply of a product the price is high due to the large demand. The producer must bear in mind that agricultural production is seasonal. It is therefore very important to use market information to have products on the market when the price is high.
Other information obtained from marketing information:
Quality of the product. The cheapest way of adding value to your product is to ensure that it is of the best quality that you can produce. Ensure that the product is not bruised during the picking or harvesting process. Take care with the packaging and handling of products to (transport) and at the market (offloading) itself.
The consumer might develop a different taste - it is necessary that the producer adjusts to the new demand as quickly as possible.
The classification standards can change - if the producer does not adapt he will not be able to sell his product.
The producer must form a partnership between him and his marketing agents to ensure that he obtains information and advice on what and when to produce. After you complete the analysis of the production process you need to make adjustments to the production process to ensure the profitability of the enterprise. The adjustments can be introduced immediately in enterprises where there is a constant production e.g., dairy or piggery. In other seasonal enterprises, the changes will be made over time and the result of the change will in most cases only be seen at the end of the production season.
There are basically three changes that can be made
- Change the production process
- Change the products produced
- Close the production enterprise
Useful information for planning market-related changes can be obtained from the RSA – food security bulletin on the web site of the National Department of Agriculture www.nda.gov.za