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Market Information System
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For a farmer to achieve the best marketing results, the information about what is happening in the market, with regards to supply and demand, is of great importance. Several private, government and non-profit organisations have embarked on developing Market Information Systems to furnish the farmer with up-to-date Information regarding market conditions.
Definition: A system that analyses and assesses marketing information, gathered continuously from sources inside and outside an organisation. Timely marketing information provides the basis for decisions such as product development or improvement, pricing, packaging, distribution, media selection, and promotion.
Agricultural market information is essential for farmers who wish to become fully market-orientated and ensure that their product is in line with market demand. The availability of reliable market information can help farmers to reduce the risks associated with marketing, decide where to sell their produce, check whether or not the prices they are offered are in line with market prices, decide whether or not to store, grow to produce out of season or grow different products.
The reliable market information also improves market transparency and farmers’ bargaining power. Farmers are interested in market information on product prices, price trends and buyers for their products. Farmers can use market information in several ways.
Current or immediate information can be used first to decide what to produce and to negotiate with buyers or traders, to decide whether to go to a market and, in some cases, to decide which market to supply.
Historical information, such as time series of prices over several years, can be used to make decisions regarding product diversification or the production of out-of-season crops. It may even help farmers identify opportunities for a cash income.
Click here to view a video on the use of Marketing Information Systems.
Click here to view and download a marketing strategy report that was published by the DAFF.