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Farmer Alliances for Resource-Strengthening and Marketing (FARM) Project

R3.1: MCS Presentation. Farmer Alliances for Resource-Strengthening and Marketing (FARM) Project. Step 3: Market Chain Study (MCS). The Clustering Approach to Agroenterprise Development. 8. Scaling-up. 1. 7. Site Selection, Partnership Building and Formation of Working Group.

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Farmer Alliances for Resource-Strengthening and Marketing (FARM) Project

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  1. R3.1: MCS Presentation Farmer Alliances for Resource-Strengthening and Marketing (FARM) Project Step 3: Market Chain Study (MCS)

  2. The Clustering Approach to Agroenterprise Development 8 Scaling-up 1 7 Site Selection, Partnership Building and Formation of Working Group Test Marketing New Products, New Markets 2 6 Product Supply Assessment and Product Selection Production/Product Supply Organizing New Farmers 3 5 Business Planning and Mobilization Market Chain Study 4 Cluster Organization

  3. Step 2 (PSA) and Step 3 (MCS) are very much related. They form thefoundations of an Agroenterprise Plan. Agroenterprise Plan Step 2 Product Supply Assessment Step 3 Market Chain Study

  4. Step 3. Market Chain Study 3 Market Chain Study

  5. Who does the MCS? • the Local Research Team or LRT composed of at least 5 members: (a) MFI or NGO (b) LGU, and (c) local academe; (d) farmer leaders

  6. Objectives of the MCS? • Identify several market chains for each product and analyze the farmers’ position in them • Select the best market chain(s) to work on and the buyer(s) that offer the most benefits • Come up with strategies to assist the farmers participate in specific market chain(s) with the attendant costs and margins in their participation, as well as the development support they will need

  7. In the MCS, we do a Rapid Market Appraisal MARKET VISITS BUYER INTERVIEWS (semi-structured) SERVICE PROVIDERS (key informant)

  8. Market Options Wet/Mass Market Institutional Market • Restaurant • Fastfood • Supermarket • Processors • Direct Marketing • Special Markets • Wholesalers • Retailers

  9. Semi-structured interviews - QUESTIONS • Topics for discussion with buyers • Product quality specs and packaging • Frequency of buying • Minimum and maximum quantity purchased • Buying price at present • Lowest and highest buying prices (past 12 months) • Payment arrangement (cash or term) • Delivered or picked up • Months (3) of highest and lowest supply (past 12 months) • Present sources of supply • To whom product is sold • Willingness to buy from farmers

  10. Consolidation of RMA data Tools and Methods for analysis • Market chain diagram • Price behaviour • Buyer comparison for market opportunity assessment • Value Chain – Marketing activities, costs and margins • Projections on sales, marketing costs & margins based on targeted market & volume

  11. Organizing of RMA Data a. Market Chain Map

  12. b. Value Chain Analysis (Activities, Costs, Margins) V

  13. c. Price information – across a period of 12 months presented in a graph

  14. d. Buyer Comparison – Answers to Questions

  15. Example of a matrix of buyer comparison

  16. e. Projections on sales, marketing costs & earnings for the different targeted markets based on value chain analysis information

  17. MATCHING Agroenterprise Plan Critical Development Interventions SWOT SUPPLY MARKETS

  18. Making a supply plan: on the basis of product supply capacity of farmers in groups (clusters)

  19. Coming up with an Agroenterprise Objectives & the Market Plan Market Analysis • Opportunities • Challenges • Choosing the markets & coming up with business objective Agroenterprise Objective: To collectively market ___ quantity of ___ product for a period of ___ months & earn ____ marketing income.

  20. Report Introduction – Product, Farmers, Location, etc. Market Analysis • Market Options • Value chain analysis • Markets of Interest • Opportunities and Challenges Production Analysis • Production Capacity • Production Cost and Returns • Strengths and Weaknesses The Way Forward – Important Development Interventions Agroenterprise Objectives

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