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RATIONAL:
Rural poor communities’ face numerous barriers which prevent them from
participating in mainstream market systems. Lack of market information, limited
knowledge of market information, lack of formal mechanism for collective purchase
and marketing as well as poor business skills are identified as a constraint within
rural communities for both men and women during market assessment and value
chain analysis.
PROBLEM STATEMENT
The main problem faced by micro entrepreneurs of agri farming is poor link with
market (grower to buyers). Agri farming business in District Muzaffargarh especially
off-season vegetable growing through tunnel farming is rapidly growing. The main
market for BDRP selected Union councils is located in Kot Addu which is also a hub
and associated market for whole Tehsil and adjacent areas. Nearest another market
is main market of Multan (one of main business city of Southern Punjab). In this way
Agri Farmers have vast chances to get their space in this market through better
linkages development, quality products, marketing and value addition.
This report is based on market survey conducted along with participants of Business
Skills trainings for BDRP project of Farmers Development Organization and
Business Development Support Providers from Tirra Development Organization.
In this survey secondary data was assed and local market was visited to obtain
primary data. The report comprises demand and supply, linkages development,
Value Chain Management and recommendations for Agri Farmers for strengthening
their business through collective efforts and management of constrains and availing
opportunities.
Present Situation of Market (Demand/ Supply and Transaction context).
In District Muzaffargarh and Tehsil Kot Addu micro business of Agri farming is still
traditionally handled, most of the micro entrepreneurs produce products and sell in
local market through middleman due to which they get very nominal rates. Similarly
off season vegetable is new business and a few number of agri farmers have started
establishing tunnels in their farms due to unawareness, fears and lack of technical
knowledge.
Demand.
The demand of off season vegetable is increasing highly as vegetables are included
in our daily routine food, likewise plant nursery, wheat product is one of main selling
items in market, due to which demand is on a high level particularly in urban areas.
Supply.
There is a vast gape between demand and supply chain, which is mainly because of
unawareness of the producer and monopoly of middleman. In this way producer is
getting very little compensation from what he produces, at the end customer is
paying high and producer is getting less.
There are many opportunities for these agri entrepreneurs, one of the initial and big
achievements is that they are working together and developing their business
through collaborative efforts.
Value addition is also the best way to enhance business and marketing. These agri
entrepreneurs could link up with big market. Also, other stakeholders which includes
agriculture extension departments, nearby tunnel farms, main market (fruits and
vegetable market) can be linked with them. These agri farmers could also develop
their links with main hotels of nearby cities.
Services Offered.
Fresh and High Quality, Vegetable, Cucumber and bitter by Tunnel Farmers and
Wheat.
Value Chain.
Producer, Farmer, grain market, transportation (donkey cart, rikshaw, truck),
Agriculture Extension Department, FDO, Kashf Foundation, Akhuwat Foundation,
NRSP Bank, Finca Micro Finance Bank, Punjab Rural Support Program, Revenue
Department, grocery shops, Hotels, and buyers are linked with this business.
Marketing strategy.
For promotion and business development, products must be segregated by size,
quality and should be packed in air shopping bags. Promotional Stickers having brief
details of the products and farms should be includes. A sign board can be displayed
at yield and visiting/ business cards should be placed to introduce the production.
Market Visited.
To build linkages of agri entrepreneurs with main markets, Tirra Development
Organization arranged meeting with commission agents/ main dealers of Tehsil
Head Quarter Market of Kot Addu where these entrepreneurs discussed about
products selling and delivery mechanism, they also exchange their contact details
and reassure that they are taking necessary steps for proper business establishing.
Similarly a nearby tunnel farm was visited, so that participants can share their
experiences which become an exchange visit.
Conclusion/ Recommendation
Keeping in view of the potential for these business in local market and based on the
survey, following are recommendations for linkages development.
1. Market should be visited and linkages must be development with Big Hotels/
Motels and restaurants.
2. Linkages Development with fruits, vegetable shops for products delivery at
doorstep.
3. These businesses can produce and sell products through collective efforts
which will surely reduce the cost and they can get good profit.
4. Value chain addition can lead to highlighting these businesses.
5. Proper liaison with Agriculture extension department and other stakeholders
should be strengthening.