Food and Agro Marketing: An Overview

Strategic Food Marketing • What is the Food Marketing System?

Kriti Bardhan Gupta
kriti@iiml.ac.in
• Who is Involved in Food Marketing?
• What is a Food Market?
• How Does Marketing Add Value?
• How are Farmers, Middlemen, and Consumers
Related?

Food and Agro Marketing: Definition Food Industry Players

Farmers
• The performance of all business activities
involved in the flow of food products and
services from the point of initial agricultural
production until they are in the hands of Performance of
consumers the Food,
Farm System

Consumers Food Firms

Government??

Scope of Agri-Marketing Scope of Agri-Marketing

Farm Supply Sector

(feeds, fertilizer, seeds, chemicals,
etc.)

Production Agriculture

Food Marketing Firms

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 Alternative Views of Markets What Do Markets Do?

• Time Markets • Create Value

– Harvest corn prices, Winter vegetable market • Allocate Resources to “Best” Uses
• Location Markets • Discover Prices and Values
– Delhi corn market, Hapur wheat market • Summarize, Distribute Information
• Product Markets • Reward, Punish Decisions
– Wheat market, frozen food market • Economize on Effort
• Institutional Markets • Raise Living Standard
– Grocery store, Futures market

The Changing Food Marketing System Global Macroeconomic Overview

Laws and Domestic • Sustained and widespread real economic growth for the
Government FARM PRODUCTS and Global decade averaging 3.1%.
Policies Economy
• Industrialized countries including, the US, EU, and
Japan post average growth rates of 3.3%, 1.9%, and
The Food Marketing System: 1.8%.
Customs and • Firms, Organizations Science and
Values • Product Flows, Distribution Channels Technology
• China, India and other Asian economies continue their
•Management and Marketing Activities high growth rates in the coming decade at 7.6% and
•Pricing and Exchange 6.1%.
Competition
• South America shows strong economies with Brazil
Consumer
Tastes
and Argentina growing at 3.6% and 4.4%.
Infrastructure (transport.., FOOD PRODUCTS and Preferences
communication, educ.)

Some Global Policy Changes World Food Grain Outlook Overview

• EU CAP Reform and Enlargement (EU28) • Food grain per capita consumption declines
– Growth in income => staple crops to protein rich
• EU Sugar Reforms products
• Full implementation of the WTO commitments – With declining per capita consumption, demand
for developed and developing countries growth comes mainly from population growth.
• Rising interest in renewable fuels • Growth in consumption in regions such as Asia,
Africa, and the Middle East with limited
• Mandatory blend of biofuel in Brazil and India potential to meet expanding demand fuels
• EU’s Renewable Fuels Directive (20% by 2020) growth in trade and strengthen food grain prices.
• Long-run production growth driven by yield
improvement.

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