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AGR MKTG - Review

This document provides an overview of agricultural marketing in 4 units: 1. It defines agricultural marketing as the process starting from production planning through distribution. It involves functionaries at primary, secondary, and terminal market stages. 2. It discusses the marketing concept and essential steps for developing a strategic marketing plan, including understanding the marketing mix and different marketing strategies. 3. It covers target markets for agricultural products and provides legal and economic definitions of agricultural products. 4. The final unit discusses promotion of agricultural products and gives examples of promotion items and current Philippine agribusiness industry trends.

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0% found this document useful (0 votes)
64 views47 pages

AGR MKTG - Review

This document provides an overview of agricultural marketing in 4 units: 1. It defines agricultural marketing as the process starting from production planning through distribution. It involves functionaries at primary, secondary, and terminal market stages. 2. It discusses the marketing concept and essential steps for developing a strategic marketing plan, including understanding the marketing mix and different marketing strategies. 3. It covers target markets for agricultural products and provides legal and economic definitions of agricultural products. 4. The final unit discusses promotion of agricultural products and gives examples of promotion items and current Philippine agribusiness industry trends.

Uploaded by

Johnloyd daracan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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FOR CLASSROOM DISCUSSIONS ONLY 0

MODULE 1

AGRICULTURAL MARKETING

Prepared by:

CMBT FACULTY

AGRICULTURAL MARKETING |
1

FOREWORD

This module on Agricultural Marketing was made for pandemic virtual class
only since face to face modality of learning is apparently not permitted by the
government for the time being, This module 1 focused on four learning unit. For each
unit, an online activity to be accomplished by the students.

This module will focus on the Introduction to Agricultural Marketing, with


application of the marketing mix in dealing with production and distribution of input
and output of agricultural commodities. The discussions of cases focus on the current
trends in agricultural marketing and at the end of the term is the requisite for the
course.

RPB

AGRICULTURAL MARKETING |
2

TABLE OF CONTENT

Page
Foreword 2
Unit I Agricultural Marketing 4
Functionaries in Agricultural Marketing 5
Agricultural Marketing Explained 6
Functions of Agricultural Marketing 7
Importance of Agricultural Marketing 8
Unit II The Marketing Concept 11
Essential Steps for a Successful Strategic Marketing Process 13

The Role of Marketing 18

Marketing Mix 21

Marketing Strategies for Agriculture Products 22

Steps in Developing An Efficient Marketing Plan 27

UNIT III - Target Market 30


Agricultural Products 31
Legal and Economic Definition of Agricultural Products 33
UNIT IV - Promotion of Agricultural Products 36
Promotion Item and Giveaways 38

UNIT V - CURRENT PHILIPPINE AGRIBUSINESS INDUSTRY 40


References 48

AGRICULTURAL MARKETING |
Definitions | Descriptions
Terminologies | Titles
Topic | Important 3
Examples

UNIT I - AGRICULTURAL MARKETING

At the end of this unit, you are expected to:

1. define agricultural marketing;


2. familiarized with the functions and importance of agricultural
marketing;
3. Solved agricultural marketing problems of developing countries.
INTRODUCTION
Without a doubt, the Philippine is an agro-industrial sector and has been one
of the most important components of the economy. We have seen the ultimate
importance of the agriculture industry during the recent lockdown in the Philippines
(March-June 2020) as this industry remain standing and economically running where
others like supermalls, manufacturing were temporarily shut down by the state. The
increasing trend of agricultural production has brought new challenges in terms of
finding market for the surplus. There is also a need to respond to the challenges and
opportunities, that the global markets offer in the liberalized trade. To benefit the
farming community from the new global market access opportunities, the internal
agricultural marketing system in the country needs to be integrated and
strengthened. Agriculture and agricultural marketing need to be re-oriented to
respond to the market needs and consumer preferences.
2 concepts: Agriculture & Marketing
Agricultural marketing consists of two major concepts viz., “agriculture” and
“marketing”. The first concept agriculture aims at producing the Argo food products
with the use of natural factors for the welfare of human. It is fully depend on natural
processing. Agro Food Products - Food produced as a result of agriculture.

The second concept of marketing refers to the activities that are done by the business
organizations to promote their products and services to their targeted customers. In
marketing the targeted customers can be attracted and maintained by creating strong
customer values for them in the organization. It is possible through, effective market
survey, market trending, better customer service and satisfaction, customer focus and

AGRICULTURAL MARKETING |
4

continuous follow up. The concept agricultural marketing includes many activities
starts from production process till its retailing.

The activities involved are production planning, cropping and harvesting,


warehousing, grading, transportation and final distribution. There are varieties of
agro products which are produced with dual purpose of domestic consumption as
well as exporting. In the chain of agricultural marketing number connecting links such
as farmers, suppliers, functionaries, importers, exporters, external beneficiaries and
customers are involved.

DEFINITION OF AGRICULTURAL MARKETING

According to the National Commission on Agriculture (XII Report, 1976),


agricultural marketing is a process which starts with a decision to produce a
saleable farm commodity, this involves all the aspects of market structure or system,
both functional and institutional assembling, grading, storage, transportation and
distribution.

FUNCTIONARIES IN AGRICULTURAL MARKETING 3 Functionaries of agricultural marketing

Functionaries’ involvement in agricultural marketing has categorized under


three market stages. They are functionaries in:

• Primary market

• Secondary market

• Terminal or Export market

Primary market functionaries: The producer/farmer/cultivator, pre-harvest


contractor, itinerary merchants, transport agents. Secondary market functionaries:
Financial agents and processing agents are involved in secondary market in addition
to primary market functionaries. Terminal or Export market functionaries: in
addition to primary and secondary market functionaries’ commercial analyst and
shipping agents are also involved in this market stage and, based on technical and
economic considerations, and includes pre- and post-harvest operations,

AGRICULTURAL MARKETING |
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Marketing. 2 Definitions of Marketing

Marketing means working with markets, which in turn means attempting to


actualize potential exchanges for the satisfying human needs and wants. Thus we
return to our definition of marketing as human activity directed at satisfying needs
and wants through exchange processes.

Farm’s marketing.

Activities related to the marketing and production of agricultural products


produced by an organization or individual farmer. Such activities in the process of
farm’s marketing includes packaging, selection of brands name, promotional
strategies, price policies, marketing channels and other policies.

Agricultural Marketing Explained

Agricultural marketing generally means the marketing of agricultural


products to the first handler. In macro (social) perspective, is the performance of all
business activities involved in the forward flow of food and fiber from farm producers
to consumers. It includes all the activities associated with agricultural production and
with food, feed, and fiber assembly, processing, and distribution to final consumers,
including analyses of consumer’s needs, motivations, and purchasing and
consumption behavior.

Agricultural marketing circle.

AGRICULTURAL MARKETING |
6

"Final Consumer"
It consists of First circle. Refers to the final consumer or targeted customer.

Controllable Second circle. Factors that can be controlled known as marketing mix
(product, price, place, and promotion).

Uncontrollable Third circle. Environmental factors that cannot be controlled (political and
legal, economic, law and regulation, social & culture, technologies, & demographic).
AGRIBUSINESS MARKETING
Agribusiness marketing has come to mean the marketing operations from the
first handler to the final consumer-beginning with suppliers to farmers and covering
producing, processing, and marketing to the final consumer. From the supplier to the Final consumer
AGRO MARKETING AND AGRO MARKETING SYSTEM
Agro marketing has a complex system that requires regulation and
management. An agricultural enterprise is not self-supporting, so there is a constant
exchange of resources and information between it and the surrounding marketing
environment. The very fact of its existence and further survival depend on the
influence of the environment. To continue its operation, the agricultural enterprise is
forced, on the one hand, to adapt to changes in the external marketing environment,
and on the other hand to influence it by virtue of its capabilities by developing various
agricultural marketing campaigns. The agro marketing system includes a set of the
most significant market relations and information flows that connect the agricultural
enterprise with the markets for its products.

6 Functions FUNCTIONS OF AGRICULTURAL MARKETING

The major marketing functions involved in agricultural marketing are:

• Concentration

• Grading

• Processing

• Warehousing

• Packaging

• Distribution

AGRICULTURAL MARKETING |
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Concentration: The foremost function to be performed in agricultural


marketing is to collects the agro produce ready to sale in a central place for economic
buying purpose.

Grading of Agro Produce:

Grading is the process of segregating the huge amount produce into different
categories on the basis of variety, quality, size, etc. This can help to establish
standards for those produce.

Processing: It is the stage where the farm products are transformed into
consumable products. For example: paddy into rice processing.

Warehousing: Warehousing is storing the products from production till its


final consumption. This helps to preserve the products from spoil, contamination, etc.

Packaging: Packaging of products is another essential function for easy


handling, preventing from deterioration, attracts customers, etc.

Distribution: The last function performed in all marketing is distribution of


products from the place of warehouse to retail outlet for final consumption.

IMPORTANCE OF AGRICULTURAL MARKETING

• Break the vicious circle of poverty

• Optimum utilization of agricultural resources

• Enhance the standard of living

• Basis of employment opportunity

• Basis of industrial development

• Creation of utilization

• Basis of foreign trade

• Source of national revenue

AGRICULTURAL MARKETING |
8

• Create the environment for investment

6 PROBLEMS PROBLEMS IN AGRICULTURAL MARKETING IN DEVELOPING COUNTRIES

Product Quality: Some of the farmers are not aware of the need for quality
seeds and fertilizers. The poor quality seeds and fertilizers used in land will result in
poor product quality.

Market Information: The literacy rate of farmers in developing countries are


comparably low than the developed countries. The farmers of developing countries
may not have the updated knowledge of the market trend and activities. Hence they
may unable to achieve the real price of their product.

Product Quantity: In some places improper measuring of products are still in


practice. This will result in loss for the farmers at the time of buying or selling of agro
produce.

Functionaries Participation: The functionaries in the marketing process


hold a major share of profit in the form of commission.

Lack of Transportation Facility: Many of the rural areas don’t have proper
road facility. This creates barrier in transporting the agro produce to the market
place. Inadequate Storage Facility: The inadequacy of storage facility may leads to
unwanted wastage of products.

AGRICULTURAL MARKETING |
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UNIT II - THE MARKETING CONCEPT


At the end of this unit, the students are expected to:
1. learn the five- marketing concept, strategies and marketing mix
2. come up with their own marketing plan.
INTRODUCTION
What philosophy should guide a company marketing and selling efforts? What
relative weights should be given to the interests of the organization, the customers,
and society? This interest often clash, however, an organization’s marketing and
selling activities should be carried out under a well-thought-out philosophy of
efficiency, effectiveness, and socially responsibility.
There are five orientations (philosophical concepts to the marketplace have
guided and continue to guide organizational activities:
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. The Marketing Concept
5. The Societal Marketing Concept
The Five Concepts Described
The Production Concept. This concept is the oldest of the concepts in
business. It holds that consumers will prefer products that are widely available and
inexpensive. Managers focusing on this concept concentrate on achieving high
production efficiency, low costs, and mass distribution. They assume that consumers
are primarily interested in product availability and low prices. This orientation
makes sense in developing countries, where consumers are more interested in
obtaining the product than in its features.
The Product Concept. This orientation holds that consumers will favor those
products that offer the most quality, performance, or innovative features. Managers
focusing on this concept concentrate on making superior products and improving
them over time. They assume that buyers admire well-made products and can
appraise quality and performance. However, these managers are sometimes caught

AGRICULTURAL MARKETING |
10

up in a love affair with their product and do not realize what the market
needs. Management might commit the “better-mousetrap” fallacy, believing that a
better mousetrap will lead people to beat a path to its door.
The Selling Concept. This is another common business orientation. It holds
that consumers and businesses, if left alone, will ordinarily not buy enough of the
selling company’s products. The organization must, therefore, undertake an
aggressive selling and promotion effort. This concept assumes that consumers
Show buying
typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also
assumes that the company has a whole battery of effective selling and promotional
tools to stimulate more buying. Most firms practice the selling concept when they
have overcapacity. Their aim is to sell what they make rather than make what the
market wants.
The Marketing Concept. This is a business philosophy that challenges the
above three business orientations. Its central tenets crystallized in the 1950s. It
holds that the key to achieving its organizational goals (goals of the selling company)
consists of the company being more effective than competitors in creating, delivering,
and communicating customer value to its selected target customers. The marketing
concept rests on four pillars: target market, customer needs, integrated marketing
and profitability.

Distinctions between the Sales Concept and the Marketing Concept:

SALES CONCEPT 1. The Sales Concept focuses on the needs of the seller. The Marketing Concept
1.Seller's need.
2. Product into cash. focuses on the needs of the buyer.
MARKETING
CONCEPT
2. The Sales Concept is preoccupied with the seller’s need to convert his/her
1. Buyer/Consumer's
need. product into cash. The Marketing Concept is preoccupied with the idea of satisfying
2. Idea of giving
satisfaction to the the needs of the customer by means of the product as a solution to the customer’s
customers by means of
product that serves a problem (needs).
solution to the
customer's need.

AGRICULTURAL MARKETING |
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The Marketing Concept represents the major change in today’s company


orientation that provides the foundation to achieve competitive advantage. This
philosophy is the foundation of consultative selling.
The Marketing Concept has evolved into a fifth and more refined company
orientation: The Societal Marketing Concept. This concept is more theoretical and
will undoubtedly influence future forms of marketing and selling approaches.
The Societal Marketing Concept. This concept holds that the organization’s
task is to determine the needs, wants, and interests of target markets and to deliver
the desired satisfactions more effectively and efficiently than competitors (this is the
original Marketing Concept). Additionally, it holds that this all must be done in a way
that preserves or enhances the consumer’s and the society’s well-being.
This orientation arose as some questioned whether the Marketing Concept is
an appropriate philosophy in an age of environmental deterioration, resource
shortages, explosive population growth, world hunger and poverty, and neglected
social services.
Are companies that do an excellent job of satisfying consumer wants necessarily
acting in the best long-run interests of consumers and society?
The marketing concept possibly sidesteps the potential conflicts among
consumer wants, consumer interests, and long-run societal welfare. Just consider:
The fast-food hamburger industry offers tasty but unhealthy food. The hamburgers have
a high fat content, and the restaurants promote fries and pies, two products high in
starch and fat. The products are wrapped in convenient packaging, which leads to much
waste. In satisfying consumer wants, these restaurants may be hurting consumer health
and causing environmental problems.

5 Essential Steps for a Successful Strategic Marketing Process

The strategic marketing process is a deliberate series of steps to help you identify and
reach your goals. Even more, you’ll discover what your customers want and develop
products that meet those needs. Here are the steps to a successful strategic marketing
process.

AGRICULTURAL MARKETING |
12

1. Mission
2. Situation Analysis
3. Marketing Strategy/Planning
4. Marketing Mix
5. Implementation and Control

Strategic marketing planning involves setting goals and objectives,


analyzing internal and external business factors, product planning, implementation,
and tracking your progress. Consider the example of Apple, winner of the CMO
Survey Award for Marketing Excellence for the past seven years. Here’s an example
of the strategic marketing plan for one of the most successful companies in the world.

AGRICULTURAL MARKETING |
13

Clear and concise Mission: Apple is dedicated to making innovative, high-quality products.

Identifying strengths Situation Analysis: Apple’s competitive advantage is driven by its commitment to
and weaknesses as
well as advantages of understanding customer needs, focusing on the products that are core to its mission,
your company to the
other competitors. and fostering a collaborative work culture.

Heavily relies on your Marketing Strategy: Apple usually is first to the marketplace with new products and
strengths.
the company relies on brand loyalty from existing customers as a strategy when
launching new products and services.

AGRICULTURAL MARKETING |
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Marketing Mix: While Apple offers a range of products, it values premium pricing
and relies on strict guidelines for distribution.

Complements Implementation and Control: Each Apple product complements the others and
other product and
effectively blend work within the same ecosystem, so customers tend to stay with the brand, creating
to other products
in the market. loyal consumers.

The strategic marketing process puts all the pieces together so that everything you
do contributes to the success of your business. Rather than executing haphazard
activities and ideas, developing a solid plan that weaves goals and tactics into a
seamless experience is essential. You can follow these steps to create products and
services that will delight your customers and beat out your competitors.

Step One: Mission

First, identify and understand the company’s mission. Maybe it’s written down and
It highlights your
company's goal and promoted throughout the organization. If not, talk to stakeholders to find out why
objectives.
your company exists. A mission statement explains why a company is in business
and how it can benefit consumers. Sometimes, the mission statement is aspirational,
motivating staff and inspiring customers. Or it is simply a straightforward statement
about who you are. Either way, you can’t plan a marketing strategy without knowing
clearly what business you are in and why.
Here are some example mission statements:
IKEA: At IKEA, our vision is to create a better everyday life for many people. Our
business idea supports this vision by offering a wide range of well-designed,
functional home furnishing products at prices so low that as many people as
possible will be able to afford them.

Universal Health Services: To provide superior quality healthcare services that:


PATIENTS recommend to family and friends, PHYSICIANS prefer for their patients,
PURCHASERS select for their clients, EMPLOYEES are proud of, and INVESTORS

AGRICULTURAL MARKETING |
15

seek for long-term returns.


Unlike the other steps in the planning process, senior leaders or the board of
directors typically develop the mission statement and corporate objectives. Your
role is to identify those objectives in the planning process to ensure that your efforts
stay aligned with corporate leadership.

The mission statement is a core message that guides and influences your marketing
strategy. Questions to ask when evaluating the mission:

• Why is your company in business?


• What is the purpose of your business?
• What is the strategic influence for your business?
• What is the desired public perception for your business?
• How does your mission statement clarify your strategy?
• How does your mission statement unify your team?

Step Two: Situation Analysis

The second step of the strategic marketing process is to evaluate internal and external
factors that affect your business and market. Your analysis will illuminate your
strengths and the challenges you face — either with internal resources or with
external competition in the marketplace. Situation analysis provides a clear, objective
view of the health of your business, your current and prospective customers, industry
trends, and your company’s position in the marketplace.

There are several methods to conduct this analysis. A typical analysis is called a SWOT
analysis: strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal factors, under your company’s control. What
do you do well? What needs to be better? Opportunities and threats are external
factors, such as interest rates or a new competitor in the market. Here are some
questions that can help you identify internal and external factors:

AGRICULTURAL MARKETING |
16

• Strengths: What do you do well? What are the factors that you control? What
is your competitive advantage? How are your products and services superior
to others in the marketplace?
• Weakness: Where are you underperforming? What is limiting your ability to
succeed? Where do limited resources affect your success?
• Opportunities: What are untapped markets? Where is the potential for new
business? Can you take advantage of any market trends?
• Threats: What are the obstacles? Which external factors (political,
technological, and economic) can cause a problem?

The Role of Marketing

Marketing, in agriculture, includes all the various activities involved in the


You need to consider
in Marketing
transformations:
transformation of commodities sold by farmers into food and fiber products
- Form
- Transportation purchased by consumers. The most obvious aspect of this transformation is a change
- Time
- Ownership in physical appearance or form. Form changing activities for agricultural
commodities range from washing and grading apples to processing wheat into
Wheaties. Another important marketing function is transportation. Agricultural
commodities must somehow get from the farms where they are grown to the retail
outlets where they are bought, in some cases moving across a country or half-way
around the world. Time is another important aspect of marketing. Many agricultural
commodities must be harvested at a specific time, but can be stored for later use and
in some cases be consumed year-round. Finally, in a specialized economy, most
consumers are not producers. Marketing involves the transfer of ownership or
possession from those individuals who produce, ultimately, to those individuals who
consume the food or utilize the fiber.

Market transformations change the value of commodities by changing their


form, place, time, and ownership as they move through the marketing system. Each
Creates Value: Add
Costs of these functions creates value but also adds an associated cost. Profits result
whenever the value added by marketing functions such as processing, transportation,

AGRICULTURAL MARKETING |
17

storage, or brokerage, is greater than the costs of performing those functions. These
basic principles of marketing may seem simplistic; however, they are the
fundamental concepts upon which vertical expansion of farming into marketing must
be built.

Marketing, to most farmers, means commodity marketing. They produce


commodities such as corn, wheat, hogs, or cattle. One farmer's No. 2 grade yellow corn
is pretty much like any other farmer's No. 2 yellow corn. One cattle feeder's 1100 lb.
USDA choice steers are a lot like steers of a similar weight and grade from any other
feed lot. Thus, the commodities one farmer has to offer for sale are freely
interchangeable with commodities offered for sale by many other farmers, oftentimes
including farmers on another continent. Commodity markets tend to be highly
competitive because there are many buyers and sellers of the same basic commodity.
Price differences among different market locations rarely exceed transportation costs
and price changes over time tend to reflect seasonal or cyclical cost differences.
COMMODITY MARKETING

Commodity marketing decisions are primarily limited to decisions of timing.


Farmers can forward price their commodities through private contracts or futures
markets, attempting to get a price higher than market price at time of delivery. Or
they can store commodities for later sale, hoping that market prices will rise more
than their costs of storage. In either case, farmers are matching wits with speculators
who make their living buying, pricing, storing, or selling commodities. Most
conventional farmers are not particularly good speculators. They make a living by
keeping their costs competitive and, thus, being able to stay in business at competitive
market prices.
PRODUCT MARKETING

Product marketing is different from commodity marketing. Commodities are


alike, but products are different. In marketing jargon, products have distinct quality
characteristics and, thus, distinct market values. These differences may be tangible in
nature (as in nutrient values of foods) or intangible (as in consumer acceptance
created by brand advertising). Differentiation creates a more or less unique market

AGRICULTURAL MARKETING |
18

for a product, taking it out of direct competition with other products. The greater the
differentiation, the greater the potential for profits. Products that have few good
substitutes may command a substantial price premium over less acceptable
alternatives. However, consumers will not pay much more for a product that has
many good substitutes than they will pay for the substitutes.

Products may be differentiated by anything that affects value. Processing, for


Products may be example, changes the form of raw commodities. Some processing activities, cattle
differentiated by:
1. Anything that affects
value.
slaughter for example, result in a different form of generic commodity, such as choice
2. Respect to time.
3. Geographical or
beef. In other cases, however, processors are able to transform commodities into
Location.
distinct products such wines from grapes. A supermarket may stock wines from a
number of different wineries because the wines are perceived to be different by a
sufficient number of wine drinkers to create profitable markets. Processing is only
one means of changing the form of a commodity. Fruits sorted for uniformity of size
and color, for example, may sell for a premium over the same fruit sold unsorted.

Products may also be differentiated with respect to time. In mid-winter, local


greenhouse tomatoes in the Midwest may command a substantial premium over
tomatoes from California or Mexico. However, tomatoes from those same
greenhouses may have no advantage over local vine-ripe tomatoes in mid-summer.
Winter price premiums reflect the lack of good substitutes at that particular time.
Vine-ripe tomatoes out-of-season are a differentiated product, but in-season
tomatoes are a commodity. An ability to provide products on time, continuously over
time, may also differentiate one farmer's products from the others.

Location is another factor which differentiates the value of products. Farmers


near population centers have a distinct advantage in most direct marketing
strategies. Pick-your-own fruit, vegetable, or berry farms, for example, must be
located within reasonable driving distance of a significant population center.
Farmer's markets are also logical market outlets for producers of fresh produce from
a fairly limited geographic area. Product handling and transportation technologies,

AGRICULTURAL MARKETING |
19

however, have reduced the significance of location, either as an advantage or as an


obstacle in marketing.

Market advantages associated with individual ownership or possession are


perhaps less obvious and less well understood than those associated with form, time,
and place. However, values associated with individuality may be far more important
than any other in developing sustainable agricultural systems. Different individuals,
or groups of individuals, value the same products differently. In other words, the
same form or physical quality of product may be valued differently by two different
groups of people at any given time and place. Thus, individual farmers can command
higher market prices simply by offering their products to the individuals or groups
who value them most. Products that are carefully tailored or targeted to meet the
specific needs of narrowly segmented markets may command a significant price
premium over mass-produced commodities that meet the same generic need.
Matching products to the tastes and preferences of specific consumer groups is the
essence of successful niche marketing.

MARKETING MIX

Management of the 4-P’s of marketing (marketing mix) is the mandate of a


marketing manager in firm. A marketing manager therefore analyzes the market,
plans for the future, develops marketing strategies, and meets market needs and
desires. The marketing plan identifies all controllable elements of the exchange
relationship between an organization and its customers. The 4-Ps are considered
controllable since they represent the key inputs into a marketing manager’s plan.
Such inputs may entail budgetary allocation, human and physical resources. The 4-Ps
and their management strategies are explained below.

1. Product: -Is a tangible object or an intangible service that is mass produced


or manufactured on a large scale with a specific volume of units. Intangible
products are service based like the tourism industry and the hotel industry or
codes-based products like cell phone load and credits. Typical examples of a

AGRICULTURAL MARKETING |
20

mass produced tangible object are the motor car and the disposable razor. The
product aspect includes individual goods, product lines or service features and
benefits that meet consumer wants and needs as identified through market
research.

2. Place: Place represents the location where a product can be purchased. It is


often referred to as the distribution channel. It can include any physical store
as well as virtual stores on the Internet. Place is not exactly a physical store
where it is available. Place is nothing but how the product takes place or
creates image in the mind of customers. It depends upon the perception of
customers. Place aspect of product mix deals with channels of distribution,
middlemen, warehousing, transportation and shipping as identified in
research in meeting consumer expectations.

3. Price: The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the
product. Setting a price that serves the customer well and maximizes
justifiable profits to the company is important. Issues relevant include price of
the product, level pricing, introductory pricing, discounts, allowances. Again,
this is established in relation to consumer willingness to pay as identified via
market research.

4 Elements of Promotion: 4. Promotion: represents all the communications that a marketer may use in the
1. Advertising
2. Public Relations marketplace. Promotion has four distinct elements: advertising, public
3. Personal Selling
4. Sales Promotion relations, personal selling and sales promotion.

If the Product, Price and Place are in sync with what consumers want/need,
Promotion reminds them the needs-satisfying Product/Service is available.

Marketing Strategies for Agriculture Products

1. Gather & analyze reliable market data

AGRICULTURAL MARKETING |
21

The first step to implementing an effective marketing campaign is to know


who you’re going after. It’s more than just “we’re going after Corn/Soy growers.”
Answer the questions your audience is asking, understand the problems they face,
and determine the specific products that solve those problems.
What your company is "going after"
The quickest and easiest way to find this out is by analyzing market data. Here
are some data points that’ll help you understand farmers better:

• Personal & demographic information

• Crop type & rotation pattern

• Relationships with other growers

• Acreage

• Distinction between acres owned vs. operated vs. owned and operated

• Grain bin count & capacity

• Geospatial imagery of the operation

If you’re gathering data from surveys, not only will you be able to obtain this
level of detail, but there are severe weaknesses in surveying as a source of objective
data. Here are some ways you can ensure that you’re gathering data from a reliable
source:

Accuracy. Does the data accurately depict who the farmer is, how large their
operation is, what they’re farming, and the events impacting them and their
bottom line?

Coverage. How much of the market does the data cover? Is it enough to
provide helpful insights on the market as a whole? Can you use it to expand
beyond who you currently are marketing to?

Detail. How granular does the data go? Can you access details about individual
growers, farm operations, and field? Make sure you have enough details both
on farmers and on the market overall to make critical marketing decisions,

AGRICULTURAL MARKETING |
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develop impactful segments, and craft messages that are highly specific and
contextual to the farmer’s current needs.

Recency . How frequently does your source update the data? How
frequently are they able to update it? Data that hasn’t been reliably updated
since 2008 isn’t going to get you very far. Make sure you have a source that
updates annually or more.

Once you’ve acquired detailed marketing data, you can take the next steps to
implementing your marketing strategies for agriculture products.

2. Market to specific segments of farmers

After you’ve gathered the data, it’s time to put it to use by using it to create
highly specific messages to farmers. That’s where segmentation of your market by the
demographics we listed above is going to help.

Here’s an example. There are nearly 950,000 Corn/Soy growers in the


Midwest, which make up the largest segment of growers in the U.S.

Active Corn/Soy Growers in the Midwest by State

State Growers

Illinois 120,390

Indiana 82,819

Michigan 107,015

Ohio 79,726

Wisconsin 77,922

Iowa 113,209

Kansas 73,628

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Minnesota 93,359

Missouri 62,455

Nebraska 68,003

North Dakota 28,828

South Dakota 40,583

But you can segment the market even further than that. You don’t just want to target
areas with large numbers of growers but large numbers of growers with large farms.
Using the data at your disposal, you can segment and select the operations with the
largest number of operations farming 500+ acres of Corn/Soy:

Top Active Midwest 500+ Acre Corn/Soy Growers by County

County 500+ 1000+

Cass, ND 634 405

McLean, IL 518 220

Champaign, IL 495 204

Brown, SD 484 284

Livingston, IL 437 169

Renville, MN 436 241

Minnehaha, SD 397 144

LaSalle, IL 390 162

Iroquois, IL 389 171

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Richland, ND 387 247

Lancaster, NE 377 130

Kossuth, IA 364 144

Plymouth, IA 348 129

Grand Forks,
347 187
ND

Spink, SD 347 241

Sangamon, IL 343 163

Redwood, MN 341 112

Stutsman, ND 329 203

Platte, NE 326 122

Sioux, IA 325 97

You can continue drilling down into these segments which, while small, ensure
that you can target the farmers who are most likely to do business with you.

Once you take the time to develop your segments, you can then focus your
messaging and product offer on those specific growers. If you have a product that
works for smaller farms and one for larger farms, market differently to those two
segments. But even if you’re marketing the same product to multiple segments, the
use case and specifics in the message are going to be different.

The goal is to communicate the right message at the right time to the right
grower. Segmentation combined with custom messaging helps you do that, and you’ll
see increased conversion rates and ROI as a result.

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3. Leverage data-targeted, omni channel marketing


4 Marketing Channels
1. Programmatic Ads Some ag companies choose the channel first—be it an ag publisher, radio
2. Facebook ads.
3. Email station or program, or even direct mail—and then determine who the audience will
4. Direct Email
be. This approach to marketing can be effective to a degree, especially in terms of
brand awareness and visibility.

But if you’ve taken the time to develop segmented audiences of farmers and
messages for each of them, then you need to market in such a way that you’re reaching
them directly. The primary advantage of data-targeted, omni channel marketing is
that you specific growers, not channels.

That means instead of focusing on specific publications or websites, you can


focus on specific groups of growers, and target them with a consistent message across
a variety of channels:

Programmatic ads. Programmatic is the automated auctioning of digital ad


space across hundreds of sites. So instead of displaying your ad to a variety of growers
on one site, you’re displaying it to a single grower (or group of growers) on a variety
of sites.

Facebook Advertising. Upload your data to Facebook to target Facebook ads


directly at farmers. You can also leverage Facebook’s targeting features to segment
that audience even further if you desire.

Email. Place a message directly in your farmers’ inbox. Email is still a high-ROI way
to communicate with farmers.

Direct mail. While direct mail is growing less common in other industries, a lot of
farmers respond to receiving marketing messages in the mail. Go ahead and use this
channel as one of your many marketing channels for added visibility and impact.

The key to leveraging multiple channels is to have a consistent message across


all of them. That way, the farmer sees one of your programmatic ads, and then later
recognizes the same messaging in an email or direct mail piece. Build a level of

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familiarity and trust with them through consistency and a powerful message that
entices them to find out more.

The agricultural sector is one of the most important parts of any economy. An
efficient, well-maintained agriculture sector leads to overall economic benefits. In the
last decade, digital technology has risen to be one of the most crucial marketing
platforms. With the potential clients surfing the internet, it is paramount to advertise
and navigate through various social media platforms, to get them to notice your
services. With the modern agricultural revolution and the improvement and
transformation in technology, agriculture marketing has reached a much higher level.

Steps in Developing an Efficient Marketing Plan

Agriculture marketing companies are hired to form an efficient and profitable


marketing plan through digital marketing, to get maximum sales and traffic. The steps
to develop an effective marketing plan are a complex and intricate process and need
professional help. These are some of the crucial steps in developing a functional and
profitable marketing plan.

➢ Targeting Potential Customers- Products need to be identified with their


targeted customers. Companies need to check which product is bringing in what type
of customers more. The customers can be categorized by age, sex, or other
preferences. Identifying the potential customers, assists in making a more focused
digital marketing plan.

➢ Create a Unique Sales Proposition- the Agricultural market is crowded


with cut-throat competitors. You need something different, something unique, to
divert the customer’s attention from your competitors to your business proposal.
Formulating a unique strategy gets you apart from your competitors and puts a bright
light on you, grabbing customer’s instant attention.

➢ Developing the Right Core Team- An agricultural marketing


company needs to recognize a perfectly balanced core team and formulate them to
their fullest potential to get the best results. An agriculture business needs help in

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various segments like Horticulture, Soil Conservation, Fisheries, Forest Department,


Dairy Production and much more. They need to have a well-balanced team of
experienced professionals to deal with each of these sections.

➢ Digital Advertising- There are many methods of advertising available in


the world of digital marketing. You can choose the advertisement technique that
works best for you and your business. Like implementing Pay Per Click ads helps in
promoting your website and its content on various other search engines, social media,
mobile apps, and more.

➢ Evaluate your marketing techniques- After implementing a particular


technique, businesses are advised to evaluate and consolidate the relevant data. It
informs and updates the businesses on whether their marketing techniques are
working and if the targeted customers are being directed to your business website.

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UNIT III - Target Market

At the end of the unit, students are expected to:

1. analyzed market segmentation in agricultural market


2. classified agricultural products accordingly

Market Segment Analysis:

A journey like this begins by understanding farmers. A successful farmer has


deep knowledge and broad local connections. The more connections a farmer has, the
more information and opportunity they will likely have access to.

Three interrelated stakeholders constitute the main mechanism for


effecting and forecasting market need: The agricultural industry is a multisided
market of stakeholders which can be broken down simply into four interrelated
customer segments: a circle consisting of farmers, vendors, government agencies, and
consumers; which support vast arrays of diversified agricultural production niches,
vendor services and products, varying levels of regulation and government oversight,
population consumption levels; all of which have varying scales of operation, scope,
and cooperation (local, regional, national, and international).

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Farmers: Mix and Scale Operations

Each farm has a mix of operations which serves market forces it caters
to: The agricultural industry is full of a diverse array of agricultural operations
niches—types of produce they grow and livestock they rear. Each farm has its own
unique mix of operations, with its own subset of vendors, levels of government
support, and consumer segments it supports. This is indicated below in the customer
segments row.

The business decision to invest in a mix of market niches is made by the


volition of the farm owners. Farm owners take on the business risk of production
and executing farm operations to ensure production goals are met for a perceived
vendor or consumer segment, with the intent of serving the communities.

Each farm has a scale of operations it geographically caters to: The scale
of operations further distinguishes customer segments not only in terms of farm
operations but what vendor products, services, equipment, financial support, and
government regulations they will need or encounter. This is indicated in the above
table 1: Industry Stakeholders, in the Scale of Operations column. The table segments
five characters of agricultural operations scale. It starts with consumers such as
hobbyist gardeners; expanding outward toward locally supported small farm
operations, mid-level regional operations, large interstate producers, and finally
multinational operations. In all there are five farm operation scales based mainly on
the vastness of the geographic markets they cater to.

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Definition of an Agricultural Product?

Agricultural products are derived from cultivated plants or animals to sustain


or enhance human life. Food is the most widely produced agricultural product, and,
the global per-person food supply as measured in calories per person has risen more
than 20 percent in the past 50 years.

But people also use a vast array of agricultural products every day for other
reasons, ranging from the clothes we wear to the paper we write on. We decorate
with flowers often produced by agriculture and run our cars in part on ethanol
produced by agriculture. We also use agricultural products to make plastics. As
technology advances at breakneck speed, new uses for agricultural products will
continue to expand.

4 Categories of Agricultural Products

Agricultural products fall into one of four groups: foods, fuels, fibers, and raw
materials:

1. Food: Grains and cereal crops are grown on more than half the world's farmed
acreage, according to the U.S. Department of Agriculture (USDA). But food
agriculture crops encompass more than just cereals like wheat and corn. Meats
and dairy products like milk also are agricultural food products, as are honey
and farmed fish.

2. Fuels: Ethanol, produced from corn, sugarcane, or sorghum, is the agricultural


fuel product in the widest use. However, agricultural byproducts like straw
sugarcane also are burned to produce power.

3. Fibers: Fiber crops include cotton (one of the top 10 crops produced in the
U.S. every year), wool, and silk. Agricultural producers also use hemp to make
rope and flax for linen. It's even possible to use bamboo fiber to make cloth.

4. Raw Materials: These are agricultural products used to make other


agricultural products. For example, livestock feed, considered an agricultural

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product, is used to provide nourishment to the animals that produce dairy


products.

Organic Agricultural Products

The Department of Agriculture certifies only agricultural products that fall


into a specific, narrow category. The basic guideline for what constitutes an
agricultural product is as follows:

Any agricultural commodity or product, whether raw or processed, including


any commodity or product derived from livestock, that is marketed for human or
livestock consumption.

Examples of agricultural items include such things as textiles, flowers, food,


seed, plants, and feed.

Nonfood Agricultural Products

The fact that the government certifies and oversees only organic agricultural
products that are marketed for consumption creates some problems in the organic
product marketplace. For example, organic body care products are not always made
with 100% of agricultural products.

Body care makers using only agricultural ingredients may be certified as


organic. The authority does not cover products that are made with "nonagricultural
substances." Minerals, bacterial cultures, gums, citric acid, pectin, and other items are
considered nonagricultural and are widely used in agricultural products that we don't
eat.

Legal and Economic Definition of Agricultural Products

From the standpoint of taxes, one needs to know what qualifies as an


agricultural product to determine what can properly be deducted as an expense
and what constitutes revenue.

According to the U.S. Department of Revenue, agricultural production is a


series of activities (otherwise known as the production process) that result in a

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product that ultimately will be sold at retail. The agricultural production process
begins when you purchase or breed a qualifying animal or prepare the soil for
planting crops. The process ends when you place the livestock or crops (packaged or
unpackaged) into finished good inventory, or your grain is sellable or at the stage that
it can be commingled.

Agricultural production includes these activities:

• Agriculture: cultivating soil; planting; raising, and harvesting crops;


rearing, feeding, and managing animals

• Aquaculture: raising private aquatic animals (fish)

• Floriculture: growing flowering plants

• Horticulture: growing fruits, vegetables, and plants

• Maple syrup harvesting

• Silviculture: growing and caring for fresh trees

What Agricultural Production Does and Does Not Include

Businesses involved in agricultural production include:

• Breeding operations

• Farms, including crops and certain animals

• Greenhouses and nurseries that grow their products to be sold at retail

• Ranches

• Tree and sod farms (if products are sold at retail and not installed by the
grower)

Agricultural production does not include:

• Storing or preserving raw materials before the start of the production process

• Storing, preserving, handling, or moving finished goods

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• Storing or processing agricultural products at co-ops, grain elevators, dairies,


or meat packers

• Raising animals for your use

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UNIT IV - Promotion of Agricultural Products

At the end of this unit, students are expected to:

1. learned various promotional strategies used in marketing


agricultural products;
2. create own advertising and promotional strategies.

7 Ways to Advertise Agricultural Products

With so many different advertising options out there for agricultural buyers
and suppliers, we thought we’d take a look at them all, group them up and tell you the
pros and cons of each one.

Whether you’re looking to launch a brand-new product to the market, or are


just looking for a new way to advertise an already successful one, this list should give
you a good place to start on where to advertise.

Print media

Pros: Magazines and newspapers provide a very large, often traditional,


audience to get your products in front of, with a proven track record. Adverts can give
you a huge amount of exposure, and are brilliant for new product launches where
there is a concern about brand recognition or for mass marketing.

Cons: This isn’t the cheapest option and you will need to think about how you
can make your advertising stand out from the crowd so people will pay attention.

Classifieds:

Pros: The classifieds section of agricultural magazines such as Farmers


Weekly provide a very specific audience – an audience looking to purchase. This is
perfect if you’re trying to sell a product that is well-established, and the need for said
product is well known amongst your target audience.

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Cons: If you are trying to sell a product that isn’t particularly recognizable, or
isn’t very glamorous, your advert may be a little overshadowed by some of the more
appealing bits of farm machinery on sale.

Face to face

Pros: You can get your product right in front of the customer – if your product
is something that needs to be demonstrated to be understood, this might be the best
course of action. This relies on your ability to sell your product and you know
immediately if your tactics have worked.

Cons: If you, or your employees are not particularly strong sellers, then you
may struggle to get the best out of this. Face-to-face events also need investment over
above purchasing stand space and manning it. For example, you must make up
banners, flyers and other sales collateral to make an impact.

However, in today’s pandemic, face to face advertising is somehow a problem


due to the current situation. Only those products that requires actual demonstration
like operating a farm equipment may somehow use face to face demonstration as a
form of promotion.

Internet

Pros: The audience of your internet-based advertising can be as broad or


specific as you would like. You can hit every farmer in the UK or just those in your
local area. Spend can also be varied depending on your budget, so no amount of
money can be ‘too little’ in regards to internet advertising. It also gives you
measurable and quantifiable statistics from which you can learn about the most
effective techniques.

Cons: If your audience is a more traditional one, you may struggle to find the
correct audience through traditional online channels. Other online methods (such as
E-newsletters) however, appear to be very effective in attracting the more traditional
audience.

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Radio

Pros: Radio is once again a very broad-hitting advertising channel and as


result is rarely used in UK agriculture. Depending on how you spend your money, you
could be hitting tens of thousands of people. But if you run a farm shop or petting
farm, radio might be the right fit if lots of people in the local area listen to a regional
radio programme.

Cons: Radio, unfortunately, lacks a particularly sophisticated ‘tracking’


system. You may find great success from radio advertising, but getting any detail
about exactly what is working is simply not possible.

Promotional item giveaways

Pros: Promotional items give a business potentially huge amounts of brand


awareness. Unlike many of the other channels on this list, promotional items may
continue to have an effect long after you have stopped producing them. Things like t-
shirts, bags, pens and rucksacks may enter daily use amongst your target audience.

Cons: Promotional items also involve losing a degree of control – if someone


commits a crime whilst wearing a t-shirt branded with your logo, your brand may be
damaged by association, despite no wrong-doing on your part.

Social media

Pros: Social media provides a brilliant way to influence an audience outside of


‘traditional’ advertising revenues. Social media is increasingly becoming integrated
into people’s daily lives and they look at it multiple times a day. When done correctly,
social media can bring your marketing and sales messages to an audience through a
persuasive channel.

Cons: While social media can be extremely effective, it also requires a lot of
input – in order to get the most out of it you are required to be active members of
your social channels, as well as continuously generating new content. Social media

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accounts that only publish adverts are extremely off-putting. Getting it right is time-
consuming.

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UNIT V - CURRENT PHILIPPINE AGRIBUSINESS INDUSTRY

At the end of the unit, students are expected to:

1. familiarized with Philippine Agribusiness Industry players


2. gain insights on various agricultural products offered in the market and

THE BIG DOGS OF PHILIPPINE AGRIBUSINESS

This discussion will break large-scale Philippine agribusiness players into the
following categories:

▪ Large predominantly Filipino-owned food growers and packagers.

▪ Large predominantly foreign-owned food growers and packagers.

▪ Large, integrated cooperatives,

▪ Large food packagers, restaurants and supermarkets.

▪ Large landowners.

▪ Large tycoons who COULD get into foods if they wanted to, but currently don’t
plow in that field.

A listing of food companies with a place on the Philippine Stock Exchange is


also provided, along with a recap that designates the handful of prominent people
who keep their companies rich and farmers poor.

There is no master-list of food companies or land-holders in the Philippines.


Indeed, some information is hard to get at. For example, private companies such as
Dole Philippines, a wholly owned subsidiary of Dole Foods in the United States,
reports no financial information. So consider this blog a starting point, perhaps, or
simply a discussion paper. We can draw lessons from it, for sure. And we will.

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Large Filipino-owned food growers and packagers

These companies are huge players the Philippine food production and
packaging business:

Young sugar cane

▪ Lucio Tan Companies. Lucio Tan is a Chinese entrepreneur who made it big
time in the Philippines. He directs a lot of businesses and many of them grow
or get stuff from the ground, from the farms. Here are his food-related
companies: (1) Foremost Farms Inc (hogs), (2) Lotte Philippines
(confectionaries), (3) Asia Brewery, Inc. (beer), (4) Tanduay Distillers, Inc.
(alcoholic beverages), and (5) Fortune Tobacco Corporation (cigarettes).

▪ San Miguel Companies. San Miguel, under the direction of Eduardo M.


Cojuanco and Ramon S. Ang, is undergoing a dramatic transformation from
essentially a beer and foods company to a conglomerate in infrastructure
development, power, foods and beer. Food subsidiaries and partnerships are
major brands and operate primarily in the Philippines: Pure Foods Products,
Monterey Meats, and Magnolia Chicken. Hormel is a “partner” . . . all with
products sourced from Philippine growers and farmers. Beer is made of grains,
so San Miguel sources theirs from somewhere. Where is a bit of a mystery. But
there may be a reason the company’s infrastructure development includes
ports and granaries near ports. San Miguel owned a large chunk of Del Monte

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from 2008 to 2010, then sold it to finance diversification. One element of the
diversification is into palm oils, where partner Kuok is looking for a large
growing field.

▪ NutriAsia Companies. The quiet tycoon who owns most of NutriAsia is


Joselito Campos. It is perhaps simplest to divide his huge holdings into two
parts: (1) sauces (Datu Puti, Papa and many more), and (2) Del Monte
Philippines. The Del Monte stake was raised when NutriAsia bought out San
Miguel’s portion of Del Monte a few years ago; Del Monte employs about 4,000
workers. About 70% of the Del Monte’s assets are in the Philippines. Net
income in 2012 was US $460 million. About 21% of Del Monte’s stock is traded
on the Pacific Stock Exchange.

▪ Gokongwei Holdings. See food packaging companies, below (Universal


Robina and Robinson’s Supermarkets).

One good point in favor of large agribusiness is the efficiency of wealth-


building. This 2012 article itemizes some San Miguel Pure Foods initiatives to pare
costs. This is an example of the drive for wealth that the Philippines needs.

Who is growing all the foods? We don’t have names for the growers. Growing
is done primarily under contract, privately, and there are thousands of suppliers.
Here is the San Miguel’s Magnolia Chicken contract growing application. And
the Monterey Meats hog contract growing application. Presumably something similar
exists for grains and other crops, however, those examples have avoided your trepid
inquirer.

Large foreign-owned food growers and packagers

We have three of note:

▪ Dole Philippines. US based Dole Food Company “Dole sources bananas, fresh
pineapples, asparagus, mangoes, papaya and other fruits and vegetables from
the Philippines . . . ” and other Asian countries. The Dole farming subsidiary in
Davao is named “Stanfilco”. Dole has stood for years as a poster-child for bad

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corporate behavior among leftists and human rights critics. The parent
company’s sales were US $7 billion in 2011; net income was only US $ 42
million, off of a loss in 2010. The company has received a purchase offer
from David H. Murdoch, who already owns substantial shares. Financial
information about the Philippine operation is unknown at this point. It
appears that the company employs from 15,000 to 20,000 permanent and
temporary workers.

▪ Nestle Philippines, Inc. Wholly owned subsidiary of Nestle S.A. Brands


include Nescafe, Nido, Milo, Nestea, Maggi, Bear Brand, Nestle and Purina.
Manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa
(Batangas), Pulilan (Bulacan) and Tanauan (Batangas). Markets throughout
Asia.

▪ First Pacific Company. The ownership of First Pacific is well known in the
Philippines. The Manuel V. Pangilinan Companies are everywhere (telephone
companies [Pacific Long Distance Telephone Company- PLDT, Sun, Smart],
educational institutions, real estate and infrastructure development and
mining). Hong Kong based First Pacific holds his investments in PLDT, Philex
mining, Metro Pacific (infrastructure projects), and Indofoods. Indofoods is
the farming company growing predominantly in Indonesia. It is likely to
become a main player in the Philippines growing and exporting palm products.
Therefore, it is akin to Dole, an outside company that will probably thrive on
the rich Philippine soil. Sales of First Pacific in 2012 were just shy of US $6
billion. Net income was US $830 million.

Large, integrated cooperatives

One approach to building strength in Philippine agribusiness would be to get


cooperatives under private, profit-making management. One cooperative comes close
to this model:

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Contract growing

▪ AsiaPro Cooperative is the largest Philippine cooperative with membership


of about 34,000 workers. The focus is on raising member efficiencies and
profits through skill-enhancement and support. Operational structure is
molded from “the best practices” of both corporate and cooperative models.

▪ The Philippine Sugar Millers Association, Inc. “PSMA is a non-profit association


of sugar millers which promotes “the development of the sugar industry
through increased efficiency, productivity, and sustainability in a socially-
responsible environment. Current membership consists of 16 mills which
produce 78% of the total Philippine sugar production.”

Food packagers, restaurants and supermarkets

These are companies that deal foods to consumers. They have tremendous
clout in the Philippine marketplace because they buy in huge quantities. They have
choices: buy Filipino products or buy U.S., Asian or other imported products.

The two Gokongwei family holdings could be joined, I suppose, with


Gokongwei placed in the major Philippine player listing above.

▪ Agri nurture Incorporated Food packaging with an activist agenda, in that


Agri nurture helps farmers succeed by providing loans, seeds, fertilizers and
pesticides as a part of the contract purchase agreement.

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▪ Universal Robina Corporation Food packaging. Part


of the huge investment portfolio of John Gokongwei, Jr, which includes real
estate, cellular and airlines (Cebu Pacific).

▪ Jollibee Foods Corporation. Fast-food restaurant chain, is a Filipino


multinational chain of fast food restaurants owned by Jollibee Foods
Corporation (JFC). As of April 2018, JFC had a total of about 1,200 Jollibee
outlets world wide sales 71 billion pesos; net income 3.7 billion pesos.

▪ Robinsons Supermarkets Part of the Gokongwei family holdings. 157 outlets


as of 2017.

▪ SM Supermarkets Part of U.S. based Supervalue, Inc. SM Markets, the


country’s biggest food retail chain, now has 265 branches nationwide (2019)
as it continues to expand its coverage of the Philippines from its Aparri store
up north to its General Santos branch down south.

Here’s a description of why Agrinurture’s approach is constructive:

“With improved rural infrastructures, these distribution companies [like


Agrinuture] are willing to take the risks inherent to farming, thus helping to
improve the incomes of farmers and farm workers. The same guarantee is also
being given by large corporations like San Miguel Corporation and Nestle in the
purchase of such farm products as corn, cassava, and coffee.”

Large landowners

This is the big mystery that emerges from this analysis. The huge agribusiness
firms do very little of the primary growing. They rely upon product supplied by
independent growers, or growers under contract. Who the landowners are remains
largely unknown, other than that one peculiar and controversial case:

▪ Hacienda Luisita. 6,435-hectare sugar plantation estate. Controversial for its


ties to the Aquino family and President Cory Aquino’s part in land distribution

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to workers. Controversial as well for the 12 deaths that occurred in a


confrontation between protesting workers and security police in 2004.

Large tycoons who COULD get into foods if they wanted to

Here are the richest players in Philippines right now who have no food or
farming interests.

▪ Ayala Corporations: retail, real estate, banking, telecommunications, water


infrastructure, renewable energy, electronics, information
technology, process outsourcing.

▪ Henry Sy: retailing, real estate, hospitality, banking, mining, education


including healthcare services.

▪ Enrique Razon: shipping, gaming, publishing.

▪ David Consunji: RE, mining.

Food Processing firms traded on the Philippine Stock Exchange

▪ Agrinurture, Inc. ANI Food packaging.

▪ Alliance Select Foods International, Inc FOOD Processed seafoods (tuna).

▪ Bogo Medelin Milling Company BMM

▪ Central Azecurera de Tarlac, Inc CAT Sugar processor.

▪ D&L Industries, Inc DNL Products for the food (oils and fats), plastics, and
aerosol industries; packaging.

▪ Del Monte Pacific Ltd DMPL Pineapple and other fruits.

▪ Ginebra San Miguel, Inc GSMI Alcoholic beverages; health drinks.

▪ Jollibee Foods Corporation JFC Fast food restaurant chain.

▪ LT Group, Inc LTG Lucio Tan Group.

▪ Liberty Flour Mills, Inc LFM flour and flour products.

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▪ Pancake House, Inc PCKH Restaurants: Pancake House, Dencio’s, Kabisera ni


Dencio, Teriyaki Boy, Sizzlin’ Pepper Steak, Singkit, and Le Coeur de France.

▪ Pepsi-Cola Products Philippines, Inc PIP Co-owned by Lotte Chilsung of Korea.


Beverages: Pepsi, Mtn Dew, 7-up, Gatorade, Tropicana, Lipton.

▪ RFM Corporation RFM Food packager; many products.

▪ Roxas Holdings, Inc ROX Sugar producer.

▪ Roxas and Company, Inc RCI Real estate (raw land) and “sugar related assets”.

▪ San Miguel Brewery, Inc SMB San Miguel operates five breweries in the
Philippines.

▪ San Miguel Corporation SMC (five listings) Parent company.

▪ San Miguel Pure Foods Company, Inc PF and PFP The foods group of San Miguel
merged with Pure Foods acquisition in 2001.

▪ Swift Foods, Inc SFIP and SFI The chicken company that turned to God.

▪ Universal Robina Corporation URC

▪ Victorias Milling Company, Inc VMC Victorias City, Negros Occidental. Sugar.

▪ Vitarich Corporation VITA Feeds: fish, poultry, hogs, specialty. 2012 sales 3
billion; profit 114 MM

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REFERENCES

Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New


Jersey: Prentice Hall.
Problems and Prospects of Agricultural Marketing in India: An Overview
International Journal of Agricultural and Food Science

Agricultural Marketing: A National Level Quarterly Journal on Agricultural


Marketing:

https://mohdhafezan.files.wordpress.com/2016/01/chapter-1.pdf

https://jgdb.com/business/marketing/types-of-marketing/what-is-
agricultural-marketing

https://www.smartsheet.com/strategic-marketing-processes-and-planning

https://medium.com/@cvmgdigitalmarketing/how-to-develop-a-successful-
agriculture-marketing-plan-cc6c6746b4bf

https://agrowbase.wordpress.com/target-market/

https://www.thebalancesmb.com/what-is-an-agricultural-product-2538211

AGRICULTURAL MARKETING |

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