1 min
One of the key issues faced by farmers is accessing the market constantly for their produce and the ability of the market to absorb the large quantities of produce at all times (especially during the peak period). It is established that the majority of the farmers in the developing countries have adopted rainfed farming; where farmers depend solely on rainfall to provide a source of water for irrigation for their produce. Sadly, all the food is produced at the same time and many local markets don't have the ability to absorb large volumes of food at a time, resulting in high post harvest losses (especially for the perishables).
Furthermore, yearly price crashes are linked to a large supply into the market. Whenever farmers harvest at the same time, prices of such commodities must crash because of oversupply. The worst case is that it is difficult for farmers to store produce for a long time due to lack of storage infrastructure at the farm level. Thus, panic selling is the order of the day to recoup their capital for the subsequent season. In some instances, the capital is not fully recouped due to some factors and this has ripple effects such as production reduction, alternative livelihood, migration to urban jobs amongst others. This has adverse effects on the rural economy.
Therefore, there is a need to expand markets for produce which are prone to high post harvest losses. By creating cottage industries that utilize these produce as raw materials rather than only for consumption (purchasing power is now low). We need to invest in infrastructure especially for storage of agricultural produce in our rural communities. Storage facilities run by the communities that can be accessed by farmers cooperatives or groups could help to increase the value of produce and reduce post harvest losses. Thus, farmers can have control over the period their produce is being sold to the market. Lastly, we need to identify new markets and market dynamics that farmers can take up as cooperatives or groups for their produce.
In conclusion, our current markets don't serve the full interests of the farmers due to their structure and limited capacity to adsorb increased production. Thus, we need to create new market opportunities for our agricultural produce. As we planned for increased productivity at the farm level, we need to plan for the markets that would off-take this increase in order for farmers to explore the benefits of increased production. A better market structure, effective distribution and new market segments created would go a long way to improve our food system. Shared prosperity is not just a destination but a journey for all actors in the agricultural value share. We need our markets to work so that our work on the farm will yield its desired results. Let the work begin!
Yours-in-Service
Babatunde
Therefore, there is a need to expand markets for produce which are prone to high post harvest losses. By creating cottage industries that utilize these produce as raw materials rather than only for consumption (purchasing power is now low). We need to invest in infrastructure especially for storage of agricultural produce in our rural communities. Storage facilities run by the communities that can be accessed by farmers cooperatives or groups could help to increase the value of produce and reduce post harvest losses. Thus, farmers can have control over the period their produce is being sold to the market. Lastly, we need to identify new markets and market dynamics that farmers can take up as cooperatives or groups for their produce.
In conclusion, our current markets don't serve the full interests of the farmers due to their structure and limited capacity to adsorb increased production. Thus, we need to create new market opportunities for our agricultural produce. As we planned for increased productivity at the farm level, we need to plan for the markets that would off-take this increase in order for farmers to explore the benefits of increased production. A better market structure, effective distribution and new market segments created would go a long way to improve our food system. Shared prosperity is not just a destination but a journey for all actors in the agricultural value share. We need our markets to work so that our work on the farm will yield its desired results. Let the work begin!
Yours-in-Service
Babatunde
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