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Spotlight / 2001

"Today's market prices..."

The biggest problem facing agricultural market information services is getting their information to farmers. Local FM radio stations may be part of the solution...
One of the most popular radio programmes in Indonesia's horticultural districts is the daily bulletin on market prices for vegetables. Across the globe in Mali, farmers tune in to a nation-wide network of radio stations for the latest information on prices for food crops. And on market day in Ghana's Eastern Region, the early morning price bulletin, broadcast on local FM stations, is eagerly awaited by farmers both locally and in neighbouring Togo.

Those are examples of how agricultural market information services (MIS) - charged with collecting and disseminating data on prices for farm produce - are attempting to solve their biggest problem: getting the information to farmers. "More than ever before, producers in developing countries need up-to-date market information", says Andrew Shepherd, of AG's Marketing and Farm Supply Group. "It enables them to plan their production in line with market demand, schedule their harvests at the most profitable times, decide to which markets they should send their produce, and negotiate on a more even footing with traders."

Unfortunately, Shepherd says, the track record of many MISs "has not been very satisfactory". An FAO survey in the mid-1990s showed that, while many developing countries have set up some type of market information service, the vast majority were "primarily data-gathering exercises" and furnished very little commercially useful information to the farming community.

  
What to grow, when to sell...
In Eastern Europe and countries of the former Soviet Union, the end of centralized planning has left growers with the task of finding buyers for their crops and making decisions about what to produce and when to market. Similarly, African farmers must learn to manage market forces following the dismantling of government marketing monopolies. Access to market information also helps farmers exploit new opportunities: the rapidly increasing urban demand for food, diversification to high-value crops, and expanding international trade in fresh food products.
Localization. FAO's findings - and the strong shift in developing countries to market-oriented production (see box at right) - have prompted a new approach to market information services that disseminates prices at local level via radio. "In Africa, it is the recent spread of privately owned FM radio stations that is making localization of market information really feasible," Andrew Shepherd says. For example, a new MIS in Uganda collects weekly prices on 28 commodities from 19 districts, and broadcasts the results nationally. Complementing the Radio Uganda broadcasts are bulletins provided by local FM stations, which supply additional information on local transport conditions, market turnover, and the number and type of buyers. Importantly, these bulletins are given in local languages.

Radio is also the preferred medium in Mali, which radically restructured its MIS in 1999 - the government took over funding of the service from a multi-donor programme, passed management over to the Mali Chambers of Agriculture (APCAM), and set up 22 decentralized offices throughout the country. Under contract with APCAM, 24 local radio stations now disseminate price and quantity information collected by the units. In Ghana, where price information is collected from a large number of local markets, the national MIS has not yet taken full advantage of some 45 local FM stations now operating in the country. But a pilot programme based on the Asesewa market in the Eastern region has successfully used three FM stations, serving different language groups, to encourage farmers to go to market when the price is right.


Tins, heaps, bags

FAO cautions city-based radio reporters to be wary when collecting and interpreting market data. In much of Africa, for instance, products are often sold by the "tin", the "heap" or the "bag", which vary in volume according to the product and between localities - and are usually topped up with a "dash" added after the sale. Reporting on the prices of such flexible units runs the risk of inaccuracies.

 
Many other African countries, however, still lack a privately-owned radio network and even where one does exist, FM stations often do not broadcast market information (e.g. South Africa) or do so only when paid by donor projects or NGOs (Mozambique). "Such donor initiatives can be counterproductive," observes Shepherd, "because stations come to see market information programmes a kind of paid advertisement. Inevitably, these arrangements will prove unsustainable once donor support ends." A more sustainable approach would be promoting the programmes as a public service that would attract a large rural audience and, with it, paying advertisers.

Internet and cellphones. African radio stations themselves could take on much of the task of data collection, thanks to the expansion of communication technology in the region. In South Africa, for example, the Agritel web site (http://www.agritel.co.za/) offers daily information about prices in all of the country's wholesale markets, while the South African Futures Exchange (http://www.safex.co.za/) disseminates grain futures prices.

Where Internet does not reach, fax machines, mobile telephones and computers often do. In Cambodia, an FM radio station in Phnom Penh provided daily market information directly from a reporter who roamed the city's markets with a mobile 'phone gathering prices and interviewing traders and consumers. "The increasing availability of mobile or cell-phone networks in Africa," Shepherd says, "raises the possibility of collecting information locally, while processing and distribution to radio stations could be centralized, such as in Uganda."

While modern information technology has still barely touched many developing countries, Shepherd says its potential is emerging, often in farming areas long associated with rural poverty. "In Mali, eight of those decentralized MIS units are linked by an FM radio-telephone system, and are equipped with modems, which allow them to share price information by e-mail among themselves and with their head office in Bamako. Now farmers are now asking to use this system to place 'buy and sell' offers, opening up the possibility of electronic commerce in food crops."

  • Read more about Farm radio and market information (.doc, 60K)
  • Download or order FAO's guide to Understanding and using market information
  • Browse our Agricultural marketing web site

Published April 2001
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