Date: 02/03/2007
Source: Department of Agriculture
Title: Xingwana: Launch of Agricultural Marketing Information System
Address by Minister for Agriculture and Land Affairs Ms Lulama Xingwana during the launch of the Agricultural Marketing Information System, CSIR Convention Centre, Pretoria
Honourable guests
Farmers
Industry
Members of the press
Ladies and gentlemen
Global and domestic trade and marketing in agricultural products is turning trillions of rands and facilitating the exchange of massive tons of various agricultural tradable commodities per day. At the same time, traders and merchants across the globe are challenged to source saleable commodities from all corners of the world, in an attempt to satisfy the needs of their ever demanding customers, at a minimum cost and still manage to make some profit.
Producers, processors and manufacturers alike invest millions of r nds per day in an attempt to try to understand what consumers want and how to satisfy the consumers' needs at prices that consumers are willing and able to pay. At the same time, consumers are always on their toes trying to get a fair value for their money, i.e., bargains in their buying decisions. At the centre of the complex scenario painted above is the availability of information to aid decision-making.
The South African government deregulated agricultural markets and liberalised trade in line with global trends. This implies that our agricultural marketing and trading value chains have become an integral part of the global agricultural markets and trade. This policy shift ensured that South African farmers could export a range of agricultural produce to the rest of the world and use the benefit created by expanded market access to expand their farming operations. However, a challenge arising out of the new trading and marketing dispensation is that farmers are now required to become sharp entrepreneurs and be able to take managerial decisions in terms of what to produce, how and for whom to produce, in line with contemporary market requirements.
The ability of farmers to respond intelligently to the production and marketing challenges just posed above rest on their ability to access, interpret and apply the basic agricultural marketing information in their agribusinesses. It has however, been observed that the fees charged for accessing the required agricultural marketing information is, in most instances, prohibitively high and not affordable, particularly to the resource-poor farmers, thus leaving them with no option but to dispose of their produce at uneconomic prices. Furthermore, the publicly available information is more often than not historical, and its validity is sometimes questionable.
Owing to deregulation, the agricultural marketing chain got complicated through the introduction of different business activities, different flows of products called 'marketing channels' and different firms called 'middlemen' performing the following two major functions to achieve:
* operational efficiency through physical handling of produce, storage, processing and transfer of agricultural products as they move from producers to consumers * pricing efficiency through facilitating the exchange of agricultural produce and price-setting processes in the market system.
I am convinced that the availability of prompt and reliable market information on what is happening in the market and what prices are quoted for different commodities considerably improves the decision making capability of the farmers and strengthens their bargaining power.
After noting the apparent information gap, and realising that marketing information is an intelligence and a competitive tool in the marketplace, my department developed a web-based agricultural marketing information system to integrate isolated agricultural marketing information on one platform, and to use it as a channel to disseminate basic agricultural marketing information to the farming community across South Africa and even beyond.
This launch of the agricultural marketing information system was preceded by a number of consultations with provincial departments of agriculture, private sector information providers, as well as industry players to determine the agricultural marketing information needs of farmers and also to figure out what should be done to reduce the information gap challenges identified. The consultations matured into the system that I am proudly launching today.
Currently, the agricultural marketing information system hosts and disseminates the following information:
* dynamic maps indicating the location of all fresh produce markets, millers, ginners, abattoirs and grain silos across the country
* daily prices, qualities and quantities of selected fresh produce sold on the major national fresh produce markets across the country
* fresh produce market-related information including market fees and names and contact details of market agents and market masters
* an e-library containing agricultural commodity marketing value chain profiles of field crops, livestock and horticulture industries in South Africa to give farmers an insight on the structure of the industries in South Africa
* grading and packaging legislation, as well as information toolkits on grading
* pictorial information kits on the generic approach to agricultural marketing, livestock auctioneering, and grading of selected agricultural products available in all languages
* quarterly agricultural economic review and forecast reports.
To demonstrate our commitment as an integral part of the global markets, the system is also hyperlinked to more than 60 other domestic and international sources of market information on field crops, livestock and horticultural industries as an attempt to broaden the information base.
For example, the system is hyperlinked to the South African Grains Information Services (SAGIS), Freshmark System, USDA, FAO, SAFEX, AgriTV, First National Bank Agricultural Services, SAMIC, etc.
Noting that almost every household has access to a cellphone, it is therefore my vision to see the system expanded to have cellphone connectivity capabilities to allow users to easily download the information on their mobile phones. Watch the space! In preparation for the launch, the department has already trained twelve (12) provincial personnel on how to use the system. I expect the number to multiply as a commitment to providing services to my employers, the farming community I work for.
There will never be any growth, prosperity and competitiveness in agriculture if this key link between production and commercialisation of agricultural products is compromised. I therefore call on all private sector suppliers of information to come forward and assist the department to continuously improve on what we have already started.
For me, this launch marks the beginning of a very long journey, and I urge all to establish a powerful private-partnership around this initiative started by my department towards a united and prosperous agricultural sector in South Africa. To all the farmers who are here today, this is an intervention intended to assist you to become knowledgeable, competitive and profitable in the agricultural marketplace. I therefore officially declare the system open for public, and again, urge all the farmers to use the tool to link up with the mainstream agricultural markets globally.
System Access
The Agricultural Marketing Information System may be accessed at the following internet address http://www.agis.agric.za/mis.
Issued by: Ministry of Agriculture and Land Affairs
2 March 2007
Source: Department of Agriculture
Title: Xingwana: Launch of Agricultural Marketing Information System
Address by Minister for Agriculture and Land Affairs Ms Lulama Xingwana during the launch of the Agricultural Marketing Information System, CSIR Convention Centre, Pretoria
Honourable guests
Farmers
Industry
Members of the press
Ladies and gentlemen
Global and domestic trade and marketing in agricultural products is turning trillions of rands and facilitating the exchange of massive tons of various agricultural tradable commodities per day. At the same time, traders and merchants across the globe are challenged to source saleable commodities from all corners of the world, in an attempt to satisfy the needs of their ever demanding customers, at a minimum cost and still manage to make some profit.
Producers, processors and manufacturers alike invest millions of r nds per day in an attempt to try to understand what consumers want and how to satisfy the consumers' needs at prices that consumers are willing and able to pay. At the same time, consumers are always on their toes trying to get a fair value for their money, i.e., bargains in their buying decisions. At the centre of the complex scenario painted above is the availability of information to aid decision-making.
The South African government deregulated agricultural markets and liberalised trade in line with global trends. This implies that our agricultural marketing and trading value chains have become an integral part of the global agricultural markets and trade. This policy shift ensured that South African farmers could export a range of agricultural produce to the rest of the world and use the benefit created by expanded market access to expand their farming operations. However, a challenge arising out of the new trading and marketing dispensation is that farmers are now required to become sharp entrepreneurs and be able to take managerial decisions in terms of what to produce, how and for whom to produce, in line with contemporary market requirements.
The ability of farmers to respond intelligently to the production and marketing challenges just posed above rest on their ability to access, interpret and apply the basic agricultural marketing information in their agribusinesses. It has however, been observed that the fees charged for accessing the required agricultural marketing information is, in most instances, prohibitively high and not affordable, particularly to the resource-poor farmers, thus leaving them with no option but to dispose of their produce at uneconomic prices. Furthermore, the publicly available information is more often than not historical, and its validity is sometimes questionable.
Owing to deregulation, the agricultural marketing chain got complicated through the introduction of different business activities, different flows of products called 'marketing channels' and different firms called 'middlemen' performing the following two major functions to achieve:
* operational efficiency through physical handling of produce, storage, processing and transfer of agricultural products as they move from producers to consumers * pricing efficiency through facilitating the exchange of agricultural produce and price-setting processes in the market system.
I am convinced that the availability of prompt and reliable market information on what is happening in the market and what prices are quoted for different commodities considerably improves the decision making capability of the farmers and strengthens their bargaining power.
After noting the apparent information gap, and realising that marketing information is an intelligence and a competitive tool in the marketplace, my department developed a web-based agricultural marketing information system to integrate isolated agricultural marketing information on one platform, and to use it as a channel to disseminate basic agricultural marketing information to the farming community across South Africa and even beyond.
This launch of the agricultural marketing information system was preceded by a number of consultations with provincial departments of agriculture, private sector information providers, as well as industry players to determine the agricultural marketing information needs of farmers and also to figure out what should be done to reduce the information gap challenges identified. The consultations matured into the system that I am proudly launching today.
Currently, the agricultural marketing information system hosts and disseminates the following information:
* dynamic maps indicating the location of all fresh produce markets, millers, ginners, abattoirs and grain silos across the country
* daily prices, qualities and quantities of selected fresh produce sold on the major national fresh produce markets across the country
* fresh produce market-related information including market fees and names and contact details of market agents and market masters
* an e-library containing agricultural commodity marketing value chain profiles of field crops, livestock and horticulture industries in South Africa to give farmers an insight on the structure of the industries in South Africa
* grading and packaging legislation, as well as information toolkits on grading
* pictorial information kits on the generic approach to agricultural marketing, livestock auctioneering, and grading of selected agricultural products available in all languages
* quarterly agricultural economic review and forecast reports.
To demonstrate our commitment as an integral part of the global markets, the system is also hyperlinked to more than 60 other domestic and international sources of market information on field crops, livestock and horticultural industries as an attempt to broaden the information base.
For example, the system is hyperlinked to the South African Grains Information Services (SAGIS), Freshmark System, USDA, FAO, SAFEX, AgriTV, First National Bank Agricultural Services, SAMIC, etc.
Noting that almost every household has access to a cellphone, it is therefore my vision to see the system expanded to have cellphone connectivity capabilities to allow users to easily download the information on their mobile phones. Watch the space! In preparation for the launch, the department has already trained twelve (12) provincial personnel on how to use the system. I expect the number to multiply as a commitment to providing services to my employers, the farming community I work for.
There will never be any growth, prosperity and competitiveness in agriculture if this key link between production and commercialisation of agricultural products is compromised. I therefore call on all private sector suppliers of information to come forward and assist the department to continuously improve on what we have already started.
For me, this launch marks the beginning of a very long journey, and I urge all to establish a powerful private-partnership around this initiative started by my department towards a united and prosperous agricultural sector in South Africa. To all the farmers who are here today, this is an intervention intended to assist you to become knowledgeable, competitive and profitable in the agricultural marketplace. I therefore officially declare the system open for public, and again, urge all the farmers to use the tool to link up with the mainstream agricultural markets globally.
System Access
The Agricultural Marketing Information System may be accessed at the following internet address http://www.agis.agric.za/mis.
Issued by: Ministry of Agriculture and Land Affairs
2 March 2007
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
