SOURCING/PROCUREMENT/ LOGISTICS AND MARKETING OF AGRICULTURAL PRODUCE
THE AGRICULTURAL VALUE CHAIN: 1. FARMER {cultivates and rears} 2. WHOLESALERS(MIDDLE-MAN) 4. PROCESSORS{refining/packaging } 5. RETAILER {sells to end-users} 6. CONSUMER {end-user}
THE FARMER THINGS YOU SHOULD KNOW AS A FARMER/PRODUCER: 1. IDENTIFY YOUR MARKET. ARE YOU SELLING TO THE TRADITIONAL MARKETS, RETAIL OUTLETS, FOOD PROCESSORS, CATERERS, HOTELS, EXPORT/AGOA, ETC 2. IDENTIFY THE FAST MOVING CONSUMER GOODS IN THE MARKET SUCH AS RICE, CHICKEN, EGGS, BEEF, TOMATOES, BEANS, YAM, FISH, ETC 3. UNDERSTAND THE MARKET TREND AND PAYMENT PLAN OF YOUR MARKET {DO THEY BUY ON CREDIT,, CASH AND CARRY, SOR, ETC}. IF YOU WANT FAST CASH THEN SELL TO THE TRADITIONAL MARKETS AT A LOWER MARGIN, OR ADOPT A FARM GATE MODEL. WHERE BOTH WHOLESALERS OR RETAILERS CAN PURCHASE FROM YOU DIRECTLY 4. LOGISTICS: PROPER STORAGE, PROPER MEANS OF TRANSPORTATION AND PROPER HANDLING. THESE HELP PREVENT LOSS AND PRESERVE SHELF LIFE OF PRODUCE. 5. PRICING YOUR PRODUCTS: DO A PROPER COST ANALYSIS IN ORDER TO AVOID SELLING AT A LOSS MARKET INTELLIGENCE HELPS YOU STRATEGIZE BETTER DEMAND AND SUPPLY DETERMINE PRICES. DURING SCARCITY YOU CAN INCREASE YOUR PRICE AND REDUCE IT DURING A GLUT. THE QUALITY OF YOUR PRODUCTS DO NOT BE TOO EXPENSIVE. THIS ATTRACTS HIGHER TURNOVER.
MAKING YOUR PRODUCE MARKETABLE 1. LOW PRICES 2. GOOD QUALITY PRODUCE 3. PACKAGING AND BRANDING. 4. NAFDAC REGISTRATION : IS MANDATORY FOR THOSE IN THE MANUFACTURING AND THE DISTRIBUTION OF REGULATED PRODUCTS SUCH AS DRUGS, FOODS, COSMETICS, DRINKS, BOTTLED AND PACKAGED WATER). 5. COMPLY WITH ALL THE REQUIREMENTS OF REGULATORY BODIES IN THE MARKET YOU CHOOSE TO TRANSACT BUSINESS. IF YOU CHOOSE TO EXPORT YOU NEED NEPC. FOR TRADITIONAL MARKETS YOU MUST CONSULT THE UNION /ASSOCIATION LEADERS. FOR THE HOSPITALITY INDUSTRY YOU CAN APPROACH THEM INDIVIDUALLY. 6. ELIMINATE DIRT AND SEDIMENTS FROM PRODUCE LIKE RICE, ETC
TIPS ON MARKETING YOUR PRODUCE 1. ADOPT THE FARM GATE MODEL IN DENSELY POPULATED AREAS THEN SPREAD THE WORD TO RETAILERS WHO SELL SUCH ITEMS. MAINTAIN LOW PRICES TO ATTTRACT PATRONAGE. 2. THE MORE YOU PRODUCE, THE CHEAPER YOUR SELLING PRICE SHOULD BE. THIS AUTOMATICALLY INCREASES YOUR TURNOVER. 3. ELIMINATE THE MIDDLE MAN IF YOU CAN AFFORD IT. SELL DIRECTLY TO THE END-USER. 4. IF YOU ARE DEALING WITH SUPERMARKETS OR HOTELS AND EATERIES, YOU MUST SEND IN YOUR LETTER OF INTRODUCTION AND A DETAILED PRICE LIST. 5. AGREE ON A PAYMENT PLAN THAT SUITS YOU. 6. INVOICES, RECEIPTS AND DELIVERY NOTES SHOW PROFESSIONALISM. 7. BE READY TO GIVE YOUR CUSTOMERS FREE SAMPLES FROM TIME TO TIME. 8. BE CONSISTENT WITH AVAILABILITY OF PRODUCE 9. ENSURE THAT THE PRODUCE IS IN DEMAND AT THE TIME IN ORDER TO AVOID SELLING AT A LOSS. 10. BE PATIENT BUT PERSISTENT
THE FOOD RETAILERS MODEL EXAMPLES IN CLUDE: FARM CITY SHOPRITE SPAR EBEANO EKO HOTEL (HOSPITALITY) KILIMANJARO (HOSPITALITY)
WHO DO THEY BUY FROM? 1. FARMERS 2. FOOD PROCESSORS 3. SUPPLIERS/MIDDLE MEN
WHAT ATTRACTS THEM TO BUY THESE PRODUCE 1. LOW PRICES 2. GOOD QUALITY PRODUCTS WHICH ENSURES LONG SHELF LIFE 3. BRANDING AND PACKAGING:MAKE IT LOOK ATTRACTIVE AND. MUST CONTAIN VITAL INFORMATION ABOUT THE PRODUCT. PACKAGING MUST BE PRODUCT-APPROPRIATE. 4. NAFDAC REGISTRATION FOR GOODS THAT FALL UNDER THAT CATEGORY. 5. FAST MOVING GOODS/BRANDS ( SIGNIFIES CUSTOMER SATISFACTION).
STANDARD PROCEDURE FOR TRANSACTING BUSINESS WITH THEM 1. Write a Letter of Introduction to the intended retailer and include your price list. Ensure your contact details are clearly stated. Address this to the procurement manager. 2. Meet the Procurement Manager and show him samples of your produce. 3. Negotiate payment terms, mostly credit. 4. Request for their order and the required date for supply. 5. Ensure that you deliver as and when promised. 6. Also ensure consistent availability of produce. 7. Be prepared to exchange damaged goods if you can afford it.
Food retailers business tips 1. Strategic Location: tendency for high sales 2. Customers needs/wants dictate what sells 3. Customer care is very important 4. Ensure reasonable prices 20% is a safe margin for common products. The uncommon or imported ones can be higher. 5. Stock arrangement for easy shopping 6. Price tags on all products to ensure easy shopping 7. Packaging items for customers convenience while shopping, etc
PACKAGING OF RAW OR PROCESSED FOOD.