Transcript MARKETING CHANNEL FOR TOMATO

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Introduction
The tomato (Solanum lycopersicum) is the second most important and
popular vegetable crop after potatoes in South Africa. It is not only cultivated
commercially but also commonly grown by subsistence, resource poor
farmers and home gardeners.
It contributed approximately 19% (excluding potatoes) to the gross value of
vegetable production .
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Marketing Channel For Tomato
Factors affecting marketing channel
Perishable nature of produce.
Bulk and weight–cotton, fodders are bulky but light
in weight.
Storage facilities.
Weak or strong marketing agency.
Distance between producer and consumer.
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Marketing Channel For Tomato
Direct Marketing Channel
PRODUCER
CONSUMER
Local Marketing Channel
PRODUCER
RETAILER
CONSUMER
DISTANCE SALE - Marketing Channel I
COMMISION
AGENT
TRADER
PRODUCER
RETAILER
CONSUMER
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Marketing Channel For Tomato
Marketing Channel II
PRODUCER
TRADER
RETAILER
CONSUMER
Marketing Channel III
PRODUCER
PRIMARY WHOLE
SALER
SECONDARY
WHOLE SALER
RETAILER
CONSUMER
Marketing Channel IV
PRODUCER
RURAL ASSEMBLER
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RETAILER
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CONSUMER
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Marketing Channel For Tomato
Contract Marketing Channel
Some of the retail industries procure directly from farm field and seal it
through own retail outlets.
It helps consumers to get fresh products and also quality commodities
PRODUCER
PROCUREMENT
AGENCY
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RETAIL OUTLET
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CONSUMER
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Marketing Channel For Tomato
Marketing channel for processed tomato products
The demand for tomato processing usually arises from a need to preserve the
product for cooking purposes (inclusion in stews, soups, curries etc) out of
season or to add value for extra income.
Traditionally, the most important methods used are concentration (to a paste or
purée) and drying either fruit pieces or to a powder.These remain the most
suitable processes for many people to use and form the bulk of this brief. It
should be noted that high quality 'salad' tomatoes have the highest value when
sold fresh and in good condition.
These would not normally be used for processing, unless for home use to save
excess at the height of the season.
Processing Market Channel
PRODUCER
CONTRACTING
AGENCY
RETAILER
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PROCESSING
UNIT
PROCESSED PRODUCTS
(PICKLES, SAUCE)
CONSUMER
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Marketing Channel For Tomato
Institutional Marketing Channel
To facilitate direct contact between the farmers and public state
government implemented farmers market scheme to without any
interference of middlemen.
FARMERS MARKET/ RITHU
BAZARS
PRODUCER
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Marketing Channel For Tomato
Objectives of Farmers market
To facilitate direct contact between the farmers and public.
To provide fresh vegetables and fruits at reasonable price daily without any
interference of middlemen.
To provide correct measurement to the consumers.
To give full satisfaction to the farmers and public.
To aim for providing higher price than that of wholesale price to the farmers for
their vegetables and fruits.
To provide the fresh fruits and vegetables at the lesser price than that of retail
price to consumers. The Uzhavar Santhai also functions as a Technical
Information Centre to the farmers
Seeds and Other Inputs are also provided in some Uzhavar Sandhai.
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Marketing Channel For Tomato
Facilities provided in farmer market
Photo Identity Card
Transport Facility
Allotment of stalls
Prices Fixation
Public Address System
consumers as well as farmers.
Supply of weighing scales
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Marketing Channel For Tomato
Marketing problems
Unfair price quotation
Low pricing was reported at peak supply periods that were not based on the
actual supply and demand interaction but information collusion created by
buying actors.
The intermediaries used to decide on the price of products particularly onion
products.
The benefit of Wholesalers overweighs than others and they control the market
chain.
Lack of standards
Repeated weight cheating and lack of price discrimination were common
problem practiced by wholesaler and brokers’
Due to this problem there were no clear and well known quality and grade.
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Marketing Channel For Tomato
Lack of strong cooperatives
Although there are many multipurpose, irrigation and one union cooperatives
which were established to safeguard farmers’ and rights over their marketable
produces, farmers were exposed to baseless traders, ultimately sell their
produce at low price.
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Marketing Channel For Tomato
Let us Sum up
The tomato is the second most important and popular vegetable crop after
potatoes.
50% of the supply of fresh tomatoes especially small growers in the peak
season selling directly aim is to obtain the highest margin for their product.
The demand for tomato processing usually arises from a need to preserve the
product for cooking purposes out of season or to add value for extra income.
To facilitate direct contact between the farmers and public state government
implemented farmers market scheme to without any interference of middlemen.
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