In this issue we are sharing the developments related to the definition of the proposed marketing strategies: local foods (short supply chains), agricultural supply chain linkages, and differentiated products.
Following an event organized in Peru reported on our previous newsletter, IICA continued working on the definition of commercialization strategies that facilitates market access with better conditions for small and medium sized producers, and in the identification of success factors, determinants and case studies for the promotion and implementation of each strategy.
In this issue we are sharing the developments related to the definition of the proposed marketing strategies: local foods (short supply chains), agricultural supply chain linkages, and differentiated products. The first step was to define five criteria to find common elements to characterize the strategies:
- producers organization, to classify producers as unorganized, informally organized or formally organized;
- product differentiation, to classify products as generic, fresh or processed products with low added value; differentiated without third-party certification and differentiated with third-party certification.
- economic distance, related to number of intermediaries between producers and consumers, to classify the distance as short, maximum one intermediary, or long, two or more intermediaries.
- social proximity, in the sense of social connections, mutual exchange and trust between producers and consumers; to classify proximity as close, when there is contact, trust, affinity and sensitivity, or distant when there is no relationship between the producer and the final consumer.
- Type of agreement and formality of relations between producer and buyer, related to the existence or not of prior agreements and if they are legally binding or not, to classify relations as without prior agreements (spot market) or with prior agreements, informal if they are not legally binding and formal when they are.
Based on established criteria a characterization of each strategy was made. It is important to note that considering the heterogeneity of marketing strategies, it is not always possible to apply all the criteria strictly. To facilitate analysis and comparison between strategies a description of “traditional” market approach was also included.
Commercialization strategies main characteristics by established criteria
In our next issue we will share success factors and determinants for each strategy. This information will be used to develop internships and exchanges to strengthen the capacity of institutions that support the chains prioritized by IICA´s “Competitiveness and Sustainability of Agricultural Chains” flagship project.
More information: daniel.rodriguez@iica.int
This post appears in the IICA Delegation in the USA Newsletter – March – April 2016
