eMKambo Vibes – 5 February 2018
The hidden cost of the time lag between marketing and consumption of commodities One of the most misunderstood aspects of agricultural value chains in most developing countries is the time lag between marketing and consumption of agricultural commodities. While for farmers, supplying commodities and getting paid immediately is the most important thing, a lot happens between marketing and consumption. The way middlemen are blamed as if they stand in the way of farmers accessing predictable profit pools shows how little is understood about the movement of commodities from farm to fork. People who do not want to invest in understanding agricultural markets at a granular level are often quick to convey the myth that middlemen control the movement of agricultural commodities to the disadvantage of farmers and consumers. This article will reveal some of the issues that farmers, consumers, development agencies and policy makers should strive to know and contribute in solving.
Time lag between marketing and consumption While the absence of mechanisms for linking farmers directly with consumers is seen as the main challenge in smallholder farming systems, the time lag between marketing and consumption is the real McCoy. Some commodities need a week of marketing. Others need to reach consumers still fresh and some go to specific niches. Grading of different commodities in line with the needs of different buyers and niches is done by the market, mostly traders or middlemen who have taken time to understand consumers and the entire ecosystem. Traders know what is needed by different classes of consumers and try to correct mistakes made by farmers and other actors on a continuous basis. Many consumers are not even sure about their needs until they see what is available in the market. 1