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The Marketing Challenge D Istribu Tir19 Increased Production -In Develotjing Nations

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The Marketing Challenge D Istribu Tir19 Increased Production -In Develotjing Nations MARKETING CHALLENGE: DISTRIBUTING INCREASED PRODUCTION IN DEVELOPING_NAT~ONS. (Foreigp Agricul tur"<;Il ~cononiic Repor~) ~ / Mar:tin Kr ies~erg. Washington, DC: Econ<?,JII:i,c Researcb. Service. Dec. 1970. (NAL Call No. A281.9iAg8F) 1.0 :; \\\\\2.8 IIp·5 I~ IOO~ w I.:.: ~~~ Jl,I W 140 2.0 I\\II~ ~"' = 11.8 . ,,\,,~ \111\' .4 11\1\1.6 Foreign Agricu tura Economi c Report No. 96 The Marketing Challenge D istribu tir19 Increased Production -in DevelotJing Nations [, l; 1".;'; " ~\ ~ Ii !~ 1;1" " , I Economic Re'.>earch 5ervice. U.S. Department of Agriculture coope,.rating with U. S. Agency for International Development o , " " __",,' :_C.•_ ,il••", ,·.,<h,..... ~, Q' - --v ABSTRACT inadequatc n'ansportuion and storagc, poor marker information, lack of capital, and mher t'h"~,ll1it' m,trket­ ing problems in dey-eloping countries have he. il drama­ tiled by recenr production incrcases. To f(,-";us more ancntion and reS(lUrces on food marketing in ticveloping nations, U.S. Agency for Intcrnational Den:lopment and U.S. Department of Agriculture held a seminar in Washington, D.C., ro discuss these problems and set priorities for t\!DIL'Sf);\ efforts..'-Iajor topics covered include key considerations in marketing policics, market­ ing enterprises and the flow of resources into marketing functions, nutrition ami marketing fo"d for the needy, efficiency in the markcting system, regional experiences in marketing problems and priorities. and approaches to technical a~sistance. There W:l~ a consensus that market­ ing problems need to be dealt with on an integrated national basis which serves producers. consumers. and national d(.vdopment goals. A number of specific areas of activity were given high priority; 1) better identifica­ tion of technical a~sistance and research needs in market­ ing; 2) impc?vement of marketing management capability; and 3) providing more adequate marketing information for consumcrs, producers. and distributors. KEY WORDS: ;\larketing. f\lod distribution. marketing in developing countries (les~ developed ('{)unrrics); tech­ nical assistance in marketing. This publication was originally released inj?eq'mhcr 1970 as FEDR-7 by the former Foreign [';conomie p ~:", '. :' ... ,,}.,;', ' ~, ... ' , o U " nr."""''C1'tthl " ~ .,t f The Marketing Challenge .. Distributing Increased Production in Developing Nations Proceeding.. of a Conference in Washington, D.C. June 18-19, 1970 Compiled by Martin Kriesberg Foreign Economic Development/Bervice U.S. Department of Agriculturr. if Ii '.\ , Ii rt' r r (, The subject of agricultural marketing in developing countries is as important as it is complex. The U. S. Agency for International. Development/U. S. Depart­ ment of Agriculture agreement for marketing work underscores the importance we attach to food marketing problems in these countries and is part of our effort to deal with these problems constructively. Joel Bernstein Assistant Administrator, Bureau for Technical Assistance Agency for International Development The USDA has had long experience in working on marketing problems at home and abroad. These experi­ ences are increasingly relevant for developing countries as they move forward in the development of their agriculture. We are pleased to be associated with Am in this important new undertaking. Quentin M. West Administrator, Foreign Economic Development Service U. S. D':partment of Agriculture II PREFACE This publication is based upon a seminar sponsorp,d by the U. S. Agency for International Development and the U. S. Department of Agriculture, held in Washington, D. C., June 18.19, 1970. The purpose of the seminar was to provide guidance for AID-USDA efforts to improve food marketing in developing countries. Martin Kriesberg, Director of the Program Develop­ ment and Analysis Staff in USDA's Foreign Economic Development Service, organized the seminar in co­ operation with Douglas Cat'}fl, AID/TA/SPEC, W. F. Ii! Johnson, AID/TA/AGF, and Lloyd Holmes, USDA. Bob Spade, James Sayre, and Dave Winkelmann of USDA assisted with the preparation of lhis publication. iii ') . rr1~:"""""""'~I~~~~mtt..~~~~~)[~:u~ I CONTENTS PREFACE ••••••••••••••••••••••••••••••• 111 INTRODUCTORY STATEMENTS ..•••••••.•.••.•. 1 Ervin 1. Peterson, Deputy Assistant Administrator, Bureau for Technical Assistance, AID. • • • . • • . • • 3 Don Paarlherg, Director, Agricultural Economics, • USDA..... ............................... 4 Martin Kriesherg, Director, Program Development and Analysis, Foreign Economic Develo!,ment Service, USDA ............... /I •••••• , ••••••••••• 5 MARKETING POLICIES-SOME KEY CONSIDERATIONS (Section I). • • • • • • • • . • . • • • •• 9 Elements of Food Marketing Policy for Low Income Countries; John W. Mellor ••••••••••••••••••••••••••• 11 Commodity Stahilization Policies-Some Guidelines, R. M. Sydney Harris .••••.•••••••••••• , •••••• 17 Some Further Views on Commodity Price Policies, James W. Lemley •••••••••••••••••••••••••• 19 Marketing Policies-The Interaction Between Business and Government Managers, Ray A. Goldberg • • • • • • • • • • • • • • • • • • • • • • • • • • 22 MARKETING ENTERPRISES AND THE FLOW OF RESOURCES INTO MARKETING FUNCTIONS (Section II) ••.• 0' ••••••••••••••••••••••••• 25 '.. Introduction, James Hagler •••.•••••••••..••.•••••.•.•• ,27 Ways of Building Marketing Enterprises and Programs v in Less Developed Countries, Harold M. Riley • • • • • • • • • • • • • • • • • • • •• • • • ••• 28 Balancing the Flow of Resources Between Production and Marketing, Earl Heady and Leo Mayer •••••••••••••••••••• 31 Initiating a New Grain Marketing Program in West Africa, Norris Pritchard ••..•.•••••..••.••.••.••••• 33 Discussion •••..•.•.•.•.••••.•••..•••..•• 34 NUTRITION AND MARKETING FOOD FOR THE NEEDY (SectiOn III) ••.••••• , •••••••..••...•• 39 Increased Income and Improved Nutrition: A Shib­ holeth Examined, Alan Berg • ~ •••••••••••••••••••••••••••• 41 IV FQrtification: Another Alternative for Improving Nutrition (\ Daniel Rosenfield . • . • • • • • . • • • • • • • • . •• 46 The Role of Private Enterprise in Marketing Foods to Lower Income Consumers in Developing Countries, H. C. Frost ••••••' •.•.••.••••..•.••......• 49 f Discussion • . • . • ... • • • . • . • • . • . • . • 51 EFFICIENCY IN THE MARKrlTING SYSTEM (Section IV)." . .':, . 55 Marketing Functions-Increasing Efficiency, Kenneth Farrell .••••••••••.••..•.••.••...• 57 Increasing Efficiency and Improving Transportation of Food Produ.:ts, Grace W. Finne . • . • . • • . • • . • • • . • • • • . • . 59 Increasing Efficiency of Central Markets, William C. Crow. • . • • • . • • • . • • • • . • • • . 62 j Reducing Losses in Grain Storage, LJ'htan S. Henderson .••..••••••••••......•.. 63 PROBLEMS AND PRIORITIES IN MARKETING­ RE(~IONAL EXPERIENCES (Section V) ...•.•••.•••• 67 Africa: William Jones, Stanley Peek, James Codding­ ton .... ..............•................ 69 Lz.tin America: Gerard F. Horne, Donald Fiester ....•••• 73 Near E9-'lt/South Asia: 0.1. Mimms, Richard Ward ••.••• 75 II' East Asia: Edward Schiffman .........•••.•.•.•. 78 Vietnam: Myron Smith. • . • . • . • • . " •.• 79 APPROACHES TO TECHNICAL ASSISTANCE IN MARKETING (Section VI) ••.••.•.•••••..••••• 81 Erven Long •........•••.•.•••••••.•..•.. 83 Lloyd Holmes. • . • . • • 83 Charles Slater . • • • . , . • . • .,a4 Robert Johnson ......••..•.•.........•.•..86 William Johnson .......•.....•..•.••..•••• '. 87 Richard Reuter .•••..••••......•....••••..87 Benjamin french. • . • • • . • . 87 Douglas Caton. • . • • . ~s. Lyle Schertz. • • • • . .' . • . •••••. ; .89 SUMMARY AND CONCLUSIONS-GUIDES FOR AID- USDA POLICY (Section VII) •••• J •••••••••••••••• 91 v .,if. vi '.~---Y~~;;;;~"~'1!~~~~' .\ 1\ \) ,<, -.~ . ." o INTRODUCTORY STATEMENTS 1. Ervin L. PeterSO'll, Deputy Assistant Administrator, Bureau for Technical Assistance, AID. 2. Don Paarlberg, Director, Agricultural Economics, USDA. II} 3. Martin Kriesberg, /' Director, Program Development and Analysis, Foreign Economic Development Service, USDA. 1 , . ·.Vt -.' -- --if ~::~~t~~t..W 1\ , '" ;~ ~ r; it ,~'~, 1. 0 *",' This planning seminar on technical assistance in food f:1~: marketing is tangible and visible evidence of the respon­ t,Ii"! • siveness and cooperation between .agencies of govern­ menT; the academic cOrD,nunity, all~ private enterprise 1r,('1 ~,', to deal with a major problem facing most, if not all, f developing countries. This assembly, one of m~ny si~ilar It is not my purpose to either map out the directions ". ones which Jtave been held i:n the past and whIch wIll be for your attention or to anticipate the nature of the r) .. held in the future, also re£I~cts wh.at I hope is a growing problems to which you will be directing your attention; t awareness of the American public that,. development rather, it is to try to emphasize the complexity and D l·! I assistance extended by us to the developing nations is an diversity of the subject for your consideration ... investment directed toward achieving a more stahle and As you proceed, I commend to your attention the use 1'1n peaceful world community. We do not anticipate. a of what I call Eri-vision. I believe this is needed to ~:.~ world without change hut, rather, a world wherem simultaneously see the institutional organization!>, djl change is purposeful and orderly, peaceful an~ const~u~­ implementing mechanismr-:, and divisions of participation 11 tive, as contrasted with violence and dest~uction. ThIS IS ,between public agencies and private entrepreneurs which II'/.-1 a world where change enriches ,the livcs of people
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