Agri- Marketing in Asia: Agribusiness Perspective

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Agri- Marketing in Asia Agribusiness Perspective

• Senen Bacani

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Issues and Concerns

• Higher incomes and changing lifestyles will drive
  the production of premium products conveniently
  and attractively packaged
• Critical to pay similar attention, as in
  production, to post production activities
  (processing, distribution, marketing, etc) in
  order to maximize the value chain
• Growing concentration at all levels
  particularly in the retail and processing
  sectors Agribusiness enterprises are getting
  larger as firms seek economies of scale
• As supermarkets take on more and more of total
  food retail sales, product quality improvement,
  industrial packaging will be emphasized more

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Issues and Concerns

• The proliferation of private sector standards on
  food quality and safety will at some point
  provide added value for which the customer will
  be willing to pay
• The growth of agribusiness can also be aided by
  government policies which will give incentives
  for the establishment and or expansion of
  businesses
• It is important that the public sector provides
  the public goods that the small producer cannot
  provide by himself
• Makes sense for the producer just to stick to
  core competencies

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Issues and concerns

• As increasing concentration and vertical
  integration continues, producers displaced in the
  process will have to be assisted with alternative
  opportunities
• Some big buyers/processors of agricultural
  commodities have taken it upon themselves to make
  sure that the small producers directly benefit
  from their direct linkage
• The role of the middlemen will gradually reduce
  over time as his traditional functions decrease
  with the establishment of more direct linkages
• In the end, what is most important is that all
  players in the value chain get their equitable
  share from the total composite of their
  transactions

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Thank you!