pmr&fpr training notes final doc-1
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Participatory Market Research (PMR)
&
Farmer Participatory Research Approaches
Training for Swisscontact & VETA Partner Organizations
Malisa, E.T.N & Mhagama, Anthony
20th-21stDecember 2011
At Glonency88 Hotel, Morogoro
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SDAS and FPR/PMR Background
Swisscontact, the Swiss Foundation for Technical Co-operation and the Vocational Education and Training
Authority (VETA) are currently implementing Skills Development for the Agricultural Sector (SDAS) pilot
project in selected districts of Morogoro Region. SDAS facilitates the development and delivery of
agricultural skills development training activities to smallholder farmers in order to increase their
agricultural productivity. It also engages unemployed rural youth in agriculture through the formation of
learning groups and the delivery of training activities that include essential life skills.
Capacity building of Partner Organizations (POs) for the purpose of bridging existing knowledge gaps in
relation to activities being implementedis among other commitments of Swisscontact (SC)& VETA. Access to
market is one of areas of interest to all SC POs involved in the implementation of Skills Development in
Agriculture Sector (SDAS) project. In the course of linking farmers and youths with markets, the POs have
been facing important challenges and hence the need for training and experience sharing among the POs
on the subject. In this regard, SC & VETA organized a two days training on participatory market research for
the POs as detailed below.
Training Information
Goal and learning outcomes
Course Training on Participatory Market Research(PMR)
Purpose To provide SDAS partners with the skills needed to design tools and facilitate
participatory market research activities for smallholder farmers and youth in the
project area for enhanced access to market.
Structure This was a 2 days residential training. The training involved sharing among the
POs on how they have previously facilitated farmers and/ or youth to market
their produces. The training wasconducted in English as well as Kiswahililanguage since the market survey questionnaires to be developed in the future
will be in Kiswahili.
Target Group Facilitators, field coordinators and extension officers from nine SDAS partners in
2011 that are directly involved in the delivery of training for smallholder farmers
and youth. Two representatives from each PO were invited to participate. In this
regard, 20 (16 male, 4 female) representatives from 9 POs (shown below)
participated.
Goals/Learning
Outcomes
At the end of the training, participants to be able to:
Appreciate different Farmer Participatory Research (FPR) approaches suchas Participatory Technology Development (PTD), Participatory Variety
Selection (PVS) and Participatory Innovation Development (PID)
Use different commonly applied market research and marketingterminology
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Facilitate the application of basic market skills with the farmers/youthgroups
Assist farmers/youth in conducting SWOT analysis for the selected agro-enterprise/sector
Carry out simple gross-margin calculations to determine profitable sub-sectors in their areas
Facilitate market visits for farmers to expose them to different situationsand opportunities
Develop simple tools/questionnaires for conducting market research Analyse together with farmers/youth the crop/sector selection criteria Evaluate crop or agro-enterprise options available for the farmers/youth Facilitate the identification of available market opportunities for the
farmers/youth inside and outside their localities
Methodology The trainers made use of different participatory training methods such aspresentations, plenary discussions, word puzzles, group energizers, group
activities and individual PO presentations.
Trainers Malisa, E.T. from UMADEP- SUA and Anthony Mhagama from Swisscontact TZ
Venue The training took place in Morogoro at Glonency 88 Hotel located along Dar es
Salaam- Morogoro highway adjacent to J.K.Nyerere Farmer's show grounds
(Nanenane) in Morogoro Municipality.
Costs Venue, equipment, stationary, food and accommodation were borne bySwisscontact and VETA. Partner organizations were responsible for transport to
and from the training venue. As per SC policy, allowances or per diems were not
paid for participants.
Evaluation Group assignments and plenary feedback discussionwere used to evaluate the
training.
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1. Understand and applysome basic marketing terminology in PMR
Participatory market researchdefinition and terms
Participatory market research aims to capacitate farmers/youth in procedures for collecting and analyzing
market information, and evaluating and selecting enterprise options.
Market
Market is a public place where buyers and sellers make transactions, directly or via intermediaries
Marketing
Marketing refers to delivery of customer satisfaction at a profit or process by which individuals or group
get what they need or want through creating and exchanging products and value with others
The first rule of marketing for small scale farmers is to produce what you can sell, instead of trying tosell what you have produced
To achieve the rule:- Know what consumers are demanding in the marketplace- Know how laws ofdemand and supply affect prices, price trends and volumes being sold- Know how can interpret these in terms of own market opportunities
Demand
Demand is the quantity of products or service desired by buyers.
Factors influencing demand include: price, quality, availability and awareness of the product
Supply
Supply is the quantity of products or services that the market can offer
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Four marketing variables (4 Ps)
Four marketing variables, also referred to as 4 Ps are Product, Price, Place, Promotion
The question that should in the end be answered is on how to increase revenues using the 4 Ps?
Market linkage
Market linkage refers to linkage between producers and buyers/end users. In some instances it also
involves service providers to end-users.
The aim of market linkage is to create leveled playing field, long-term win-win situation among parties
The critical functions in facilitating market linkages in agriculture sector are:
Access to markets Access to inputs Access to relevant extension services
Note that in this process there may be a facilitator. In this regard the facilitator acts as a catalyst or an
honest broker
Sub sector analysis
Sub sector analysis involves selection of sub sector, understanding market players, roles and
interrelationships, identification of constraints and opportunities, determining solutions and identification
of service providers.
Value chain
Value chain is a vertical alliance or strategic network between a number of independent business
organizations within a supply chain. Aim is to achieve a more rewarding position in the market. Sub sector
analysis and value chain development concepts are interrelated.
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Value chain development
Value chain development is deliberate developmental initiative to promote potential value chains
Supply chain
Supply chain is the entire vertical chain of activities. From gate to plate, farm to fork
Co-operative
Co-operative is a horizontal alliance that may involve performing more than one function in the supply
chain e.g. a group of sunflower producers collaborating to achieve processing.
Collective marketing
Collective marketing involves agreement from all members that a group conducts sales on their behalf,
and that members pay brokerage fees. Main components: Product, market, transport, funds.
Skills needed: Collective marketing, management, financial control, training on packaging, production,
grading and standards
Contract farming
Agreement between farmers and processing and/or marketing firms for the production and supply of
agricultural products under forward agreements, frequently at pre-determined prices.
2. Facilitatemarket linkageSub-sector selection
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Aim:To determine viable sub sector
3. The processof sub sector selectionSub sector listing and ranking
Ask farmers/youths to list available subsectors in their area
Let them develop ranking criteria
Criteria are such as: Employment opportunity, possibility of expansion, market at farm gate, SWOT
(strengths, weaknesses, opportunities, threats) and GM(gross margin).
4. Facilitate SWOT analysisSWOT analysis is a technique for understanding your (community) strengths and weaknesses, and for
looking at the opportunities and threats you face. Used in a business context, it helps you carve a
sustainable niche in your market. Used in a personal context it helps you develop your career in a waythat takes advantage of your talents, abilities and opportunities.
It is a tool to help community to identify the advantages and disadvantages of the subsector by analysing
the internal forces (Strengths & Weaknesses) and external forces (Opportunities & Threats)
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Using SWOT framework, you can assess yourself and your competitors and develop a strategy that helps
you distinguish yourself from your competitors so that you can compete successfully in your market.
Note: At this stage SWOT analysis based on available information
Strengths
What advantages does your subsector has What do you do better than anyone else in the subsector What unique or lowest cost resources do you have access to What do people in your market see as your strengthsWeaknesses
What could you improve in relation to the subsector? What should you avoid? What are people in your market likely to see as weakness? Are your competitors doing better than
you?
Ensure you face unpleasant truths as soon as possible
Opportunities
Where are the good opportunities facing you? What are the interesting trends are you aware of?
- Look at your strengths and ask yourself whether they open up any opportunity- Look at your weaknesses and ask yourself whether you could open up opportunities by
eliminating them
Threats
What obstacles do you face? What are your competitors doing? Are required specifications for your product changing? Is changing technology threatening your position? Could any of your weaknesses threaten your business?SWOT Matrix
Opportunities Threats
Strength Using strengths to use opportunities Using strengths to avoid threats
Weakness Removing weaknesses to use opportunities Removing weaknesses to avoid threats
As you conduct SWOT analysis remember the following:
Focus on positive and negative aspects of each sub sector For negative aspects, search for positive ways to overcome them If it is not possible to overcome them, go to another subsectors
5. Facilitate gross margin analysisSimplified gross profit
Gross profit = Sales minus Direct costs
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- Direct costs e.g. cost of seeds- Indirect costs e.g. cost of a ploughTo be able to understand and distinguish between direct and indirect cost, consider the following:
- If I produce nothing, do I still face these costs? (if yes = Indirect)- If I double production, do the costs increase too? (if yes = Direct)Simplified gross profit gives an indication of profitability of the sub sector
Simplified gross margin
Is simply expressing gross profit in percentage over sales
Example: Case of sunflower production by a farmer field school in Kitete ward, Kilosa in 2011.
Direct costs (Tshs) Sales (Tshs) Gross margin (GM)
Plot hire 20,000
Land prep 35,000
Planting 15,000
Weeding 42,000
Thinning 15,000
Harvesting 30,000
Winnowing 20,000
Empty bags 10,000
Transportation 10,000
197,000 650,000 69%
Thus;
GM = GP x 100
Sales
Where,
GM = Gross margin
GP = Gross profit
Exercise: Consider the following information and state with reason the most interesting sub sector
Sub sector Cost (Tshs) Sales (Tshs) GM
Sunflower 197,000 650,000 69%
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Pineapple 120,000 200,500 40%
Maize 150,000 350,000 57%
Answer: Sunflower is the most interesting subsector because it has higher margin
Interpretation
For each shilling you put in sunflower, you get an additional 69% back The higher the GM the better!Note that at this stage GMA is based on locally available information!
Subsector ranking
Scale: 1=Low, 2=Moderate, 3=High
Employment Possibility of
expansion
Market SWOT Gross margin
Ginger
Banana
Local chicken
Mango
Oranges
Pineapple
- Ask the participants to assign against each sub sector a scale with reference to each criterion- In summing up, the sub sector scoring higher will be considered the most highly ranked and hence
preferred
Decision on sub sector selection
Based on SWOT analysis, gross margin analysis and other criteria agreed upon, the sub sectors are
selected in order of priority, where the highly ranked sub sectors are considered highly prioritized.
Number of sub sectors to select is subject to possibility of facilitating meaningful engagement in the same.
6. Carry out market opportunities analysisParticipatory market survey
Participatory market survey is usually preceded by Rapid Market Survey to identify areas (potentialmarkets) to be visited
Aim:
To explore on available markets and finding reliable and profitable market for identified products To generate information to be used in sub sector analysis
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Possibility of expansion (refer SWOT findings)The next steps involve organizing farmers/youth to produce for the market
See UMADEP experience in linking farmers with markets for more information and practical cases onmarket linkage (in a separate document)
8. Overview of Farmer Participatory Research (FPR) ConceptFarmer participatory research (FPR) is an approach that involves encouraging farmers to engage in small-
scale experimentation so that they can adapt new technologies and spread them to other farmers.
The advantages of small-scale experimentation or "learning by doing" have been demonstrated in the
spread of both traditional and recommended technologies, such as maize and cassava growing and
soybean cultivation and use.
In addition to adaptations of introduced innovations, farmers' experiments have been used to evaluate
new crop varieties and observe the results of new practices and procedures as in the use of diffused light
storage of potatoes by farmers.
Figure: Elements of FPR approach
9. Participatory Technology Development (PTD)Involving developing, improving the local, existing farming technologies for example in clearing the field
in most cases farmers tends to slash the grasses and burn (slash and burn) while a good practice would
be slash and use the grasses as mulch materials to cover the top soil and conserve moisture or
contribute to soil fertility once the cover grasses decays.
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Today there has been a need for participatory approaches in agricultural technology approaches. The
TOT model (see below) is a one-way process where technologies developed by scientists are passed on
to extension services to be transferred to users. The TOT model seeks to sell (disseminate for adoption)
a product (technology) by identifying potential customers (homogeneous groups of farmers) and
improving the advertising (social marketing for extension). However, it fails to feed the clients views
that might make the product more relevant back to its research and development department. The
main weakness of this model is that it does not involve farmers in identifying the constraints and
adapting the research to local conditions.
Figure: ToT model
Figure: The FFS Model of PTD- Good practice!
10.Participatory Variety Selection (PVS)Farmers try out a range of say seed varieties (e.g. maize seed variety TAN250, TAN254, TAN222.) treated
under the same field conditions. Farmers later observe and record things like husk size, how many seeds
dies, days to germinate, shoot and other criteria for selection set by farmers themselves. Finally they
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14.List of participants to the 2 days training sessionsS.No. Name Organization Contact
1. KolethaMwelangombe CVM/APA koletham@gmail.com
2. Davie Kitururu NgomaAfrika napactz@yahoo.com
3. L. Chen MEBTI lancelleschen@yahoo.com
4. Emmanuel Lekule MEBTI tembcarccord2008@yahoo.com
5. Stephen Majumba KDC lwiza07@yahoo.com
6. Plato Lyakinana KDC Lywizer6@yahoo.com
7. Heri Rashid UMADEP herirashid@yahoo.com
8. Nicholaus Solomon UMADEP solomonnicholaus@yahoo.com
9. Hugo Kunguru SAT 0763 021016
10. Aurelian Chuma SAT 0718 775982
11. Peace Myugi CVM/APA peacemyugi@gmail.com
12. AlectedLwinga ENVIROCARE mocoatz@gmail.com
13. Sabina Nafisa ENVIROCARE sabinanafisa@hotmail.com
14. Abdul Lukanza YOA alukanza@yahoo.com
15. MushumbaAvitus YOA avituscard@yahoo.com
16. Desmond Mgombela CARITAS ddmgombela@gmail.com
17. Maya Davie Ngoma Africa napactz@yahoo.com
18. Baraka Mwago Swisscontact baraka.mwago@swisscontact.co.tz
19. Anthony Mhagama Swisscontact anthony.mhagama@swisscontact.co.tz
20. Emmanuel Malisa UMADEP malisaet@yahoo.com
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