agro-imm.az

AGRICULTURAL DEVELOPMENT and credit PROJECT
(PHASE II)
MARKET SUPPORT PROGRAM FOR
DEVELOPMENT OF EFFICIENT RURAL MARKETS

1. The Main Components

1. The market support program consists of two main components acting to better inform beneficiaries about markets, market requirements, and improved marketing practice through provision of better quality and more timely market information flow, while also initiating developments in support of establishing new marketing opportunities and openings for producers, both in domestic and export markets;

Market Information Extension and Development
Commercial Market Support

2. The overall program would be commercially oriented and it is intended that a new structure be formed in a Market, Information and Commerce Hub (MICH) that would be managed by an independent, market oriented NGO or private enterprise, for the purpose of implementing both of the market Support Program main components.

1.1 Market Information Extension and Development Component

3. Component objective: To develop a modern market information system able to provide timely and relevant market intelligence over the whole of the project area in ADCP-II.

4. Work completed in ADCP-I will be extended to improve the scope, accuracy, availability and reliability of market intelligence and to present it in a readily accessible format.

5. Scope will be improved to include all major internal and export markets, while the range will be increased to include main input supplies, machinery and equipment.

6. Accuracy will be enhanced through better training of price collectors, referencing of prices against known quality indicators and greater intelligence on market supply situation.

7. Availability of market information will be improved by adoption of modern information technology based systems for intelligence collation, analysis and dissemination.

8. Reliability will be strengthened by adoption of modern systems and analysis methods which refer to accepted international norms and quality approaches.

9. Accessibility will be increased via use of modern electronic media to speed up delivery, alongside existing standard systems such as the print and broadcast media.

10. Component outcome will be the development of a web based Market Information and Commerce Hub (MICH) which will provide MIS for farmers and rural entrepreneurs.

11. Indirect benefits: Diversification of marketing channels and improved producer incomes, better quality of MIS analysis and forecasting, adoption of market oriented production planning.

12. Target groups: Farmers, processors, rural entrepreneurs, MoA and technical extension agents (RAC's, PA's and variants).

1.1.1 Activities

13. Specific activities will be;

Collection and analysis of daily market prices and intelligence across the markets of the project implementation area and the major export markets on a regular basis;
Establishment of a computer database for market intelligence within the framework of the project in a software format which is easy to manipulate for the purposes of rapid detailed analysis;
Provision of accurate market intelligence on a next day basis for a range of important products and on a weekly basis for products with a more stable pricing structure;
Ensuring that the information provided is both accurate and reliable and also reflecting a uniform quality reference for the whole country;
Improve the flow of information regarding production inputs for agriculture;
Provision of detailed market intelligence and analysis in an easily accessible format for broad based access by producers and RBE's.

•1.1.2 Outputs

14. Key outputs to be achieved are;

MICH website operational and all market intelligence up to date and available there;
Sustainable market intelligence collation processes functioning across Azerbaijan and in major export markets;
MICH establishes and supports a SMS based market and technical information flow process;
Detailed analysis of market trends and forecasts produced by MICH and accessible through website;
MICH system operates efficiently and becomes commercially sustainable;
Privatization of MICH.

1.2 Commercial Market Support

15. A commercial market support facility will be established which will undertake identification and facilitation of marketing of agricultural products in both national and international markets.

16. Component objective is to improve vertical market linkages, rural income levels, sustainable farming practices and market facilitation and organization. This will be achieved by, identification of commercial market opportunities, market organization and group development, availability of market information and input supply, improved product quality and the set up of an electronic bulletin board for market opportunities.

17. Identification of commercial market opportunities will be a key activity of this component which will be undertaken by specialized marketing staff employed in MICH.

18. Improved market organization and producer group development will be supported through the close linkage that will be developed between MICH and the RAC's who will help to form producer and farmer groups to supply the marketing opportunities identified. Special interest groups will be encouraged to form to supply an identified market demand. This will be further supported by the Compettive Grant Program which is targeted at supporting such developments.

19. Provision of market information and dissemination of input supply awareness will be facilitated through the activities of MICH to the RAC's and PA network to farmers and other RBE's.

20. Improvement in product quality will be addressed through clear linking of market opportunities with identifiable quality requirements - particularly for export markets where quality requirements are already more strictly delineated.

21. Establishment of an electronic bulletin board for lodging of market opportunities will provide up to date information about latest market demands and prospects on the MICH website which will be available to all interested parties, but especially the RAC and PA teams.

22. Component outcome will be the development of the commercial market office within MICH whose main aim will be to identify real market opportunities (national and international) to be disseminated through the electronic bulletin board and the RAC network.

23. Indirect benefits: Greater market awareness and linkage will be created among producers, opportunities for improved vertical integration will be increased and awareness of the need for quality approach to production introduced.

24. Target groups: Producer groups, RBE's, technical extension agents (RAC's, PA's and variants), processors and marketing groups.

1.2.1 Activities

25. Specific activities will be:

Identification of commercial market opportunities, both in national and international markets;
Dissemination of quality information on market opportunities and input supply awareness;
Development of an electronic bulletin board (EBB), as a part of the MICH website for posting of all information;
Establishment of a process for facilitating producer group formation in conjunction with RAC's and PA's once market opportunities are identified;
Set up and operation of the commercial market office within MICH;
Improved quality awareness - linking of price information and market opportunities to clearly defined quality standards and dissemination of this information to RAC's, PA's, producer groups and RBE's.

1.2.2 Outputs

26. Key outputs to be achieved are;

Commercial market office established as part of MICH;
Electronic bulletin board functioning as part of the broader MICH website;
Real market opportunities identified and accessible via the EBB and RAC network;
Input supply information available on EBB;
Linkage of identified commercial market demand, and producer group formation;
Greater awareness among producer groups of need for quality approach to production.