24 August 2023
Supply used to drive demand, but that has been flipped on its head, with consumer demand dictating what farmers should produce and when. It means that a farmer’s research and marketing must start long before he even begins to plant.
Nico Groenewald, head of agribusiness at Standard Bank, offers advice on how farmers can successfully incorporate marketing into their businesses.
Marketing is a broad term with many meanings, but on a farm, it should mean more than merely sales.
“It’s basically the process by which a farming operation seeks to maximise return on production by giving buyers what they want and supplying it at a profit. Good marketing requires good planning, sales discipline, access to good market information and a sound grasp on all pricing and delivery alternatives.”
Groenewald says you should not wait to see if the price for your product will get better. If you wait too long, you will end up panicking and selling it at a lesser price than what you could have gotten for the product.
“You need to understand the variants that make up the whole marketing approach and that includes a marketing mix.”
Marketing mix requires that you focus on the six Ps in marketing in order for your farm to prosper and grow.
These are:
• Plan: How is the product going to reach the selected customers? What are the steps?
• Product: What product is going to be marketed? What services (for example, cooking the product)?
• Place: Where is the product going to be marketed?
• Price: At what price will the product be offered on the market?
• People: Who are the customers? What do they want or need? Are we trained to provide the right product and services throughout the value chain?
• Promotion: How will customers be informed that the product is available?
To run a successful farming business, you can’t just be a farmer. You also have to be a businessman.
For more information, visit https://www.standardbank.co.za/southafrica/business/products-and-services/business-solutions/industry/agribusiness
