South Africa-case Analysis

South Africa Agricultural Marketing Information System

South Africa • Agriculture contributes 4.5% to GDP • Dual Economy: o Small-scale communal farming o Large-scale commercial farming

• Market-oriented economy o More imports from subsidized countries

• Effect: smaller farmers lost jobs commercial farms succeeded

South Africa • Problem:producers disconnected from global market • Solution:provide a system enabling producers to best satisfy customer demands by providing adequate market information • South Africa – Web based MIS • Ghana – Esoko (SMS)

1. Briefly discuss an agricultural marketing information system • Marketing Information System (MIS) o Gathering of needed information o Processing needed information o Help decision makers use the information to generate market insights

• Agricultural Marketing Information o o o o

Begins and ends with information Obtain information from farmers what is demanded and what can be provided A system in which data can be accessed

2. How might the South African system be seen as an effort at increasing market accessibility and competitive advantage? • Increasing Market Accessibility

Market Accessibility • Dynamic maps illustrate the location of the markets • Provide contact information of the markets • The system connection)

is

web-based(Areas

with

Internet

2. How might the South African system be seen as an effort at increasing market accessibility and competitive advantage? • Increasing Competitive Advantage o Provide the same value as its competitors but at a lower price o Charge higher prices through differentiation

Competitive Advantage • Producers are aware of the real-time pricing for fresh produce • System provided information on how produce is graded • Forecast reports on different sectors of agriculture

3. Assess the suitability of Esoko system for Africa. • What is Esoko? o Developed in Ghana o SMS based o Prices, farming advice o Offers, harvest data, stock levels

HIGHLY SUITABLE • Simple • Mobile phones instead of computers • Up to date information

4.Should Africa have developed a system like Esoko rather than opting fro a webbased solution? • ESOKO SYSTEM o o o o

SMS Easy Steps Push and pull of data negotiation

• WEB-BASED SOLUTION o o o o

Internet connection Service fees Updated/outdated data links

• Accessibility- mobile phone, web • Efficiency- easy steps • Premium to the welfare of stakeholders (producers, traders, Africa) –serves right, profitability

• South Africa should have developed a system like ESOKO rather than opting for a Web-based solution