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Marketing Channel For Tomato NextEnd. PreviousNextEnd Introduction The tomato (Solanum lycopersicum) is the second most important and popular vegetable.

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Presentation on theme: "Marketing Channel For Tomato NextEnd. PreviousNextEnd Introduction The tomato (Solanum lycopersicum) is the second most important and popular vegetable."— Presentation transcript:

1 Marketing Channel For Tomato NextEnd

2 PreviousNextEnd Introduction The tomato (Solanum lycopersicum) is the second most important and popular vegetable crop after potatoes in South Africa. It is not only cultivated commercially but also commonly grown by subsistence, resource poor farmers and home gardeners. It contributed approximately 19% (excluding potatoes) to the gross value of vegetable production.

3 Perishable nature of produce. Bulk and weight–cotton, fodders are bulky but light in weight. Storage facilities. Weak or strong marketing agency. Distance between producer and consumer. Factors affecting marketing channel Marketing Channel For Tomato PreviousNextEnd

4 Direct Marketing Channel PRODUCER CONSUMER Local Marketing Channel RETAILER PRODUCER CONSUMER DISTANCE SALE - Marketing Channel I PRODUCER CONSUMER RETAILER TRADER COMMISION AGENT Marketing Channel For Tomato PreviousNextEnd

5 Marketing Channel II PRODUCER CONSUMER RETAILER TRADER Marketing Channel III PRIMARY WHOLE SALER SECONDARY WHOLE SALER PRODUCER CONSUMER RETAILER Marketing Channel IV RURAL ASSEMBLER PRODUCER CONSUMER RETAILER Marketing Channel For Tomato PreviousNextEnd

6 Contract Marketing Channel PROCUREMENT AGENCY RETAIL OUTLET PRODUCER CONSUMER Some of the retail industries procure directly from farm field and seal it through own retail outlets. It helps consumers to get fresh products and also quality commodities Marketing Channel For Tomato PreviousNextEnd

7 Marketing channel for processed tomato products The demand for tomato processing usually arises from a need to preserve the product for cooking purposes (inclusion in stews, soups, curries etc) out of season or to add value for extra income. Traditionally, the most important methods used are concentration (to a paste or purée) and drying either fruit pieces or to a powder.These remain the most suitable processes for many people to use and form the bulk of this brief. It should be noted that high quality 'salad' tomatoes have the highest value when sold fresh and in good condition. These would not normally be used for processing, unless for home use to save excess at the height of the season. Processing Market Channel CONTRACTING AGENCY PROCESSING UNIT PROCESSED PRODUCTS (PICKLES, SAUCE) PRODUCER RETAILER CONSUMER Marketing Channel For Tomato PreviousNextEnd

8 Institutional Marketing Channel FARMERS MARKET/ RITHU BAZARS CONSUMER PRODUCER To facilitate direct contact between the farmers and public state government implemented farmers market scheme to without any interference of middlemen. PreviousNextEnd Marketing Channel For Tomato

9 Objectives of Farmers market To facilitate direct contact between the farmers and public. To provide fresh vegetables and fruits at reasonable price daily without any interference of middlemen. To provide correct measurement to the consumers. To give full satisfaction to the farmers and public. To aim for providing higher price than that of wholesale price to the farmers for their vegetables and fruits. To provide the fresh fruits and vegetables at the lesser price than that of retail price to consumers. The Uzhavar Santhai also functions as a Technical Information Centre to the farmers Seeds and Other Inputs are also provided in some Uzhavar Sandhai. Marketing Channel For Tomato PreviousNextEnd

10 Photo Identity Card Transport Facility Allotment of stalls Prices Fixation Public Address System consumers as well as farmers. Supply of weighing scales Facilities provided in farmer market Marketing Channel For Tomato PreviousNextEnd

11 Marketing problems Unfair price quotation Low pricing was reported at peak supply periods that were not based on the actual supply and demand interaction but information collusion created by buying actors. The intermediaries used to decide on the price of products particularly onion products. The benefit of Wholesalers overweighs than others and they control the market chain. Lack of standards Repeated weight cheating and lack of price discrimination were common problem practiced by wholesaler and brokers’ Due to this problem there were no clear and well known quality and grade. Marketing Channel For Tomato PreviousNextEnd

12 Lack of strong cooperatives Although there are many multipurpose, irrigation and one union cooperatives which were established to safeguard farmers’ and rights over their marketable produces, farmers were exposed to baseless traders, ultimately sell their produce at low price. Marketing Channel For Tomato PreviousNextEnd

13 Let us Sum up The tomato is the second most important and popular vegetable crop after potatoes. 50% of the supply of fresh tomatoes especially small growers in the peak season selling directly aim is to obtain the highest margin for their product. The demand for tomato processing usually arises from a need to preserve the product for cooking purposes out of season or to add value for extra income. To facilitate direct contact between the farmers and public state government implemented farmers market scheme to without any interference of middlemen. Marketing Channel For Tomato PreviousEnd


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