Recent years have seen an increased interest in the provision of market information. In part, this reflects the movement away from state-sponsored marketing in many countries and especially those which have been undergoing structural adjustment. This has been accompanied by a recognition that if marketing activities formerly carried out by the state are to be taken over by the private sector then some government support needs to be provided to promote the creation of a competitive market. Even countries in which the private sector has always played a thriving role in agricultural marketing are increasingly coming to recognise the need for a greater measure of official assistance in areas such as legislation, infrastructure provision, marketing extension and Market Information Services.
Efficient market information provision can be shown to have positive benefits for farmers, traders and policymakers. Up-to-date, or current, market information enables farmers to negotiate with traders from a position of greater strength. It also facilitates spatial distribution of products from rural areas to towns and between markets. Well-analysed historical market information enables farmers to make planting decisions, including those related to new crops. It also permits traders to make better decisions regarding the viability of intra and, perhaps, inter-seasonal storage. Moreover, information of this type assists agricultural planners and researchers and can make an important contribution to early warning of impending food security problems.
Market information can be regarded as a public good, particularly where there are numerous small farmers who are unable to pay for information. The availability of timely and accurate information to all interested parties is therefore essential, whether it be provided by the government itself or by the private sector. Many countries have attempted to provide market information but their success rate has been poor. Market Information Services have repeatedly proven to be unsustainable and where they have endured they have often failed to provide commercially useful advice, confining themselves to the gathering of, frequently unused, data.
This AGS Bulletin is not a manual for the operation of a Market Information Service. Rather, it attempts to review the main features which need to be considered at the outset if a commercially useful and sustainable service is to be established. It is hoped that the Bulletin will prove to be a valuable starting point for senior officials in countries wishing to establish Market Information Services or to improve existing services. Donor organizations and consultancy firms working in this area should also find it useful.
A brief introductory chapter offers a definition of a Market Information Service. Chapter 2 then reviews in some depth the theoretical benefits of such services. This is followed by an evaluation of experiences with Market Information Services around the world, based, in part, on a survey conducted in all FAO Member Countries. Chapter 4 draws conclusions from those experiences and identifies points that must be reviewed in depth prior to the establishment of a new service. These include the need to research the way the marketing system functions in order to ensure provision of market information which is relevant to farmers and traders, identification of appropriate institutional arrangements for operation of the Service, including collection, analysis and dissemination of the data, the choice of products and markets to be covered and the frequency with which information should be collected, as well as issues related to produce quality, varieties and weights and measures.
