By K. C. Soares, Contributor 
Soares
THE TWO main factors impeding the progress of small agricultural businesses in Jamaica are financing and marketing.
I have already to some extent dealt with the financing aspects and today will focus on the marketing side.
The marketing of agricultural products is to some degree related to available credit. This is important mostly in the presentation of the product to the consumer. A highly attractive package of say carrots, is much more appealing to the consumer than the same products thrown into a plastic bag. At the same time, if the consumer is aware of the products, by way of advertising then these products may be sold more readily.
Bearing in mind the perishable nature of agricultural products, timely sales are of utmost importance. To advertise and properly package products is generally a high cost exercise. Most small farmers are unable to meet these expenses from their own resources and therefore rely on credit from financial institutions, which is usually not forthcoming.
As a consequence agricultural products are in most part presented in a less than satisfactory manner. This is one of the reasons why consumers tend to turn away from locally produced agricultural items and go for imported products.
Another reason of course, is that the imported products are usually much cheaper. How then can the local farmer survive?
As things stand, he cannot.
There has to be a radical change in our approach to agriculture. Too often for instance, we have surpluses in one part of the country and shortages of the same commodities in other parts. The housewife in upper St. Andrew for instance, may be paying $60 per pound for carrots while the housewife in St. Elizabeth, where there is a surplus, may be paying $20 per pound. This disparity in prices encourages the importation of the items involved.
Take the same carrot situation mentioned above. A businessman realising that there is a shortage of carrots may approach a bank to finance the importation of a trailer load.
The banks are much more willing to do this than to finance the actual growing of the carrot as there is minimal risk involved here. These carrots are usually packaged in an appealing form and are sold at much less than the $60 being paid by the St. Andrew housewife.
Even if the price to the St. Elizabeth housewife is slightly higher than the $20, this housewife will purchase the carrots because of its attractive packaging.
To ensure consistency in pricing there should be wholesale depots strategically located islandwide. Products from all farms islandwide should be channelled to these depots. Those farms that have contractual agreements with processing plants would sell directly to these plants.
All other purchasers of agricultural products, including higglers, would go directly to the wholesale depot. At each depot, a minimum purchase amount should be enforced. Housewives for instance who prefer to purchase in small quantities could purchase from the higglers (commonly termed market people). The higglers would take the products closer to the interested consumers at a slightly higher price than that offered at the depot. The convenience will of course cost a little more.
One may ask how will the products move from the fields to the wholesale depots having in mind the poor condition of the roadways. Indeed, in some cases there are no roads at all.
I do appreciate the problems associated with the roads and these will have to be solved. In terms of the actual moving of the products, the government will have to play a leading role. `I do appreciate that the matter is not a simple one but all great journeys start with a first step.
K. C. Soares is a former banker and is now a business consultant with Soledad Financial Services Limited. E-mail: soledad@netcomm-jm.co
