DIRECTORATE: MARKETING
NORMS AND STANDARDS FOR THE ESTABLISHMENT OF AGRICULTURAL MARKETING INFRASTRUCTURE:
[To be read in conjunction with the concept paper]
1.
Definition
A norm is a generally accepted standard that means actual normal situation.
A standard is the level of qualities required that would be set according to norms.
(Source: Oxford English Dictionary)
Table 1: NORMS AND STANDARDS REGARDING THE ESTABLISHMENT OF MARKETING INFRASTRUCTURE
Number
as per
NORMS
STANDARD
norms
6.1
The marketing infrastructure should be
in line with development projects in the
provinces and municipalities.
ƒ
Any project or area falling outside the
IDP should be given priority but under
certain conditions.
The project or area must demonstrate (that)
ƒ There is a high level of development potential
ƒ There is high level of insufficient marketing infrastructure.
For the marketing infrastructure to be given priority, it should form part
of the Integrated Development Plan (IDP).
“Development potential’ means
ƒ There is no any other similar infrastructure within a 50 KM radius
ƒ The infrastructure will be utilized for the whole year not seasonally.
ƒ Marketing infrastructure will be utilized for at least 70% capacity taking
into account breakdown e.g. product demand and maintenance issues.
6.2.1
Local farmers association should take
ownership of marketing infrastructure.
ƒ
ƒ
The Association must be legally registered
Associated Farmers should be from historical disadvantaged community
or agrarian reform beneficiary.
Number
as per
norms
6.2.2
NORMS
Individual farmers should be
considered under exceptional
circumstances.
STANDARD
ƒ
The circumstances of individual farmers must be in such way that
-there is no organized commodity group within a 50 KM radius or
-may not be able to organize other farmers or
-the farmer is the only one producing that commodity/product.
6.3
The marketing infrastructure must be
utilized on a sustainable basis.
For marketing infrastructure to be sustainable:
ƒ It must be economically viable
ƒ There must be management capacity
ƒ It must be technically feasible
6.4
Users of marketing infrastructure must
maintain the marketing infrastructure
facilities.
Before the marketing infrastructure is
put in place, information on production
and marketing related issues should be
audited/assessed
The users must pay fees/levies to cover infrastructure maintenance,
operational and other related costs.
6.5
6.6
The marketing infrastructure facilities
must be utilized optimally.
6.7
All products channeled through the
marketing infrastructure facilities
should comply with the Products
Standard Legislation-Agricultural
Assessment must include :
ƒ Area under production
ƒ Number of farmers
ƒ Production volume/ livestock numbers
ƒ Production potential
ƒ Marketing potential (demand and supply information)
• The facilities must be used throughout the year.
• If the facility can not be utilized throughout the year,
o it must be multifunctional in that it must be able to be used for
other marketing related activities. For example as a processing
centre, it could also be used for conducting training session,
providing marketing information and advice, etc.
The products should meet quality, packaging, marking, and labeling
requirements. as published by the Department of Agriculture: Directorate:
South African Agricultural Food Quarantine Service.
Number
as per
norms
6.8
6.9
NORMS
Products Standards Act, 1990(Act No
119 of 1990).
Farmers should be organized as a
commodity or producer
group/association.
The infrastructure must pass the ‘need’
test
STANDARD
Farmer should either belong to
ƒ a local farmer association or
ƒ large commodity organization or
ƒ lobby organization
Infrastructure must meet the following requirements
• The infrastructure must be demand or supply driven
• It must be justified by production environment of farmers
• There must be no duplication of investment
• Infrastructure support should be linked to production support