Market Information Systems
Encyclopedia
Market information systems (otherwise known as market intelligence systems, market information services, or MIS, and not to be confused with management information systems) are information systems used in gathering, analyzing and disseminating information about prices and other information relevant to farmers, animal rearers, traders, processors and others involved in handling agricultural products. Market information systems play an important role in agro-industrialisation and food supply chain
s. With the advance of Information and communication technologies for development
(ICTs) in developing countries, the income- generation opportunities offered by market information systems have been sought by international development organizations, non-governmental organization
s (NGOs) and businesses alike.
countries have traditionally emphasised the importance of information provision for the agricultural sector, a notable example being the service provided by United States Department of Agriculture
. Such systems are widely used in order to increase the transparency and the volume of information flowing through the supply chains for different agricultural products. The ability of market information systems to provide a valuable service has been strengthened with the development of the Internet and the advance of electronic commerce (business-to-business
(B2B), consumer-to-consumer
, etc.). Industry structure, product complexity and the demanding nature of agricultural transactions are considered determining factors for the development of B2B electronic commerce
in agriculture.
and agribusiness
development strategy that many governments are actively engaged in. It's commonly understood that long transaction chains, lack of transparency, lack of standards, and insufficient access to markets for products has perpetuated low incomes in predominantly agrarian economies. The Food and Agriculture Organization
(FAO) has a unit focussed on agricultural marketing support, including through development of market information. Donor organizations, such as the CTA
, IICD
, USAID, DFID, and the Bill and Melinda Gates Foundation are all focussed on improving the efficiencies within the supply chain through greater information provision. The recent surge of mobile phone
usage in developing countries has provided an opportunity for innovative projects to leverage this new distribution channel to get critical market data into the hands of farmers and traders. Several projects by Reuters
, Nokia
, Esoko
/TradeNet, KACE, Manobi, AgRisk and others have demonstrated the impact that such information can have. Studies in Niger and India demonstrate the impact of cell phones in reducing price variations and creating equilibrium
among markets. Introduction of internet kiosks and cafes
that provide wholesale price information to farmers has been shown to enhance the functioning of rural markets by increasing the competitiveness of local traders in India.
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
s. With the advance of Information and communication technologies for development
Information and communication technologies for development
Information and Communication Technologies for Development is a general term referring to the application of Information and Communication Technologies within the fields of socioeconomic development, international development and human rights...
(ICTs) in developing countries, the income- generation opportunities offered by market information systems have been sought by international development organizations, non-governmental organization
Non-governmental organization
A non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
s (NGOs) and businesses alike.
Agricultural market information systems
There is a wide variety of market information systems or services. Organisation for Economic Co-operation and DevelopmentOrganisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...
countries have traditionally emphasised the importance of information provision for the agricultural sector, a notable example being the service provided by United States Department of Agriculture
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
. Such systems are widely used in order to increase the transparency and the volume of information flowing through the supply chains for different agricultural products. The ability of market information systems to provide a valuable service has been strengthened with the development of the Internet and the advance of electronic commerce (business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
(B2B), consumer-to-consumer
Consumer-to-consumer
Consumer-to-consumer electronic commerce involves the electronically facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a...
, etc.). Industry structure, product complexity and the demanding nature of agricultural transactions are considered determining factors for the development of B2B electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
in agriculture.
Agricultural market information in developing countries
In developing countries, market information initiatives are often part of broader interventions and part of the agricultural marketingAgricultural marketing
Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. Numerous interconnected activities are involved in doing this, such as planning production, growing and harvesting, grading, packing, transport, storage, agro- and food processing,...
and agribusiness
Agribusiness
In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales....
development strategy that many governments are actively engaged in. It's commonly understood that long transaction chains, lack of transparency, lack of standards, and insufficient access to markets for products has perpetuated low incomes in predominantly agrarian economies. The Food and Agriculture Organization
Food and Agriculture Organization
The Food and Agriculture Organization of the United Nations is a specialised agency of the United Nations that leads international efforts to defeat hunger. Serving both developed and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and...
(FAO) has a unit focussed on agricultural marketing support, including through development of market information. Donor organizations, such as the CTA
Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)
The Technical Centre for Agricultural and Rural Cooperation ACP-EU was established in 1983 under the Lomé Convention between the ACP countries and EU member states...
, IICD
IICD
The acronym IICD is used by at least four organisations:* The Independent International Commission on Decommissioning, established to oversee the decommissioning of paramilitary weapons in Northern Ireland....
, USAID, DFID, and the Bill and Melinda Gates Foundation are all focussed on improving the efficiencies within the supply chain through greater information provision. The recent surge of mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
usage in developing countries has provided an opportunity for innovative projects to leverage this new distribution channel to get critical market data into the hands of farmers and traders. Several projects by Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
, Nokia
Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki...
, Esoko
Esoko
Esoko is an agricultural market information platform. It is a response to the explosive growth of cellular services in Africa. Managed on the web and delivered via mobile, individuals, agri-business, government and projects use Esoko to collect and send out market data using simple text messaging...
/TradeNet, KACE, Manobi, AgRisk and others have demonstrated the impact that such information can have. Studies in Niger and India demonstrate the impact of cell phones in reducing price variations and creating equilibrium
Economic equilibrium
In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the values of economic variables will not change. It is the point at which quantity demanded and quantity supplied are equal...
among markets. Introduction of internet kiosks and cafes
Internet cafe
An Internet café or cybercafé is a place which provides internet access to the public, usually for a fee. These businesses usually provide snacks and drinks, hence the café in the name...
that provide wholesale price information to farmers has been shown to enhance the functioning of rural markets by increasing the competitiveness of local traders in India.
Supporting organizations
- CTA – Technical Centre for Agricultural and Rural Cooperation, Holland
- FAO – Food and Agriculture OrganizationFood and Agriculture OrganizationThe Food and Agriculture Organization of the United Nations is a specialised agency of the United Nations that leads international efforts to defeat hunger. Serving both developed and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and...
(UN), Rome - IFAD – International Fund for Agricultural DevelopmentInternational Fund for Agricultural DevelopmentThe International Fund for Agricultural Development , a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries...
, Rome - IICD – International Institute for Communication and DevelopmentInternational Institute for Communication and DevelopmentThe International Institute for Communication and Development is a non-profit foundation established by the Ministry for Development Cooperation of the Netherlands in 1996...
- MCA – Millenium Challenge Account
- CRSCRS-Science and technology:* Cambridge Reference Sequence, used in mitochondrial DNA testing* Canada Remote Systems, a now-defunct bulletin board system based in Toronto* Carrier Routing System, a large-scale core router...
– Catholic Relief Services - IITA – International Institute for Tropical Agriculture
- USAID – United States Agency for International Development
- DFID – UK's Department for International Development
- Bill and Melinda Gates Foundation
- CGIAR
- FARA – Forum for Agricultural Research in Africa, Accra.
- Grameen FoundationGrameen FoundationGrameen Foundation, founded as Grameen Foundation USA, is a global 501 non-profit organization based in Washington DC that works to replicate the Grameen Bank microfinance model around the world through a global network of partner microfinance institutions...
Seattle. - IDRC The International Development Research Centre, Canada.
- MercyCorps
- Rockefeller FoundationRockefeller FoundationThe Rockefeller Foundation is a prominent philanthropic organization and private foundation based at 420 Fifth Avenue, New York City. The preeminent institution established by the six-generation Rockefeller family, it was founded by John D. Rockefeller , along with his son John D. Rockefeller, Jr...
- United Nations Conference on Trade and DevelopmentUnited Nations Conference on Trade and DevelopmentThe United Nations Conference on Trade and Development was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues....
(UNCTAD)
External links
- Agis South Africa's Agricultural Marketing Information System
- http://agrisk.in/ AgRisk—India's Agricultural Market Information Services
- Agmarknet Indian Government's detailed price information service on commodities (national informatics division)
- Commodafrica Francophone African Service
- DrumNet Supply Chain Financing Model working with farmer groups in Kenya
- e-Choupals ITC's village information model in India
- Esoko/TradeNet Connecting 8 countries across Africa
- FAO PriceTool National basic food prices – data and analysis tool from GIEWS
- FarmPrices Zambian Farmers Union Price Database
- FEWSNET Quarterly reports from USAID's food security program
- Infotrade provides current agricultural information to farmers and agricultural stakeholders in Uganda
- KACE Kenyan Agricultural Commodity Exchange
- Kalimati Fruits & Vegetables Market Development Board, Nepal
- Manobi Pioneering private service based in Senegal
- Nokia's Life Tools Partnered with RML in India, deploying icon-driven ag MIS services.
- RATIN Regional Agricultural Trade Intelligence Network
- Resimao Price Statistics from the official West African Market Price Agencies -online
- RML ThompsonReuters Market Lite, with 150,000+ subscribers in two states in India
- Trade At Hand ITC's project support for cell-based services.
Blogs and discussion groups
- Promoting Second Generation Market Information Services (MIS) in Developing Economies DGroup from CTA
- Mobiles in Agriculture Google Group from MobileActive08
- Mobile Market Design for Development Blog
- Aginfo News from IAALD – postings on market information systems
Further reading
- FARA; Innovative Farmer Advisory Systems, 2009
- "The Impact of Cell Phones on Grain Markets in Niger" Jenny Aker, University of California, Berkley, Feb 2008
- "Information, Direct Access to Farmers, and Rural Market Performance in Central India" Aparajita Goyal, Nov 2007
- “Supply Chain Re-engineering in Agri-Business A Case study of ITCs e-Choupal,” Anupindi, R. and SivaKumar, S. (2006)
- The Digital Provide: Information, Market Performance, and Welfare in the South Indian Fisheries Sector Robert Jensen, August 2007
- [ftp://ftp.fao.org/docrep/fao/003/X6993E/ "Market information services – Theory and Practice".] Andrew W. Shepherd, FAO, Rome, 1997
- "Linking Farmers to Markets" Andrew W. Shepherd, FAO, Rome, 2007
- "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," Avner Greif, (Journal of Economic History, 1989). (JSTOR)
- “The Economics of Information,” George Stigler, (Journal of Political Economy, 1961). (JSTOR)