Guia prático Conhecendo o Mercado - Edição 02 - Inglês by carbahia

TECHNICAL SUPPORT SERVICES INTEGRATED WITH A MARKET FOCUS

PRACTICAL GUIDE TECHNICAL SUPPORT FOCUSING ON THE MARKET VOLUME 02

TECHNICAL SUPPORT SERVICES INTEGRATED WITH A MARKET FOCUS PRACTICAL GUIDE • TECHNICAL SUPPORT FOCUSING ON THE MARKET VOLUME 02

Chapter 1 Presentation • 04

Chapter 2 Let’s expand the work logic for technical support services • 08

Chapter 3

SUM MA RY

A step-by-step guide to initiate the process of inserting a market focus with technical support service providers and technicians • 12

Chapter 4 Final considerations • 42

PRESENTATION CHAPTER 1

P R E S E N TAT I O N

The main goal of this guide is to instruct service providers, their employees and technicians

Technical support service providers and technicians

ming products feasible in the production and value

from multiple areas carry out an important work by

chain in the market.

enabling and improving production in family farming units and in farming organizations (associations and

on how the market behaves

cooperatives). Without this work, there would be few

and the important topics to be

advances achieved in production improvement and

approached in technical support in order to adapt production to the market in more general terms.

management, in the quality of products and, consequently, in the results to be achieved and obtained as a result of the activity. For Bahia Produtiva, this work truly enabled family farming products to be sold and to have access to different markets. However, we understand that, in addition to the technical support that is already carried out, it is important for this service to be linked to market demands. In other words, if the technical support service is connected to what the different distribution channels and to consumers’ desires and needs, the effectiveness of said technical support shall improve greatly, since that would also enable, on a larger scale, the potential for commercialization and access to markets, both for small farmers and for the organizations that sell their products on the market. With that in mind, this

Enjoy the reading of this guide

Gathering market information to understand buyers’

and try to put its instructions

purchasing behavior in the distribution channels and

into practice so that your

collecting information where business opportunities are found, regarding a given category/type of

technical support service

product in the market of interest, provide important

includes more awareness of

subsidies in order for technical support to become

the Market subject and can

more effective and, consequently, to provide more results to the family farming units and for production organizations.

provide even better results to Bahia Produtiva.

The main goal of this guide is to instruct service providers, their employees and technicians on how the market behaves and the important topics to be approached in technical support in order to adapt production to the market in more general terms. The information and practices presented in this document have been developed based on our long years of experience in using this strategy to establish market connections.

practical guide is intended to guide technicians from different areas on how to link the work they already carry out to a market logic. Thus, with technical support that is more qualified on the subject of the market, an attempt will be made to make family far-

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

P R E S E N T AT I O N

LOG IC CHAPTER 2

L E T’S E X PA N D T H E WORK LOGIC FOR TECHNICAL SUPPORT SERVICES

We now present a first proposal

We can define it more simply: MARKETING IS MEE-

regarding the work approach. How

LET’S START BY DEFINING MARKETING

about we start by changing our way

The American Marketing Association defines mar-

THEM SATISFIED AND THAT IS PROFITABLE FOR

keting as:

THE PRODUCTION ORGANIZATION OR EVEN FOR

of work? Instead of making decisions from within the farming unit or the production organization (associations and cooperatives) on matters related to products and production, quality, productivity, among others, we will understand how the market works in order to,

TING THE NEEDS AND DESIRES OF CUSTOMERS AND CONSUMERS IN SUCH A WAY THAT MAKES

THE FAMILY FARMING UNIT. This definition of “mar-

The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges

keting” may sound too simple, but it has worked very well when you understand what it really is and what we want to approach. We now ask you the following, technician: How can we include a market service on your technical support work?

that satisfy individual and organizational goals.

then, qualify our technical support service with that addition.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

LE T’S EXPAND THE WORK LOGIC FOR TECHNICAL SUPPORT SERVICES

PROC ESS CHAPTER 3

A S T E P - B Y- S T E P G U I D E T O I N I T I AT E T H E PROCESS OF INSERTING A MARKET FOCUS WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

1. DISTRIBUTION CHANNELS What are distribution channels?

2. STEP-BY-STEP GUIDE TO INITIATE THE PROCESS OF INITIATING TECHNICAL SUPPORT SERVICE WITH MARKET FOCUS In order to develop a good technical support service focusing on the market, we must understand the level of maturity of family farming units and organizations (associations and cooperatives). Bahia Produtiva has

Distribution channels are

divided family farming units and organizations into three typologies: Dynamics, Transition to the Market and

companies engaged in

Productive Inclusion & Food Security. Each typology classifies family farming units or production organiza-

making a product or service available to the final consumer/

tions according to characteristics below. Typology

Description

organizational consumer.

• Greater commercial experience and market scope A

Dynamic Enterprises

distributors, retailers, and other channels that allow of production organizations, associations and coope-

• Greater formalization of the enterprise and products (licenses, registrations, certifications, etc.) • More professionalized work • Generally contemplates agribusiness

In other words, sales representatives, wholesalers, the product to reach the final consumer. In the case

Characteristics

• Less experience B

ratives, they become distribution channels, since they

Enterprises in Transition to the Market

• More informal • Less professional qualifications • Usually has presence in local markets • Simpler improvements

become part (in some cases) of the transformation, commercialization and distribution processes of family

• Commercialization is carried out directly by the families without going through the proposing organization

farming products in the market. C

Enterprises for Productive Inclusion and Food Security

• Organization without commercial or agribusiness purposes or the capacity to work in the area • Productive base with market insertion through fairs, intermediaries, local purchasing companies • Focus on food security and non-monetary income • Environmental Actions

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

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3. LOCAL, REGIONAL, STATE, NATIONAL AND INTERNATIONAL MARKET DEMANDS AND THE A, B, AND C TYPOLOGIES

We clarify that this classification was established

2.1. Definition of which typology fits the family far-

due to its ability to serve the market at different com-

ming unit or the production organization to which

plexity levels, its production capacity, the existence

you will provide services as a technician. Who are

of products and the ability to sell and access these

you going to provide technical support for if you are

Markets have different demands and specific elements to them. For instance: if I am going to sell a product in

markets.

in typology A, B or C? It is important to identify the

Salvador to a supermarket, the buyer of that supermarket will probably have different needs and demands in

proper typology because your technical support

relation to a buyer at a supermarket in São Paulo or in another place. Therefore, each market has its specific

may be directed at serving the local, regional, state

elements and the demands and needs of the distribution channels can also vary; since they are in different

or even national and international markets.

locations, their consumers also buy and consume differently. We must actively observe these differences.

Based on this classification into typologies, the first forms

2.2. The second step is to understand to which mar-

of action emerge. To establish

ket (local, regional, state or even national and inter-

these actions, we have

national) a supplier’s demand belongs.

elaborated some steps that

2.3. The third step is to talk to the farmer of the family

you should follow in order to be

farming unit or of the production organization (asso-

successful. Check it out!

Some demand-related issues are basic and pertain to all markets.

3.1. Typology C - Enterprises for productive inclusion and food security

Local market

ciation or cooperative) to identify which market he/

Types and forms of sales and sales channels

she is able to serve. Another important element is to

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

understand whether the family farming unit sells its products to a family farming association or cooperative. 2.4. Then it is time to start the technical support work and, for that, we will help you in matters pertaining to the market.

Demands

The sale takes place in a city, district or neighborhood in the location where it was produced or close to the family farming unit or production organization.

Free fairs, fairs for family farming products, fairs for organic or agro-ecological products.

• For processed products, stored in proper packages for transportation and conservation; • Product quality so that they are suitable for consumption; • Regularity in product supply, preferably weekly or during fair periods; • Competitive and fair prices for the category of products marketed directly to the final consumer.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

What the channel consumer / buyer looks for 1. Healthy food produced with little or no pesticides; food safety; quality; that the product lasts long enough to be consumed in your refrigerator or in your pantry; not wasting food or throwing food away. 2. Tasty, fresh product, properly produced at a low and/ or fair price. 3. More informed customers who practice conscientious consumption still attempt to buy from those who preserve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

Local market

Types and forms of sales and sales channels

Demands

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products; The sale takes place in a city, district or neighborhood in the location where it was produced or close to the family farming unit or production organization.

Municipal marketplaces.

• For processed products, stored in proper packages for transportation and conservation; • Product quality so that they are suitable for consumption; • Regularity in product supply; • Competitive and fair prices for the category of products marketed directly to the final consumer.

What the channel consumer / buyer looks for

Local market

Types and forms of sales and sales channels

What the channel consumer / buyer looks for

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products; • For processed products, stored in proper packages for transportation and conservation;

2. Tasty, fresh product, properly produced at a low and/ or fair price. 3. More informed customers who practice conscientious consumption still attempt to buy from those who preserve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

Demands

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes; The sale takes place in a city, district or neighborhood in the location where it was produced or close to the family farming unit or production organization.

Retail in different segments: supermarkets, grocery stores, bakeries, delicatessens, specialty stores, and others.

1. Quality product, with inspection seal, barcode and legislation-compliant status. 2. Competitive prices and that can be added to the margins practiced by the retail store and in which the price to the final consumer allows for turnaround on the shelf/aisle. 3. Regularity in the supply, meeting the terms and conditions agreed upon in the negotiation.

• Logistics that serve your deadlines and demands; • Product arriving on time and in suitable conditions for retail; • Barcode; • Product sent with an invoice, in some cases, especially for processed products.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

Local market

Types and forms of sales and sales channels

Demands

What the channel consumer / buyer looks for

Local market

Types and forms of sales and sales channels

• For semiprocessed products, stored in proper packages for transportation and conservation;

Cooperatives and farmer associations.

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials; • Best production practices; • Regularity in product/raw material supply; • Fair and competitive prices; • Payment deadlines for the purchase made;

• For semiprocessed products, stored in proper packages for transportation and conservation; 1. Regularity in the supply; quality; competitive and fair price.

The sale takes place in a city, district or neighborhood in the location where it was produced or close to the family farming unit or production organization.

Small factories + community kitchens + other small businesses.

1. Raw material or input within defined standards. 2. Regularity in terms of supply. 3. Competitive prices.

• Regularity in product/raw material supply; • Fair and competitive prices; • Payment deadlines for the purchase made; • Professional production and sales management.

Public purchases.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials; • Best production practices;

• Professional production and sales management.

What the channel consumer / buyer looks for

• Selected products in minimal cleanliness and hygiene condition; or that are in compliance with the Best Production Practices;

• Selected products in minimal cleanliness and hygiene conditions;

The sale takes place in a city, district or neighborhood in the location where it was produced or close to the family farming unit or production organization.

Demands

• Meeting the specifications of contracts and bids.

1. Whatever is defined in the contract or in the bidding process.

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

3.2. Typology B – Enterprises in transition to the market They will be able to sell at fairs and municipal markets as in Typology C. Hence, the same recommendations

Local and regional markets

Types and forms of sales and sales channels

Demands

What the consumer / buyer looks for

regarding demands and consumer interests are valid. Local and regional markets

Types and forms of sales and sales channels

Demands

• Productive capacity to meet higher customer demands;

What the consumer / buyer looks for

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products; • For processed products, stored in proper packages for transportation and conservation;

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• For processed products, stored in proper packages for transportation and conservation; • For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes; Whether the sale takes place locally or in the regional level, or the ability to sell the product at the state level.

Retail in different segments: supermarkets, grocery stores, bakeries, delicatessens, specialty stores, and others.

• Quality and good aspect of products and the fact that they are suitable for consumption; • Regularity in product supply; • Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.); • Logistics that serve your deadlines and demands; • Product arriving on time and in suitable conditions for retail; • Barcode; • Product sent with an invoice, in some cases, especially for processed products.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

Whether the sale takes place locally or in the regional level, or the ability to sell the product at the state level.

• Quality and good aspect of products and the fact that they are suitable for consumption; Wholesalers, distributors in general, grocery stores, bakeries, delicatessens, specialized stores, etc.

• Regularity in product supply; • Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.); • Logistics that serve your deadlines and demands; • Product arriving on time and in suitable conditions for retail; • Barcode

1. Productive capacity to serve the market; 2. Quality product, with inspection seal, barcode and legislation-compliant status; 3. Competitive prices and that can be added to the margins practiced by the retail store and in which the price to the final consumer allows for turnaround on the shelf/aisle; 4. Regularity in the supply, meeting the terms and conditions agreed upon in the negotiation.

• Product sent with an invoice, in some cases, especially for processed products; • Meeting the contractual conditions depending on the type of commercial partnership, other particular criteria for each company; • Professional production and sales management.

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

Local and regional markets

Types and forms of sales and sales channels

Demands

What the consumer / buyer looks for

National and international markets

• Selected products in minimal cleanliness and hygiene conditions; • For semiprocessed products, stored in proper packages for transportation and conservation; Cooperatives and farmer associations.

3.3. Typology A – Dynamic Types and forms of sales and sales channels

1. Raw material or input within defined standards.

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

2. Regularity in terms of supply.

• For processed products, stored in proper packages for transportation and conservation;

3. Competitive prices.

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Fair and competitive prices; • Payment deadlines for the purchase made;

Retail in different segments: supermarkets, grocery stores, bakeries, delicatessens, specialty stores, and others.

• Professional production and sales management. Whether the sale takes place locally or in the regional level, or the ability to sell the product at the state level.

• Selected products in minimal cleanliness and hygiene conditions; • For semiprocessed products, stored in proper packages for transportation and conservation; Small and medium-sized factories.

Demands

1. Raw material or input within defined standards.

• Product arriving on time and in suitable conditions for retail;

2. Regularity in terms of supply.

• Barcode;

3. Competitive prices.

What the consumer / buyer is looking for

1. Healthy food produced with little or no pesticides; food safety; quality; that the product lasts long enough to be consumed in your refrigerator or in your pantry; not wasting food or throwing food away. 2. Tasty, fresh product, properly produced at a low and/ or fair price. 3. More informed customers who practice conscientious consumption still attempt to buy from those who preserve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

• Product accompanied by an invoice.

• Fair and competitive prices; • Payment deadlines for the purchase made; • Professional production and sales management.

Public purchases.

• Meeting the specifications of contracts and bids.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

1. Whatever is defined in the contract or in the bidding process.

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

National and international markets

Types and forms of sales and sales channels

Demands

• Productive capacity to meet higher customer demands; • Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products; • For processed products, stored in proper packages for transportation and conservation; • For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes; • Quality and good aspect of products and the fact that they are suitable for consumption; • Regularity in product supply; Sales representatives, wholesalers, distributors in general, major supermarket chains.

• Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.); • Logistics that serve your deadlines and demands; • Product arriving on time and in suitable conditions for retail; • Barcode; • Product accompanied by an invoice; • Meeting the contractual conditions depending on the type of commercial partnership, other particular criteria for each company; • Professional production and sales management; • Depending on the type of product, organic or food safety or traceability certifications; • Ability to carry out promotional actions at the POS to promote the brand, support the increase in sales, etc.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

What the consumer / buyer is looking for

National and international markets

Types and forms of sales and sales channels

Demands

What the consumer / buyer is looking for

• Selected products in minimal cleanliness and hygiene conditions; • For semiprocessed products, stored in proper packages for transportation and conservation;

1. Productive capacity to meet channel demands. 2. Quality product, brand, packaging, proper labeling, nutritional information and other inspection body requirements.

Farmer cooperatives and associations or others.

3. Prices that can absorb the margins placed by customers in the distribution chain and still reach retail stores with a competitive price in relation to other competing brands.

1. Raw material or input within defined standards. 2. Regularity in terms of supply. 3. Competitive prices.

• Fair and competitive prices; • Payment deadlines for the purchase made; • Professional production and sales management.

• Selected products in minimal cleanliness and hygiene conditions; • For semiprocessed products, stored in proper packages for transportation and conservation;

5. Traceability or some sort of food safety certification in the case of sales to large supermarket chains. 7. Bonuses, presence of monitors/promoters at the POS, merchandising actions at the POS, payment of media, space in aisles, etc., for major chains.

• Best production practices; • Regularity in product/raw material supply;

4. Regularity in the supply and compliance with deadlines determined in the negotiation or in contracts.

6. Multiple certifications.

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials;

Large factories.

8. Other demands stipulated in supplier contracts. This varies between companies. Public purchases.

• Meeting the specifications of contracts and bids.

1. Meeting the criteria and standards determined by the industries for raw material or inputs. 2. Quality and possibly requiring some form of certification. This varies depending on the demand of each industry. 3. Technical opinions or reports on the physical-chemical characteristics/attributes of the products. This demand varies between companies.

1. Whatever is defined in the contract or in the bidding process.

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National and international markets

Types and forms of sales and sales channels

Demands

What the consumer / buyer is looking for

• Productive capacity to meet higher customer demands in the international market;

should guide farmers or production organizations so that their products can meet any market needs.

• Selected products under conditions demanded by the buyer;

In order to help you, we will use the table below to

• Appropriate packaging for storage, transportation, ensuring product quality and conservation conditions;

show what technicians must work on in order to meet market demands.

• Branding and labeling in the language of the target country;

• Ability to hire accredited laboratories to issue technical opinions on the products;

External market.

• Regularity in product supply as agreed in contracts; • Competitive sales prices, calculated to serve the export process, tax treatment and appropriate sales policies to suit international buyers; • Logistics that meet deadlines and demands. Product arriving on time and in suitable conditions at the destination; • Product accompanied by an invoice, documents required by international trade procedures;

4.1. Work to be performed at family farming units

A technical support service focused on the market

• Appropriate product to meet the target market;

• Compliance with the legislation of the health inspection and surveillance bodies of the target country;

4. TECHNICAL SUPPORT FOCUSING ON THE MARKET

Market demand Healthy products or raw materials, without preservatives, without chemical additives or pesticides. Work to be performed at family farming units 1. Reducing the amount or application of chemical products in the planting operation.

1. Compliance with purchase and sale contracts.

2. Quality of water and other inputs.

2. Products free from residue or chemical products or that comply with the legislation of the target country.

3. Proper selection of seeds, non-GMO seedlings.

3. Technical reports from accredited laboratories/certifiers.

duction.

4. Others.

4. No use of chemicals or pesticides during pro-

5. Sustainable production with conscientious use of natural resources and environmental preservation.

• Meeting contractual conditions depending on the type of commercial partnership, other specific criteria of each importer; • Adequate commercial area with knowledge on international trade procedures; • Depending on the type of product, organic or food safety or traceability certifications or others, depending on the target country; • Working capital and resources to fund operations.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

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Market demand

7. Performing measurements to evaluate the results

Market demand

Expanding production capacity to meet the de-

arising from the implementation of any solution that

Product or raw material quality.

Loss and waste reduction.

mands of local, regional, state, national or interna-

had productivity increases as a proposal.

Work to be performed

at family farming units

1. Good management and production practices

Avoiding or reducing seasonality in production.

can enable quality gains.

can reduce losses and waste.

Work to be performed

2. Reduction of chemical products, pesticides,

2. Implementing quality improvement systems.

tional markets. Work to be performed at family farming units 1. Preparation of a production plan that is suitable for the activity. 2. Evaluating which stages of the production process limit the increase in production capacity. 3. Evaluating the inputs (seeds, seedlings, etc.) or the matrices (in the case of animals) and how much they are responsible for the low productivity levels. The choice and selection of better quality inputs and matrices can be one of the factors to improve

Market demand

at family farming units 1. Developing a production plan, evaluating how the production window can be expanded as much as the activity allows. 2. Predicting the need for water, energy, feed, fer-

and preservatives in the production process. 3. Implementing quality improvement systems.

suppliers.

4. Assurance of quality and stability in produc-

4. Readjustment of production processes.

tion batches.

5. Proper collection, handling, transportation, and

tilizers or other inputs that enable extended pro-

5. Product classification according to quality

duction periods.

parameters demanded by the market.

productivity. 4. Evaluating the factors that cause losses in the production chain and that which hinder or reduce production capacity. 5. Drawing up an appropriate action plan to improve productivity.

3. Purchase of inputs and raw materials from reliable

6. Appropriate harvesting and handling, adequate transport and storage, so that the product or raw material reaches its destination accor-

storage. 6. Reuse of by-products. 7. Action plan for the continuous reduction of losses and waste.

ding to the required quality standard. 7. Improved transportation of products and raw materials.

6. The implementation of good management and production practices may improve productivity.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

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Market demand Competitive prices in order to meet market demands.

Market demand Regularity in the supply of products and raw materials. Work to be performed

Issues pertaining to sustainability, environmental protection, social responsibility.

4. Recycling and reuse of inputs and by-products. 5. Production without the use of slave labor, with

Work to be performed

at family farming units

Work to be performed

at family farming units

1. Production planning.

at family farming units

1. Reducing production costs related to increased productivity.

2. Advance purchase of inputs and raw materials.

2. Reduction of losses and waste of inputs and

3. Risk and scenario analysis.

raw materials. 3. Collective input purchases.

3. Environmental preservation.

Market demand

respect towards gender, with appreciation for fa-

1. Proper use of natural resources and inputs.

mily farmers.

2. Reuse of natural resources and by-products.

4. Preventive solutions for factors that lead to a lack of regularity in production.

4. Readjustment of production processes. 5. Reduction in the use of natural resources or energy. 6. Reuse and treatment of natural resources or inputs. 7. Evaluating labor used in production and productivity. 8. Calculating the production cost of certain products and monitoring costs, seeking to reduce them when possible.

Market demand Multiple certifications. Work to be performed at family farming units 1. Raising awareness on changing paradigms in food production. 2. Insertion of best practices for the production of healthy, organic, safe or other foods. 3. Hiring of qualified certifiers.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

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4.2. Work to be carried out in the production organization (factory)

Market demand Expanding production capacity to meet the

Market demand Healthy products or raw materials, without preservatives, without chemical additives or pesticides. Work to be performed in the

international markets. Work to be performed in the production organization (factory)

production organization (factory)

1. Preparation of an adequate production plan.

1. Raising the awareness of cooperative members,

2. Evaluating which stages of the production

associates and suppliers to produce without the excessive use or without using pesticides, preservatives and chemical products. 2. Technical support for cooperative members, associates and suppliers for the production free from pesticides, preservatives and chemical products. 3. Purchase from cooperative members, associates and suppliers that meet the quality specifications required by the production organization. 4. No use of chemicals or preservatives in the production line or in the composition of processed products.

demands of local, regional, state, national or

process limit the increase in production capacity. 3. Evaluating raw materials and their impact on low productivity levels. The proper choice of raw materials and inputs can be one of the factors to improve productivity. 4. Evaluating the factors that cause losses or waste in the production process, factors that

Market demand

6. The implementation of good production practices may improve productivity. 7. Empowering employees may increase pro-

Avoiding or reducing seasonality in production or expanding the production window. Work to be performed in the

ductivity. 8. Evaluating phases or stages of each process in the industry and detecting bottlenecks, presenting solutions for improvement. Process review.

production organization (factory) 1. Elaborating a production plan, evaluating how production periods can be extended. 2. Searching new suppliers of inputs and raw ma-

9. Preventive machine and equipment main-

terials.

tenance.

3. Proper production planning.

10. Performing measurements to evaluate the

4. Production management and control.

results arising from the implementation of any solution that had productivity increases as a proposal. 11. Production management and control.

hinder or reduce production capacity. 5. Drawing up an appropriate production plan to improve productivity.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

Market demand Product or raw material quality.

Market demand Loss and waste reduction in production and

Market demand

5. Adequate storage.

Competitive prices in order to meet market de-

transportation.

6. Reuse of by-products.

production organization (factory)

Work to be performed in the

7. Action plan for the continuous reduction of

1. Good production practices can enable quality

production organization (factory)

losses and waste.

gains.

1. Good production practices can reduce los-

8. Production management and control.

Work to be performed in the

2. Reduction of chemical products in the industrial

ses and waste.

process.

2. Implementing quality improvement systems.

3. Implementing quality improvement systems.

3. Purchase of inputs and raw materials from

4. Assurance of quality and stability in production batches. 5. Product classification according to quality para-

reliable suppliers. 4. Readjustment of production processes in the industry.

meters demanded by the market. 6. Adequate storage, storage and transportation so that the product or raw material reaches its destination in the quality standard required by the market. 7. Improved transportation of products and raw materials to the buyer. 8. Production management and control.

mands. Work to be performed in the production organization (factory)

9. Storage systems for by-products and products in the production and transportation pro-

1. Reducing production costs related to increased productivity. 2. Loss and waste reduction in the production pro-

cess.

10. Packaging and accommodation of products/

3. Collective input and raw material purchases.

cargo in available means of transportation.

4. Readjustment of production processes in the industry. 5. Reduction in the use of natural resources or energy. 6. Reuse and treatment of natural resources or inputs. 7. Evaluating efficiency in the labor used in production. 8. Improvement of machinery and equipment or their replacement in the industrial process. 9. Avoiding product rework and reprocessing. 10. Management and production cost controls for specific products. Monitoring costs, attempting to reduce them when possible.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

Market demand Regularity in the supply of products and raw materials.

Market demand Issues pertaining to sustainability, environmental protection, social responsibility.

The market demands described above are gene-

Each market has its specific elements. Farmer or

ral demands, relevant to any activity that produces

industrial demand for products with these or other

production organization (factory)

Work to be performed in the

raw materials or products, to supply the market.

characteristics. This may vary between locations. It

1. Production planning.

production organization (factory)

However, markets may present specific demands

is important to carry out a specific research based

1. Proper use of natural resources and inputs.

pertaining to consumers’ purchasing behavior, their

on the demand of each market that the organization

habits and culture, or specific needs. For that, tech-

wishes to access and where it wishes to commer-

2. Recycling and reuse of inputs and by-pro-

nicians should better understand these needs and

cialize its products.

ducts.

demands in order to provide technical support work

Work to be performed in the

2. Advance purchase of inputs and raw materials. 3. Risk and scenario analysis. 4. Preventive solutions to factors that entail lack of regularity in production.

3. Environmental preservation. 4. Production without the use of slave labor, with respect towards gender, with appreciation

Market demand

for employees.

Multiple certifications. Work to be performed in the production organization (factory) 1. Raising awareness on changing paradigms in food production. 2. Insertion of best practices for the production of healthy, organic, safe or other foods. 3. Hiring of qualified certifiers.

5. OTHER DEMANDS DUE TO DETAILS IN MARKET, SEGMENTS OR CUSTOMER NICHES

with greater focus. A greater effort to understand the market could bring significant gains to their performance, both in family farming units and in production organizations. Searching information about scenarios, trends and consumption can help them better understand the

Other items can be included in both tables and topics by technical support technicians, including ways to respect details pertaining to each crop or breed.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

market. To explain further, some markets may ask for BRICS standards/levels (for certain fruits), fruit size, weight or volume versions (for fruits), carcass sizes and weight (for sheep and goats), fatty content (milk), among others. Hence, only by deepening the understanding of this market would it be possible to improve the qualification of the technical support service.

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

6. WHERE TO BEGIN WITH TECHNICAL SUPPORT FOCUSING ON THE MARKET • Understanding the farmer’s or production orga-

• Simultaneously seeking high-impact solutions with

nization’s ability to access markets. This refers to

little or no cost that can be translated into short-term

access to the local, regional, state, national and/or

improvements and that can provide significant re-

foreign markets.

sults in terms of product, price and distribution, in

• Understand the level of preparation and maturity of

order to serve the market.

the farmer and the production organization in terms

• Implementing and monitoring. Making adjustments

of market access.

and measurements. Surveying and analyzing data.

• Assessing whether the farmer or the production organization has the capacity to serve the market

Doing whatever is necessary and important. Tracking the results.

of interest and which advances are needed so that they can access said market. • Make a diagnosis of the family farming unit or the production organization. Assessing strengths and weaknesses. Assessing possibilities of improvement. • Defining what needs to be implemented in order to improve productivity, quality, production systems and methods, etc. • Draw up an action plan based on an adequate and customized production plan for that family farming unit or production organization.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

A S T E P - B Y - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S WITH TECHNICAL SUPPORT SERVICE PROVIDERS AND TECHNICIANS

CON SID ERA TIONS CHAPTER 4

FINAL C O N S I D E R AT I O N S

Your technical orientation, when focused on serving the market, can bring significant gains to family farmers or production organizations. With this booklet, we are attempting to guide you on how the market operates and how you can direct your work to meet the specific needs of each market.

We wish you success and that this guide will help you better understand the market and qualify your work to enable better results.

PRACTICAL GUIDE 02 – TECHNICAL SUPPORT FOCUSING ON THE MARKET

F I N A L C O N S I D E R AT I O N S

BAHIA PRODUTIVA PROJECT TEAM GENERAL COORDINATOR Fernando Cabral ANALYSIS AND MONITORING COORDINATOR Gilberto Andrade THEMATIC EXPERTS AQUACULTURE AND FISHING EXPERT Alexandre José de Araujo Macedo CASSAVA FARMING EXPERT André Luis Lordelo Silva GOAT AND SHEEP EXPERT Carina Moreira Cezimbra DAIRY CATTLE RAISING EXPERT José Antônio Magalhães de Araujo BEEKEEPING AND MELIPONICULTURE EXPERT Lívia Viana de Oliveira FRUIT GROWING EXPERT Marcos Raimundo Pitangueira OILSEED EXPERT Taís Nunes de Almeida SOCIO-ENVIRONMENTAL SUBPROJECT EXPERT Greice Póvoas de Carvalho AGROINDUSTRY EXPERTS Rafael Rebelo de Matos Meirelaine Rios de Almeida Mendes

SUPPORT COORDINATOR FOR TERRITORY OFFICES Dora Helena Passos MONITORING AND EVALUATION COORDINATOR Egla Ray Costa TRAINING COORDINATOR Elira de Andrade ATER COORDINATOR Wecslei Ferraz INTELLIGENCE AND MARKET COORDINATOR Aldir Parisi WATER SUPPLY COMPONENT COORDINATOR Andrevan Santana COMMUNICATION COORDINATOR Silvia Costa ADVISOR TO THE CAR’S BOARD OF DIRECTORS Ivan Fontes PROCUREMENT ADVISOR Nara Lins Muiños FINANCIAL ADVISOR Maria Juçara Monteiro MONITORING ADVISOR Antonio Berenguer WATER SUPPLY COMPONENT MONITORING ADVISOR Maria Auxiliadora Cavalcanti Produced by the Intelligence and Market Coordinator in a partnership with the CAR/SDR Press Office www.sdr.ba.gov.br / www.car.ba.gov.br/bahiaprodutiva

GOVERNOR OF THE STATE OF BAHIA Rui Costa RURAL DEVELOPMENT SECRETARY Josias Gomes MANAGING DIRECTOR OF THE REGIONAL DEVELOPMENT AND ACTION COMPANY (CAR) Wilson Dias GENERAL DIRECTOR OF THE REGIONAL DEVELOPMENT AND ACTION COMPANY (CAR) Ioná Queiroz

Headquarters of Bahia Produtiva Av. Luiz Viana Filho, 250 Conjunto Seplan, CAB ZIP CODE/CEP: 41745-001, Salvador-Bahia / Tel: (71) 3115-3941 www.sdr.ba.gov.br | www.car.ba.gov.br sdrbahia

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Review Renata Siqueira / Illustrations Thiago Durães / Layout P55 Edição | p55.com.br