From a recent research conducted by eMKambo and the Zimbabwe Economic Analysis Research Unit, a surprising discovery was that although there has been so much investment in ICTs, farmers still trust word of mouth as their main means of communication.
BY CHARLES DHEWA
They find word of mouth less costly especially when used within a dialogue. For most farmers, communication is still more about dialogue which is a combination of face to face and word of mouth.
41% of farmer respondents indicated their preference for word of mouth. At 24 %, calling traders also shows the significance of word of mouth. Through calling, farmers engage in deep dialogue with traders. Use of word of mouth was higher in Bulawayo markets (37,3%), followed by Harare (29,9%), Mutare (19,4%) and Gweru (11,9%) respectively. Also significant was the proportion of farmers who just went to the market without sufficient information on market dynamics. This showed that farmers still rely on their instincts to make marketing decisions.
Feedback from the eMKambo call centre also show that if a word of mouth goes through a mobile phone, a farmer gets more information within 30 second rather than using short message services which, besides limited content, is not engaging enough. The dominance of dialogue and word of mouth among farmers proves the power of interpersonal relationships which cannot be replaced by ICTs. Every communication loop among farmers is satisfactorily, completed by meeting face to face where body language and illustrations say more about an individual’s feelings about a particular issue.
Farmers’ power to look for customers
The research also revealed that methods used by farmers to obtain reliable customers are a key determinant of a farmer’s bargaining power. Unfortunately, the majority of farmers just carry their produce to the main market and hope to get customers. This practice renders farmers vulnerable to market conditions.
Methods used to market products
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The research also showed that farmers have limited options for marketing their produce at the main markets, which also limits their bargaining power. Most of the farmers sell their produce through the auction floor, while others sell directly to farmers in the wholesale market on their own. However, about 27% said they relied on middlemen before the opening of the auction floors. This generally shows farmers’ vulnerability, especially since they cannot control the auction floor and neither do they have much bargaining power over auctioneers. Only 10% of the farmers indicated that they pursue independent selling methods such as cash, dealing with wholesalers and retailers, dealing directly with the end customers and putting products in the shops.
About 73,4% of the farmers did not have contracts with retailers, traders or manufacturers. About 14,2% of the farmers did not respond to the question. The 12,4% who indicated that they have contracts mentioned retailers, schools, hospitals and other traders rather than manufacturing firms.
Although contracts seem to present opportunities for farmers, some farmers had reservations on the effectiveness of contracts with retailers. Some indicated that it is difficult to plan production with retailers because they order small quantities of produce and seek replenishment orders only when they have finished selling. Sometimes retailers reduce the price for replenishment orders, yet on the side of the farmer the input prices would not have gone down, hence affecting the viability of farmers. In addition, some farmers highlighted that contracts were partial and not fair, in the sense that contractors had greater bargaining power relative to the farmer. It was also mentioned that some contractors do not release inputs on time and this affects production. The need for flexible contracts was also highlighted.
Markets used by farmers to sell their products
About 53,2% of the farmers highlighted that they use the main agriculture markets like Mbare, Sakubva and Shasha (Bulawayo), while 20,4% preferred selling at farm gates and local markets. Roadside markets were used by about 15 % of the respondents. However, it was important to note that more respondents from Bulawayo indicated that they use the roadside market. This could mainly be because the main market in Bulawayo is by the road side.
Are farmers participating in their preferred markets?
Only 27,2% of the respondents indicated that they were participating in their preferred markets. The rest (excluding 7,1% who did not respond) indicated that they were not participating in their preferred markets due to a number of constraints which include the following:
l Transport challenges (costs and accessibility).
l Financial Constraints.
l Fierce competition in the markets.
l Low demand for their products.
l Long distance to the markets.
l Unavailability of accommodation close/ at the market places.
l Lack of information about the market (prices and product demand).
l Language barriers.
l Late payment for delivery of goods.
l Afraid of the middleman (makoronyera).
l Size of the market is too big for smallholder farmers to participate due to the sheer volumes demanded.
