Page 238 - DMGT509_RURAL MARKETING

Unit 12: Principle of Innovation

would feel ownership of the results and use it to shape their strategy to develop the sub- Notes
sector. This has taken longer as a result but has been worth it. The research confirmed
problems of quality and unreliable supply leading to declining market share.
The project is designed to address the three areas of the market system:
1. Improving market linkages
2. Improving technology services

3. Improving policy environment

12.5 Market Linkages

To improve market linkages, Practical Action organised meetings to explore market opportunities
and the problems and potential of hibiscus. These workshops involved farmers, traders and
village development committee members from 25 villages in north Darfur and Kordofan as
well as service providers (government extension agents and private agricultural inputs suppliers).
The village committees as a result set up a rural marketing network to get farmers and traders
to work together to improve standards. In Khartoum, Practical Action organised a workshop
that led to the formation of the Hibiscus Forum involving exporters, input suppliers and
government officials concerned with promoting the sub-sector. The forum is currently developing
a 10 year plan for the sub-sector. The challenge is to improve the interaction between the
Hibiscus Forum and the producers. The project is aiming to link rural marketing network with
the forum.

12.6 Improved Services

Some major successes include the following:

1. The Hibiscus forum produced a manual for extension workers and village development
committees containing guidance on production, harvesting and drying.
2. An exporter who was being penalised by importers because of quality problems worked
with Practical Action to produce a simple tool for correct harvesting of the flowers. He
also paid for extension workers to train farmers in the use of this tool.
The challenges concern how to scale up this success. Lack of price incentives for quality grades
mean that the grading system proposed by the Forum is not working.

Notes NGOs need to work with producers to encourage them to negotiate with government
and business themselves and set the negotiation platforms and campaign agendas.
Businesses, for example, may use arm-twisting tactics to negotiate with small farmers.

12.7 Enabling Environment

The hibiscus sub-sector suffers from high local transit taxes which can absorb as much as 50% of
the revenue and laborious export procedures which lead to long delays at the port. It is difficult
for the Hibiscus Forum to tackle these issues. The project is helping the Forum to build the
economic case for trade.
Traidcraft Exchange always operates through a local entity or NGO. This creates some challenges
as NGOs are often not attuned to business matters and tend to shy away from business and

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