Abstract:
High transaction cost, inefficient value chains and lack of capacity to
meet market demands for quality, quantity and timeliness have put small farmers
in a disadvantaged position in the highly unpredictable market environment in
Sri Lanka. Hence, strengthening farming communities through market oriented
extension services (MOES) become inevitable. The objective of this paper is to
determine the effectiveness of MOES in ensuring food security among farming
communities in Sri Lanka. Five cases including 50 farmers of private
organizations and/or public-private partnerships, practicing MOES were
selected and both quantitative and qualitative data were collected by using a pre tested interview schedule, key informant discussions and observations to achieve
the research objective. Innovative MOES activities and performance of agro–
enterprises were analyzed. The results revealed that in the conventional
agricultural extension system, many producers attempt to produce higher
volumes at lower costs (cost leadership) in contrast to MOES where producers
attempt to gain competitive advantage through product differentiation (organic
and natural products, premium quality , value addition etc.) and niche marketing
at local and international markets. Combination of scientific knowledge
obtained through better advisory service with traditional indigenous knowledge
help the farmers in the MOES system to focus on both production (crop
selection, planning, and cultural practices) and marketing (post-harvest
handling, quality standards, packing, transportation, hygiene, etc) aspects of
their enterprise. Better linkages and coordination of business activities such as
production, marketing, distribution and finance, as well as continuous Research
and Development (R&D) in respective areas; help the actors in the value chain to
increase their profits. The weaknesses of the traditional farmer organizations
have been addressed in the new system through forming empowered, networked
and profit oriented farmer groups. Innovative and differentiated products with
high quality standards; additional benefits or services that justify higher prices ;
focus on high –end supermarkets, final processers, and export markets; and
promotion through branding and value addition in various advertising media
help the farmers to gain profitability , sustainability and equity. In conclusion
MOES can provide better solutions to all the actors in agricultural value chain in
order to ensure the food security among farming communities.