Field Guide of Discovery-based Exercises for - Aseanipm ...

Section 8 • Organic Vegetable Product Certification Process and Marketing Strategies
Exercise No. 8.04
PRICING AND PRICING ARRANGEMENT FOR
PROFITABLE GROWING OF ORGANIC VEGETABLE
CROPS 282
BaCKGroUND aND raTIoNalE
Demand must be considered when setting prices. Usually,
a market will buy more at lower prices so that total sales may increase if prices are lowered. In
this regard, retailers and wholesalers, for example, use traditional markups that they feel will yield
a reasonable rate of profit. In this regard, farmers should understand how various types of prices
differ, how they relate to each other, and how they affect profits as sales volume varies 283 .
In FFS, innovative experiences in pricing and pricing arrangement for marketing of organic
vegetable products must be shared among farmers to further improve their existing pricing schemes.
The foregoing exercise was specifically designed to achieve this purpose.
How long will this exercise take?
• Two hours for field visit to some market intermediaries (e.g., households, neighbors, village
collectors, traders, wholesalers, etc.) who are involved in organic vegetable selling operations
where market pricing and pricing arrangement is appropriately demonstrated (optional for FFS);
• Thirty minutes for mini-workshop in small groups; and
• At least one hour for participatory discussion in a big group.
learning objectives
• To discuss participants’ problems, issues, and concerns affecting market pricing and pricing
arrangement in organic vegetable selling operations and how these are addressed; and
• To develop strategies for improving pricing and pricing arrangement in organic vegetable
selling operations to increase farmers’ income.
methodology
• Field visit, mini-workshop, and brainstorming
282 Smolders, H. and Caballeda, E. 2006. Field Guide for Participatory Plant Breeding in FFS: With Emphasis on Rice and Vegetables. Participatory
Enhancement of Diversity of Genetic Resources in Asia (PEDIGREA) Publication. Center for Genetic Resources, the Netherlands. pp. 121.
283 McCarthy, E.J. and Perreault, Jr., W.D. 1987. Learning Aid for Use With Basic Marketing: A Managerial Approach. 9 th Edition. Richard D. Irwin, Inc.,
Homewood, Illinois 60430, USA. pp. 19-13 to 19-18 and 19-23 to 19-30.
415
when is this exercise most
appropriate?
ɶ In FFS, TOT, and VST
sessions, after discussions
of the topic ‘Post-harvest
Handling and Primary
Processing of Vegetables’.