It has been noted that agribusiness firms are evolving in providing their own extension service in Fiji. Providing own agribusiness means an increase in costs therefore what are the motives of doing so?
It could be that they want to assure quality of extension services, as they cannot risk to supply gets disrupted. Another aspect is that diversification of activities; however this latter one would not happen, if equally good, but cheaper extension services would be available.
In Southeast Asian countries, public extension systems were gradually replaced by agribusiness driven ones over the past 3-4 decades. These private services tend to maximize the use of external inputs from their firms (in the case of pesticide use for example), maintain a network of distributors up to the village level, and try to secure an homogeneous provision of crop or animal products to feed their plants (provision of seeds, young animals, input packages, etc.).
Dear Atish,
The development of management science, and technology (IT) is helping firms extension management and communication very cost effective and easy. On the other hand the growing global competition is forcing them as Eberhard Weber clearly stated it they " cannot risk to supply gets disrupted " and thereby pushing them to control the whole value chain of their production system.
1. For Inputs Manufacturing companies, it is a way to pus their products.
2. For Agri Processing & Manufacturing companies, it helps them procure commodities as per their specifications.
No extension services are done as charity.
The firms would want to reduce risk along the supply chain. Risk of quality loss, postharvest loss and other supply logistics. In developing countries this could be step closer to producer and processor contracts farming.
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