Bemarking van kunsmis deur Noordwes Koöperasie

Abstract

INTRODUCTION The fertilizer industry in South Africa has proven itself as an important independent industry which supplies fertilizer to crop farmers as a production input. Unfavourable climatic conditions with resulting crop failures led to the weakening of the financial position of crop farmers. Economic realities together with decreased turnovers caused the manufacturers of production inputs to look at new distribution possibilities. During 1985 North West Co-operative began to market fertilizer as an intermediate trader to farmers. This innovating manner of marketing, where agricultural co operatives act as intermediaries, was at first criticised. Agricultural co-operatives have at their disposal certain competitive advantages which enables them to market products such as fertilizer cheaper than the manufacturers can do themselves. Sasol Fertilizer showed support for this innovative manner of marketing during 1992 when they withdrew from the retail marketing of fertilizer. Products which are manufactured by them are sold to intermediate traders, who in tum supply the products to farmers at the lowest possible prices. OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE The primary objective of the study is to evaluate the marketing of fertilizer by North West Co-operative. SECONDARY OBJECTIVE To realize the primary objective, attention will be given to the following: - To describe the historical course of the fertilizer industry in South Africa. - To evaluate the current marketing of fertilizer in the North West Co-operative area. - To study new developments in the design of the distribution channel. 3. METHOD OF RESEARCH UTERATURE While literature regarding marketing in general was studied, a study was also made of internal North West Co-operative documentation in order to obtain as much information regarding the subject as possible. EMPIRICAL RESEARCH The survey method, according to which postal surveys and personal interviews was done, was used. STUDY POPULATION Questionnaires were sent to the total study population of 1 299 farmers. The study population comprises all farmers who utilize 50 ha and more for cropping purposes in the North West Co-operative area. A 37,2 percent response was obtained to the questionnaire.

FINDINGS The following conclusions can be made from the study:

* Fertilizer is classified as an industrial product. * Within the industrial products group, fertilizer can be classified as a manufactured material good under the heading of raw materials and components. * Alternatives to the traditional method of distribution, where the product is delivered to the farmer directly from the manufacturer, do exist. * The importance of the matter to farmers is emphasised by the high response of 37,2 percent. * 70,2 Percent of the respondents prefer that North West Co-operative should negotiate the lowest price on their behalf. * 68,3 Percent of the respondents are satisfied with North West Co-operative's Department of Fertilizer Marketing. * 72,5 Percent of the respondents feel that the existence of the department is important. * 82,8 Percent of the respondents prefer a marketing service with the product delivered on the farm. * The sales representatives are 92,5 percent known to the farmers and the workload can be managed by the ten officials.

* The agricultural advisers are only 54,2 percent known to the farmers who they must serve. This low percentage indicates an overburdening of these advisers. This matters merits immediate attention. CONCLUSION In view of the findings of this study, it is recommended that a further national study be undertaken to determine whether or not other co-operatives could market fertilizer in the same innovative indirect manner.