| dc.description.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. | en_US |
