In order to be able to offer input to its members, the cooperative must first ensure their supply. The term “export subsidy” refers to the acquisition of agricultural resources to meet the needs of members in terms of diversity, price, quality and quantity, timing and location with the help of the state.
Fundamentals of National Trade Policy for Export. Delivery includes finding a supplier, negotiating, concluding an agreement and determining the conditions of transportation and payment. This is not a simple activity; this involves the adoption of certain strategic decisions. First of all, members of a cooperative differ in their needs and requirements (quality, quantity and timing). Then the cooperative must determine whether it is worth it to contribute. Then comes the search and negotiation phase of the supplier. This topic discusses the dilemmas that arise in the provision of resources and the decisions that managers must make in this context. We will look at the various solutions offered to cooperatives to answer them.
What input to deliver? Consider the following important questions to determine the input to be provided, and therefore the type of products delivered: What are the needs of the members? Members of a cooperative are not a homogeneous group. Each member is unique. The needs of farmers depend on many factors, including: the characteristics of the farmer and his family (for example, gender, age, physical ability, education, personal interests and goals, willingness to take risks); agricultural systems (for example, farm size, hired workers, crops, agricultural practices, livestock numbers and species, soil, water availability). This leads to a large discrepancy in terms of the types of resources needed, quality of materials, quantity (lots), time and place of delivery between others.
The module presents a methodology and some suggestions for conducting a needs assessment designed to get a clear overview of the contributions that members need to receive export subsidy. Identifying the needs for the provision of resources requires collecting information on the needs needed for the participants, analyzing this information, determining priorities and determining which input data will be provided and stored.
Thanks to this identification process, the cooperative will be able to determine the correct quantity and quality of the stock that will be stored and make efficient use of available resources. A properly conducted process avoids the traps of excess and insufficient reserves. However, the co-operative’s leadership should keep in mind that needs assessments, no matter how well they are carried out, can in no way guarantee the sale of all supplied resources. They only reduce the risk of overstock and stock shortages. The co-operative must also determine whether it intends to focus on the needs of the majority of members or whether it also intends to meet the specific needs of certain members of minorities. It is often easier and cheaper to supply one type of fertilizer in bulk, rather than a reduced number of different types of fertilizer in accordance with the needs of individual farmers.
The general meeting must make the final decision. Some members may not buy materials, not because they do not need them, but because they cannot afford to pay in cash until the harvest arrives. In the absence of a credit line, participants do not use resources that negatively affect production and reduce the turnover and surplus of the cooperative. The cooperative may consider providing credit services to allow members to use the resource input service. Many offer these credit services, returning the money received from the proceeds from the sale of products of members.
What are the goals and strategies of National Trade Policy for Export? By providing materials support their members in a certain sense. It is important that the orientation you choose matches your strategy. Also note that the needs of participants, as well as the needs of the market, are not static. Changing one of these needs will affect the type of input. For example, a sesame production cooperative. The price in the world market has risen, and the members of the cooperative decide to increase the area under sesame seeds. As a result, the cooperative must buy more grain and fertilizer.