In recent weeks there’ve been allegations of illegal activities on the part of some market agents when selling farmers’ produce. I want to look at the relationship between farmer and market agent. I’m not condoning any illegal actions by an agent, but I do pose the question, “Is the farmer without blame?”
The knee-jerk answer is “yes”, but let’s consider the relationship between farmer and agent to find a more meaningful one. I’ve written many times about the vital importance of trust between these parties. Like all relationships, it’s not meant to be one-sided. Both have to contribute to make it work.
Farmers appoint market agents to sell their produce on their behalf. The farmer remains the legal owner of that produce until the buyer pays for it. They have “employed” the agent to sell for them and it’s the farmer’s responsibility to ensure the salesperson does the job properly. “I’m on the farm, I can’t also be on the market!” comes the cry. Of course, and that’s how it should be. But by laying down a few ground rules, farmers can ensure their “employees” do the job properly. These rules should be as follows:
- Farmers must ensure they deliver top-quality produce at all times. This minimises gaps for manipulating the sale.
- They must insist on daily feedback on prices – verbal and printed from the computer.
- They must insist on payment within five business days (in terms of Act 12 of 1992), unlike some farmers who wait weeks and even months for payment without a word, and wonder why they have cash flow problems. Farmers who can’t look after their own money leave a gap for dishonesty to take place.
- They must make it clear that any deviations from these basics must be cleared with them, and still remain within the framework of the law. The law is there to protect the farmer – use it!
- They must visit the market/s as often as possible, building that relationship with the agent, meeting buyers and understanding the market better. This is extremely important.
- They must ensure their market agent is part of their marketing strategy and involved as much as possible.
- They must ask questions constantly to ensure they’re getting the best service and continually seek ways to improve their products.
- They must meet formally at least once a year with their market agent/s to discuss past performances and future strategies.
The professional farmer will do all this and more, but above all they’ll have a relationship with their market agent where neither is playing dirty. If you can’t do that, don’t cry “foul” if you’re taken for a ride. – Mike Cordes (e-mail [email protected]). |fw
