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Market Board Frank Feng A marketing board is an organization created by many producers to try to market their product and increase consumption and thus prices. They most commonly exist to help sell farm products such as milk, eggs, beef or tripe and are funded by the farmers or processors of those crops or products. Marketing boards often also receive funding from governments as an agricultural subsidy. The leadership and strategies of the marketing boards are set through votes by the farmers. Marketing boards also sometimes act as a pool, controlling the price of farm products by forming a legal cartel. They also fund other ventures beneficial to their members such as research. Marketing boards differ from industry trade groups in that their primary goal is marketing towards consumers, not governments, but they may also lobby on behalf of their supporters. Industry trade groups might also advertise directly to consumers In Canada , the typical organizations are Canadian Egg Marketing Agency (CEMA) , Egg farmers of Canada (EFC) , Chicken Farmers of Ontario (CFO) and Dairy Farmers of Ontario . In Canada , there is very strict milk marketing board , which forbids the sale of liquid milk or cream by unlicensed producers. Here is a excerpt describes to show us how supply management works. The Canadian Egg Marketing Agency manages supply by establishing annually the national requirement for eggs. The national requirement is then shared among the provinces. To ensure demand can be met, provincial boards issue production quotas to individual producers after accounting for the numbers of smaller producers who grow eggs without quotas. Under this security , we can protect our egg market from those cheap American eggs . And make our farms collapse .Although this would not ensure the supply of eggs can meet our demand , but it can guarantee our food security and develop the farmer’s economy . If our local egg farms can supply enough eggs, then we don’t need to import ,even we can export some to increase the income of the farmers . Not only in the section of eggs , marketing board also play a very important role in Wheat Board . The Canadian Wheat Board was re-created in 1935 the aim of controlling grain prices, so as to benefit farmers devastated by the great depression. During the Second World War, the authority of the Board was expanded, and the Board was given the authority to set statutory maximums on wheat, oats, barley, flax, and corn between December, 1941 until expiry after the war. Membership was made compulsory for Western Canadian farmers in 1943 via the War Measures Act, now with the purpose of aiding the war effort. In April, 1943 the Board was also authorized to buy rapeseed and sunflowers. In 1965, the Canadian Wheat Board Act, which had until then subject to expiry and requiring periodic amendments by Parliament to extend the Board’s duration, was amended without time limit, thereby creating a permanent Board. CWB control over inter-provincial shipments of feed grains became a public issue during the grains crisis in 1969 to 1972 and was removed. Only non-feed wheat and barley remain controlled by the CWB. The Canadian Wheat Board has exclusive authority over the marketing of wheat and barley grown in Western Canada, both for the domestic and international markets. Farmers are not free to sell their grain independently, but must deliver it to the Canadian Wheat Board. This approach is based on the belief that a single organization representing all of Canada’s Western grain farmers (a ‘single desk’) will have more clout negotiating the best price for wheat on the open market than individual farmers. Furthermore, since the Canadian Wheat Board has a record of the type, grade, and quantity of grain produced by each farmer, it is able to enter into contracts to deliver grain to buyers at a specific date in the future (commonly referred to as “futures contracts”), knowing these contracts can be fulfilled. In order to ensure that grain is collected from individual farms, stored, and transported to shipping terminals as efficiently as possible, the Canadian Wheat Board is responsible for overseeing the storage, cleaning, and transportation of the grain to points where it is shipped overseas. However, the CWB does not own any grain elevators or railway cars. Instead, it enters into contractual agreements with grain elevator operators, rail operators, and shipping terminals. When the economy is not prosperity , the Wheat board can give some subsidy for the farmers’ excess wheat which can helps their manufacture .And the wheat board made the price of the food , the government can ensure the farmers can survive during the inflation . But in 2009 , Aug 29 , the monopoly of the Canadian Wheat board was abolished .This is caused by the wheat board’s marketing methods. The boards aim to increase and stabilize farm income and support farmers by giving small producers more negotiating heft when dealing with large buyers. But the system can also lead to higher prices, according to the report by Mr. Dumais, who is an economist and former director of publications for Quebec’s Union des producteurs agricoles. Citing data from the International Dairy Federation, for example, Mr. Dumais points out that the farm price of milk in Canada is 72 cents per kilogram on average, compared to 37 cents in the U.S. and 42 cents in the EU. But while consumers pay more, farmers must buy quotas in order to start farming or expand their operations. Mr. Dumais argues that the high price of those quotas means that any extra revenue afforded by the marketing board’s monopoly does not actually trickle through. “If you don’t have any quotas, you get in a situation where you don’t have the benefit of the system as well,” said François Dumontier, a spokesman with the Fédération des producteurs de lait du Québec. But the price of quotas is keeping increase , although the wheat board increase the income of the farmers , the farmers need to pay more to get the quotas which means the high revenue is not going to the farmers’ pockets . The farmers believe that freedom from monopoly would increase value added and innovation for wheat. Industries such as specialty flour mills and specialty pasta plants could buy directly from the farmer whenever they wished instead of through the CWB, thereby gaining efficiency. Grain processing industries would be more willing to locate in Canada and provide jobs here, instead of in the U.S. As well, ‘marketing choice farmers’ mention that the freedom to grow new grain varieties, which are higher yielding and lower in protein, could bring more revenue to wheat producers. So the wheat board should decrease the numbers of quotas. Sometimes we can change the marketing method properly , it can help the rate of economy rise more rapid . Reference http://www.troymedia.com/2011/11/14/why-the-canadian-wheat-board-is-his tory/ http://www.strocel.com/egg-marketing-boards/ http://en.wikipedia.org/wiki/Marketing_board http://www.theglobeandmail.com/report-on-business/industry-news/marketi ng/marketing-boards-failing-farmers-study-argues/article4506608/ http://www.laws-lois.justice.gc.ca/eng/regulations/SOR-79-158/page-2.html