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TECHNICAL SUPPORT SERVICES INTEGRATED WITH A MARKET FOCUS PRACTICAL GUIDE TECHNICAL SUPPORT FOCUSING ON THE MARKET VOLUME 02

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TECHNICAL SUPPORT SERVICES INTEGRATED WITH A

MARKET FOCUS PRACTICAL GUIDE

TECHNICAL SUPPORT FOCUSING ON THE MARKET

VOLUME 02

TECHNICAL SUPPORT SERVICES INTEGRATED WITH A MARKET FOCUS

PRACTICAL GUIDE • TECHNICAL SUPPORT FOCUSING ON THE MARKETVOLUME 02

SUMMARY

Chapter 1Presentation • 04

Chapter 2Let’s expand the work logic for technical support services • 08

Chapter 3A step-by-step guide to initiate the process of inserting a market focus with technical support service providers and technicians • 12

Chapter 4Final considerations • 42

PRE-SEN-

TA-TIONP R E S E N TAT I O N

CHAPTER 1

P R A C T I C A L G U I D E 0 2 – T E C H N I C A L S U P P O R T F O C U S I N G O N T H E M A R K E T8 9

Technical support service providers and technicians from multiple areas carry out an important work by enabling and improving production in family farming units and in farming organizations (associations and cooperatives). Without this work, there would be few advances achieved in production improvement and management, in the quality of products and, conse-quently, in the results to be achieved and obtained as a result of the activity. For Bahia Produtiva, this work truly enabled family farming products to be sold and to have access to different markets. However, we understand that, in addition to the technical support that is already carried out, it is important for this ser-vice to be linked to market demands. In other words, if the technical support service is connected to what the different distribution channels and to consu-mers’ desires and needs, the effectiveness of said technical support shall improve greatly, since that would also enable, on a larger scale, the potential for commercialization and access to markets, both for small farmers and for the organizations that sell their products on the market. With that in mind, this practical guide is intended to guide technicians from different areas on how to link the work they already carry out to a market logic. Thus, with technical support that is more qualified on the subject of the market, an attempt will be made to make family far-

The main goal of this guide is to instruct service providers,

their employees and technicians on how the market behaves

and the important topics to be approached in technical support

in order to adapt production to the market in more general

terms.

ming products feasible in the production and value chain in the market.

Gathering market information to understand buyers’ purchasing behavior in the distribution channels and collecting information where business opportuni-ties are found, regarding a given category/type of product in the market of interest, provide important subsidies in order for technical support to become more effective and, consequently, to provide more results to the family farming units and for production organizations.

The main goal of this guide is to instruct service providers, their employees and technicians on how the market behaves and the important topics to be approached in technical support in order to adapt production to the market in more general terms. The information and practices presented in this docu-ment have been developed based on our long years of experience in using this strategy to establish mar-ket connections.

Enjoy the reading of this guide and try to put its instructions

into practice so that your technical support service

includes more awareness of the Market subject and can

provide even better results to Bahia Produtiva.

P R E S E N TAT I O N

LOGIC

L E T ’ S E X PA N D T H E W O R K L O G I C F O R

T E C H N I C A L S U P P O R T S E R V I C E S

CHAPTER 2

P R A C T I C A L G U I D E 0 2 – T E C H N I C A L S U P P O R T F O C U S I N G O N T H E M A R K E T12 13

LET’S START BY DEFINING MARKETING

The American Marketing Association defines mar-keting as:

We can define it more simply: MARKETING IS MEE-TING THE NEEDS AND DESIRES OF CUSTOMERS AND CONSUMERS IN SUCH A WAY THAT MAKES THEM SATISFIED AND THAT IS PROFITABLE FOR THE PRODUCTION ORGANIZATION OR EVEN FOR THE FAMILY FARMING UNIT. This definition of “mar-keting” may sound too simple, but it has worked very well when you understand what it really is and what we want to approach.

We now ask you the following, technician: How can we include a market service on your technical su-pport work?

The process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods, and

services to create exchanges that satisfy individual and

organizational goals.

We now present a first proposal regarding the work approach. How about we start by changing our way

of work?

Instead of making decisions from within the farming unit or

the production organization (associations and cooperatives)

on matters related to products and production, quality, productivity,

among others, we will understand how the market works in order to, then, qualify our technical support

service with that addition.

L E T ’ S E X P A N D T H E W O R K LO G I C F O R T E C H N I C A L S U P P O R T S E R V I C E S

PROCESS

A S T E P - B Y-S T E P G U I D E T O I N I T I AT E T H E

P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H

T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D

T E C H N I C I A N S

CHAPTER 3

P R A C T I C A L G U I D E 0 2 – T E C H N I C A L S U P P O R T F O C U S I N G O N T H E M A R K E T16 17

1. DISTRIBUTION CHANNELS

What are distribution channels?

2. STEP-BY-STEP GUIDE TO INITIATE THE PROCESS OF INITIATING TECHNICAL SUPPORT SERVICE WITH MARKET FOCUS

In order to develop a good technical support service focusing on the market, we must understand the level of maturity of family farming units and organizations (associations and cooperatives). Bahia Produtiva has divided family farming units and organizations into three typologies: Dynamics, Transition to the Market and Productive Inclusion & Food Security. Each typology classifies family farming units or production organiza-tions according to characteristics below.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

In other words, sales representatives, wholesalers, distributors, retailers, and other channels that allow the product to reach the final consumer. In the case of production organizations, associations and coope-ratives, they become distribution channels, since they become part (in some cases) of the transformation, commercialization and distribution processes of family farming products in the market.

Distribution channels are companies engaged in

making a product or service available to the final consumer/

organizational consumer.Typology Description Characteristics

A Dynamic Enter-prises

• Greater commercial experience and market scope

• Greater formalization of the enterprise and products (licenses, registrations, certifica-tions, etc.)

• More professionalized work

• Generally contemplates agribusiness

BEnterprises in

Transition to the Market

• Less experience

• More informal

• Less professional qualifications

• Usually has presence in local markets

• Simpler improvements

C

Enterprises for Productive In-

clusion and Food Security

• Commercialization is carried out directly by the families without going through the propo-sing organization

• Organization without commercial or agribusiness purposes or the capacity to work in the area

• Productive base with market insertion through fairs, intermediaries, local purchasing companies

• Focus on food security and non-monetary income

• Environmental Actions

P R A C T I C A L G U I D E 0 2 – T E C H N I C A L S U P P O R T F O C U S I N G O N T H E M A R K E T18 19

We clarify that this classification was established due to its ability to serve the market at different com-plexity levels, its production capacity, the existence of products and the ability to sell and access these markets.

2.1. Definition of which typology fits the family far-ming unit or the production organization to which you will provide services as a technician. Who are you going to provide technical support for if you are in typology A, B or C? It is important to identify the proper typology because your technical support may be directed at serving the local, regional, state or even national and international markets.

2.2. The second step is to understand to which mar-ket (local, regional, state or even national and inter-national) a supplier’s demand belongs.

2.3. The third step is to talk to the farmer of the family farming unit or of the production organization (asso-ciation or cooperative) to identify which market he/she is able to serve. Another important element is to understand whether the family farming unit sells its products to a family farming association or cooperative.

2.4. Then it is time to start the technical support work and, for that, we will help you in matters pertaining to the market.

Based on this classification into typologies, the first forms of action emerge. To establish

these actions, we have elaborated some steps that

you should follow in order to be successful. Check it out!

Local marketTypes and forms

of sales and sales channels

Demands What the channel consumer / buyer looks for

The sale takes place in a city, district or neighborhood in the location where it was pro-duced or close to the family farming unit or production organization.

Free fairs, fairs for family farming products, fairs for organic or agro-ecological products.

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conser-vation;

• Product quality so that they are suitable for consumption;

• Regularity in product supply, preferably weekly or during fair periods;

• Competitive and fair prices for the category of products marketed directly to the final consumer.

1. Healthy food produced with little or no pesticides; food safety; quality; that the pro-duct lasts long enough to be consumed in your refrigerator or in your pantry; not wasting food or throwing food away.

2. Tasty, fresh product, pro-perly produced at a low and/or fair price.

3. More informed customers who practice conscientious consumption still attempt to buy from those who preser-ve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

3. LOCAL, REGIONAL, STATE, NATIONAL AND INTERNATIONAL MARKET DEMANDS AND THE A, B, AND C TYPOLOGIES

Markets have different demands and specific elements to them. For instance: if I am going to sell a product in Salvador to a supermarket, the buyer of that supermarket will probably have different needs and demands in relation to a buyer at a supermarket in São Paulo or in another place. Therefore, each market has its specific elements and the demands and needs of the distribution channels can also vary; since they are in different locations, their consumers also buy and consume differently. We must actively observe these differences. Some demand-related issues are basic and pertain to all markets.

3.1. Typology C - Enterprises for productive inclusion and food security

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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Local marketTypes and forms

of sales and sales channels

Demands What the channel consumer / buyer looks for

The sale takes place in a city, district or neighborhood in the location where it was pro-duced or close to the family farming unit or production organization.

Municipal marketplaces.

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conser-vation;

• Product quality so that they are suitable for consumption;

• Regularity in product supply;

• Competitive and fair prices for the category of products marketed directly to the final consumer.

1. Healthy food produced with little or no pesticides; food safety; quality; that the pro-duct lasts long enough to be consumed in your refrigerator or in your pantry; not wasting food or throwing food away.

2. Tasty, fresh product, pro-perly produced at a low and/or fair price.

3. More informed customers who practice conscientious consumption still attempt to buy from those who preser-ve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

Local marketTypes and forms

of sales and sales channels

Demands What the channel consumer / buyer looks for

The sale takes place in a city, district or neighborhood in the location where it was pro-duced or close to the family farming unit or production organization.

Retail in different segments: supermarkets, grocery sto-res, bakeries, delicatessens, specialty stores, and others.

• Selected products that are in minimal cleanliness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conser-vation;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Quality and good aspect of products and the fact that they are suitable for con-sumption;

• Regularity in product supply;

• Competitive sales prices, prices that match the whole-sale price list and appropriate sales policies (delivery times and order receipt, etc.);

• Logistics that serve your deadlines and demands;

• Product arriving on time and in suitable conditions for retail;

• Barcode;

• Product sent with an invoi-ce, in some cases, especially for processed products.

1. Quality product, with inspection seal, barcode and legislation-compliant status.

2. Competitive prices and that can be added to the margins practiced by the retail store and in which the price to the final consumer allows for tur-naround on the shelf/aisle.

3. Regularity in the supply, meeting the terms and con-ditions agreed upon in the negotiation.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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Local marketTypes and forms

of sales and sales channels

Demands What the channel consumer / buyer looks for

The sale takes place in a city, district or neighborhood in the location where it was pro-duced or close to the family farming unit or production organization.

Cooperatives and farmer associations.

• Selected products in mini-mal cleanliness and hygiene conditions;

• For semiprocessed products, stored in proper packages for transportation and conservation;

• Product quality, so that they are suitable for consumption or suitable within the stan-dards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales management.

1. Regularity in the supply; quality; competitive and fair price.

Local marketTypes and forms

of sales and sales channels

Demands What the channel consumer / buyer looks for

The sale takes place in a city, district or neighborhood in the location where it was pro-duced or close to the family farming unit or production organization.

Small factories + community kitchens + other small busi-nesses.

• Selected products in minimal cleanliness and hygiene condition; or that are in compliance with the Best Production Practices;

• For semiprocessed products, stored in proper packages for transportation and conservation;

• Product quality, so that they are suitable for consumption or suitable within the stan-dards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales management.

1. Raw material or input within defined standards.

2. Regularity in terms of supply.

3. Competitive prices.

Public purchases. • Meeting the specifications of contracts and bids.

1. Whatever is defined in the contract or in the bidding process.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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3.2. Typology B – Enterprises in transition to the market

They will be able to sell at fairs and municipal markets as in Typology C. Hence, the same recommendations regarding demands and consumer interests are valid.

Local and regional markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer looks for

Whether the sale ta-kes place locally or in the regional level, or the ability to sell the product at the state level.

Retail in different segments: supermar-kets, grocery stores, bakeries, delicates-sens, specialty stores, and others.

• Selected products that are in minimal clean-liness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conservation;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Quality and good aspect of products and the fact that they are suitable for consumption;

• Regularity in product supply;

• Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.);

• Logistics that serve your deadlines and demands;

• Product arriving on time and in suitable con-ditions for retail;

• Barcode;

• Product sent with an invoice, in some cases, especially for processed products.

1. Quality product, with inspection seal, barcode and legislation-compliant status.

2. Competitive prices and that can be added to the margins practiced by the retail store and in which the price to the final consumer allows for turnaround on the shelf/aisle.

3. Regularity in the supply, meeting the terms and con-ditions agreed upon in the negotiation.

Local and regional markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer looks for

Whether the sale ta-kes place locally or in the regional level, or the ability to sell the product at the state level.

Wholesalers, distribu-tors in general, gro-cery stores, bakeries, delicatessens, specia-lized stores, etc.

• Productive capacity to meet higher custo-mer demands;

• Selected products that are in minimal clean-liness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conservation;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Quality and good aspect of products and the fact that they are suitable for consumption;

• Regularity in product supply;

• Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.);

• Logistics that serve your deadlines and demands;

• Product arriving on time and in suitable con-ditions for retail;

• Barcode

• Product sent with an invoice, in some cases, especially for processed products;

• Meeting the contractual conditions depen-ding on the type of commercial partnership, other particular criteria for each company;

• Professional production and sales manage-ment.

1. Productive capacity to serve the market;

2. Quality product, with inspection seal, barcode and legislation-compliant status;

3. Competitive prices and that can be added to the margins practiced by the retail store and in which the price to the final consumer allows for turnaround on the shelf/aisle;

4. Regularity in the supply, meeting the terms and con-ditions agreed upon in the negotiation.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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Local and regional markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer looks for

Whether the sale ta-kes place locally or in the regional level, or the ability to sell the product at the state level.

Cooperatives and far-mer associations.

• Selected products in minimal cleanliness and hygiene conditions;

• For semiprocessed products, stored in proper packages for transportation and con-servation;

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales manage-ment.

1. Raw material or input wi-thin defined standards.

2. Regularity in terms of supply.

3. Competitive prices.

Small and medium-si-zed factories.

• Selected products in minimal cleanliness and hygiene conditions;

• For semiprocessed products, stored in proper packages for transportation and con-servation;

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales manage-ment.

1. Raw material or input wi-thin defined standards.

2. Regularity in terms of supply.

3. Competitive prices.

Public purchases. • Meeting the specifications of contracts and bids.

1. Whatever is defined in the contract or in the bidding process.

3.3. Typology A – Dynamic

National and international

markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer is looking for

Retail in different segments: supermar-kets, grocery stores, bakeries, delicates-sens, specialty stores, and others.

• Selected products that are in minimal clean-liness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conservation;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Quality and good aspect of products and the fact that they are suitable for consumption;

• Regularity in product supply;

• Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.);

• Logistics that serve your deadlines and demands;

• Product arriving on time and in suitable con-ditions for retail;

• Barcode;

• Product accompanied by an invoice.

1. Healthy food produced with little or no pesticides; food safety; quality; that the product lasts long enough to be consumed in your refrigerator or in your pantry; not wasting food or throwing food away.

2. Tasty, fresh product, pro-perly produced at a low and/or fair price.

3. More informed customers who practice conscientious consumption still attempt to buy from those who preserve the environment, natural resources, providing fair working conditions. Organic products, among others, can be in demand.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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National and international

markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer is looking for

Sales representatives, wholesalers, distribu-tors in general, major supermarket chains.

• Productive capacity to meet higher custo-mer demands;

• Selected products that are in minimal clean-liness and hygiene conditions, even “in natura” products;

• For processed products, stored in proper packages for transportation and conservation;

• For processed products, branded products, proper packaging, proper labeling (containing inspection body seal, nutrient table, etc.) and other attributes;

• Quality and good aspect of products and the fact that they are suitable for consumption;

• Regularity in product supply;

• Competitive sales prices, prices that match the wholesale price list and appropriate sales policies (delivery times and order receipt, etc.);

• Logistics that serve your deadlines and demands;

• Product arriving on time and in suitable con-ditions for retail;

• Barcode;

• Product accompanied by an invoice;

• Meeting the contractual conditions depen-ding on the type of commercial partnership, other particular criteria for each company;

• Professional production and sales manage-ment;

• Depending on the type of product, organic or food safety or traceability certifications;

• Ability to carry out promotional actions at the POS to promote the brand, support the increase in sales, etc.

1. Productive capacity to meet channel demands.

2. Quality product, brand, packaging, proper labeling, nutritional information and other inspection body requi-rements.

3. Prices that can absorb the margins placed by custo-mers in the distribution chain and still reach retail stores with a competitive price in relation to other competing brands.

4. Regularity in the su-pply and compliance with deadlines determined in the negotiation or in contracts.

5. Traceability or some sort of food safety certification in the case of sales to large supermarket chains.

6. Multiple certifications.

7. Bonuses, presence of monitors/promoters at the POS, merchandising actions at the POS, payment of me-dia, space in aisles, etc., for major chains.

8. Other demands stipulated in supplier contracts. This varies between companies.

National and international

markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer is looking for

Farmer cooperatives and associations or others.

• Selected products in minimal cleanliness and hygiene conditions;

• For semiprocessed products, stored in proper packages for transportation and con-servation;

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales manage-ment.

1. Raw material or input within defined standards.

2. Regularity in terms of supply.

3. Competitive prices.

Large factories.

• Selected products in minimal cleanliness and hygiene conditions;

• For semiprocessed products, stored in proper packages for transportation and con-servation;

• Product quality, so that they are suitable for consumption or suitable within the standards for agribusiness raw materials;

• Best production practices;

• Regularity in product/raw material supply;

• Fair and competitive prices;

• Payment deadlines for the purchase made;

• Professional production and sales manage-ment.

1. Meeting the criteria and standards determined by the industries for raw material or inputs.

2. Quality and possibly requi-ring some form of certifica-tion. This varies depending on the demand of each industry.

3. Technical opinions or re-ports on the physical-chemi-cal characteristics/attributes of the products. This demand varies between companies.

Public purchases. • Meeting the specifications of contracts and bids.

1. Whatever is defined in the contract or in the bidding process.

A S T E P - BY - S T E P G U I D E T O I N I T I AT E T H E P R O C E S S O F I N S E R T I N G A M A R K E T F O C U S W I T H T E C H N I C A L S U P P O R T S E R V I C E P R O V I D E R S A N D T E C H N I C I A N S

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National and international

markets

Types and forms of sales and

sales channelsDemands What the consumer /

buyer is looking for

External market.

• Productive capacity to meet higher custo-mer demands in the international market;

• Appropriate product to meet the target market;

• Selected products under conditions deman-ded by the buyer;

• Appropriate packaging for storage, trans-portation, ensuring product quality and con-servation conditions;

• Branding and labeling in the language of the target country;

• Compliance with the legislation of the health inspection and surveillance bodies of the target country;

• Ability to hire accredited laboratories to issue technical opinions on the products;

• Regularity in product supply as agreed in contracts;

• Competitive sales prices, calculated to serve the export process, tax treatment and appro-priate sales policies to suit international buyers;

• Logistics that meet deadlines and demands. Product arriving on time and in suitable condi-tions at the destination;

• Product accompanied by an invoice, documents required by international trade procedures;

• Meeting contractual conditions depending on the type of commercial partnership, other specific criteria of each importer;

• Adequate commercial area with knowledge on international trade procedures;

• Depending on the type of product, organic or food safety or traceability certifications or others, depending on the target country;

• Working capital and resources to fund opera-tions.

1. Compliance with purchase and sale contracts.

2. Products free from residue or chemical products or that comply with the legislation of the target country.

3. Technical reports from accredited laboratories/cer-tifiers.

4. Others.

4. TECHNICAL SUPPORT FOCUSING ON THE MARKET

A technical support service focused on the market should guide farmers or production organizations so that their products can meet any market needs. In order to help you, we will use the table below to show what technicians must work on in order to meet market demands.

Market demandHealthy products or raw materials, without preser-vatives, without chemical additives or pesticides.

Work to be performed at family farming units

1. Reducing the amount or application of chemi-cal products in the planting operation.

2. Quality of water and other inputs.

3. Proper selection of seeds, non-GMO seedlings.

4. No use of chemicals or pesticides during pro-duction.

5. Sustainable production with conscientious use of natural resources and environmental preser-vation.

4.1. Work to be performed at family farming units

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Market demandExpanding production capacity to meet the de-mands of local, regional, state, national or interna-tional markets.

Work to be performed at family farming units

1. Preparation of a production plan that is suitable for the activity.

2. Evaluating which stages of the production pro-cess limit the increase in production capacity.

3. Evaluating the inputs (seeds, seedlings, etc.) or the matrices (in the case of animals) and how much they are responsible for the low productivity levels. The choice and selection of better quality inputs and matrices can be one of the factors to improve productivity.

4. Evaluating the factors that cause losses in the production chain and that which hinder or reduce production capacity.

5. Drawing up an appropriate action plan to impro-ve productivity.

6. The implementation of good management and production practices may improve productivity.

Market demandLoss and waste reduction.

Work to be performed at family farming units

1. Good management and production practices can reduce losses and waste.

2. Implementing quality improvement systems.

3. Purchase of inputs and raw materials from reliable suppliers.

4. Readjustment of production processes.

5. Proper collection, handling, transportation, and storage.

6. Reuse of by-products.

7. Action plan for the continuous reduction of los-ses and waste.

7. Performing measurements to evaluate the results arising from the implementation of any solution that had productivity increases as a proposal.

Market demandAvoiding or reducing seasonality in production.

Work to be performed at family farming units

1. Developing a production plan, evaluating how the production window can be expanded as much as the activity allows.

2. Predicting the need for water, energy, feed, fer-tilizers or other inputs that enable extended pro-duction periods.

Market demandProduct or raw material quality.

Work to be performed at family farming units

1. Good management and production practices can enable quality gains.

2. Reduction of chemical products, pesticides, and preservatives in the production process.

3. Implementing quality improvement systems.

4. Assurance of quality and stability in produc-tion batches.

5. Product classification according to quality parameters demanded by the market.

6. Appropriate harvesting and handling, ade-quate transport and storage, so that the product or raw material reaches its destination accor-ding to the required quality standard.

7. Improved transportation of products and raw materials.

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Market demandCompetitive prices in order to meet market de-mands.

Work to be performed at family farming units

1. Reducing production costs related to in-creased productivity.

2. Reduction of losses and waste of inputs and raw materials.

3. Collective input purchases.

4. Readjustment of production processes.

5. Reduction in the use of natural resources or energy.

6. Reuse and treatment of natural resources or inputs.

7. Evaluating labor used in production and pro-ductivity.

8. Calculating the production cost of certain products and monitoring costs, seeking to re-duce them when possible.

Market demandRegularity in the supply of products and raw materials.

Work to be performed at family farming units

1. Production planning.

2. Advance purchase of inputs and raw materials.

3. Risk and scenario analysis.

4. Preventive solutions for factors that lead to a lack of regularity in production.

Market demandIssues pertaining to sustainability, environmental pro-tection, social responsibility.

Work to be performed at family farming units

1. Proper use of natural resources and inputs.

2. Reuse of natural resources and by-products.

Market demandMultiple certifications.

Work to be performed at family farming units

1. Raising awareness on changing paradigms in food production.

2. Insertion of best practices for the production of healthy, organic, safe or other foods.

3. Hiring of qualified certifiers.

3. Environmental preservation.

4. Recycling and reuse of inputs and by-products.

5. Production without the use of slave labor, with respect towards gender, with appreciation for fa-mily farmers.

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Market demandAvoiding or reducing seasonality in production or expanding the production window.

Work to be performed in the production organization (factory)

1. Elaborating a production plan, evaluating how production periods can be extended.

2. Searching new suppliers of inputs and raw ma-terials.

3. Proper production planning.

4. Production management and control.

Market demandExpanding production capacity to meet the demands of local, regional, state, national or international markets.

Work to be performed in the production organization (factory)

1. Preparation of an adequate production plan.

2. Evaluating which stages of the production process limit the increase in production capa-city.

3. Evaluating raw materials and their impact on low productivity levels. The proper choice of raw materials and inputs can be one of the factors to improve productivity.

4. Evaluating the factors that cause losses or waste in the production process, factors that hinder or reduce production capacity.

5. Drawing up an appropriate production plan to improve productivity.

6. The implementation of good production practices may improve productivity.

7. Empowering employees may increase pro-ductivity.

8. Evaluating phases or stages of each process in the industry and detecting bottlenecks, pre-senting solutions for improvement. Process review.

9. Preventive machine and equipment main-tenance.

10. Performing measurements to evaluate the results arising from the implementation of any solution that had productivity increases as a proposal.

11. Production management and control.

Market demandHealthy products or raw materials, without preser-vatives, without chemical additives or pesticides.

Work to be performed in the production organization (factory)

1. Raising the awareness of cooperative members, associates and suppliers to produce without the excessive use or without using pesticides, preser-vatives and chemical products.

2. Technical support for cooperative members, as-sociates and suppliers for the production free from pesticides, preservatives and chemical products.

3. Purchase from cooperative members, associates and suppliers that meet the quality specifications required by the production organization.

4. No use of chemicals or preservatives in the pro-duction line or in the composition of processed pro-ducts.

4.2. Work to be carried out in the production organization (factory)

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Market demandProduct or raw material quality.

Work to be performed in the production organization (factory)

1. Good production practices can enable quality gains.

2. Reduction of chemical products in the industrial process.

3. Implementing quality improvement systems.

4. Assurance of quality and stability in production batches.

5. Product classification according to quality para-meters demanded by the market.

6. Adequate storage, storage and transportation so that the product or raw material reaches its destina-tion in the quality standard required by the market.

7. Improved transportation of products and raw ma-terials to the buyer.

8. Production management and control.

Market demandCompetitive prices in order to meet market de-mands.

Work to be performed in the production organization (factory)

1. Reducing production costs related to increased productivity.

2. Loss and waste reduction in the production pro-cess.

3. Collective input and raw material purchases.

4. Readjustment of production processes in the industry.

5. Reduction in the use of natural resources or energy.

6. Reuse and treatment of natural resources or inputs.

7. Evaluating efficiency in the labor used in produc-tion.

8. Improvement of machinery and equipment or their replacement in the industrial process.

9. Avoiding product rework and reprocessing.

10. Management and production cost controls for specific products. Monitoring costs, attempting to reduce them when possible.

Market demandLoss and waste reduction in production and transportation.

Work to be performed in the production organization (factory)

1. Good production practices can reduce los-ses and waste.

2. Implementing quality improvement systems.

3. Purchase of inputs and raw materials from reliable suppliers.

4. Readjustment of production processes in the industry.

5. Adequate storage.

6. Reuse of by-products.

7. Action plan for the continuous reduction of losses and waste.

8. Production management and control.

9. Storage systems for by-products and pro-ducts in the production and transportation pro-cess.

10. Packaging and accommodation of products/cargo in available means of transportation.

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Market demandRegularity in the supply of products and raw materials.

Work to be performed in the production organization (factory)

1. Production planning.

2. Advance purchase of inputs and raw materials.

3. Risk and scenario analysis.

4. Preventive solutions to factors that entail lack of regularity in production.

Market demandMultiple certifications.

Work to be performed in the production organization (factory)

1. Raising awareness on changing paradigms in food production.

2. Insertion of best practices for the production of healthy, organic, safe or other foods.

3. Hiring of qualified certifiers.

Market demandIssues pertaining to sustainability, environ-mental protection, social responsibility.

Work to be performed in the production organization (factory)

1. Proper use of natural resources and inputs.

2. Recycling and reuse of inputs and by-pro-ducts.

3. Environmental preservation.

4. Production without the use of slave labor, with respect towards gender, with appreciation for employees.

Other items can be included in both tables and topics

by technical support technicians, including ways to respect details pertaining

to each crop or breed.

5. OTHER DEMANDS DUE TO DETAILS IN MARKET, SEGMENTS OR CUSTOMER NICHES

The market demands described above are gene-ral demands, relevant to any activity that produces raw materials or products, to supply the market. However, markets may present specific demands pertaining to consumers’ purchasing behavior, their habits and culture, or specific needs. For that, tech-nicians should better understand these needs and demands in order to provide technical support work with greater focus.

A greater effort to understand the market could bring significant gains to their performance, both in family farming units and in production organizations. Searching information about scenarios, trends and consumption can help them better understand the market.

To explain further, some markets may ask for BRICS standards/levels (for certain fruits), fruit size, weight or volume versions (for fruits), carcass sizes and weight (for sheep and goats), fatty content (milk), among others. Hence, only by deepening the un-derstanding of this market would it be possible to improve the qualification of the technical support service.

Each market has its specific elements. Farmer or industrial demand for products with these or other characteristics. This may vary between locations. It is important to carry out a specific research based on the demand of each market that the organization wishes to access and where it wishes to commer-cialize its products.

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6. WHERE TO BEGIN WITH TECHNICAL SUPPORT FOCUSING ON THE MARKET

• Understanding the farmer’s or production orga-nization’s ability to access markets. This refers to access to the local, regional, state, national and/or foreign markets.

• Understand the level of preparation and maturity of the farmer and the production organization in terms of market access.

• Assessing whether the farmer or the production organization has the capacity to serve the market of interest and which advances are needed so that they can access said market.

• Make a diagnosis of the family farming unit or the production organization. Assessing strengths and weaknesses. Assessing possibilities of improve-ment.

• Defining what needs to be implemented in order to improve productivity, quality, production systems and methods, etc.

• Draw up an action plan based on an adequate and customized production plan for that family farming unit or production organization.

• Simultaneously seeking high-impact solutions with little or no cost that can be translated into short-term improvements and that can provide significant re-sults in terms of product, price and distribution, in order to serve the market.

• Implementing and monitoring. Making adjustments and measurements. Surveying and analyzing data. Doing whatever is necessary and important. Tracking the results.

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CON SID

ERA TIONSF I N A L

C O N S I D E R AT I O N S

CHAPTER 4

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Your technical orientation, when focused on serving the market, can bring significant gains to family far-mers or production organizations. With this booklet, we are attempting to guide you on how the market operates and how you can direct your work to meet the specific needs of each market.

F I N A L C O N S I D E R AT I O N S

We wish you success and that this guide will help you better understand the market and qualify your work to enable

better results.

THEMATIC EXPERTS

AQUACULTURE AND FISHING EXPERT Alexandre José de Araujo Macedo

CASSAVA FARMING EXPERT André Luis Lordelo Silva

GOAT AND SHEEP EXPERT Carina Moreira Cezimbra

DAIRY CATTLE RAISING EXPERT José Antônio Magalhães de Araujo

BEEKEEPING AND MELIPONICULTURE EXPERT Lívia Viana de Oliveira

FRUIT GROWING EXPERT Marcos Raimundo Pitangueira

OILSEED EXPERT Taís Nunes de Almeida

SOCIO-ENVIRONMENTAL SUBPROJECT EXPERT Greice Póvoas de Carvalho

AGROINDUSTRY EXPERTS Rafael Rebelo de Matos

Meirelaine Rios de Almeida Mendes

BAHIA PRODUTIVA PROJECT TEAM

GENERAL COORDINATOR Fernando Cabral

ANALYSIS AND MONITORING COORDINATOR Gilberto Andrade

SUPPORT COORDINATOR FOR TERRITORY OFFICES Dora Helena Passos

MONITORING AND EVALUATION COORDINATOR Egla Ray Costa

TRAINING COORDINATOR Elira de Andrade

ATER COORDINATOR Wecslei Ferraz

INTELLIGENCE AND MARKET COORDINATOR Aldir Parisi

WATER SUPPLY COMPONENT COORDINATOR Andrevan Santana

COMMUNICATION COORDINATOR Silvia Costa

ADVISOR TO THE CAR’S BOARD OF DIRECTORS Ivan Fontes

PROCUREMENT ADVISOR Nara Lins Muiños

FINANCIAL ADVISOR Maria Juçara Monteiro

MONITORING ADVISOR Antonio Berenguer

WATER SUPPLY COMPONENT MONITORING ADVISOR Maria Auxiliadora Cavalcanti

Produced by the Intelligence and Market Coordinator in a partnership with the CAR/SDR Press Office

www.sdr.ba.gov.br / www.car.ba.gov.br/bahiaprodutiva

sdrbahia sdrbahia | ascomcar sdrbahia

sdrbahia | carbahiawww.sdr.ba.gov.br | www.car.ba.gov.br

Review Renata Siqueira / Illustrations Thiago Durães / Layout P55 Edição | p55.com.br

Headquarters of Bahia Produtiva Av. Luiz Viana Filho, 250 Conjunto Seplan, CAB

ZIP CODE/CEP: 41745-001, Salvador-Bahia / Tel: (71) 3115-3941

GOVERNOR OF THE STATE OF BAHIA Rui Costa

RURAL DEVELOPMENT SECRETARY Josias Gomes

MANAGING DIRECTOR OF THE REGIONAL DEVELOPMENT AND ACTION COMPANY (CAR)

Wilson Dias

GENERAL DIRECTOR OF THE REGIONAL DEVELOPMENT AND ACTION COMPANY (CAR)

Ioná Queiroz