Improving Agricultural Market Performance:

Developing Agricultural Market Information Systems

trade between different parties in what is sometimes termed as e-commerce. This system aims

at shortening the supply chain by providing an outlet for farmers without middlemen.

Some of the platforms have additional features so as the inclusion of GPS coordinates of farmers’

plots, which makes it possible to monitor output and forecast production for groups of farmers

or as individuals. By monitoring output by farmers such platforms make it possible for them to

enter into credible forward contracts with major buyers. It is also possible to monitor their

performance on behalf of lenders, thereby mitigating the asymmetric information problem

which often hampers the supply of finance by formal lenders to smallholder farmers.

2.8

CONCLUSION: EVIDENCE ON EVOLUTION OF MIS IN DEVELOPING

COUNTRIES

In this chapter we have defined agricultural MIS as systems set up to gather/collect, process and

disseminate market-related information to various actors in agricultural value chains – the

generic process that this entails is also discussed. Liberalisation of the agricultural sector clearly

emerges as a primary catalyst for the development and evolution of MIS in most developing

countries. It is apparent that the promotion of MIS occurred as most developing countries were

creating and/or strengthening market institutions to underpin the performance of post-

liberalisation agricultural marketing systems as well as enhance government actions to mitigate

volatility in the markets.

Based on the classification by David-Benz et al. (2015) we identify two main typologies of MIS,

namely: 1GMIS and 2GMIS. From the discussions in this chapter, it is apparent that the

emergence of 2GMIS addressed some of the weaknesses of the first generation systems (1GMIS),

including speeding up processing and dissemination of information. In addition, some of the

systems make it possible for users to select what information is of most interest to them.

However, a number of unaddressed issues remain including data accuracy; facilitation of trade

among counterparties; and sustainability of the systems.

Another issue is the need to adjust

information provided to match the needs of target market players and not focus principally on

policymakers.

Cases of 1GMIS and 2GMIS, as well as the more recently-developed improved platforms, will be

discussed in Chapter 3 (from non-OIC countries) and Chapter 4 (from OIC member countries).