Iranian Deputy Minister of Agriculture-Jihad:

Iran's Rural Cooperatives Tend toward Crop Digital Marketing

Saturday, May 9, 2020 - 17:15

Iranian deputy minister of Agriculture-Jihad has stated that Iran's rural cooperatives are moving toward crop digital marketing.

According to an ISCA report, Dr. Hossein Shirzad, who is also the CEO of the Central Organization of the Rural Cooperatives of Iran (CORC) declared that digital marketing is applied globally.

Underlying the progressive trend of digital marketing, Shirzad referred to the limited capacity of the rural cooperatives to capture such markets.

He said that rural and agricultural cooperatives, including animal farming, poultry farming, horticulture and fishery, currently, are limited to procure the agricultural input, notwithstanding they should diversify their economies through market-oriented production.

Recently, the rural cooperatives network, has tried with the partnership of the startups and institutions like Digikala, Bamilo, Snap, Tapsi and etc., to capture a significant part of the agricultural digital market and to gain the maximum net profit.

Today, in a very competitive market, the product-based rural cooperatives should only sell the branded crops. This will lead to economic marketing accompanied by the low cost of the raw material.

Adopting this strategy, the rural cooperatives will not only share profit with the modern marketing but also they could boost the income of the both parties. Entering into a win-win game, the internet shops (including Digikala, Ofogh Kourosh , Etteka,… ) could receive commission for marketing the crops of the agricultural cooperatives and agro-corporation.

Inspired by the performance marketing models, the rural cooperatives could initially estimate the net profit for each selling and pay constantly based on the estimation. Digital marketing will facilitate a chain of the margin profits for the rural cooperatives.

The membership of these cooperative could be opened for the investors and marketers as well. The pioneer and successful agricultural cooperatives in the field of the international markets are the pistachio cooperative that could afford to capture the international markets in the best way. Certainly, this experience should be replicated for saffron, pomegranate and cumin.

"According to the doctrine of digital marketing, we should develop the product-oriented cooperatives. I believe that multi-functional cooperatives have been outdated. The international experience also proves the efficiency of the mono-crop based agro-cooperatives. Meanwhile, the rural and agricultural cooperative should act member-oriented'', the official added.

Elaborating the distinctive point of the rural cooperatives and agro-corporations, Shirzad asserted the rural cooperatives search for the tangible profit while the agro-corporations are pursuing to maximum regenerate the capital of the shareholders.

Emphasizing on adopting the new policies by CORC, Shirzad said CORC should enhance the agreed –bade purchasing to boost the mutual share and to reduce the joint risk by future, option contract, and contract farming.

He, furthermore, said that the political system governing Iran's economy does not allocate sufficient budget for technical supporting the rural and agricultural cooperatives, while they should strive to compete with private enterprises with no governmental subsidized of the 60th decade.

Consequently, the cooperative should lower the transaction cost through using modern and digital platforms. Merging or dissolution of the bankrupt or stagnant cooperatives, which are not capable enough to link to the international and digital market lines, should be adopted as a compulsory solution.

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