Revolutionizing Agro-Marketing: Sustainability, IP Rights, and Branding
Cutting-edge Agro-marketing schemes to promote your business
The agricultural sector, traditionally characterized by its conventional approach to sales and marketing, has undergone a significant transformation with the sophistication of agro-marketing. This concept, which blends agricultural science with marketing practices, aims to better align farm production with market demands and consumer preferences.
Food has been branded in the B2C (Business to Consumer) domain since the second half of the 19th century. During that period, marked by the Industrial Revolution, trade developments, and the standardization of products and packaging, people started going to their trusted grocer and asking for their brand of choice over the counter.
Compared to B2C, food marketing’s history in the B2B (business-to-business) realm has been different. Historically, agriculture has focused primarily on production, with little emphasis on the nuances of marketing or promotion strategies. Farmers sold their produce as commodities at local markets or wholesale channels, with minimal branding or direct marketing efforts. The late 20th century, however, marked the beginning of a shift towards a more market-driven approach. Globalization, competition, changes in consumer behavior, and the increasing complexity of agricultural supply chains have led to the need for territories and structured producers’ organizations to stand out with their unique products. Positioning efforts to carve out a singular place in relation to others offering similar products and services in the marketplace became important.
- In that context, three marketing mechanisms are helping to bridge the gap between the producers and their end clients and consumers: Sustainability Standards,
- IP (Intellectual Property) Rights and
- Agrosectorial Branding
Sustainability Standards
Sustainability standards in the food production world play a crucial role in assuring consumers about the quality, safety, ethical practices, and environmental sustainability of food products. They operate as certifications on consumer-ready packaging that can influence shopper choices and impact the marketability of products, especially in international and specialized markets.
Some of the most popular standards out there are:
- Fairtrade International (focusing on ensuring fair wages, good employment conditions, and sustainable farming practices),
- Rainforest Alliance (emphasizing the conservation of biodiversity and sustainable livelihoods, requiring sustainable farming practices and the protection of ecosystems),
- the United States USDA Organic and
- the European EU Organic (ensuring the food or other agricultural products are produced through approved methods that integrate cultural, biological, and mechanical practices, fostering cycling of resources, promoting ecological balance, and conserving biodiversity).
- Other standards include The Marine Stewardship Council’s MSC Fisheries Standard, the Forest Stewardship Council’s FSC Label, the Sustainable Rice Platform, and Global GAP.
Sustainability standards examples
There are over 300 recognized standards globally, many of which are captured in the ITC (International Trade Centre’s) Standards Map, the largest and most reputable platform worldwide on sustainability standards. The Standards Map offers trusted and neutral information about voluntary sustainability standards (VSS), codes of conduct, audit protocols, reporting frameworks, and company programs on sustainability.
Intellectual Property Rights
Intellectual Property Rights are typically divided into various categories, such as patents, trademarks, copyrights, and industrial designs. GIs (Geographical Indications) and DOs (Denominations of Origin) are forms of protection under the umbrella of trademarks. They protect the name of a product that originates from a specific place and possesses a specific quality or reputation attributable to that location.
Geographical Indications and Denominations of Origin help consumers identify and trust the authenticity of products based on their geographic origin while also protecting producers from unfair competition. These rights enable the holders not only to foster a reputation for quality and authenticity linked to regional characteristics but also to potentially command premium prices for their products.
As territorial, human, and processing-related rights, they help maintain the area’s cultural identity and skills while also potentially enabling the producers to secure premium prices.
Examples include Parmigiano Reggiano cheese from Italy, Yamanashi Sake from Japan, Darjeeling Tea from India, Café de Colombia, Chateauneuf du Pape wines from France, Tequila from Mexico, Le Gruyère cheese from Switzerland, and Kampot Pepper from Cambodia.
Geographical Indication and Denomination of Origin examples
OriGIn (Organization for an International Geographical Indications Network) has gathered over 9,300 worldwide GIs, and the list continues to grow. As one of the world’s most renowned institutions in GI matters, it offers a comprehensive worldwide GI compilation database where you can discover how ubiquitous IP rights solutions are shaping the future of marketing for the agricultural sector.
Agrosectorial Brands
Agrosectorial brands focused on export and domestic market promotion play a critical role in enhancing the visibility and competitiveness of agricultural products both locally and internationally. These brands develop strategies to market and sell agricultural goods effectively in their countries and across global markets. Developing an agro-sectorial brand implies that a group of companies in the same economic sector come together collectively to promote their products. Through the leadership of an association, federation, or promotion agency, the companies come together and present themselves to the markets under one umbrella brand.
Developing an agro-sectorial brand comprises a shared journey in which the stakeholders join and can conduct a series of activities that help them not only engage clients and consumers but also accomplish a sense of identity and pertinence. Conducting market research to understand consumer preferences, market demand, and competitive landscapes in target export markets provides valuable insights. Establishing robust distribution networks, including partnerships with international distributors, wholesalers, and retailers, ensures products reach their destinations efficiently. Leveraging government programs and incentives designed to promote agricultural exports, such as subsidies, grants, and trade agreements, further supports market promotion. Highlighting sustainable practices and local sourcing appeals to environmentally conscious consumers and strengthens the brand’s reputation.
The agro-sectorial brand’s potential can be deployed through several channels. Appealing marketing communications and packaging that resonate with international consumers and meet export requirements are essential. Participating in domestic and international trade shows, exhibitions, and fairs helps showcase products and connect with potential buyers.
Some successful agro-sectorial brands are Jordanian Olive Oil, Egyptian Cotton, Nepal Herbs, Indonesian Naturals, Wines of Bolivia, Foods of Vietnam, Orinoco Green Beef, and Chile Pork.
Agrosectorial Branding examples
Which Scheme Should I Implement?
Considering the various agro-marketing schemes, choosing between being endorsed by a sustainability standard, leveraging intellectual property rights, or creating an agro-sectorial brand depends on your goals and resources.
If ensuring consumer trust in quality and ethical practices is paramount, sustainability standards like Fairtrade or USDA Organic may be the best option. Keep in mind that you will need to comply with the certification body’s requirements and regulations.
Developing intellectual property rights such as geographical indications (GIs) and denominations of origin (DOs) for products with strong regional identities can protect authenticity and allow for premium pricing. In this case, specifying requisites and setting up a regulatory council will be necessary. Dealing with national and international Intellectual Property authorities will also be essential.
Lastly, if the aim is to enhance market visibility and competitiveness through a collective effort, forming an agro-sectorial brand offers a comprehensive approach. This scheme allows multiple stakeholders within the same sector to unite under a single brand, leveraging shared resources for marketing and promotion both domestically and internationally.
Each scheme has its own advantages and challenges, but an agro-sectorial brand stands out as a versatile solution that combines the strengths of collaboration, strong identity, lightweight legal management, and broad market appeal.
References
Further reading
What is Commercial Agriculture?
Essential Guide for Farmers on Exporting Dairy Products: Steps to Success
How Agricultural Marketing Cooperative Unions Strengthen Food Security for Smallholder Farmers
Farmers Cooperatives: Strengthening Small Farmers Through Collective Action
Unlocking Global Markets: A Farmer’s Guide to Tariffs and Trade Agreements
Farmer Producer Organizations: A Way to Increase Smallholder Farmers’ Income
How to Write a Business Plan for Agricultural Projects to Secure Funding
Unlocking Sustainable Farming Solutions: Insights from Wageningen’s Lighthouse Farms
