Strategic use of branding for competitiveness: the rationale for branding and marketing agricultural products of African countries

• DOI: https://doi.org/10.13169/jfairtrade.1.2.0006
• Pages: 6-13
• Published date: 01 October 2019
• Date: 01 October 2019
• Author: Getachew Mengistie Alemu
• Subject Matter: branding,competitiveness,marketing,agricultural products,farmers,exporters; Africa

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Strategic use of branding for competitiveness: the rationale for branding

and marketing agricultural products of African countries

Getachew Mengistie Alemu

Getachew Mengistie Alemu is an intellectual property consultant who studied intellectual property law at

Queen Mary and Westfield College, University of London.

Abstract

Growers of agricultural products and key actors involved in the value chain in advanced and

high-income developing countries commonly use brands in marketing agricultural products

and strengthening competiveness in the market. However, the tool is little known and

used by farmers and stakeholders involved in the processing and marketing of agricultural

products in Africa. There are encouraging recent developments in the use of brands to

market agricultural products, with the support of development partners such as the World

Intellectual Property Organization and the Department for International Development

(DFID). This article aims to explain the significance of agriculture, the challenges in

marketing agricultural products and the importance of promoting the use of brands in

marketing African countries’ agricultural products. A review of experiences in the use of

brands in marketing agricultural products will be subject to a subsequent article.

Keywords: branding; competitiveness; marketing; agricultural products; farmers; exporters;

Africa

Introduction

Agriculture is the backbone of the economy of the majority of African countries. It contributes to the gross

domestic product (GDP), is a source of employment and livelihood for the majority of the population, a major

foreign exchange earner and a supplier of raw materials to local industry. However, the sector has been weak. It

has not, for example, succeeded in ensuring secured income for small farmers and food security at national and

household levels; or succeeded in serving as a basis for boosting socio-economic development. There are a

number of factors that may explain this. The focus of this article is market-related constraints, particularly the

challenges faced in the international agricultural products market.

There are structural problems that have an adverse impact on the marketing of agricultural products.

Relatively few buyers, concentrated in large multinational companies, dominate the market. For example, four

companies – Nestle, The Kraft Heinz Company, The J.M. Smucker Company and Starbucks Corporation –

dominate the international coffee market.1 This results in a power imbalance in the market with growers taking

the price offered by the purchasers. The price of agricultural products has been unstable and the income of

countries and producers has been declining. Agricultural products are homogenous and are marketed as

commodities, even when some of the products have distinctive characteristics that differentiate them from

similar products, command a growing demand and fetch a higher price in the international market.

These problems may be partly addressed through the use of brands protected by relevant intellectual

property (IP) tools, which are commonly employed by businesses and farmers in advanced countries and

1 Business wire. (2019, March 21). The global coee market: Industry analysis and outlook (2019–2023). Retrieved from https://www.researchandmarkets.

com/research/nmrrkj/global_coee?w=4, accessed on June 15, 2006.