Information gaining and efficiency of its practical using (in example of zachodniopomorskie province)

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JAKUB SZPON

Akademia Rolnicza w Szczecinie

Summary

From the point of view that on making decision in 80% effects good information, it research the role of information in rural economy. This task was accomplished in two periods. First relied on exerting instrument of marketing systems which pro-motes in fast information flow and company development. Second relied on proving that degree of knowledge utilization which comes from employee of advisory institu-tions doesn’t depend on their efforts only, but also from cultivator individual factors. Keywords: sources of information, types of information, methods of information using 1. Introduction

Since may 2004’ polish agriculture subjects in European policy related with Common Agri-cultural Policy (CAP). Due to that it can use financial support which is called system of sur-charge, who encourages cultivators to effective farming. Decades of neglects and insufficient capitalizing of polish agriculture has caused backward relatively to highly agriculture develop of older members.

Nowadays to decrease distance between european and polish economy its needed an invest-ments and reich of specialist which will introduce the modern methods of agriculture enterprise managing. It comes down to coherence two theories: marketing and logistics with management. The knowledge of specialists becomes more valuable if it will be taken into consideration with agriculture. The whole rural production is an organic raw materials which lose its value and qual-ity during the time from production to consumption. It is important to use the knowledge for im-provement of rural production flow, in direction from producer to consumer and fast signal devo-lution from market to producer. However, many publications proves that modern economy resist on – in more greatest degree – knowledge and immaterial forms of capitals which implementing material and financial capital brings growth of production, greatest efficiency of farming and cor-rection of population welfare.

Knowledge should be based on honest information which is strategic stock in economic or-ganization. However, through information we should understand regularized and analyzed mes-sage which recipient receives, transferred in proper form, which is needed for realization of define purposes. Proper information is based on verified data, best related with direct sources.

Cultivator, which is the fundamental link in supply chain very often is not able to be typical integrator, adjusting flows in objective stocks. That means it depend on remain chain links (e.g. adaptive industry, wholesale and retail commerce, and from consumers also). Rural producer, understood as a businessman, to keep on market needs to rationally farm his sources. Therefore, his enforced to make a decisions from range of marketing and logistic.

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Jolanta Kondratowicz-Pozorska, Jakub Szpon

INFORMATION GAINING AND EFFICIENCY OF ITS PRACTICAL USING (IN EXAMPLE OF ZACHODNIOPOMORSKIE PROVINCE)

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It’s considered that rational decisions can be taken on base: • 80% information,

• 10% ingenuity,

• 10% intuition (experience) of manager (owner).

In article it was presented the role of information in rural economy.

This task was accomplished in two periods. First relied on exerting instrument of marketing sys-tems which promotes in fast information flow and company development. Second relied on prov-ing that degree of knowledge utilization which comes from employee of advisory institutions doesn’t depend on their efforts only, but also from cultivator individual factors.

2. Meaning of information in agriculture

In traditional agriculture most of processes was made without (vertical) external integration with recipients as well as without concerning needs which was indicated by marketing depart-ments. Professional knowledge of the farmers was poor and mostly based on intuition and self experience. This way of running production couldn't lead to aiming the goal which of course was profitability and sources efficiency. Profit of the farms was usually accomplished with help of government system assistance such as guarantee prices. Professional knowledge was underesti-mated. That is why there was no economic development in farm.

Nowadays agricultural production is dominated with new tendency which is consolidation of activities in one logistics- marketing supply chain, which is concerning fast changes on the market. Also implementation of logistics solutions leads to development of specific integrated agricul-tural management systems which enables to manage the sources more efficient way. Of course indispensable element of all agricultural managing systems is modern IT system which is able to accumulate and convert properly all informations.

Information management is nowadays essential for both marketing and logistics. Typical ex-ample is "ECR" - Efficient Consumer Response in which all links in one supply chain cooperate on all levels like: data exchange, sources identification, stocks analysis. All mentioned tools used within supply chain enables to find the best solutions for everybody. Role of information in find-ing solutions for supply chain management concern reduction of deliveries time, stock reduction, better making use of transport. Fluent information flow between all links has direct influence for quality of goods and better consumer service.

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D ia g ra m 1 . P ro ce ss es i n te g ra ti n g s u p p ly c h a in s S o u rc e: p er so n al e la b o ra ti o n b as ed o n R u tk o w sk i K , L o g is ty k a d y st ry b u cj i, „ D el fi n ”, W ar sz a w a 2 0 0 M a rk et in g O p er a ti o n s In fo rm a ti o n s

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For effective farm functioning we need an essential information which can be divide on: • regulating information,

• organization and technique, • economic situation.

Regulating information define terms of company generating and functioning (e.g. Regulations of legal system, financial). Information about organization and technique aid organization of work and production (e.g. indicators, technical and technological solutions). Information about eco-nomic situation determine strategy of activity and company development (e.g. statistic informa-tion).

Other distribution essential for company is information about:

• competitors – producers of the same orcompetitive products, their marketing strategies, future plans,

• supply market – competitors from the same market,

• institutional purchaser – future strategies, plans and technologies, • distribution links and its organizational structure,

• agro business co-operators,

• bank credit policy for agriculture companies, • state policy and agriculture agency operation.

Cultivator need to take into consideration consumer reflexive informations (in marketing chain), but particularly should pay more attention on signals like: customer preferences, trends related with food preferences (ecological products), habituation or fears (e.g. spring 2006’ con-sumers distance to poultry because of bird’s flu) etc.

3. Manners of information utilization by the cultivators in West Pomeranian province. As informations which act on cultivators are differentiated as source of informations may dis-tinguish. Market information structure can be present as:

• government and sectoral information market, • magazines, books and elaboration markets,

• markets of paid information offered by agencies and centers of marketing research. Cultivators in prevailing majority are not homogeneous social group as well as education, age or wealthy. Because of that there is some difficulties in going and incoming informations as:

a) not every cultivators are open-minded for all new informations, b) problems with knowledge winning by single cultivator,

c) different degree of cultivators content apprehension coming from information centers. Above-mentioned reasons become cause of research, who had on purpose to settle which hosts (in respect own farm surface - wealth criterion) take advantage in potential sources of knowledge for bringing up efficiency of farming.

It’s been find a research group who was divided on three segments; Criterion of selection was related with largeness of farm and showed:

• 498 small farms (0-5h), • 114 average (5-15h), • 100 big farms (15-more h).

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Data from years 2002-2004 indicate on different degree of accustoming marketing instru-ments on farms. Carried research have allowed to answer following questions: What’s the actual situation of cultivator? Is marketing orientation the result of operations taken by him?

Analyzing data given in table 1 its possible to ascertain, that big farm used the most instru-ments of product policy which have big production potential, financial reserves to accustoming new products, technology and qualifications raising. Small and average farm which sells more often unprocessed products and generally applicable are not interested in house and business brands. They’re not paying attention on its wrap also.

Tab.1 Percent of farm in West Pomeranian province accustoming instrument of marketing system Instruments of chosen policy entering composition of marketing

system Small farm Average farm Big farm Product policy

1. technology introduction of new production 5 22 40

2. new production introduction (change, race, etc.) 3 13 25

3. personal professional qualification and abilities raising - 15 20

4. ecologic production 9 6 4

5. products processed or generalized - - 10

6. house and business brands - 1 10

7. wrap introduction - - 4

8. other 1 1 2

Price policy

1. farms which are not able to effects on prices 80 45 20

2. farms, which can control sale of product and effects on price height (e.g. through storage)

1 15 65

3. bargained prices 8 53 81

4. other

Distribution policy

1. Use of existing channels of distribution 100 100 100

2. Finding new channels of distribution 12 24 60

3. Making new channels of distribution - 2 15

4. other - - 2

Promotion policy

1. information devolution of personal product - - 10

2. Prompting of purchaser interest and demand forming on personal products

- - 2

3. other 1 1 2

Source: personal elaboration

Available materials result is, that small farms are not able to realize marketing policy them-selves. By that reason big role falls to agricultural and economic counseling. Assistance of this organization should rely on devolution of knowledge, from where win funds on changes in man-ners of production and agricultural commodity market.

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5. Winning of information and manner of their utilization on example of direct surcharges control performing

Many factors influence on capability of information utilization by cultivators, which can be defined as external or individual. External factors not characterize cultivator, e.g. surroundings influence information flow, conditions that are made for grower or planter to win interesting them informations. In result of lead analysis led of performed direct surcharges correctness and number of trainings for all cultivators by ARiMR it exist weak dependence. As it happens, that information devolution manner direct to cultivators and at big engagement of power and technical editions has given disappointing effects. Individual factors from streaming knowledge are the most important for information influence. Potential capabilities of cultivators for practical utilization transferred during instruction training knowledge.

At the beginning of 2004 ARiMR has undertaken tasks relying on all fact-finding with procedure of correct performing conclusion by cultivators about grants from European Union.

Agency employees have organized training in all administrative districts, the smallest organiza-tional units. Cultivator interest of training was differentiated, however, whole venture generally has been regard as imitate. Results in the form of errors in performed conclusions about direct disbursement at the end of 2004 have exerted, that cultivators wasn’t able to take advantage of sufficient manner training.

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T a b .2 C o n tr o l o f d ir ec t su rc h a rg es c o rr ec t p er fo rm ed c o n cl u si o n i n i n d iv id u a l a d m in is tr a ti ve E rr o r s P ro v in ce N u m b e r o f co n tr o ls C o rr ec t < 3 % > 3 % < 1 0 % > 1 0 % < 2 0 % > 2 0 % b ia ło g ar d zk i 5 6 3 9 6 9 ,6 % 8 1 4 ,3 % 3 5 ,4 % 6 1 0 ,7 % 1 ch o sz cz e sk i 1 0 4 9 1 8 7 ,5 % 3 2 ,9 % 4 3 ,8 % 6 5 ,8 % 1 d ra w sk i 1 1 8 9 7 8 2 ,2 % 9 7 ,6 % 7 5 ,9 % 5 4 ,2 % 2 g o le n io w sk i 8 5 6 8 8 0 % 9 1 0 ,6 % 2 2 ,4 % 6 7 ,1 % 1 g ry fi ck i 1 0 6 8 9 8 4 ,% 1 0 9 ,4 % 4 3 ,8 % 3 2 ,8 % 1 g ry fi sk i 9 8 7 0 7 1 ,4 % 1 4 1 4 ,3 % 4 4 ,1 % 1 0 1 0 ,2 % 2 k am ie sk i 6 5 5 0 7 6 ,9 % 2 3 ,1 % 5 7 ,7 % 8 1 2 ,3 % 1 k o ło b rz es k i 7 4 6 2 8 3 ,8 % 4 5 ,4 % 4 5 ,4 % 4 5 ,4 % 1 k o sz al i sk i 1 9 1 1 5 3 8 0 ,1 % 1 4 7 ,3 % 5 2 ,6 % 1 9 9 ,9 % 3 ło b es k i 5 8 4 2 7 2 ,4 % 8 1 3 ,8 % 4 6 ,9 % 4 6 ,9 % 1 m y l ib o rs k i 1 6 1 1 4 4 8 9 ,4 % 3 1 ,9 % 6 3 ,7 % 8 5 % 1 p o li ck i 8 6 5 1 5 9 ,3 % 1 1 1 2 ,8 % 3 3 ,5 % 2 1 2 4 ,4 % 3 p y rz y ck i 6 1 5 7 9 3 ,4 % 1 1 ,6 % 3 4 ,9 % 0 0 % 4 sł aw ie sk i 1 1 2 8 0 7 1 ,4 % 1 6 1 4 ,3 % 5 4 ,5 % 1 1 9 ,8 % 3 st ar g ar d zk i 1 1 2 8 4 7 5 ,0 % 5 4 ,5 % 6 5 ,4 % 1 7 1 5 ,2 % 2 sz cz ec in ec k i 1 1 9 9 0 7 5 ,6 % 1 3 1 0 ,9 % 4 3 ,4 % 1 2 1 0 ,1 % 2 w id w i sk i 1 3 7 9 6 7 0 ,1 % 1 4 1 0 ,2 % 1 1 8 % 1 6 1 1 ,7 % 4 w ał ec k i 5 8 4 0 6 9 % 4 6 ,9 % 4 6 ,9 % 1 0 1 7 ,2 % 1 A ll 1 8 0 1 1 4 0 3 7 7 ,9 % 1 4 8 8 ,2 % 8 4 4 ,7 % 1 6 6 9 ,2 0 % 3 9 S o u rc e: A R iM R

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Generally we assume that less number of workshops cause more mistakes in fill in the forms (eg. in białogardzki administrative district conducted 56 workshops they had more than 30% re-jected forms.) Every third farmer didn't use the knowledge from the training in practice. Similar situation was in łobeski, wałecki and kamieski districts. The whole different results were accom-plished in pyrzycki region. Resembling number of trainings was made (around 61). More than 93% of farmers fill in the forms for UE grants. Only 7 from 100 farmers made mistakes in their applications. From the other hand extremely high number of trainings didn't protect farmers from making mistakes a good examples are koszaliski and widwiski district.

6. Conclusion

If we consider a high competition on groceries - agricultural market indispensable is introduc-tion of logistics - marketing tools which using informaintroduc-tion exchange enables balanced growth for all. We can achieve it only if we establish agricultural managing systems centers. Nowadays there is a lot of marketing and logistics tools which can be fully used only if all participants will use all information from the market.

Based on carried out enquires we are able to form following detailed conclusions:

- only big farms has potential to build favorable picture of all, responsible for that are well - educated farmers,

- big farms managing policy had shown that implemented marketing systems bring a lot of advantages,

- middle class farms despite lower incomes are building their future using self-improvements and using knowledge (literature) and experience of managers,

- small farms are using the professional information less than all the rest, they are using knowledge from their neighbours or from masmedia (there is no chance and need for im-plementing advanced marketing systems)

- form mistakes analysis proved that despite all trainings and workshops the biggest influ-ence for properly filled form has individual factors of farmers (their committmened). Un-fortunately the same analysis proved also that all the farmers can't use proper way the knowledge and information they have (obtain) in practice.

The above mentioned conclusions induce to study precisely research to find the answer for the question is there a correlation between number of well filed forms and age, education of partici-pants.

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JOLANTA KONDRATOWICZ-POZORSKA, Akademia Rolnicza w Szczecinie

e-mail: jpozorska@e-ar.pl JAKUB SZPON