Marketing Problems of Arid Zone Medicinal Plants in

PakistanA

Presentation ByMr. Allah Dad Khan On 19 th

August 2016At Pakistan Forest Institute

Peshawar

What is Marketing Some definitions 1.Marketing is the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large.

2. Marketing is the social process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

3. The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time”

4. Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges”

Situation of marketing of herbal Medicines

The market for herbal medicines in the developed countries is growing at a faster rate than other pharmaceutical products. Some of the reasons are :(i) The realization that Allopathic drugs have harmful side effects.(ii) Most of the present day ailments are life style diseases. (iii) Allopathic medicine are ineffective against many chronic diseases like

cancer.(iv) Moreover, many people suffering from diabetes, arthritis, respiratory

diseases, skin ailments, gastric problems, jaundice are turning more and more to Ayurveda and Yunani for permanent cures.

(v) Herbal medicines are comparatively less expensive. (vi) The western medical profession has begun to acknowledge the value of herbal medicines.(vii) This also explains the fact that many purely Allopathic units have also adapted the use of formulations which include natural herbal drugs .

Threats to Medicinal Plants Marketing Noticed By Researchers

1.Deforestation 2.Over and improper collection of Wild

Medicinal plants3.Overgrazing By Livestock 4.Conversion of forest land into

agriculture Land

Identification of Markets

The process of identifying different market segmentsThe process of identifying different markets would help the farmers to focus on which types of herbs to be grown and how marketing should be made.

Medicinal Herbs markets in World

1. Global/International Market ( Japan,China ,India ,Germany,USA ,UAE , UK)

2. National Market ( Islamabad)3. Provincial Market ( Lahore , Peshawar,

Quetta)4. Regional Market ( Mingora)5. Local Market ( Subdivision and District

level)

Marketing Channels of Medicinal PlantsThe main driver for the cultivation of medicinal plants could be located in two component , namely pull and push effects.In pull effect , are the factors that attract farmers to cultivate medicinal plants rather than traditional crops including 1.Attractive Price 2. Fixed market channel 3. Price assurance by agents .4.Monopoly of the group of producers

Marketing Structure

1. Trade of crude medicinal drugs is very erratic in Pakistan.

2. Prices fluctuate greatly due to variations in external and internal demands within the country.

3. Traders frequently underpay collectors of the raw materials and sell the products at a large profit.

4. Hence the availability of particular crude drugs remains very unstable and market trends cannot be easily determined.

Features of Marketing 1. Market Trends2. Price information3. Market news4. Botanical product specifications5. Meetings and trade shows6. Directory of global herb trade associations7. Special features (e.g. company profiles,

regulations)

Global Marketing Opportunities:

The opportunities on the supply side of the indigenous medicine market include

1.  Availability of scarce medicinal plants in remote locations,· availability of medicinal plants on commercial farmlands.

2. Availability of plant supply from changing land-use,3. Availability of medicinal plants on managed communal lands.4. Availability of a wide range of cultivation, processing, and

Marketing expertise in other sectors.5. Access to international examples of medicine production for

traditional markets.6. Large demand for new agricultural opportunities on

commercial farms, subsistence farms, and redistributed farms,

The opportunities on the supply side of the indigenous medicine market include contd

7. Availability of progressive farmers with access to resources,8.Robust nature of indigenous medicinal plants which require few agricultural

Inputs .wide range of sites for product distribution, ranging from the farm gate to urban processing factories,

9.Ability to supply specific species at times of the year when they are usually not available,

10. A large number of plant gatherers with appropriate knowledge that could promote the cultivation of plants for the market,

11.  Documentation and establishment of accepted guidelines for use and dosages of medicinal plants, and

12. Several organizations have experience in indigenous medicine markets and in the cultivation of medicinal plant species in farming and nursery systems.

1.Price

2.Product / Services

3.Promotion

4.Place / Access

5.People

6.Process

7.Physical Environment

Whereas Push effects are dominated by1.Uncertainity of net income.2.Well established market channel There are two marketing routes that operate in field 1.Gather /Cultivator -----= Pharmacy 2.Gather/Cultivator ----=Trader ----= Pharmacy

International MarketingExport Promotion Bureau may guide about some of the plants that are currently demanded . The publication of data about medicinal herbs in this regard will be of great value to different stake holders

Problems in Marketing of Medicinal Plants S.No

Problem Solution

1. Poor agricultural practices Good agriculture Practices specific to area and climate

2. Poor harvesting (indiscriminate) and post-harvest treatment practices

Proper harvesting and practices to minimize Post Harvest losses in storage

3. Lack of research on development of

high-yielding varieties, domestication

Enhancement of Research And Development Projects

4 Inefficient processing techniques leading to low yields and poor quality products , Insufficient data on the peak and lean raw drug collection periods

Introduction of new processing techniques and preparation of data for products both in yield and use.

5 Lack of Poor propagation techniques 

Promotion of new propagation methods

Problems in Marketing of Medicinal Plants contd S.No Problem Solution 6 Poor quality control

procedures Standardization of Products

7. High energy losses during processing 

Low consuming energy machineries

8. Lack of current goodmanufacturing practices 

Promotion of Good Manufacturing Practices , Traditional medicines manufacturers and scientists should be encouraged to carry out research into the cultivation of medicinal plants.

9 Lack of R & D on product and process development - Difficulties in marketing

Strengthening of rural development infrastructure .

10 Lack of local market for primary processed products

Provision of Local Market to farmers and linkage of collectors with market

11 Lack of trained personnel and equipment

Human Resource Development through Training to different stake holders in collection, cultivation, processing and marketing of medicines.

Problems in Marketing of Medicinal Plants contd

S.No Problem Solution

12 Lack of facilities to fabricate equipment locally 

Provision of facilities to fabricate equipment locally

13 Lack of access to latest Technological and market information

Provision of access to Latest Technology (MIS)

14 The lack of traceability of the path of

the raw drug back to it source

Paving a Path as desired by Farming Community ( Farmers Organizations)

15 Owing to the lack of information on the market size and identification of all market sites in Pakistan .

Establishment of Market Information System marketing strategies by the companies dealing in herbal medicine.

16 Absence of comparative studies of price structure and lack of time series data on prices

Initiation of studies in this respect at ( All Levels)

17 Ineffective regulatory body, ineffective regulation by the government in their crucial role in the prevention of illegal trade.

Legislation for drugs Sale and Use . legislation improving the status of herbal medicine industry

Problems in Marketing of Medicinal Plants contd

S.No

Problem Solution 18 Lack of attitudes toward

Medicinal Plants Cultivation and market management

Creation of Attitude through awareness programme on mass media

19 Lack of Training to wild medicinal plants collector

The plant collectors are needed to be trained in proper harvesting methods.

20 Knowledge in Lack of correctidentification ofmedicinal plants

Proper identification through with the collaboration among the taxonomists and the local Herbalists is vital.

21 The price and quality of medicinal plants in the market is not uniform.

Necessary measures should be taken in this regard for the uniformity

22 No proper Selection of Plants as per ecological zones.

Introduction of selected medicinal plants as minor crops will not only reduce the pressure on the natural vegetation but will also improve the Socio economical conditions of the farmers.

S.No

Problem Solution

23 Collectors, processors and traders face problems in finding favorable markets due to price factors, quality and quantity considerations.

Knowledge to be Provided

24 Financial and logistic constraints make it difficult for local producers and collectors to interact more closely with prospective clients

Financial help

25 Inadequate knowledge and incomplete Information on products, markets and

prices on the part of collectors/producers

Awareness

26 Difficult to No proper recognition access appropriate markets and market information.of environmentally and commercially sound MPs.

Allowed Access

27 Lack of standardization and consistency in quality for international marketing

Proper standardization

28 Astringent phyto-sanitary regulations such as requirement of microbiological test, pesticides and heavy metal test by international markets

Legislation

Problems in Marketing of Medicinal Plants contd

Suggestion and recommendations for Marketing

1.Recommendation of Medicinal Plants in different Ecolological zones in Country special reference to KPK .one village one product .

2. Creation of awareness about medicinal plants both wild and cultivated Through mass media .in production and marketing

3. Marketing of medicinal plants in local and national as well as in international markets through exposure by different stake holders .

4. Local Community should be trained regarding methods of collection and drying, and sustainable harvesting Demonstration of the cultivation packages and R & D in marketing .

5. Plant collectors should be encouraged and educated in order to increase their bargaining power , thus increasing their revenues from medicinal plants.

6. Seed bank for the arrangement of MP seed , plants . Through farmers bodies.

.

Suggestion and recommendations for Marketing contd

7. Organic products and value addition through capacity building , the role of women to be included in activities.  review of local knowledge and harvest practices

8. A holistic management action plan is necessary to formulate for assessment and management of resource base; best harvesting and processing practices; trade issues and aspects dealing with the intellectual property rights on the traditional medicines .

9. Investments are needed for the development of appropriate conversation, cultivation harvesting strategies, which will simultaneously meet the demand for low-cost and locally available medicines

10. At the same time, there must be immediate efforts to ensure the conservation of Diverse biological resources and the preservation and application of local and cultural knowledge On the use of these resources. biological studies (growth and regeneration rates, pollination system, seed dispersal, potential for confusion with similar species, etc.) and assessment of harvest impact on viability of individuals

11. design and implementation of management scheme: annual harvesting quota, seasonal or regional restriction and on certain plant parts or size classes, domestication programme

12. Research to investigate the sustainability of production systems is lacking and needs to be stimulated for a better understanding of the biological dynamics of the resource in the wild and in domestication.

13. Eco-labelling and other social and economic incentives to strengthen market credibility and competitiveness of biodiversity-friendly products need to be promoted

14. On the issue of intellectual property rights it needs to be elaborated how the country, the local user or other entity can be adequately compensated for use of the resource by outsiders.

Suggestion and recommendations in Marketing

15. The gaps between the producers/collectors and traders or buyers need to be minimized as these are at present very wide and often inequitable

16. A holistic management action plan is necessary to formulate for assessment and management of

resource base; best harvesting and processing practices; trade issues and aspects dealing with

the intellectual property rights on the traditional medicines17.A ll-our efforts should be made to adopt a package of best practices

encompassing conservation, cultivation, quality control and standardization and research and development for medicinal and herbals for improving its marketing performance efficiently.

18. Research should identify genotypes with high potential for commercial purposes, and then conduct trials for the selection of high yielding varieties. here should be a reorientation of research investment regarding medicinal plants, with a shift from pharmacological studies to research which identifies effective methods of sustaining market supply and improving the quality of products currently consumed.