Leadership Skills

ABSTRACT

This chapter enumerates those skills which should have for a successful Rural Facilitator namely, time management, risk management, decision-making, and negotiation skills. These are individually and collectively helpful in building the SFSC, which is the ultimate goal in short food supply chain management. This chapter will explain why they are useful, and how these qualities may be used.

KEYWORDS

time management, risk management, decision-making, negotiation, leadership

LEARNING OBJECTIVES

Rural facilitators assume the role of leaders for those whom they are assisting. It is therefore important that they develop certain skills which will empower them to be good leaders and affect greater changes. This chapter will explain which skills Rural Facilitators should focus on, as well as how they can practically use them.

The learning objectives of this chapter are:

To develop a basic knowledge of what skills Rural Facilitators should have;
To understand how these skills help Rural Facilitators assist their customers;
To understand the ultimate impact of effective Rural Facilitation.

INTRODUCTION

This chapter presents and explains the necessary leadership skills which should be possessed by a Rural Facilitator. The globalized nature of the modern world has caused the priorities, values, and needs of countless people and communities to change. Entire sectors have been forced to reevaluate the practices which have supported them for years, and the futures of many have been placed on a precarious precipice of uncertainty. In light of the expectation of modern reality, there is a need to adapt to globalisation and new purchasing trends. This chapter will seek to shed light on the concept of the successful leadership of “rural facilitators” and demonstrate how their particular skills, in the areas of especially time management, risk management, decision-making, and negotiations, help enable this adaption. This chapter will break down the qualities of covered topics and explain why these are especially helpful for ensuring the existence of an SFSC (short food supply chain) in areas that lack access otherwise to markets or products.

Time Management Skills

Time management is an important component of modern life. Effective time management allows users to efficiently complete work in an organized, logical manner. It allows businesses and people to plan their operations in such a way as to maximise their workday and achieve optimal results. With better results, observers of time-management practices have an improved chance of surviving business competition and flourishing.

An organization’s leadership is its visible decision-making body, and so it should represent the operation and its workers. Time management begins with this leadership, as they can develop plans for envisioning and accomplishing goals that ultimately lends an operation success. In the agricultural sphere, leadership has to be keenly aware of the agrarian aspects of their work; preparing the land, planting, harvesting, and delivering produce to the market must all occur on time with precision to avoid harming the product and gain maximum profit. Agricultural leaders are individuals whose experience and knowledge of the sector allow them to design plans with consideration of these details, an understanding of their manpower capacity, and awareness of financial constraints and goals. These plans will facilitate better cooperation with the rural facilitator, and so benefit the farmer, his workers, and consumers.

The concept of time management is similar to that of investments; the result of time management is to exploit resources to gain their maximum usage and attain the greatest return on invested funds and efforts (Adebis, J.f., 2012). It starts simply, with leadership organizing the workday as a reflection of the best usage of workers’ time and in connection with their daily targets. Each team member should have personal goals which complement the group’s goal - which in turn reflects the business’s goal. In agriculture, this especially can be important as individuals may be part of a farm that is independently owned or community-owned. The latter calls into question the futures of families and communities, who rely on the farm and, ostensibly, on good operating practices.

In SFSC good time management patterns are crucial for success if more stakeholders work together. Just think about a farmers’ shop where the shelves must be filled up every day and the logistics of fresh products require fast solutions.

Tips for better time management

Marketing, administrative duties, market planning, and goal-projection are the main points that must be addressed. 50% devoted to the core function of the market, like interacting with vendors and customers. So, the main task is to prioritize these tasks and spend the appropriate time with the most and the less important ones.

First of all, categorizing tasks and dividing work time among them may help the Rural Facilitator to stay on-task and to use time wisely. The second step is to schedule activities and assign them a specific time for each of the specified categories so that none of them are overlooked. As a third step, the schedule can then feed into a list, which will ensure that nothing is forgotten or repeated. In this way, all activities which are necessary for the construction of a well-working SFSC cooperation can be properly conducted, and the chain will not have any missing links (Conney, F., 2018).

In all organisations leadership must have a vision for the organisation, be determined to achieve this vision, and remain focused on their end goals. And as a final note, time management can increase fidelity to the organisation, as those employees who feel their energies and capabilities are being taken into account may feel more connected with the work they are doing and so ultimately be more invested in the success of their employer.

Risk management

The occurrence of risk is something that may be linked to negative effects in agriculture. It has been defined as the possibility of a catastrophic event that can cause a situation to change (Quinn, F., 2006). The change might result in something positive, but it could also have unfortunate economic or security impacts. Risk threatens the supply chain as its occurrence can touch people or processes anywhere, from the supplier to the consumer to the end-state goals of the farmer/individual/company, and it can affect more than one part of this chain at any time (Paulson, U., 2005). The risk may happen in both the operations themselves or their strategic plan. It may occur to the operations or to the partners, and it is shrouded in uncertainty, which makes it all the more dangerous.

Figure 30 Harmonised workflow. Source: own composition.

In agriculture, risks to the supply chain may affect the output, the volume of the output, the value of the output, the consumers, and the suppliers themselves. Supply chain risks involve danger to the chain, damage to the goods, and injury to the consumer and producer (Harland, C., Richard B., & Helen, W., 2003). Further, these risks may even be internal elements of the chain, and thereby involving the producer and production, or external- thus extending to and involving consumers (Bryceson K. P., & Smith C. S., 2008). As the members of the supply chain work closely with each other to facilitate outcomes, risks ultimately impact each person and area. Agricultural risks may be classified as natural (i.e. environmental, weather, biological, etc.)) or market- related (including logistics, infrastructure, policy, etc.). In and of themselves, these risks are problematic enough. Compounded together, they can be devastating to farmers. For example, a flood might immediately impact crops and livestock. But at the same time, it may also severely impact the transportation means a farmer uses to transport his products to consumers. The farmer is thus unable to sell, and consumers are unable to buy. Both sides of the food chain are affected by one original cause that triggered additional risks (Jaffee, S., Siegel, P., & Andrews, C., 2010).

One method of combating risk which might prove helpful is the formation of a board that can monitor clients and watch for growth or loss trends, observe client-producer relations, and estimate the risk producers are agreeing to when engaging in the market. This acts as a type of risk prevention as well as risk management. Board members should be SFSC or agricultural experts who can offer advice and guidance for Rural Facilitators and producers. A board can be a helpful way to mitigate potential risks and address current risks. Rural Facilitators must strive to maintain situational awareness and understand the regulations, legislation, and needs of the market and the producers involved in this particular step of the SFSC (Market Manager’s Training Manual, 2010).

Natural Risks

Weather-related problems are a persistent threat that immediately affects farmers, consumers, and the economy. The economy suffers as a result of the supply chain’s weakening from weather patterns and unexpected events (Maccini, S., & Yang, D., 2009). Even though poor weather conditions are beyond the control of mankind, they may still significantly interrupt the operations of communication, transportation, and the energy industries. Each of these impact farmers and consumers considerably, especially as they struggle to cope with the subsequent loss of market availability (Jaffee, S., Siegel, P., & Andrews, C., 2010). In 2012, this was visible in the United States. 80% of agricultural land was affected by drought, which in turn caused the buyers, processors, and traders to suffer. The entire American supply chain was compromised in some way by the uncontrollable ecological occurrences (USD, 2012).

Aside from the weather, biological risks are also naturally occurring problems. These are most often visible in gene expressions or diseases, the latter of which is often seen taking place in dairy, pig, and poultry farming but pests can affect plant production as well (Baltussen et al., 2006). Of the many maladies which might affect livestock, those which are especially concerning are contagious diseases, as their impact can be easily echoed all across the supply chain. This, in turn, endangers markets and consumers. Such risk is not new and may most recently be pinpointed at the Wuhan fish market, where the infamous COVID-19 is believed to have originated from. However, we can mention some European examples which take this topic into account. For example, in 2011 E.coli infection on cucumber origin from Egypt caused 53 deaths in Germany, or the fear from bluetongue disease (Lebeau, P., 2021) launched the short food chains in France in the 90s’. To mitigate the effects of disease the most important rule to follow is hygiene. This could also positively impact the environment, as good hygienic operational practices will ensure cleaner workspaces and more cautious waste eradication.

MARKET-RELATED Risks

Having explained possible natural risks, it is now important to consider „man-made” risks which threaten the SFSC. These are categorized as „market-related risks” since they are associated with and impact directly the market, the consumer, and the producer. These include:

Figure 31 Market Related Risks. Source: own composition.

Agriculture’s supply chain is the result of supply versus demand. Some risks related to the supply chain come from either physical occurrences, such as disruption in production thanks to mechanical malfunction, or problems with demand, such as customer needs, customer beliefs, food safety regulations, supply chain reputational changes, supply chain dependability, and price changes (Jaffee, S., Siegel, P., & Andrews, C., 2010). These factors then distort the previously made projections (devised by farmers and companies) which were planned following the market’s demonstrated needs. The consequence is that marketing campaigns, pricing schemes, promotional efforts, and quantity rationing are disrupted and must be recalculated. The supply chain is also calculated in such a way that it should reflect the needs of the market. When these needs are reconfigured (by natural occurrences, population mobilization, change of dietary preferences, etc.) the supply chain must also be redesigned to again meet the demands at the chain. In SFSC the main risk is the lack of knowledge on consumers’ habits and trends and the way to adapt effectively to these factors. In many European countries, researchers pointed out that those farmers could operate their business adequately who had deeper marketing knowledge or whose cooperation was able to pay for experts.

The quality of the means of production, as well as of the product itself, has the potential to affect agriculture. Rural facilitators may wish to stop this problem before it starts by understanding the farmer’s production capabilities. Consumer demands should be ostensibly compared with the quality potential of producers to determine if these demands may be feasibly met.

Logistical risks may be coupled with infrastructural risks. A good’s availability and its arrival to the market are closely interconnected with available means of energy and information, as both of these tools affect its transportation. Logistics ensure primarily that production can occur on a scale that is large enough to meet consumer demand. However, they also aim to guarantee that the outcome of this production is successfully delivered to consumers and thus becomes a financial success for the producer. Logistics address how a product will be shipped, where, when it will be delivered and what the cost of delivery will be (Aghazadeh, S., 2004). Logistics are more encompassing than just delivery, though. They also determine how orders are processed, produced, marketed, and commercially used (Jaffee, S., Siegel, P., & Andrews, C., 2010). Logistics must be used to consider everything from labour (which includes costs, type, and usage) to transportation (encompassing costs, type, and usage) to legal issues (such as tariffs, taxes, border crossings, and regulations). They must be considered at every point on the supply chain, as their effective usage will have positive outcomes for all involved. In SFSC the maintenance of the cold chain must be also considered as it required special facilities from farmers. Facilitators should help producers to use the most adequate equipment based on their products. It shall be mentioned here that the market provides many innovative solutions for farmers to decrease the risk of logistics like farmers’ vending machines, drive-in, drive services etc.

A brief mention regarding political risk factors must also be made. The political risk factor is often mentioned as the most difficult factor in the organization of short food supply chains. The reason is that the stakeholders of the SFSCs are generally the smallest producers who use traditional knowledge, methods to produce local foods. The traditional methods are not widely used due to their hygienic risks so the sale is permitted on the local basis where the sellers and consumers know each other. These diverse local and traditional methods make the harmonization of policies complicated as there are no rules which fit all. The other side of the policy risks is the innovative properties of logistics, sale solutions which would demand innovative tax, labour, trade laws too. The third point is the supporting policies that fit bigger producers whose main income comes from conventional agricultural products. They are the main beneficiaries of European and national grants. Since the farmers of SFSCs are generally small farmers or diversified family companies who live from rural tourism, other rural services, processing etc. To sum up the facilitators have a crucial role to mitigate the political risks by following rules and policies. Moreover, political risks are generally difficult to predict and measure and the support and possibilities of European small farmer and SFSC actors depend on two levels: national and European.

Risks are ever-present elements in life. In the agricultural sector, risks are either natural or man-made. Rural facilitators must confront these risks to effectively fulfil their obligations to producers and consumers. To effectively address risks, the rural facilitator should consider which other spheres the risks affect, who may be impacted, and what the level of impact will be. As with the case of natural risks, it is not always possible to completely avoid the occurrence of something negative. However, identifying the risks and understanding their potential is the first step in effectively addressing risks.

Negotiations

Negotiation “is a process where the interests of two or more parties are harmonized to achieve a common outcome” (Worldagroforestry, 2013). For Rural Facilitators, this is the process of communication between rural producers and suppliers. They are used to grant farmers access to markets which they would not otherwise be able to enter. To understand how this happens, it is necessary to use what may be seen as “diplomacy”. In this sense, diplomacy is the effort of the rural facilitator to open and enable communication between the farmer and the markets, using their understanding of the farmer’s needs and abilities and the market’s needs and capabilities.

Regarding the farmer, diplomacy needs to recognize the farmer’s reality and his farm’s capacity and capabilities. From the market’s point of, this demands a knowledge of what is otherwise available to the consumers and what they lack.

Figure 32 Farmer’s market. Source: https://www.slowfood.com/slow-food-earth-markets-a-farmers-market-like-no-other/.

One such way to build this relationship is through the organization of farmer’s markets. These gather small farmers together in specific areas and use advertisements to let consumers know about the availability of fresh produce and fruits. The advertisement which is both external and internal to the farmer’s market may allow consumers to know the certain aspects of their farmers which inspire trust in the farmer’s products and foster a bond between the farmer and the consumer. Points that highlight the farm’s originality, such as farms being organically run, managed by women farmers, or implementing novel agricultural methods all make the farm attractive to the consumer (Buila, S. B., 2014). When consumers can see the farmer, taste the difference in the food they have purchased, and learn about what makes their supplier unique, it encourages the growth of a psychological bond that builds customer loyalty. Over time, the bond will become stronger, and the consumer’s loyalty will spread to others via “word of mouth”. As more people are drawn to the farmer’s market, the farmer has a chance to make higher profits locally, and so reduce his transportation costs. This also benefits the farmer, who will gain more insightful knowledge of his customers and be able to determine what they are more likely to buy, what their preferences in purchases are in the long-term, and so be able to plan his future planting in such a way as to accommodate the needs/desires of the local market.

Farmer’s markets are not the only answer to finding outlets for farmers to sell their products. But they are a beginning solution that uses diplomacy. Rural facilitators can use them to gauge the needs of the local market and determine other possible methods for allowing farmers to sell their produce directly to customers. Through the usage of diplomacy, and thereby taking the time to understand farmers, customers, and the needs and goals of both, markets can be established, and long-term relationships fostered which will allow both parties to benefit.

Negotiation is a crucial part of the Rural Facilitator’s work as the prices associated with the Short Food Supply Chain (SFSC) impact both ends of the supply chain- affecting the suppliers and the consumers. Farmers themselves may not be aware of the importance of negotiation, nor be well-versed in how to effectively negotiate in their favour. In these cases, Rural Facilitators may introduce the farmer to the idea of “increased negotiating power”. According to the European Commission, “increased negotiating power” gives the party in question a greater weight in negotiating their contracts. With this weight, they can guarantee themselves fair terms in the contract and effectively gain the access necessary to engage in public markets or markets which exist on a larger scale. Further, their voice will gain the required strength to attract the attention of decision-makers to those particular issues which are most pertinent to their own lives (European Commission, 2015).

Although negotiating is attractive, it is worth noting that this advice is generally intended for medium and large suppliers, as smaller suppliers would be unable to afford the negotiating costs for their products. Price negotiating is not only extended to suppliers; the consumer is also regarded as a part of this process. The SFSC price may even be agreed on (through negotiation) by the consumers and the farmers after their interactions have become frequent and a relationship has been built (Belletti, G., Marescotti, A., 2020). The services of Rural Facilitators may be used in this area to provide logistical assistance to the local markets who are looking for goods and the devising of marketing techniques on the part of producers. Further, Rural Facilitators may prove invaluable especially in the delicate process of forming joint marketing platforms. These will allow producers to have a meeting place where they can interact with stores that are looking to carry their products. The final point of negotiation where Rural Facilitators are quite needed in the retail world, where negotiating over costs, prices, and supplies is a delicate process. Farmers need not undergo this process alone, especially when they might be unaware of any procedural guidelines which may be of assistance to their efforts. Rural facilitators will ensure that both the farmer and the retailer receive compensation for their efforts that is fair and equal to the efforts expended (Belletti, G., Marescotti, A., 2020).

Conflict management is an important part of the Rural Facilitator’s job. Conflict may not appear as obvious as two individuals shouting at each other; it can be manifested in differences in billing, organizational failures, disagreement, and cultural differences. Wherever there is more than one opinion there can be conflict. What is important is for the Rural Facilitator to be the calm intermediary, using their knowledge of the problem, the involved parties, and the desired solution. They must act considerately, regardless of personality differences or feelings. This is best done when actively listening, as once the Rural Facilitator understands all parties (their opinions, their reasons for disagreement, and their end goals) they can more surely formulate a solution to the conflict. When the conflict is resolved, the parties and the Rural Facilitator will find themselves another step closer to securing the SFSC’s formation (Farmers Market Manager Training Manual, 2009).

Negotiations and Risk

Although farmers markets are a great way to connect farmers with consumers, the formation of an SFSC may not be straight forward. There can be several mishaps in approaching the farmers market idea. Farmers may be enthusiastic about selling their produce but unsure of how to display their products, advertise their offer, or appeal to customers. Rural Facilitators can foster a greater understanding of the market and solidify this step in the SFSC by working with farmers to develop their knowledge of advertisement methods, as well as local government regarding the selling of goods. This requires knowledge of local rules, local markets, and a personal connection with the farmers and producers. The personal factor gives the farmer or producer the feeling of respect or understanding which will encourage them to open up to the rural facilitator and discuss their knowledge deficits or needs so that the Facilitator may better assist them. Such a relationship is built over time, and patience is needed, especially when the selling environment may seem less than ideal. Important points to remember are communication and patience, as local intricacies may not be obvious and the farmer’s personality and needs must also be considered. The Rural Facilitator gives expertise to the farmer but is also a sort of support system to help them through the bureaucratic and practical aspects of the farmers market step in the SFSC (Farmers Market Management Skills: Farmers Market Management Series, 2005).

Associations may be formed between farmers, between farmers and the government, and farmers and entrepreneurial groups. They are often formed locally and are not part of larger, official agricultural systems (United Nations, 2020). Each of these partnerships can focus on a specific aspect of :

Figure 33 Specific aspects of partnerships. Source: own composition.

These crises can be devastating to the livelihood of farmers. However, with the assistance of larger groups and overseeing bodies, farmers can navigate these times and recalculate their projections. Rural facilitators can work to not only overcome current problems afflicting farmers, but also to look into the long-term and anticipate problems, develop plans to overcome them, and so give farmers some degree of control over otherwise uncontrollable elements. Having control could have manifold results; the United Nations’s World Food Programme (UN WFP) suggested that if solutions and support were made available to agricultural partners in the case of female farmers, for example, their farm production alone would increase output which could ease the food security needs of nearly 150 million people (World Food Programme, 2021).

Rural Facilitators are faced with the issue of expanding the customer base of farmers, who often rely on local bases. In larger cities, this problem is just as critical as many consumers who wish to have healthier dietary habits might not have access to fresh produce. Rural Facilitators can therefore utilize smallholder programmes, such as the “Purchase for Progress” initiative or the “Market Alliance” group, which plan and implement investment initiatives that bring farmers to markets and educate them on consumer needs which motivate them to implement crop diversification practices and investigate different business prospects (World Food Programme, 2021). The result is a win-win scenario, as farmers will become increasingly more secure in their commercial prospects and consumers will gain access to healthier foods. On both sides of the equation, lifestyles will have the possibility to be improved and altered for the better.

Rural facilitators may also increase a farmer’s transactions by exploring alternative markets. Generally, when one considers a “consumer base” for produce, the immediate thought is of individuals or families. However, there are numerous other consumers on the market for whom Rural Facilitators can be the means of connection for farmers. Schools, hospitals, homeless shelters, and even armed forces groups all require nutritious food in large amounts. The problem is how to contact the farmers, and for the farmers how to negotiate their way into contracts. Rural facilitators can effectively be the “go-between” which connects these two groups and puts them into a mutually beneficial partnership.

Rural facilitators can be utilized to increase the market access of local farmers by raising consumer awareness and forming partnerships between consumers and farmers, as well as between farmers themselves. In this way, market-customer relationships are established and grown, partnerships between farmers are encouraged, and food-chain stability is assured. Entrepreneurial groups may be used to foster these relations and continue developing innovative ideas to connect consumers with producers. Farmers need customers, and customers need healthy food which is reliably produced. Rural facilitators can make sure these two groups meet. The challenge is to use diplomacy to build sustainable relationships that operate in the long term.

Decision making

The final point for discussion regarding the necessary leadership skills of a rural facilitator is the ability to successfully engage in the decision-making process. With their background knowledge and professional approach to commercial endeavours, Rural Facilitators can be strong advocates for the farmers with whom they work, and useful for the commercial enterprises they facilitate communication. They can expedite and conclude decision-making processes that might otherwise be left unresolved for long periods. Decision-making acts as a summarization of the Rural Facilitator’s skills, as the ability to secure a decision that benefits the farmer and his market comes from strong leadership, an understanding of risk management, and effective negotiation skills. Capable leaders can weigh the risks and negotiate optimal deals.

Conclusion

The Rural Facilitator uses the skills of time management, risk management, decision- making, and negotiation skills to ensure the existence of an SFSC in those areas which are unable to access fresh markets or products. Time management allows the Rural Facilitator to take count of all necessary tasks and formulate them into manageable lists. Decision-making skills help to decide from that list what is immediately important and what can be done later to keep the momentum moving towards the achievement of goals. Finally, negotiation is something necessary to successfully achieve the SFSC. Negotiations between producers, suppliers, transportation, and markets all must be concluded with a respect towards the individuals and businesses involved, as well as a keen consideration towards final goals. By using time management, risk management, decision-making, and negotiation skills, the Rural Facilitator can ensure the usage of the SFSC and so benefit the farmers and consumers, as well as all associated parties.

Resources

Negotiations

https://www.youtube.com/watch?v=IxNqIyucI70

https://www.youtube.com/watch?v=RW3TiF-OTRc

https://www.youtube.com/watch?v=ZkKObd3wFVc

Decision making

https://www.youtube.com/watch?v=d7Jnmi2BkS8

https://www.youtube.com/watch?v=KkyzYjPuxK8

https://www.youtube.com/watch?v=pPIhAm_WGbQ

Risk management

https://www.youtube.com/watch?v=o80PfIGYVvI

https://www.youtube.com/watch?v=8JwnRF-6YOI