Agricultural marketing involves all the activities or processes relating to the flow of agricultural products from the farm to the final consumer.
IMPORTANCE OF MARKETING OF AGRICULTURAL PRODUCE
i) Transport activities like vehicle and good roads are provided.
ii) Links farmers (producers) and consumers together.
iii) Creates employment for the agent involved in marketing activities.
iv) The exportation of agricultural products abroad provides foreign exchange to the government and country.
v) The sale of agricultural products can provide money or income to the farmer.
vi) Agricultural products can be regularly received by the consumers throughout the year through marketing.
These are the people or processes that the goods and services pass through before they are offered for sale. They include;
1) Commodity boards
2) Cooperative societies
4) Private middlemen
1. COMMODITY BOARDS
i) It helps to eliminate wide differences in prices between farmers and consumers
ii) Helps to increase volume of production.
iii) It helps in pricing policies of commodity boards make farmers income not to be affected during price fluctuation.
2. CO-OPERATIVE SOCIETIES
Co-operative society is a combination of groups of people in the same trade wanting to pool resources together in order to make profit and attend to the needs of their members.
FUNCTIONS OF CO-OPERATIVE SOCIETIES
i) They grant loan to members
ii) Storage facilities can be provided
iii) Transport facilities are also provided
iv) Provide goods and services at a cheap rate to their members.
They are responsible for the direct production of their crops and live stocks. They do marketing of their products themselves.
ADVANTAGES OF PRODUCERS
i) The consumers receive product fresh.
ii) The price are at a reduced rate.
iii) They can sell to co-operatives societies and middlemen.
4. PRIVATE MIDDLEMEN
They may be called farm collectors or itinerant farmers. They go from one farm to another to buy farm product.
ADVANTAGES OF PRIVATE MIDDLEMEN
i) Provide storage facilities.
ii) Saves producers time
iii) Provide loan facilities to farmers
iv) Prepare the products into a state ideal for marketing
v) They link producers with consumers
i) They buy goods in large quantities
ii) Provide warehousing services
iii) Advance loans to producers
v) Provide transport facilities
This is the second form of middlemen
i) They ensure regular supply of goods and services to the consumers.
ii) Carry consumers problems to the wholesalers and back.
iii) They grant credit facilities to the consumers.
PROBLEMS OF MARKETING AGRICULTURAL PRODUCT
i) Bulkiness of crops affect transportation
ii) Seasonality of crops affect regular supply
iii) Transportation problems like bad roads
iv) Most farmers have small farm holding hence the producers are also small.
v) The perishability of agricultural product like crops, eggs etc.
vi) Poor storage facilities
vii) Problems of disease and pest
viii) Poor financing
ix) Communication problem
x) Inadequate research in marketing and in storage.
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