Marketing of agricultural produce

Agricultural Science S.S.S 3 Second Term

WEEK 1

Marketing of agricultural produce

Performance Objectives

Student should be able to:

     1. State the meaning and importance of agricultural marketing.

     2. List marketing agents.

Content

Meaning of agricultural marketing

Agricultural marketing involves all activities undertaking in getting farm products from the producers to the final consumers. Agricultural marketing refers to the processes involved in the transfer of agricultural produce from the producers/farmers to consumers. These processes include storage, an assemblage of produce, transportation, processing, grading and financing to get agricultural produce from farmers to consumers.

The routes through which farm products are marketed or passed from the producers to the final consumer are called channels of marketing. Market is any medium through which buyers and sellers are brought together into contact for the purpose of buying and selling.

Channels of marketing farm products

1. The local market where dealers and buyers meet on fixed market days to transact business.

2. Through co-operative societies where local farmers organize themselves in a large group with enhanced bargaining power.

3. Through middlemen who buy directly from the rural farmers and sell in urban centres.

4. Through commissioned agents. These are agents who are licensed to buy directly from the farmers and sell to marketing boards for exporters.

5. Through exporters who sell these products to overseas buyers.

Importance of marketing

1. It links producers and consumers together at any point in time.

2. It provides money or income to the farmers when agricultural products are sold.

3. It creates job opportunities for various agents/agencies involved in marketing activities.

4. It encourages quality production by keeping the producers informed of preferences.

5. Efficient marketing checks irregular supplies and price fluctuations.

6. It bridges the gap between where there is an excess to where there is a shortage by linking the surpluses to the shortages.

Marketing agents

Marketing agents are the people responsible for carrying out marketing functions. These agents include:

1. Marketing board: These were established to perform the following functions:

a. Purchasing, grading and selling of the commodity various agricultural licensed buying agents who buy the produce from the farmers at a price fixed by the board and are paid a commission. The various grades of products attract and encourage the farmers to improve the quantity of their products.

b. Stability of prices.

c. Supply of raw materials for the local processing industry.

d. They give grants and loans to reputable farmers and organizations e.g Nigeria institute of oil palm research, Cocoa research institute of Nigeria, Ibadan (CRIN), International Institute of tropical agriculture (IITA).

e. Advice and encourages farmers to adopt modern farming techniques.

f. Help to transfer products for the farmers.

g. Provide storage facilities.