Changing the raw agricultural product into a consumable form (e.g., turning wheat into flour, or milk into cheese). This adds value and increases shelf life.
Finding buyers, promoting products, and negotiating prices to transfer ownership. B. Physical Functions
The interaction between supply and demand determines the prices of agricultural products in a free market ecosystem. The Law of Demand
Weather changes, pests, and diseases make it difficult for farmers to deliver completely uniform quality or exact volume yields every year.
Holding products to stabilize prices and ensure availability throughout the year. agricultural marketing notes grade 12 best
Products like fruits, vegetables, and milk spoil quickly.
| Term | Meaning | |------|---------| | | Collecting produce from scattered farms | | Commission agent | Intermediary who sells on farmer’s behalf for a fee | | Danther | Commission agent/trader in some regions | | Farm harvest price | Price at harvest time (usually lower) | | Hedging | Locking future price via futures contract | | Marketable surplus | Farm output minus family consumption | | Pre-harvest contract | Agreement before crop is harvested | | Spot price | Immediate delivery price | | Terms of trade | Ratio of farm product price to non-farm goods price |
What are you selling? (Quality, variety, packaging).
Should we focus on creating a for a specific crop or livestock product? Changing the raw agricultural product into a consumable
Processing or compressing products close to the production source to reduce bulk before shipping. Seasonality
Moving produce from rural farms to urban markets or processing factories.
Protecting products during transport and making them attractive to consumers.
The government or statutory boards regulate the sale, pricing, and distribution of certain commodities. Holding products to stabilize prices and ensure availability
A growing population increases the total demand for food. The Law of Supply
Farmers choose where to sell based on volume, distance, and profit margins.
Sorting products into uniform categories based on quality, size, weight, and color. This establishes clear standards for pricing.
Marketing functions are the specialized activities performed in moving goods. They are generally categorized into three types: A. Physical Functions
Finding a buyer, negotiating prices, and transferring ownership of the product. Physical Functions