The agricultural marketing process is carried out mainly through the physical functions performed on commodities and by utilizing the facilitating activities. These tasks help move farm produce from the farm gate, through various marketing institutions, to the final consumers or users.
1. The Physical Functions in Agriculture
The physical process of moving the farm produce from the area of production must involve some form of handling of the commodity. For example, cassava tubers harvested from the farm must be handled in one form or the other to move them through the next stages.
Read Also: Main Principles of Pig Production for Maximum Production
2. Assembly of Agricultural Produce
Produce harvested by small-holder farmers from various locations must be brought together at convenient points in concentrated forms for ease of transport and storage. Agricultural cooperatives often provide storage facilities for their members.
These storage facilities, referred to as warehousing, play a significant role for both farmers and manufacturers, helping to prevent market disruptions caused by factors such as industrial action or sabotage, as is the case with oil installations in the Niger Delta area.
Market participants seek more efficient financial and operational methods to manage risks in a competitive environment, and storage operators can provide relief by hedging against transportation and storage risks.
3. Transportation of Agricultural Goods
Transportation involves the physical movement of farm products from one location to another, adding the utility of place. This is the value a commodity gains when it is available where the consumer wants it.
Transportation can be carried out by road, rail, ship, or air. To be considered adequate, transportation should allow convenient handling of products, care during transit, speed, especially for perishable goods, and reasonable costs. Transportation systems facilitate the movement of goods from farms to intermediate processing centers, distribution points, and final markets.
4. Processing Agricultural Commodities
Processing refers to the conversion of a commodity from its raw state to a form more acceptable to buyers or suitable for the next stage in the distribution chain. This process improves quality, preserves the product, and offers product differentiation, adding form utility.
Many agricultural products, such as wheat or seed cotton, do not provide consumer satisfaction in their raw forms and require processing, such as turning wheat into flour or cotton into lint for clothing.
The development of processing facilities has expanded food variety and reduced household labor through products like tinned tomatoes and processed cereals. Processing methods range from traditional techniques, like sun drying, to advanced technologies involving sophisticated machinery used in the production of butter or garri.
Read Also: Different Systems of Pig Production for Optimum Performance
5. Packaging of Agricultural Products
Packaging is essential before some agricultural commodities can move efficiently through market channels. Packaging ensures easier handling, better storage, and protection from damage. Examples include packaging potatoes before shipment or using crates for tomatoes and peppers transported from northern to southern Nigeria.
The primary objective of packaging is convenience for producers and consumers while protecting the products during transit and facilitating easy handling. It also allows for product identification and makes products more attractive to consumers, further influencing purchasing decisions.
6. Pricing and Exchange Function in Agricultural Markets
This function involves buying and selling, which includes agreeing on a price, transferring ownership, and arranging delivery and payment. A product may be bought and sold multiple times between the farmer and the final consumer.
In a poorly developed marketing system, buyers and sellers engage in bargaining before agreeing on a price, while in a well-developed system, price tags are used. However, the usefulness of price tags depends on the honesty and integrity of the seller. A detailed discussion of the role of price in agricultural marketing is presented in later articles.
Do you have any questions, suggestions, or contributions? If so, please feel free to use the comment box below to share your thoughts. We also encourage you to kindly share this information with others who might benefit from it. Since we can’t reach everyone at once, we truly appreciate your help in spreading the word. Thank you so much for your support and for sharing!
