Wednesday, April 14, 2010

Agricultural marketing

Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. Numerous interconnected activities are involved in doing this. Agricultural marketing is best carried out by the private sector rather than governments and all stages of the chain must show a profit for the participants. Support to developing countries with agricultural marketing development is carried out by the agricultural marketing section of FAO and various donor organizations. Activities include market information development, marketing extension, training in marketing and infrastructure development. Recent trends have seen the rise of supermarkets and a growing interest in contract farming.

Agricultural marketing can best be defined as series of services involved in moving a product from the point of production to the point of consumption. Thus agricultural marketing is a series of inter-connected activities involving: planning production, growing and harvesting, grading, packing, transport, storage, agro- and food processing, distribution and sale. Such activities cannot take place without the exchange of information and are often heavily dependent on the availability of suitable finance. Marketing systems are dynamic. They are competitive and involve continuous change and improvement. Businesses that have lower costs, are more efficient and can deliver quality products are those that prosper. Those who have high costs, do not adapt to changes in market demand and provide poorer quality are often forced out of business. Marketing has to be customer oriented and has to provide the farmer, transporter, trader, processor, etc. with a profit. This requires those involved in marketing chains to understand buyer requirements, both in terms of product and business conditions.

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