Importance of Agricultural Marketing


Importance of Agricultural Marketing


Agricultural marketing plays an important role not only in stimulating production and consumption, but accelerating the pace of economic development. This can be considered from four different perspectives: the national economy, the farmer, the product and the consumer.

1.The national economy:

as societies and countries develop there is a movement of people from the countryside into the towns and cities. Urban populations in developing countries are expanding. This means that the number of persons needing to be fed by the rural communities is growing over the years. In addition, since the amount of food eaten by each individual normally increases as people become wealthier, the supply of food for the towns and cities will need to more than double in the coming years. This change in population distribution will create new or improved opportunities for both farmers and other agribusinesses, particularly if new roads and improved transport are provided.
In this context therefore, subsistence farming (i.e. just providing enough food for the farmer and the immediate family) becomes less important because the farmer will be required to become more specialized and skilled so that more food can be produced to meet the growing demand. In addition, agribusinesses will grow and flourish, as the growing, wealthier and urbanized population with changing tastes and preferences will demand more and more value added (processed) agricultural products. And so rural communities should be encouraged and helped to take control and develop the marketing of their food products so that they can secure and maximize rural incomes.

2.The farmer:

the most disadvantaged farmers are those with small units
of land. These farmers will find that they cannot generate sufficient incomes from their small farms to support themselves and their families by growing only traditional crops, e.g. maize and potatoes. They will find it difficult to compete with produce grown by large farms using mechanization. Examples from developed countries reveal that viable small farms tend to specialize in high-value enterprises. These could be crops or livestock systems, which are capable of generating high incomes per unit of land. So these growers need help in accessing markets by being provided with good production advice and market information to strengthen their ability to negotiate and compete

3.The product:

Agricultural products are mainly sold fresh; some are eaten raw while others are cooked. As society develops and becomes more affluent the market for processed and prepared products develops. A market also develops for non-food products such as flowers and house and garden plants which are sold for purely aesthetic reasons. Increased wealth also brings with it an increased demand for product diversity in the form of new crops, off-season supplies and different flavours.

4.The consumer:

Along the whole value chain, the consumer is particularly important. Finding out what the consumer wants and satisfying his demand is the key to successful marketing and, in itself, is a valuable service to society. Efficient marketing will reduce the cost of fresh produce, bringing with it improvements in the nation’s health as well as expanding the market for high-value crops, which are themselves a crucial component of viable small-farmer systems. The marketing system should ensure that the maximum proportion of the retail price of food is returned to the rural community.
janetraph answered the question on March 14, 2019 at 06:13

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