Agricultural marketing is inferred to cover the services involved in moving an agricultural product from the farm to the consumer.It is also the planning, organising, directing and handing of agricultural produce in such a way as to satisfy the farmer, producer and the consumer. Numerous interconnected activities are involved in doing this, such as planning, production, growing and harvesting, grading,packing and packaging, transport, storage, agro- and food processing, distribution advertising and sale. Effectively, the term encompasses the entire range of supply chain operations. However, its key function is to help direct these services by providing competent and able market information, thereby, linking other operations into an integrated service with targeted outcomes.
The term agricultural marketing is composed of two words-agriculture and marketing. Agriculture, in the broadest sense, means activities aimed at the use of natural resources for human welfare, i.e., it includes all the primary activities of production. But, generally, it is used to mean growing and/or raising crops and livestock. Marketing connotes a series of activities involved in moving the goods from the point of production to the point of consumption. It includes all the activities involved in the creation of time, place, form and possession utility. According to Thomsen, the study of agricultural marketing, comprises all the operations, and the agencies conducting them, involved in the movement of farm-produced foods, raw materials and their derivatives.
Efforts to develop agricultural marketing have, particularly in developing countries, tended to concentrate on a number of areas, specifically infrastructural development, information provision, training of farmers and traders in marketing and post harvest issues, and support to the development of an appropriate policy environment. In the past, efforts were made to develop government-run marketing bodies but these have tended to become less prominent over the years.
Agricultural marketing plays an important role not only in stimulating production and consumption, but in accelerating the pace of economic development. Its dynamic functions are of primary importance in promoting economic development. An efficient agricultural marketing system leads to the optimization of resource use and output management. An efficient marketing system can also contribute to an increase in the marketable surplus by scaling down the losses arising out of inefficient processing, storage and transportation.
An efficient marketing system ensures higher levels of income for the farmers by reducing the number of middlemen or by restricting the commission on marketing services and the malpractices adopted by them in the marketing of farm products. An efficient system guarantees the farmers better prices for farm products and induces them to invest their surpluses in the purchase of modern inputs so that productivity and production may increase. The marketing system helps the farmers in the adoption of new scientific and technical knowledge. New technology requires higher investment and farmers would invest only if they are assured of market clearance.
Marketing activities add value to the product thereby increasing the nation's gross national product and net national product. The marketing system provides employment to millions of persons engaged in various activities such as packaging, transportation, storage and processing and so on.
Agricultural marketing techniques are used in every corner of "agribusiness," including small farms, corporate farms, and collectives; distributors; manufacturers of farm equipment, pesticides, and genetic enhancements for crops and livestock; feed and seed sellers; and more. Additionally, there are also government agencies which monitor and direct agribusiness practices.
- Agricultural products are perishable; therefore, a failure to sell on time results in wasted harvest. All wasted harvest represents a cost of land, water, labor, storage—and no income to show for it.
- Agricultural prices can be quite variable, impacted by changes in weather and harvests in far corners of the world.
- Different production methods mean that not all food is the same—but this information is meaningful only if the consumer knows about it.
- Farmers seek higher prices for their produce, and protection from price fluctuations. They try to reduce the amount of post-harvest waste, and secure guarantees for the sale of their produce. They may also work to open up new markets or channels, such as selling directly to consumers instead of through producers.
- Agrichemical companies promote solutions to farm problems, offering farmers higher yields and protection from pests. However, many solutions would be more strongly resisted by consumers, if it weren’t for effective public relations.
- Government agencies at both the federal and state level campaign for farm production. The USDA Agricultural Marketing Service runs a number of different programs to promote farm sales (and prices). The agriculture-rich state of California produces some $30 billion dollars’ worth of agricultural products annually, and is one of the largest food exporters in the world. To protect this investment, the state has government-mandated programs covering about 66 percent of its agricultural production.
- Provides raw materials for industries.
- Provides food grains for the entire population and fodder for cattle.
- Provides a base for expansion of internal market of a country.
- Helps in the expansion of international market also when marketable surplus found in excess of the demand of a country, fetches a considerable amount of foreign exchange.
Sources:
chrome-extension://mhjfbmdgcfjbbpaeojofohoefgiehjai/index.html
chrome-extension://mhjfbmdgcfjbbpaeojofohoefgiehjai/index.html
www.hillagric.ac.in/edu/coa/AgricEcoExtEduRSocio/lectures/AgEcon244.PDF
www.marketing-schools.org/types-of-marketing/agricutural-marketing.html
www.quora.com/What-is-the-importance-of-agricultural-marketing
No comments:
Post a Comment