What are the stages of agricultural marketing


Stages in a commodity marketing system

Stage Examples
Stage 1: Assembly Commodity buyers specialising in specifi …
Stage 2: Transportation Independent truckers, trucking companies …
Stage 3: Storage Grain elevators, public refrigerated war …
Stage 4: Grading and classification Commodity merchants or government gradin …

Apr 7 2022

What Are the Stages of Agricultural Trading?
  • Stage 1: Origination. The first stage is origination. …
  • Stage 2: Production Storage. Storage is a key part of the supply chain for any agricultural product. …
  • Stage 3: Purchase and Sale Operations. …
  • Stage 4: Transport. …
  • Stage 5: Trade Financing and Commodity Trading.
Jan 13, 2020


What is agricultural marketing strategy?

Agricultural Marketing Strategy. Agricultural marketing techniques have their own peculiarities, connected both with the specifics of agricultural production and with agricultural products. The practical application of marketing in agriculture is more specific than limited.

What are the different types of Agricultural Marketing courses?

These programmes are generally in the nature of orientation/refresher course. While a few courses are conducted regularly, others are ad hoc in nature and include training in the areas of general agricultural marketing, grading, market intelligence, etc.

What are the steps taken for improving agricultural marketing?

Agricultural Marketing – Steps Taken for Improvisation 1 Creation of planned network of warehouses at all markets. 2 Linking co-operative credit with farming, marketing and processing. 3 Development of rural transport. 4 Adequate publicity to market information. 5 Stabilisation of food grain prices. More items…

Which of the following is included in agriculture marketing?

Activities like transportation, processing, storage, grading etc. are included in agriculture marketing. These activities are very important for the development of the agricultural atmosphere in any country.


What is the stages of agricultural marketing?

Table 6.1 Stages of agricultural marketingStageExamplesStage 1: AssemblyCommodity buyers specialising in specific agricultural products, such commodities as grain, cattle, beef, oil palm, cotton, poultry and eggs, milkStage 2: TransportationIndependent truckers, trucking companies, railroads, airlines etc.5 more rows

What are the 5 stages of Agriculture?

Agriculture & Agricultural PracticesSoil preparation. Before raising a crop, the soil in which it is to be grown is prepared by ploughing, levelling, and manuring. … Sowing. Selection of seeds of good quality crop strains is the primary stage of sowing. … Manuring. … Irrigation. … Weeding. … Harvesting. … Storage.

What are the seven stages in agricultural marketing commodity?

Stages in a commodity marketing system The systems approach emphasises the interdependence and inter relatedness of all aspects of agribusiness, namely : from farm input supply to the growing, assembling, storage, processing, distribution and ultimate consumption of the product.

What are the four types of agricultural market?

Agricultural Marketing – Classification on the Basis of Location: Local Market/Village Market, Primary Markets, Secondary Markets and Terminal Markets. Agricultural marketing comprises marketing of food grain, commercial crops, plantation crops, horticultural produce and semi-processed products.

How many stages are in agriculture?

The stages are: 1. Traditional Agriculture 2. Technologically Dynamics Agriculture-Low Capital Technology 3. Technologically Dynamic Agriculture High Capital Technology.

What is the three stages of agricultural?

Innovation in agriculture goes through three stages: research and product development; demonstration and market validation; and commercialization.

What are the five agricultural marketing activities?

They are listed and explained as follows:Assembling. Collection of farm produce for sale. … Grading. … Processing. … Transportation. … Storage. … Packaging. … Problems of Agricultural Marketing in Nigeria. … Lack of Transportation Facilities.More items…•

What is agricultural marketing system?

Agricultural marketing is a mechanism through which these goods reach different places depending on marketplaces. Agricultural marketing is a process that involves assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.

What is agribusiness marketing?

Definition of Agribusiness Marketing  Agribusiness marketing can best be defined as series of services involved in moving a product from the point of production to the point of consumption.

What are the components of agricultural marketing?

❖ The subject of agricultural marketing includes marketing functions, agencies, channels, efficiency and costs, price spread and market integration, producer’s surplus, government policy and research, training and statistics on agricultural marketing and imports/exports of agricultural commodities.

What type of market is agriculture?

Most agricultural markets are “perfectly competitive,” meaning (ideally) that a homogeneous product is produced by and for many sellers and buyers, who are well informed about prices. The market is characterized by free entry and exit, with producers obligated to be price takers.

What are the two types of agricultural markets?

a. Primary Wholesale markets: These are located in big towns near the centres of production of agriculture commodities, transaction mostly take place between farmers and traders. b. Secondary Wholesale markets: These are generally located at districts headquarters or important trade centres near railway stations.

What is distribution in farming?

Distribution refers to sending the farmed produce where it is needed. Farmers can achieve economies of scale and logistical efficiencies at this stage, besides getting better prices. However, it needs good transport and storage facilities, the ability to hold on to their stock and knowledge of markets and prices. Many farmers fail on all fronts, and that is the reason that they depend on agents to lift their entire stocks at whatever prices they can get.

What is secondary processing?

When the produce goes through some more pro­cessing or is graded or cleaned, it is called secondary processing and storage . Cold chains and processing facilities close to the farm are needed for these stages. Farmers are mostly unable to add value at this stage also as they lack such processing and storage facilities.

What does WSP mean in farming?

Usually farmers sell at wholesale prices (WSP) to agents. This saves them from spending long hours at mandis, which are usually without facilities. But this also means that they are unable to take advantage of price changes or value addition. At the mandis, farmers are under pressure to sell, as the longer they hold on to stock, the more is the deterioration of their produce.

How long is the livestock marketing course?

Officers from the Animal Husbandry/Veterinary Departments of the States are sponsored for this programme. The duration of the course is of six months.

What are agricultural products?

In this wider sense, milk and milk products, eggs, fruits, vegetables, honey are also agricultura l goods.

How do cooperative markets work?

A cooperative marketing society carry the agricultural produce direct to the consumers thus eliminating a large army of middlemen and intermediaries.

What are the types of agricultural markets in India?

The important types of agricultural markets in India are as follows: Type # 1. Primary or Local Markets: Primary markets, known as Hatts or Shandies are held once or twice a week in the neighbourhood of a group of villages. There are more than 22,000 such markets in India.

What is terminal market?

A terminal market is a market where the produce is either finally disposed of to the consumer or to the processor or assembled for export. In these markets, merchants are well organized and use modern methods of marketing. In this market the price locating activities operate and buyers and sellers represent the different regions or nations sometimes meet to adjust the supply and demand.

How long is the regulated market course?

The duration of the course, initially of five months, is now of four months.

What is the path that goods take from producer to final consumer?

The path that goods take from producer to final consumer is called the marketing channel. The type and complexity of the marketing channel varies with different commodities. The roadside market is a very simple marketing channel , from producer/farmer directly to consumer (Vegetables).

What is agricultural marketing?

Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. These services involve the planning, organizing, directing and handling of agricultural produce in such a way as to satisfy farmers, intermediaries and consumers. 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, provision of market information, distribution, advertising and sale. Effectively, the term encompasses the entire range of supply chain operations for agricultural products, whether conducted through ad hoc sales or through a more integrated chain, such as one involving contract farming .

What are the efforts to develop agricultural marketing?

Efforts to develop agricultural marketing have, particularly in developing countries, tended to concentrate on a number of areas, specifically infrastructure development; information provision; training of farmers and traders in marketing and post-harvest issues; and support to the development of an appropriate policy environment.

How have wholesale markets changed?

The characteristics of wholesale markets have changed considerably as retailing changes in response to urban growth, the increasing role of supermarkets and increased consumer spending capacity. These changes may require responses in the way in which traditional wholesale markets are organized and managed.

How does market information help farmers?

Most governments in developing countries have tried to provide market information services to farmers, but these have tended to experience problems of sustainability. Moreover, even when they function, the service provided is often insufficient to allow commercial decisions to be made because of time lags between data collection and dissemination. Modern communications technologies open up the possibility for market information services to improve information delivery through SMS on cell phones and the rapid growth of FM radio stations in many developing countries offers the possibility of more localised information services. In the longer run, the internet may become an effective way of delivering information to farmers. However, problems associated with the cost and accuracy of data collection still remain to be addressed. Even when they have access to market information, farmers often require assistance in interpreting that information. For example, the market price quoted on the radio may refer to a wholesale selling price and farmers may have difficulty in translating this into a realistic price at their local assembly market. Various attempts have been made in developing countries to introduce commercial market information services but these have largely been targeted at traders, commercial farmers or exporters. It is not easy to see how small, poor farmers can generate sufficient income for a commercial service to be profitable although in India a new service introduced by Thomson Reuters was reportedly used by over 100,000 farmers in its first year of operation. Esoko in West Africa attempts to subsidize the cost of such services to farmers by charging access to a more advanced feature set of mobile-based tools to businesses.

What is AMS in agriculture?

In the United States the Agricultural Marketing Service (AMS) is a division of USDA and has programs that provide testing, support standardization and grading and offer market news services.

What are the problems farmers face?

However, while they are able to identify such problems as poor prices, lack of transport and high post-harvest losses, they are often poorly equipped to identify potential solutions.

What is the importance of agricultural market infrastructure?

Efficient marketing infrastructure such as wholesale, retail and assembly markets and storage facilities is essential for cost-effective marketing, to minimize post-harvest losses and to reduce health risks. Markets play an important role in rural development, income generation, food security, …

Chapter Objectives

The objectives of this chapter are to provide the reader with an understanding of:

Structure Of The Chapter

The chapter has a simple structure. Eight stages of commodity marketing are identified at the beginning of the chapter. This is a general model and therefore not all of the stages it describes are equally applicable to the commodities selected for discussion.

Stages in a commodity marketing system

A commodity marketing system encompasses all the participants in the production, processing and marketing of an undifferentiated or unbranded farm product (such as cereals), including farm input suppliers, farmers, storage operators, processors, wholesalers and retailers involved in the flow of the commodity from initial inputs to the final consumer.

Grain marketing

The principal participants in grain marketing systems are producers, marketing boards, grain elevators, brokers, millers, livestock farmers, animal feed processors, millers, other food manufacturers, grain exchanges and exporters.

Challenges for grain marketing systems

Depot network and distribution of production problems arise because crop production is rarely evenly distributed across a country. In most countries cereals production is concentrated in one or two regions of the country, and the remainder are cereals deficit areas.

Livestock and meat marketing

At the outset of this chapter it was observed that in an introductory textbook, such as this one, there were severe constraints on the range of agricultural commodities which could be discussed and that the author had to be highly selective.

Poultry and eggs marketing

Poultry farmers have three distinct types of bird from which to select their flocks:

What is agricultural marketing?

Agricultural marketing as a business activity involves the flow of goods and services from the point of initial production until they reach the ultimate consumer. During this entire process the commodity moves from one hand to another and also from one place to another.

What are the two types of marketing systems in agriculture?

It becomes clear from the figure that two types of marketing system of agricultural products are prevalent in the region, viz., (i) private trade, uncontrolled and without state intervention and (ii) regulated market operations in which trading is done under rules and regulations.

What is the system of agricultural marketing in India?

In India, in spite of the existence of regulated marketing, the system of agricultural marketing varies from region to region and also within a region. The prevalent systems are—sale in village, sale in mandis, sale in weekly markets, sale of agricultural produce through co-operatives and sales to government.

What is marketing function?

In fact, marketing functions are activities that are to be performed during marketing of any farm product and all these functions are interlinked with each other, thus forming a part of an efficient marketing system.


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Exercise 1. Explaining the agroenterprise process
Exercise 2. Visioning “basic sessions”
Exercise 5a. Choosing food products and market products
Exercise 5b. Let’s think about new products
Exercise 5c. Assessing risks of product and marketing options
Exercise 7a. Market mapping
Exercise 7b. Market survey
Exercise 7c.

What is agricultural 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.

Why is it important to study the agricultural marketing system?

A study of the agricultural marketing system is necessary to an understanding of the complexities involved and the identification of bottlenecks with a view to providing efficient services in the transfer of farm products and inputs from producers to consumers.

What is processing in agriculture?

Processing is an important marketing function in the present-day marketing of agriculturalP commodities. A large proportion of farm products was sold in an unprocessed form. At present, consumers are dependent upon processing for most of their requirements.

How does WA marketing work?

WA well-knit marketing system widens the market for the products by taking them to remote corners both within and outside the country, i.e., to areas far away from the production points. The widening of the market helps in increasing the demand on a continuous basis, and thereby guarantees a higher income to the producer.

Why is marketing important for farmers?

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.

How does an efficient agricultural marketing system contribute to the marketable surplus?

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.

Where does the word “market” come from?

The word market comes from the latin word „marcatus  which means merchandise or trade or a place where business is conducted. Word „market has been widely and variedly used to mean (a) a place or a building where commodities are bought and sold, e.g., super market; (b) potential buyers and sellers of a product, e.g., wheat market and cotton market; Some of the definitions of market are given as follows: . A market is the sphere within which price determining forces operate.


Who Employs Agricultural Marketing?

  • The subjects of agro-marketing are: 1. suppliers of raw materials, production and labor resources, material and technical supplies; 2. all agricultural commodity producers; 3. market infrastructure organizations, wholesale and retail trade organizations and various intermediari

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Agricultural Marketing Specifics

  1. Economic results in agriculture depend on natural conditions. This feature of agribusiness is the basis not only for production but also for organizing marketing activities. The land as the main me…
  2. The working period in agriculture does not coincide with the period of production. The effectiveness of agro-marketing in this particular feature depends on the correct evaluation o…
  1. Economic results in agriculture depend on natural conditions. This feature of agribusiness is the basis not only for production but also for organizing marketing activities. The land as the main me…
  2. The working period in agriculture does not coincide with the period of production. The effectiveness of agro-marketing in this particular feature depends on the correct evaluation of demand and its…
  3. The production is seasonal. Taking into account this feature, forms and methods of marketing in agriculture are formed.
  4. Production of vital goods. Since agriculture is mostly engaged in the production of food products, agro-marketing is faced with the tasks of timely deliveries of products in the right q…

Agricultural Marketing Strategy

  • Agricultural marketing techniques have their own peculiarities, connected both with the specifics of agricultural production and with agricultural products. The practical application of marketing in agriculture is more specific than limited. In the conditions of everyday market competition, the manufacturer that takes into account not only the natural and economic conditions of the region…

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Agricultural Marketing – Basic Facilities For Farmers

Agricultural Marketing – Need For Trained Personnel

  • The term “agricultural marketing” encompasses a wide range of functions, viz., assembling, transportation, storage, processing, grading, sales etc., as needed to offer produce from the farm to the consumer in the required form at the right time and place and at an acceptable price. It also includes arrangements for supplying inputs for production. While discussing training in marketin…

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Agricultural Marketing – Agricultural Research

  • Agricultural research is a vital input for planned growth and sustainable development of agriculture in the country. India had for the first time a record production of 202.5 million tonnes during 1998-99; the production of rice and wheat was 84.7 and 71.0 million tonnes respectively. With these production levels, India has emerged as the second largest producer of wheat and ric…

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Agricultural Marketing – Steps Taken For Improvisation

  • 1. Creation of planned network of warehouses at all markets. 2. Linking co-operative credit with farming, marketing and processing. 3. Development of rural transport. 4. Adequate publicity to market information. 5. Stabilisation of food grain prices. 6. Government organisations, such as Food Corporation of India, Cotton Corporation of India, etc., …

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