(a) (i) Explain marketing in agriculture. (ii) Mention five stages involved in marketing agricultural produce (b) Describe briefly four agents of marketing

Answer Details

(a)(i) Marketing in agriculture. Marketing is the sum total of all the activities and business processes involved in moving agricultural produce from the producer (farmer) to the final consumer. It covers assembling, buying, selling, processing, grading, storage, transportation, financing and distribution, together with the exchange of ownership, so that the produce reaches the consumer at the right place, time and form.

(ii) Five stages involved in marketing agricultural produce:

1. Assembling (collecting the produce from scattered farmers).
2. Processing (converting the produce into usable/storable form).
3. Grading and standardisation (sorting produce into uniform quality grades).
4. Storage (holding the produce until it is needed).
5. Transportation and distribution (moving and selling the produce to consumers).

(b) Four agents of marketing:

• Wholesalers: middlemen who buy agricultural produce in large quantities from producers (or assemblers) and sell in smaller lots to retailers. They provide storage and bulk-breaking services.
• Retailers: middlemen who buy produce in fairly small quantities from wholesalers and sell directly to the final consumers in small units at convenient places such as markets and shops.
• Commission agents (brokers): agents who buy and sell produce on behalf of others and are paid a commission; they bring buyers and sellers together but do not usually own the goods.
• Cooperative marketing societies: associations formed by farmers to jointly assemble, grade, store and sell their members' produce, thereby securing better prices and reducing exploitation by middlemen.