Monday 13 March 2017

AGRICULTURAL MARKETING PROCESS

Agricultural marketing process involves wide variety of functions
such as:


(i) Assembling
(ii) Grading and standardization
(iii) Processing and Storage
(iv) Transportation
(v) Wholesaling and retailing


The process of agricultural marketing begins with the farmer and
end up with the consumer. In between these two extreme ends one can
find many intermediaries like transporters, warehouse owners,
commission agents, wholesalers, retailers etc. performing their duties to
enable the agricultural marketing process to reach its completion.


(1) AssemblingAt the start of the process, the assembling of goods is important.
Agriculture produce is collected in small lots and then assembled into
large ones. This function becomes essential because of small size of
farms and small quantity of production.



(2) Grading and standardizationWhen goods are assembled, grading and standardisation have to be
undertaken. Because of the difference in tastes and needs of the buyers,
whatever is assembled is to be classified in different lots according to
their inherent qualities, such as colour, size, taste and utility.


The classification is effected on the basis of certain specific
characteristics which are codified into grades and then become standard
by which the assembled lots are judged.



(3) Processing & StorageSome of the agricultural commodities may, then, undergo the
processing. For example, wheat may be turned into flour, cotton into
cloth and oilseeds into oil. During the processing the goods are
transformed so as to increase their shelf life and to make them more
acceptable to the consumer than in their original form.


The manufactured goods may not, however, be immediately
disposed of and may require space for storage. The needs of storage
brings into the existence of warehouses and godowns.



(4) TransportationFor the final consumption, the goods have to be moved from the
point of storage to the point where they are in actual demand. This may
require their transportation over long distances and across many lands.
It may be necessary to store them again for a while on arrival before they
could be sold to the wholesalers and through them to the retailers.


(5) Wholesaling and retailingThe task of making the goods available to the consumer for the
final consumption is entrusted upon the wholesalers and the retailers.
They are the final link in the process of agricultural marketing and they
playa vital role in the entire process.
  

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