Agricultural marketing plays an important role not only in stimulating production and consumption but also in accelerating the pace of economic development. The agriculture marketing system plays a dual role in economic development in countries whose resources are primarily agricultural. However, producers have been facing a number of problems while trying to market their agricultural goods.
The difficulties encountered by the producers of agricultural goods, in marketing, have been explained below.
Lack Of Organized Market
Majority of farmers live in villages. Organized markets have not developed in villages to sell their products. So, there are no markets to supply agricultural products to the customers, no agricultural inputs to the farmers in rural areas. So, agricultural market has remained unorganized
Predominance Of Intermediaries
Agricultural market is totally controlled by intermediaries. They have predominance in determining prices, buying and selling of agricultural products. So, neither the farmers can get reasonable prices for their products, nor the customers can get the products at cheap prices. Intermediaries buy agro-products at cheap prices from farmers and sell to consumers at high prices. So, the agricultural market has been seriously affected by exploitation of intermediaries.
Lack Of Storage
There is no proper warehousing facility for storing agricultural products. The farmers have the compulsion to sell their products at cheap price on the one hand, the quality of goods declines and quantity decreases due to the leakage on the other. Similarly, as there is no adequate facility of transportation, farmers cannot get reasonable prices for their products.
Lack Of Transportation
There is no transportation facility in every part of the country. If there is a transportation facility, the agricultural market can expand. Due to the lack of transport facilities, it becomes impossible. Although the importance of the agricultural market is paramount in every village, there is a lack of transport facilities.
Lack Of Standardization And Grading
Farmers produce various kinds of goods. But they are not standardized and graded according to their quality. Rather there is malpractice of adulteration of standard and inferior quality goods. Bad quality products are mixed with good quality and sold at high prices.
Lack Of Market Information
There is a lack of institutional bodies to give information to the farmers about the production situation, price, demand and changes in price, market situation etc. of the agricultural products. Farmers are exploited or cheated by local landlords, moneylenders and agro-businessmen due to their wrong information.
Lack Of Marketing Skill
Because of the lack of proper education, the small farmers and businessmen have no marketing skill. Small farmers, businessmen are not skilled in determining price, storing, packaging and grading the agricultural products. AS a result, they have not benefited from agricultural occupation.
Lack Of Minimum Price Fixation System
There is a lack of minimum price fixation system for agricultural products. As a result, farmers have to suffer exploitation.
How Best Can We Solve These Challenges
- Elimination of Mediators
The elimination of mediators is necessary from agricultural marketing because unless the farmer is allowed the facility of direct sales to the customer, he cannot receive a fair price for it. Thus, with the elimination of mediators, ‘consumer grain centers’ should be established where the farmer sells his produce.
- Development of Means of Transport
The backbone of agricultural marketing is the means of transport. Thus, such roads should be constructed in rural areas which remain capable of transportation during all seasons. The tire made bullock carts, diesel, or patrol trucks or tractors should be available in rural areas. Similarly, rail and water transport development is also necessary, keeping in view the marketing of agricultural produce, so that the grains and other perishable products can be quickly sent to the market.
- Loan Facilities
In villages loans for the farmers are arranged by well-up people, moneylenders, etc., who also make a deal of their products and exploit them on its basis. If the government establishes banks, cooperative societies, or other financial organizations then this problem can be solved. The farmers in the villages should also be encouraged to spend economically and save money so that at the time of need they get money from their savings. By this, the farmers would not sell their produce in a hurry and get full profits out of it.
- Use of Standard Weight
For improving agricultural marketing standard weights are specifically required, these should be manufactured and organized by the government. If any defect in weights is reported, a strict punishment system should be started so that there should be no fraud in marketing. This would not only improve the marketing system but the fraudulent tendencies of the traders would also be restricted.
- Publicity of Market Policies
Sufficient arrangements should be made for the transmission of the authorized prices of agricultural produce and quantity of production etc. so that the facts relating to agricultural marketing can be put before the concerned parties.
- Training Facilities
For the improvement of agricultural marketing, it is necessary that arrangements are made for the appropriate training of the employees related to marketing administration. Training with regard to the system of controlled markets etc. is very important for the improvement of agricultural marketing.
- Market SurveyMarket survey should be established, either by the government or farmers’ cooperatives, which collects useful data relating to production, consumption, export, demand price level, standardization, distribution system, etc. and publishes them from time to time.
- Elimination of Mediators
Marketing helps producers to decide what products to produce and when to produce them. Marketing also helps consumers by letting them know what products are available at what price. When done well, it leads to greater satisfaction for consumers and higher profits for producers. For more information contact Mazero Agrifood on +254729777711.