Understand and describe the definition of agricultural marketing.
Explain the new role and importance of agricultural marketing.
Introduction to Agricultural Marketing
Agricultural marketing connects the farmers who produce food with consumers who purchase it.
The journey of food from farms to homes involves various stakeholders: traders, wholesalers, retailers, etc.
Definition: Agricultural marketing is the process starting from a farmer’s decision to produce a marketable commodity, encompassing all market aspects, including pre-harvest and post-harvest operations (assembling, grading, storage, transportation, distribution).
Key Components of Agricultural Marketing
Input Marketing: Marketing of farm inputs (fertilizers, pesticides, machinery).
Product Marketing: Marketing of agricultural outcomes, involving movement through primary traders, wholesalers, importers, exporters, and retailers.
New Role of Agricultural Marketing
Agricultural marketing has evolved significantly over the past six decades due to:
Increased supply of agricultural commodities.
Urbanization and rising income levels.
Growing exports to foreign markets.
Changes in government intervention levels.
Decision Making: Modern agricultural marketing begins with decisions on what and how to produce and prepare products for market.
Importance of Agricultural Marketing
Optimization of Resource Use and Output Management:
Efficient systems optimize resource usage and increase marketable surplus.
Increase in Farm Income:
Reduces middlemen, ensuring maximum income for farmers, fostering direct retailer relationships.
Widening of Markets:
Expands market reach across the country and internationally, boosting demand and farmer income.
Growth of Agro-based Industries:
Supports the development of agro-based industries (e.g., cotton, jute, sugar) reliant on agricultural raw materials.
Price Signals:
A good marketing system enables farmers to respond to economic needs based on transmitted price signals.
Adoption of New Technology:
Efficient marketing encourages farmers to adopt new agricultural technologies.
Employment Creation:
Various roles arise from marketing processes (e.g., agents, regulatory staff, retailers).
Addition to National Income:
Effective marketing increases product value, contributing to Gross National Product (GNP).
Better Living:
Improves farmers' economies and reduces costs for consumers, enhancing living standards.
Creation of Utility:
Marketing adds value through:
Form Utility: Changing product forms for better utility.
Place Utility: Transportation creates place utility.
Time Utility: Storage provides time utility by availability.
Position Utility: Buying and selling enhance position utility.
Conclusion
Agricultural marketing fosters economic growth for farmers and enhances the overall economy of the country.
Summary
Covered the definition, new role, and importance of agricultural marketing.