The term agricultural marketing is made up of two words – agriculture and marketing.
Agriculture usually means the growth or we can say growth of crops and livestock during, marketing covers a series of activities involved in removing property from the production area in the area of use.
Table of Content
- Agricultural Market Infrastructure
- Market Information
- Agricultural Marketing Support
- Takeaway
Agricultural Marketing Development
1. Agricultural Market Infrastructure
Functional marketing infrastructure such as supermarkets, retail and integration markets and warehouses are essential for cost-effective marketing, reducing post-harvest losses and reducing health risks. Markets play an important role in rural development, income generation, food security, and improved communication with rural markets. Experience shows that planners need to recognize how to design markets that meet social and economic needs and how to choose the right site for the new market. In many cases the sites are selected incorrectly and lead to poor use or non-use of built-in infrastructure. It is also not enough to just build a market: it must be considered how that market will be managed, used and maintained.
2. Market Information
Effective market information can be shown to be of great benefit to farmers and traders. The latest knowledge of pricing and other market factors enables farmers to negotiate with traders and facilitates the local distribution of products from rural to urban and central markets. Many governments in developing countries have tried to provide market information services to farmers, but this often has problems with sustainability. In addition, even when operational, the service provided is often inadequate to allow commercial decisions to be made due to delays between data collection and distribution. Modern communication technology opens up opportunities for market information services to improve the delivery of SMS information to mobile phones and the rapid growth of FM radio stations in many developing countries provides access to local information services. Over time, the Internet may become a more effective way of bringing information to farmers. However, issues related to cost and accuracy of data collection will still be resolved.
3. Agricultural Marketing Support
Many governments have at one time or another made efforts to promote the development of agricultural markets. In the United States the Agricultural Marketing Service (AMS) is part of the USDA and has programs that provide testing, support configuration and grading and provide market news services. AMS oversees marketing agreements and directs research and development programs. It also buys goods for the organization’s food systems. The USDA also provides support for agricultural marketing activities at various universities. In the United Kingdom, marketing support for other goods was provided before and after World War II by boards such as the Milk Marketing Board and the Egg Marketing Board. These boards were closed in the 1970s. As a colonial state, Britain established billboards in many countries, especially in Africa. Some are still in existence although many were closed during the introduction of building renovation measures in the 1990s.
4. Takeaway
New marketing links between agribusiness, large retailers and farmers are gradually being developed, e.g. through agricultural contracting, group marketing and other collaborative methods. Donors and NGOs pay close attention to ways to promote direct communication between farmers and consumers within the context of the value chain. More attention is now being paid to the development of regional markets (e.g. East Africa) and formal trading systems that should drive development. The growth of supermarkets, especially in Latin America and East and Southeast Asia, has had a profound effect on the marketing channels of agricultural, dairy and livestock products. However, “visible” markets will continue to be important for many years, requiring attention to infrastructure development such as retail and supermarket markets.
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