Agricultural marketing involves in its simplest form the buying and selling of agricultural produce. Agricultural marketing consists of all the functions and services used in moving the commodities from the producer to the final consumer. It includes delivering the right amount of product that has been demanded on time. Bennett Kireker, one of the leading agribusiness-man, follows these ways for his marketing.
Marketing functions: In modern marketing, the agricultural produce has to undergo a series of transfers or exchanges from one hand to another before it finally reaches the consumer. This is achieved through three important marketing functions namely:
Assembling: concerned with the assembly and transport of produce from the field to a common assembling area or the market.
Preparation for consumption: the product is sold, obtained from fields and are cleaned, processed or packed for the market. Also the processing need for the conservation of the quality.
Distribution: it involves retailing and whole-selling of the products at various points. It is the task of distribution system to match the available supplies with the existing demand.
The essential functions of agricultural marketing are discussed below:
Collection of the product for the market is called Assembling. It is of two types-
Bringing together smaller amounts of produce greater convenience.
Wholesaler buys finished products from many processors to have on hand the commodities wanted by retailers to supply the consumers.
Grading and Standardization:
Grading includes sorting out of the commodities into different groups on the basis of shape, size, variety, colour, quality etc.
Standardization fixes the grades and does not allow any interchange of products seasonally or yearly.
Processing is the conversion of farm produce into more consumable form. E.g. conversion of wheat into floors, preparation of butter, ghee from milk, hulling of paddy into rice etc. Processing imparts form utility.
The physical movement of the product from the place of production to the final consumer is called transportation. There are several means of transportation for several goods.
Storage is the process of holding of the product from time of production until needed by the consumers. Storage helps to spread out market supply. Storage varies from product to product.
It is the most important factor of agribusiness marketing. The marketability of a product depends on its packing. So it is very important to pack the product according to the necessity.
Functions of marketing agencies:
The transfer of product or goods takes place through a chain of middlemen or functionaries commonly known as agencies. The functionaries have their own setup. They may be individuals, partners or co-operatives who may buy and sell on ready and future basis, at a price determined by forces of demand and supply. There are different agencies in different markets:
In a primary market, the main functionaries are the producer, the village, or itinerary merchant, pre harvest contractors, commission agents, transport agents etc.
In the secondary market all the functionaries of primary market are involved and also the processing and manufacturing agents are the additional functionaries. Financing agents, banks and co-operatives also take part.
In the terminal or export market, the commercial analyst and shipping agent also get involved in the transfer of goods.
Bennett Kireker has access in all these three markets and sells products accordingly.