Agricultural Marketing - Marketing Management (Kenya)
Agricultural marketing
This refers to the marketing of agricultural products e.g. Coffee, maize, tea. Etc. it is regarded as unique due to the characteristics of demand and supply of agricultural products. The production of agricultural products in countries such as Kenya, is characterized by
A large number of small farmers.
A lack of full control over quality and quantity of the output.
Inability of individual farmers to engage in demand creation activities for their own produce.
Seasonality of production.
Bulk in commodities relative to value.
Perishability of unprocessed products.
Demand is relatively inelastic i.e. increase of supply, leading to the lowering of prices, doesn’t substantially increase the consumption of agricultural products.
Factors leading to the Emergence of Agricultural Marketing organizations.
1. Weaknesses of farmers as bargainers in the market.
a) In poor countries, they are more than the buyers.
b) An individual farmer’s output does not significantly influence the total supply. Thus they have no say on market price.
c) Poor knowledge regarding market conditions. Different grades, which are unknown in advance.
d) Mass illiteracy. Leading to conmen.
e) High Perishability means farmers can’t store produce until price improves.
2. Inelastic supply
a) Farmers lack full control over the productive process. If demand increases after planting, they can’t alter their output in the short term.
b) Factors beyond anyone’s control e.g. Diseases, pests etc. may destroy the crop.
c) Duration of some trees to bear fruit. Some take years, so if prices change, the farmer can’t do anything.
3. Inelastic demand
a) Availability of substitutes.
b) Necessities vs luxuries.
c) Alternative uses of a product. A product with many uses tends to be more elastic, where as one with only one use tends to be inelastic.
1. MARKETING BOARDS
This is defined as a commodity trading organization, set up by the government to buy agricultural produce from farmers through
This refers to the marketing of agricultural products e.g. Coffee, maize, tea. Etc. it is regarded as unique due to the characteristics of demand and supply of agricultural products. The production of agricultural products in countries such as Kenya, is characterized by
A large number of small farmers.
A lack of full control over quality and quantity of the output.
Inability of individual farmers to engage in demand creation activities for their own produce.
Seasonality of production.
Bulk in commodities relative to value.
Perishability of unprocessed products.
Demand is relatively inelastic i.e. increase of supply, leading to the lowering of prices, doesn’t substantially increase the consumption of agricultural products.
Factors leading to the Emergence of Agricultural Marketing organizations.
1. Weaknesses of farmers as bargainers in the market.
a) In poor countries, they are more than the buyers.
b) An individual farmer’s output does not significantly influence the total supply. Thus they have no say on market price.
c) Poor knowledge regarding market conditions. Different grades, which are unknown in advance.
d) Mass illiteracy. Leading to conmen.
e) High Perishability means farmers can’t store produce until price improves.
2. Inelastic supply
a) Farmers lack full control over the productive process. If demand increases after planting, they can’t alter their output in the short term.
b) Factors beyond anyone’s control e.g. Diseases, pests etc. may destroy the crop.
c) Duration of some trees to bear fruit. Some take years, so if prices change, the farmer can’t do anything.
3. Inelastic demand
a) Availability of substitutes.
b) Necessities vs luxuries.
c) Alternative uses of a product. A product with many uses tends to be more elastic, where as one with only one use tends to be inelastic.
1. MARKETING BOARDS
This is defined as a commodity trading organization, set up by the government to buy agricultural produce from farmers through