Topic 4: Agricultural Marketing

1. Meaning

Agricultural marketing is all activities involved in moving farm produce from the farm to the final consumer.

2. Marketing Functions

1. Assembling: collecting produce from many farms.
2. Grading and standardisation: sorting by quality.
3. Packaging: protecting and presenting produce.
4. Processing: adding value (milling, pasteurising).
5. Transport: moving produce to markets.
6. Storage: holding produce until demand arises.
7. Financing: providing funds for marketing activities.
8. Risk bearing: spoilage, price changes, theft.
9. Market information: prices, demand and supply.
10. Selling.

3. Characteristics of Agricultural Products

• Perishable (milk, vegetables).
• Bulky relative to value.
• Seasonal supply.
• Variable quality.
• Price and supply uncertain due to weather and disease.
• Inelastic demand for staples.

4. Marketing Channels

Middlemen

• Advantages: assemble, store, transport and take risks.
• Disadvantages: raise prices to consumers and may pay farmers low prices.

5. Problems of Agricultural Marketing

1. Perishability and poor storage.
2. Bulkiness and high transport costs.
3. Poor roads and infrastructure.
4. Price fluctuations.
5. Exploitation by middlemen.
6. Lack of market information.
7. Low quality and poor grading.
8. Limited processing and value addition.
9. Seasonality and glut.

6. Improving Agricultural Marketing

1. Improve roads and infrastructure.
2. Build storage and cold-chain facilities.
3. Value addition and processing.
4. Form cooperatives and farmer groups for bargaining power.
5. Provide market information (mobile and radio).
6. Grade and package produce well.
7. Contracts and guaranteed prices.
8. Diversify markets and enterprises.
9. Use e-commerce and digital platforms.

7. Marketing Organisations

• Cooperative societies: collect and sell members' produce.
• National Cereals and Produce Board (NCPB): buys and stores maize and other cereals.
• Kenya Tea Development Agency (KTDA): markets small-scale farmers' tea.
• Regulatory authorities for specific commodities (tea, coffee, dairy, horticulture).