15 min read
Mathew Wahome
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
- Assembling: collecting produce from many farms.
- Grading and standardisation: sorting by quality.
- Packaging: protecting and presenting produce.
- Processing: adding value (milling, pasteurising).
- Transport: moving produce to markets.
- Storage: holding produce until demand arises.
- Financing: providing funds for marketing activities.
- Risk bearing: spoilage, price changes, theft.
- Market information: prices, demand and supply.
- 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
| Channel | Description |
|---|---|
| Producer - consumer | Direct sales (farm gate, local markets) |
| Producer - retailer - consumer | Sale to shops, supermarkets |
| Producer - wholesaler - retailer - consumer | Traditional chain |
| Producer - cooperative / marketing board - processor / exporter | Organised marketing |
Middlemen
- Advantages: assemble, store, transport and take risks.
- Disadvantages: raise prices to consumers and may pay farmers low prices.
5. Problems of Agricultural Marketing
- Perishability and poor storage.
- Bulkiness and high transport costs.
- Poor roads and infrastructure.
- Price fluctuations.
- Exploitation by middlemen.
- Lack of market information.
- Low quality and poor grading.
- Limited processing and value addition.
- Seasonality and glut.
6. Improving Agricultural Marketing
- Improve roads and infrastructure.
- Build storage and cold-chain facilities.
- Value addition and processing.
- Form cooperatives and farmer groups for bargaining power.
- Provide market information (mobile and radio).
- Grade and package produce well.
- Contracts and guaranteed prices.
- Diversify markets and enterprises.
- 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).