AGRICULTURAL MARKETING
By
PRAJWAL V J
01 Introduction to Agricultural Marketing
02 Key aspects of agricultural marketing
03 Nature and scope of Agricultural marketing
Objectives of Agriculture Marketing
04
Contents Challenges in Agricultural Marketing
05
5 Differences between Rural and Agricultural
06 marketing
Classification of agricultural markets
07
Introduction to Agricultural Marketing
The term agricultural marketing is composed of two words- agriculture and
marketing.
Agriculture: growing and/or raising of crops and livestock
Marketing: It encompasses a series of activities involved in moving the goods
from the point of production to point of consumption.
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Definitions
Human activity directed at satisfying the needs and wants through exchange process (Phillip
Kotler).
Performance of business activities that directs the flow of goods and services from producers to
users (American Marketing Association).
The study of agricultural marketing comprises all the operations, and the agencies conducting them,
involved in the movement of farm produced foods; raw materials and their derivatives, such as
textiles, from the farms to the final consumers, and the effect of such operations on the farmers,
middlemen and consumers.
Key aspects of agricultural marketing
• All activities from supply of farm inputs to the farmers and movement of agricultural products from the farms to the
consumers
• Two major sub systems
oProduct marketing - farmers, village/primary traders, wholesalers, processors, importers, exporters, marketing
cooperatives, regulated marketing committees and retailers.
o Input (factor) marketing. - manufacturers, distributors, related associations, importers, exporters and others
• Link between the farm and non-farm sectors.
• Agricultural marketing includes marketing functions, agencies, channels, efficiency and costs, price spread and market
integration, producer’s surplus, government policy and research, training and statistics on agricultural marketing and
imports/exports of agricultural commodities.
Nature of Agricultural marketing
• Perishability of the product
• Seasonality of production
• Bulkiness of products
• Variation in quality of products
• Irregular supply of agricultural products
• Small size of holding and scattered production
• Product pricing
• Processing
Scope of Agricultural marketing
Marketing of farm products that are produced by the farmers and also includes marketing of
farm inputs required by the farmers in process of production i.e. the subjects includes output
marketing as well as input marketing.
Achieving economic growth and development
Objectives of Agriculture Marketing
Stabilizing price level
Creating scientific
storage capacity Giving up to date
information
Providing finance to increase
farmers income at less rates
and zero rates
Increasing profit of
Integrated value chains to farmer
provide vertical integration of
Objectives
farmers with primary processors
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Using ICT to make farmers to face
problems and challenges faced in
agricultural marketing
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Challenges in Agricultural Marketing
Improper Warehouses Malpractices in
01 Unregulated Markets 05
Lack of Grading and Inadequate Market
02 Standardization Information 06
Inadequate
03 Transport Facilities Inadequate Credit 07
. Facilities
Presence of a Large
04 Number of Middlemen
Differences between Rural and Agricultural marketing
Developing, pricing, Services involved in moving
promoting and distribution agricultural product from
of products and services farm to consumer
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Meeting rural customers Meeting needs
needs and demands and of farmers
RURAL AGRICULTURAL
MARKETING MARKETING
Handling all the products
and services to satisfy Handling agricultural
related products
both rural customers and
expectations of the
company
Classification of agricultural markets
CLASSIFICATION ON THE BASIS OF LOCATION
VILLAGE MARKETS TERMINAL MARKETS
.
PRIMARY MARKETS SEA-BOARD MARKETS
SECONDARY
WHOLESALE MARKETS
CLASSIFICATION ON THE BASIS OF AREA OR COVERAGE
LOCAL/VILLAGE
NATIONAL MARKETS
MARKETS .
WORLD/INTERNATIONAL
REGIONAL MARKETS
MARKETS
.
CLASSIFICATION ON THE BASIS OF TIME SPAN
SHORT PERIOD MARKETS LONG PERIOD MARKETS
PERIODIC MARKETS SECULAR MARKETS
CLASSIFICATION ON THE BASIS OF VOLUME OF TRANSACTIONS
1. WHOLESALE MARKETS
2. RETAIL MARKETS
CLASSIFICATION ON THE BASIS OF NATURE OF TRANSACTIONS
1. SPOT/CASH MARKETS
2. FORWARD MARKETS
CLASSIFICATION ON THE BASIS OF NUMBER OF COMMODITIES TRANSACTED
1. GENERAL MARKETS
2. SPECIAL MARKETS
CLASSIFICATION ON THE BASIS OF DEGREE OF COMPETITION
PERFECT MARKETS OLIGOPOLY MARKETS
.
MONOPOLY MARKETS MONOPOLISTIC
DUOPOLY MARKETS COMPETITIVE MARKET
CLASSIFICATION ON THE BASIS OF COMMODITIES
COMMODITY MARKETS
CAPITAL MARKETS
CLASSIFICATION ON THE BASIS OF STAGE OF MARKETING
PRODUCING MARKETS
CONSUMING MARKETS
CLASSIFICATION ON THE BASIS OF EXTENT OF PUBLIC INTERVENTION
REGULATED MARKETS
.
UN- REGULATED MARKETS
ON THE BASIS OF TYPE OF POPULATION SERVED
URBAN MARKETS
RURAL MARKETS
ON THE BASIS OF MARKET FUNCTIONARIES AND ACCRUAL OF MARKETING MARGINS
FARMERS MARKETS GENERAL MARKETS
CO-OPERATIVE MARKETS
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