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Prepared by
Md.imran Sarker
Marketing Department
Begum Rokeya University,Rangpur,Bangladesh
Chapter-1
Agricultural produce marketing
Agricultural produce marketing
Agricultural is the art and science for cultivating the
land using minimum resource for maximum
production.
Economics basis of marketing agricultural
produce
Marketing means by which you dispose of the firm output
of a farm of factories, mines, quarries, forests, fisheries,
hunting, oil as well as everything imported.
-To encourage efficient allocation of resources
-To create wealth and promote economic growth
- To improve distribution of income between sectors of
the economy
- To maintain some stability of supply and demand for
market goods.
Characteristics of agricultural marketing
-Different pricing from others consumer product
-Product variety is size and quality
-Agricultural marketing being from nature
-Specialized production
-Channel members
-Bulkiness
-transportation cost
-Sales promotion needed
-Storage needed
-Collaboration with demand and supply
Structure of agricultural product market
The interconnected characteristics of a market such as
the number and relative strength of buyers and sellers
and degree of collusion among them, level and forms
of competition, extent of product differentiation and
ease of entry and exit from the market.
Four basic types of market structure
•Perfect competition
•Oligopoly competition
•Monopoly completion
•Monopolistic completion
Chapter -2
Assembling
Grading
Packaging
Processing
Transportation
Assembling
Assembling means component on end item
compromising of a number of part or sub assembling
put together to perform and capable of disassembling
without destruction.
•To bring together on
gather into one place,
company body whole.
To put on fit together
•To put together the
part of
•To assembling
information for a
report
To gather in the place
for a common purpose
Grading
Grading is the process of
sorting products according to
their quality.
Grading refers to the sorting of
on like lots of products into
uniform categories according
to quality standard.
Grading also provides
Feedback to instruction on
their students, learning
information that can inform
future learning decision.
Packaging
The activities or designing
and producing the container
or wrapper for a product.
The wrapping materials
around a consumer item that
serve to contain, identify,
describe, protect, display,
promote and otherwise
make the product
marketable and keep it
clean.
Processing
A series of actions that produce something that
leads to a particular result. A series of change that
happen naturally.
The purpose objective processing is to increase and
improve an individual ability to confront and to be
there in the present time.
Transportation
Transportation involves the movement of product
from point of origin to point of use or consumption
and perhaps their return as well. By moving products
from one place to another creates place utility.
Transportation
1.Road transportation
3.Air transportation
5.Pipeline transportation
2.Rail transportation
4.Water transportation
Chapter: 3
Pricing
Pricing of farm products
There are some strategies to select the price. Among them
•Market skimming pricing
•Market penetration pricing
•Competitive pricing
•Geographical pricing
•Cost-based pricing
•Others:
FOB pricing
Cost plus pricing
Value adding pricing.
Finance of farm product:
•Short term sourcing.
•Cash
•Relative or friends.
•Reseller.
•NGOs.
•Commercial; bank.
•Investment bank.
•Borrowing from relatives.
•Government.
Market of farm product:
Bangladesh is a agro-based country.
Farm product grows all the year and
all over Bangladesh.
Sources of farm product:
The supplier or broker may collect
farm product all over Bangladesh
basically mymensing, pabna,
manikgong etc.
Chapter-4
Distribution system
Definition of Distribution system
Distribution system means to spread the product
through out the marketplace so that a large
number of people can buy it from different place
where they are stay.
Types of markets for agricultural products
Agricultural product is normally channeled through the types
of markets
•Rural primary markets: In rural markets, trade is
characterized by direct sales of small quantities of product by
the producers to village traders and by sales by retailers to
rural consumers. Ex- Rice, vegetable, fruits etc.
•Assembly markets: Larger rural markets are found where
greater quantities of products are traded either by the
producers themselves or by the producers.
•Wholesale markets: Terminal wholesale are semi wholesale
market are located within or near major cities, These markets
may be supplier by purchasing or assembling centers in the
rural areas or directly from farms.
•Retail markets: These are markets directly serving
consumers and are found in main urban areas such
as town and city centers.
•Consumer market: Where the product is collected
for final consuming population. These are located
generally in thickly populated areas, where
population is adequate.
Cash market: Where the goods are exchanged
for cash money immediately ale of which
reasonable short period of time
Marketing channels of agricultural products
A channel of distribution of a product is the route
taken by the ownership of goods as they move from
the producer to the final consumer.
Some of the typical marketing channels for
agricultural products are given below-
Marketing channel of rice
Channel-1: Producer- Middlemen- consumer (village sale)
Channel-2: Producer- retailer- consumer ( local sale)
Channel-3: Producer- wholesaler- Retailer-Consumer
Channel-4: Producer- govt procurement- wholesaler- consumer
Marketing channels of vegetables
Channel-1: Producer- consumer(village sale)
Channel-2: Producer -retailer—consumer(local sale)
Channel-3: Farmer-traders-commission agent-retailer-consumer
Channel-4: Producer-wholesaler- retailer-consumer
Definition of organized market
An organized market functions as per the rules,
regulation and procedures which are led down
by the government.
It has its own constitution and managing body
for supervision, regulation, and control. Ex-
stock exchange, the regulated markets etc.
An organized market is a highly organized
market where especially tradable securities,
commodities, foreign exchange, futures and
options contracts are sale and bought.
Commercial marketing in Bangladesh
Chapter: 5
Commercial marketing
Scope of agricultural marketing:
•Crops
1.cash crops
2.non cash crops
•Fruits:
1.Seasonal.
2.All times of year.
•Vegetables
•Flowers nursery
•Dairy firm
•Paltry firm
•Others
Market of agricultural product
•Consumer market:
Is the market of agricultural product whole
product sold to ultimate customer for
consumption.
•Industrial market:
Market of agricultural product sold to those
customer who further process product or raw.
Source
Producer or
farmer
Assembling
Transportati
on
Processing
Storing
Selling
Process of agricultural marketing:
Objectives of agricultural produce marketing:
•To earn profit with the provide maximum satisfaction.
•To know how to make initiating or making effort for more
income and standard of living.
•To the condition of farmer.
•To know how to make awareness.
•To know when marketing system of agricultural products
become more and more complicated.
•To use the product or crops properly as raw.
Characteristics of agricultural product:
•Different pricing from other consumer product.
•Product variety in the size and quality.
•Market begins from native.
•Specialized product firm.
•Channel members needed more.
Necessity of intermediary in agricultural
produce marketing:
•Products move with bulkiness.
•Transportation costs are high.
•Move sales promotion needed.
•Storage needed.
•Products are perishable.
•Changing of demand and supply.
Problems of agricultural product marketing
•Source of product is not easy to go.
•Maximum product produced on rural area.
•Transportation system is not good.
•Farmers are not conscious about market.
•More middlemen needed for collecting product.
•The firm products are very sensitive.
•Natural calamities destroy the system.
•Production fertilities are not equal in every place.

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Agriculture produce marketing

  • 1. Prepared by Md.imran Sarker Marketing Department Begum Rokeya University,Rangpur,Bangladesh
  • 3. Agricultural produce marketing Agricultural is the art and science for cultivating the land using minimum resource for maximum production.
  • 4. Economics basis of marketing agricultural produce Marketing means by which you dispose of the firm output of a farm of factories, mines, quarries, forests, fisheries, hunting, oil as well as everything imported. -To encourage efficient allocation of resources -To create wealth and promote economic growth - To improve distribution of income between sectors of the economy - To maintain some stability of supply and demand for market goods.
  • 5. Characteristics of agricultural marketing -Different pricing from others consumer product -Product variety is size and quality -Agricultural marketing being from nature -Specialized production -Channel members -Bulkiness -transportation cost -Sales promotion needed -Storage needed -Collaboration with demand and supply
  • 6. Structure of agricultural product market The interconnected characteristics of a market such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation and ease of entry and exit from the market. Four basic types of market structure •Perfect competition •Oligopoly competition •Monopoly completion •Monopolistic completion
  • 8. Assembling Assembling means component on end item compromising of a number of part or sub assembling put together to perform and capable of disassembling without destruction.
  • 9. •To bring together on gather into one place, company body whole. To put on fit together •To put together the part of •To assembling information for a report To gather in the place for a common purpose
  • 10. Grading Grading is the process of sorting products according to their quality. Grading refers to the sorting of on like lots of products into uniform categories according to quality standard. Grading also provides Feedback to instruction on their students, learning information that can inform future learning decision.
  • 11. Packaging The activities or designing and producing the container or wrapper for a product. The wrapping materials around a consumer item that serve to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean.
  • 12. Processing A series of actions that produce something that leads to a particular result. A series of change that happen naturally. The purpose objective processing is to increase and improve an individual ability to confront and to be there in the present time.
  • 13. Transportation Transportation involves the movement of product from point of origin to point of use or consumption and perhaps their return as well. By moving products from one place to another creates place utility.
  • 14. Transportation 1.Road transportation 3.Air transportation 5.Pipeline transportation 2.Rail transportation 4.Water transportation
  • 16. Pricing of farm products There are some strategies to select the price. Among them •Market skimming pricing •Market penetration pricing •Competitive pricing •Geographical pricing •Cost-based pricing •Others: FOB pricing Cost plus pricing Value adding pricing.
  • 17. Finance of farm product: •Short term sourcing. •Cash •Relative or friends. •Reseller. •NGOs. •Commercial; bank. •Investment bank. •Borrowing from relatives. •Government.
  • 18. Market of farm product: Bangladesh is a agro-based country. Farm product grows all the year and all over Bangladesh. Sources of farm product: The supplier or broker may collect farm product all over Bangladesh basically mymensing, pabna, manikgong etc.
  • 20. Definition of Distribution system Distribution system means to spread the product through out the marketplace so that a large number of people can buy it from different place where they are stay.
  • 21. Types of markets for agricultural products Agricultural product is normally channeled through the types of markets •Rural primary markets: In rural markets, trade is characterized by direct sales of small quantities of product by the producers to village traders and by sales by retailers to rural consumers. Ex- Rice, vegetable, fruits etc. •Assembly markets: Larger rural markets are found where greater quantities of products are traded either by the producers themselves or by the producers. •Wholesale markets: Terminal wholesale are semi wholesale market are located within or near major cities, These markets may be supplier by purchasing or assembling centers in the rural areas or directly from farms.
  • 22. •Retail markets: These are markets directly serving consumers and are found in main urban areas such as town and city centers. •Consumer market: Where the product is collected for final consuming population. These are located generally in thickly populated areas, where population is adequate. Cash market: Where the goods are exchanged for cash money immediately ale of which reasonable short period of time
  • 23. Marketing channels of agricultural products A channel of distribution of a product is the route taken by the ownership of goods as they move from the producer to the final consumer.
  • 24. Some of the typical marketing channels for agricultural products are given below- Marketing channel of rice Channel-1: Producer- Middlemen- consumer (village sale) Channel-2: Producer- retailer- consumer ( local sale) Channel-3: Producer- wholesaler- Retailer-Consumer Channel-4: Producer- govt procurement- wholesaler- consumer Marketing channels of vegetables Channel-1: Producer- consumer(village sale) Channel-2: Producer -retailer—consumer(local sale) Channel-3: Farmer-traders-commission agent-retailer-consumer Channel-4: Producer-wholesaler- retailer-consumer
  • 25. Definition of organized market An organized market functions as per the rules, regulation and procedures which are led down by the government. It has its own constitution and managing body for supervision, regulation, and control. Ex- stock exchange, the regulated markets etc. An organized market is a highly organized market where especially tradable securities, commodities, foreign exchange, futures and options contracts are sale and bought.
  • 26. Commercial marketing in Bangladesh Chapter: 5
  • 27. Commercial marketing Scope of agricultural marketing: •Crops 1.cash crops 2.non cash crops •Fruits: 1.Seasonal. 2.All times of year. •Vegetables •Flowers nursery •Dairy firm •Paltry firm •Others
  • 28. Market of agricultural product •Consumer market: Is the market of agricultural product whole product sold to ultimate customer for consumption. •Industrial market: Market of agricultural product sold to those customer who further process product or raw.
  • 30. Objectives of agricultural produce marketing: •To earn profit with the provide maximum satisfaction. •To know how to make initiating or making effort for more income and standard of living. •To the condition of farmer. •To know how to make awareness. •To know when marketing system of agricultural products become more and more complicated. •To use the product or crops properly as raw.
  • 31. Characteristics of agricultural product: •Different pricing from other consumer product. •Product variety in the size and quality. •Market begins from native. •Specialized product firm. •Channel members needed more.
  • 32. Necessity of intermediary in agricultural produce marketing: •Products move with bulkiness. •Transportation costs are high. •Move sales promotion needed. •Storage needed. •Products are perishable. •Changing of demand and supply.
  • 33. Problems of agricultural product marketing •Source of product is not easy to go. •Maximum product produced on rural area. •Transportation system is not good. •Farmers are not conscious about market. •More middlemen needed for collecting product. •The firm products are very sensitive. •Natural calamities destroy the system. •Production fertilities are not equal in every place.