Agribusiness marketing can best be defined as series of services involved in moving a product from the point of production to the point of consumption. This definition was taken from slideshare.net.
The sole aim of going into a business is to make a profit. Meanwhile, for you to make profits you must be a good marketer. A good marketer is someone the understands the standards of a particular market.
Agribusiness marketing is one of the toughest processes in Agriculture. What makes it simpler is that most agricultural products are commodities that can be sold to final consumers as food crops or livestock.
In other words, agribusiness marketing is the activities involved in buying and selling agricultural yield from the farmers to the final consumer. Sometimes, it might not necessarily be to the final consumer, it might be a business between a farmer and a bigger company.
This marketing doesn’t just stop at farmers selling to consumers. It also involves farmers buying inputs like fertilizers and so on. Farmers sell the yields from their agricultural produce such that they buy seeds, chemicals and pay for labours on the farm during the planting periods.
No matter how difficult agricultural marketing can ever be, there is a reason OFarms has been created. Farms are one of the fastest-growing digital agricultural marketplacessesfor farmers in Nigeria.
What are the importance of agribusiness marketing?
1. Income: The main reason for marketing is income. Enough cash flow is to be generated by farmers on every product they bring up to the market for sale. With proper marketing, you can even generate more income than you can think of selling to industries. As a farmer, when you have a definite contract with industry, you generate more income than you can re-establish yourself in the coming years.
This income also applies to countries that make use of Agric products as their main raw materials. Countries like Ivory Coast are well know forecasted nuts… This applies that with proper marketing of agricultural products, good foreign exchange takes place and profitable returns are generated.
2. Price Determination: The forces of demand and supply also works in the Agricultural sector. Once your product is a basic need, you can decide if your price will be high or low and vice versa. But the fact here is that you can determine the price from your friends and others selling.
3. Shows Redundancy in a product: Once you have a good market approach as a farmer and you are not selling, then you will know there is a better way to go toward your kind of product. It will allow you to go back to your drawing board and qualify each of your customers. This is the only way you can sell your product and it will help. But without marketing, your agricultural produce will just degrade.
4. Circulation of money: Since the most commodities around the world are agricultural produce then there is a better circulation of money from it. Money that goes into agriculture goes back in the forms of healthy leaves and delicate livestock. This is another important part for agricultural marketing to take place.
Agents of agribusiness marketing
Agents of agricultural marketing are the steps or passages way for an agricultural raw material to get to the final consumer after. These agents are directly or directly involved in the selling of this product. Here are the agents that ensure effective passage of agricultural produce from farmers to final buyers:
1. Producers or Farmers: They are saddled with the responsibility of monitoring, managing, protecting and enriching the soil. These farmers are also involved in the direct marketing of their products. Such that, they will take this Agric product to the market themselves and make their sales.
2. Marketing or Commodity Brand: The government wants to make it very easy for farmers to make a living income from their farms. With this marketing or commodity brand that is saddled with the possibility of selling for farmers, farmers can generate more income from their business.
3. Wholesaler: This is someone or a group of people that buys in large quantities from the farmer and sell back in large quantities as well. These people buy in bulk for farmers and sell in bulk to retailers as well.
4. Retailers: These are a set of people that buy agricultural produce from wholesalers and they sell to consumers later on. So, retailers are people that sell in bits to final consumers. Retailers are the people with stores and shops around the community.
5. Cooperative Societies: This is a community of farmers (usually of the same product) that sell in bulk to either a big brand, industry or directly to consumers. After the profit and sales have been made, the society will share the commission according to the proportion of goods contributed by a farmer.