Theory question 109
Marketing of Agricultural Produce(a) State three advantages and one disadvantage of each of the following marketing agents: (i) retailers; (ii) wholesalers (iii) co-operative societies
(b) Explain how poor storage facilities affect agricultural marketing.
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(a)(i) Retailers – advantages: sell in small quantities consumers can afford; bring goods near consumers; give credit to customers; provide market information. Disadvantage: raise final prices
(ii) Wholesalers – advantages: buy in bulk from farmers; store goods; transport produce; give credit/finance; bear risks. Disadvantage: may hoard and cause artificial scarcity; exploit farmers
(iii) Cooperatives – advantages: better prices for members; bulk buying and selling; credit to members; storage and processing. Disadvantage: poor management/mismanagement of funds; slow decision making
(b) Farmers must sell at harvest when prices are low; produce spoils, causing losses; supply becomes irregular, so prices fluctuate; quality falls; scarcity and high prices in the off-season; low farm income
Three advantages and one disadvantage for each agent.