Agricultural Marketing Exams Questions and Answers

Agricultural marketing involves all the activities and processes involved in getting agricultural products from the farm to the consumer. It encompasses the entire supply chain, including production, processing, transportation, storage, and distribution of agricultural goods.

The main goal of agricultural marketing is to ensure that agricultural products reach the right markets efficiently and at a reasonable cost while providing fair returns to farmers.

Importance of agricultural marketing

1. Helps to make products available year-round.
2. It creates employment for people (drivers, traders, retailers etc).
3. It locates where there are surpluses of produces and brings them to where there are shortages.
4. It brings about a foreign exchange to the nation through exportation of produce.
5. It helps in price determination.
6. It enables the producers to know the taste of the consumers.
7. It initiates research into products preferred by the consumer
8. It helps in the provision of infrastructure such as roads, electricity, pipe-borne water etc.

Channels of marketing farm products

This refers to all the linkages or pathways through which farm produce pass through before they get to the final consumers. These include

1. Producers
2. Marketing board
3. Local Market
4. Middlemen
5. Co-operative societies
6. Middlemen
7. Commissioned agents
8. Exporters
9. Processor

Stages of agricultural marketing

The Stages involves in marketing agricultural produce include

1. Farm-level processing
2. Grading or sorting
3. Packaging
4. Storage or warehousing
5. Transportation
6. Advertisement
7. Merchandizing
8. Assemblage

Evaluation

1. What is agricultural marketing?
2. What is the significance of agricultural marketing
3. List and explain the stages of agricultural marketing.
4. What are the channels involved in the marketing of agricultural produce?

Marketing functions

These are activities expected of a marketer to achieve set marketing objectives. The functions are:

1. Researching
2. Buying
3. Product development and management
4. Production
5. Promotion
6. Standardization and grading
7. Pricing
8. Distribution
9. Risk bearing
10. Financing

Agents of agricultural marketing

This includes all the people or agents or bodies which are directly or indirectly involved in the marketing of farm produce.  These agents include:

1. Marketing/commodity boards
2. Co-operative societies
3. Individual / Private Middlemen
4. Producers/farmers
5. Wholesalers
6. Retailers

Marketing/commodity boards

These are trading agencies of the government that oversee the marketing of export or cash crops. It started as marketing board and later changed to commodity boards.

Advantages of marketing/commodity boards

1. It creates employment for licensed buying agents.
2. Guarantees producers prices and ensures the production of export crops.
3. They stabilize prices and ensure that farmers are not affected by price fluctuation.
4. Encourage the processing of export produce.
5. Generate income to the government through export duties and sales taxes.
6. Contribute to providing social amenities like roads, hospitals, pipe-borne water etc.
7. Promote produce quality.
8. Encourage the production of both export and food crops.
9. They sometimes provide capital to farmers.

Disadvantages of marketing/commodity boards

1. It deals mainly on major export crops.
2. They fix prices on their own without consulting the farmers.
3. Middlemen cheat the farmers by either paying them lower prices or downgrading their produces.
4. When the world prices of produce rise, farmers are still paid the fixed prices
5. Government interferes with the running of the boards.

• Co-operative societies

They are a voluntary organization formed by a group of individuals who pool their resources together with the primary objectives of satisfying the needs and aspirations of their members.

Advantages of co-operative societies

1. Purchase commodities in bulk from the producers.
2. Bypass the middlemen, and deal directly with producers as a result, they retail commodities to the members and non-members at moderates prices.
3. Members pool individual resources together to meet the special needs of members which on an individual’s basis is difficult.
4. The profits of the co-operatives are shared among the members either according to the individual’s shareholdings or volume of purchase from the co-operative.
5. Membership is voluntary.
6. They provide storage facilities.
7. They grant a loan to members.
8. They provide transportation facilities.

Disadvantages of co-operative societies

1. Poor and ineffective management.
2. It is prone to financial misappropriation.
3. It does not encourage the establishment of individual enterprise.

• Producers

These are the farmers who produce agricultural commodities.

Advantages of producers

1. The agricultural market starts with the farmers without whom the existence of other marketing agents and consumers is meaningless
2. They produce what consumers need thereby satisfying their taste and preference.
3. Produce gets to the consumer at reduced rice.
4. Produce get to the consumer in its fresh state.

Disadvantages of producers

1. The producers through the producers co-operative may decide to produce what will attract higher income to them and not what the consumers need most.
2. They hoard and ration the supply of produce to the market to enjoy attractive prices.
3. He lacks storage facilities.
4. Farmers may suffer an increased loss of goods.
5. He lacks transportation facilities.

• Individual/private middlemen

These are individuals that come directly to the farm to buy farm produce.

Advantages of individual/private middlemen

1. They link producers with consumers.
2. They may give loans to producers.
3. They assemble, blend and repack certain goods.
4. They save the producer’s time in marketing his goods.
5. They also provide storage facilities.
6. They also provide transport facilities.

Disadvantages of individual/private middlemen

1. They inflate the prices of commodities.
2. They create artificial scarcity of goods.
3. They exploit producers and consumers.

• Wholesaler

These are the agents who buy products in large quantities from the farmers (producers) and sell in small quantity to the retailers.

Advantages of wholesaler

1. They purchase produce in bulk.
2. They provide storage facilities.
3. They have good transport facilities.
4. They pass information from retailer to producers and vice versa.

Disadvantages of wholesaler

1. They exploit the producers and retailers.
2. They create artificial scarcity of goods.
3. They inflate the prices of commodities.

• Retailers

These are agents who buy goods from the wholesalers and sell in small quantities to the final consumers.

Advantages of retailers

1. They make products readily available and affordable to consumers.
2. They provide jobs to many people.
3. They pass information from consumers to wholesalers.
4. They give credits to some consumers.

Disadvantages of retailers

1. They may create artificial scarcity of goods
2. They may suffer losses due to theft or spoilage of perishable goods
3. They may inflate the prices of commodities.

Problems of agricultural marketing

1. Inadequate transportation system.
2. Small scale production.
3. Inadequate basic amenities.
4. Perishability of produce.
5. Inadequate storage facilities.
6. Inadequate processing facilities.
7. Poor financing.
8. Poor Prices of products.
9. Problems of middlemen.
10. Difficulty in assembling produce.

Possible solutions to problems of agricultural marketing

1. Provision of good roads.
2. Provision of finance to farmers.
3. Provision of storage and processing facilities.
4. Formation of good policies by the government.
5. Encouragement of market research.

Evaluation

1. What are the agents of marketing?
2. What are the problems of agricultural marketing?

General evaluation

1. What is agricultural marketing?
2. What is the importance of agricultural marketing?
3. List ten problems of agricultural marketing.
4. List five possible solutions to the problems of agricultural marketing.
5. What are marketing functions?
6. List and explain six marketing functions.

Reading assignment

Essential agricultural science for senior secondary school by O. A. Iwena pages 450 – 458

Answer revision questions 2 and 13 on page 458.

Weekend assignment

1. Which of the following is not an agricultural marketing agent in Nigeria? (a) Consumers (b) co-operative society (c) Producer (d) consumers
2. Establishing a specified characteristic that your product must conform to is ____ (a) sorting (b) pricing (c) standardization (d) promotion
3. ____ buys produce from farmers in the raw state and converts them to usable or consumable forms (a) Middlemen (b) Marketing board (c) Processors (d) Wholesalers
4. The disadvantage of buy produce directly from farmers is (a) the produce are usually at the freshest state (b) produce price is at the cheapest (c) produce are purchased at inflated prices if there is scarcity (d) none of the above
5. ____ enables a marketer generate adequate information about targeted market (a) Research (b) Sorting (c) Standardization (d) Promotion

Theory

1. State two advantages each of the following agricultural marketing agents. (i) commodity boards (ii) co-operative society (iii) middlemen (iv) Retailer (v) producer.
2. Explain the term marketing channel.
3. Outline and discuss channels of marketing cocoa.
4. List five ways by which marketing can be encouraged

Agricultural Marketing Examination Questions and Answers

• Answer the questions below. Check your answers afterwards and do corrections.
• Give yourself one hour.
• Marks: 100

1. Match each statement in column A with a statement in column B. (7 × 2 = 14)
   

   COLUMN A	COLUMN B
   1.1 Marketing Act of 1996 1.2 Advertising Standards 1.3 Consumer Protection Act of 2008 1.4 Marketing of Agricultural Products Act of 2001 1.5 Security Services Act No 36 of 2004 1.6 Agricultural Produce Agents Act of 1952 1.7 Agricultural Produce Amendment Act of 2004	A. Formation of the National Agricultural Marketing Council B. Financial markets are fair and transparent C. Marketing licence from the director of marketing D. Fidelity Funds certificates E. Dates and times for contacting clients F. Enhanced the jurisdiction of the agents councils G. Set up by the marketing communication industry H. Proposed the introduction of inspectors

2. Define the following terms:
   2.1 marketing chain
   2.2 value chain
   2.3 grading (3 × 2 = 6)
3. Name THREE factors that complicate the marketing of agricultural products. (3 × 1 = 3)
4. Ongoing improvements to the agri-business chain are vital.
   4.1 Explain how infrastructure development can improve the agri-business chain.(1 × 5 = 5)
   4.2 Suggest FOUR other ways to streamline and improve the agri-business chain. (4 × 1 = 4)
5. Choose the best answer to each question. Write only the answer number (i–iv) next to the question number (1.1–1.5).

5.1 Demand is affected by ______

1. weather conditions.
2. the price of the product.
3. the stability of the product.
4. the state of technology.

5.2 Free-marketing is a form of marketing in which the farmer markets his/her products ______

1. as directed by control boards.
2. as he pleases.
3. with the aid of agents.
4. as per agreement by members of the society.

5.3 The form of marketing where a small segment of the market is targeted is called ______

1. multi-segment marketing.
2. mass marketing.
3. niche marketing.
4. eco-labelling.

5.4 The channel of marketing in which a municipality builds a market and rents it out is called ______

1. fresh produce markets.
2. farm gate sales.
3. a stock market.
4. internet marketing.

5.5 Which one of these is not an advantage of free-marketing?

1. Sales are for cash
2. No middlemen
3. Farmers receive payments immediately
4. Farmers are motivated to work harder (5 × 2 = 10)

6. Match the items in column A with those in column B. Write only the correct numbers and letters. (5 × 2 = 10)
   

   COLUMN A	COLUMN B
   6.1 Advertising 6.2 Personal selling 6.3 Sales promotion 6.4 Publicity 6.5 Print media	A. Farmers Weekly B. Discounts C. PRO D. Talking to customers E. Radio and television F. Labelling

7. Give one word or phrase for each of the following:
   7.1 A quantity of goods offered for sale at a particular price at a particular moment
   7.2 A situation in which the demand for a product is affected by price change.
   7.3 A number of activities that a product goes through after production until it reaches the consumer
   7.4 The marketing act that protects consumers from exploitation
   7.5 The form of market in which refurbished and reconditioned goods are sold. (5 × 1 = 5)
8. The following statements are false. Replace the underlined words to make the statements correct.
   8.1 Packaging involves covering and labelling the product so that it appeals to the marketer.
   8.2 The marketing chain starts after the product has been harvested and ends when the product reaches the producer.
   8.3 Grading, packaging, cleaning and processing are part of the agri-business chain.
   8.4 The standardisation of products means the sorting of products in terms of quality.
   8.5 The Marketing of Agricultural Product Act of 2001 increased the access to markets for all farmers. (5 × 1 = 5)
9. Define each term below. Then, for each term, outline FOUR factors that affect it.
   9.1 Supply (2 + 4 × 2 = 10)
   9.2 Demand (2 + 4 × 2 = 10)
10. Read the passage below and the answer questions that follow.
    Jabu Sithole wanted to establish a co-operative society. She made copies of the identity documents of her relatives and registered the co-operative society under the name Siyakhisana. This society would concentrate on vegetable production and processing.
    She used all her money to finance the activities. Unfortunately, the business failed.
    10.1 Give two reasons for the failure of Siyakhisana Co-operative Society. (2 × 1 = 2)
    10.2 Suggest and discuss three principles that should be applied in the functioning of a co-operative. (3 × 2 = 6)
    10.3 Describe how directors of a co-operative society are selected. (1 × 1 = 1)
    10.4 Give the term used to describe working together and sharing among co-operative society members. (1 × 2 = 2)
11. Compare the following:
    11.1 Primary and tertiary co-operative (2 × 1 = 2)
    11.2 Co-operative and controlled marketing (2 × 1 = 2)
12. List three disadvantages of free-marketing. (3 × 1 = 3)

ANSWERS

1. Match each statement in column A with a statement in column B.
   1.1 A
   1.2 G
   1.3 E
   1.4 C
   1.5 B
   1.6 D
   1.7 F (7 × 2 = 14)
2. Define the terms:
   2.1 The sequence/processes the product goes through from harvesting to consumer
   2.2 An alliance of agricultural enterprises working together at different stages in production, processing and marketing
   2.3 Involves the sorting of produce according quality criteria. (3 × 2 = 6)
3. Seasonal fluctuation; perishability, as well as factors like (any one): standardisation; ineffective control over production; low value in relation to volume (bulkiness); long-term production; wide product distribution; locality restricted production; intermediaries (middlemen) are required for marketing (3 × 1 = 3)
4. Improvements to the agri-business chain:
   4.1 Infrastructure will ensure that there is enough space and shelter for storage and processing. Additional roads will make it easier to transport agricultural goods from the production site to the markets. Suitable shelters for storage must be built will enable products to last longer. These aspects work together to make the agri-business chain more effective. (1 × 5 = 5)
   4.2 participatory market chain approach; vertical co-ordination; adequate infrastructure; business linkages and value chains; vertical integration;creation of market organisations to assist producers and processors; government involvement; specialisation; diversification; hedging. (4 × 1 = 4)
5. Choose the best answer:
   5.1 the price of the product (ii).
   5.2 as he pleases (ii)
   5.3 niche marketing (iii)
   5.4 fresh produce markets (i)
   5.5 They are all advantages. (5 × 2 = 10)
6. Match the items:
   6.1 E
   6.2 D
   6.3 B
   6.4 C
   6.5 A (5 × 2 = 10)
7. One word or phrase for the following:
   7.1 Supply
   7.2 Price elasticity
   7.3 Marketing chain
   7.4 Consumer Protection Act
   7.5 Green market. (5 × 1 = 5)
8. Correct the statements:
   8.1 Consumer
   8.2 Retailer
   8.3 Agri-marketing chain
   8.4 Grading
   8.5 Marketing Act of 1996 (5 × 1 = 5)
9. Define the terms:
   9.1 Supply is the quantity of goods on the market at a particular price at a particular time. It is affected by seasonal production; weather conditions; the profit margin of the product; specialised scientific knowledge; the ability to increase supply; expected future prices; the state of technology (any four) (2 + 4 × 2 = 10)
   9.2 emand is the quantity of goods bought at a particular price at a particular moment. It is affected by the price of the product; usefulness of the produc; quality of the product; the price of competitive goods; number of consumers; preferences of consumers; the buying (purchasing) power of consumers; tradition and religions of conumers; size of households (any four) (2 + 4 × 2 = 10)
10. Read the passage below and the answer questions that follow.
    10.1 Not a broad enough membership base; poor cash flow management. (2 × 1 = 2)
    10.2 Democratic member control; Autonomy and
    10.3 Independence; Distribution based on the value of a business; Economic participation/financing of co-operatives; Concern for the community; Co- operation among members. (3 × 2 = 6)
    10.4 Democratic vote. (1 × 1 = 1)
    10.5 Pool system. (1 × 2 = 2)
11. Compare the following:
    11.1 Primary is the first level with members directly represented; two or more secondary make up a tertiary, which represents interests of members of primary and secondary to government. (2 × 1 = 2)
    11.2 Co-operative marketing is organised according to the members through votes or their constitution, and it can involve marketing according to groups of products; controlled marketing is restricted or regulated marketing that can set limits on supply and determine prices. (2 × 1 = 2)
12. Farmers may not have all the necessary skills; It is riskier because if natural disaster affects production, the farmer bears all the risk alone; Prices will fluctuate because of the force of supply; A small-scale farmer will have less bargaining power; Production and marketing costs are high; farmers that operate as a one person enterprise will struggle to keep up production and focus on marketing; Some farmers may form cartels to protect themselves from competition and consumers could be exploited; Marketing is now more commercialised and specialised so experts are needed to perform this role (any three)