Producer, Intermediaries and the Consumer in Agricultural Market

02 Oct 2015 by

The growing concern on sustainability of agricultural resources and conserving the environment and meeting the needs and wants of the consumers. The producer always blamed for price increases in the market and not intermediaries. Growing concern of organic and genetically modified agricultural products. The barriers around imports and exports. Exchange rates as they rise and fall, it is difficult for the market to be established. The locations from which products are produced.

Focusing on the producer, the farmer has to produce to meet and exceed the demand of a nation. The produce is seasonal and at the same time consumers expect the product to be available throughout the year. Climate change making it difficult for the producer to meet the needs. Global warming which is still a major concern. Which is a gradual increase in the average temperature of the Earth’s atmosphere and its oceans, a change that is believed to be permanently changing the Earth’s climate. It is difficult for the farmer to forecast his produce because of the climate change. Droughts, floods, earth quakes, tornados being the evidence of the climate change. The need for climate smart agriculture globally.

Intermediaries act as a conduct for agricultural product or service offered by the supplier to a consumer. Get commission on the sale of the produce and being able to get contract for the farmer. They are in direct contact with customer and not the producer. Risk is on the farmer as agricultural products are unique, unprocessed, and cumbersome and perishable and quality vary. Intermediaries are a great way as they linked in the market. Small holders need to combine together as it is said; “It’s easy to break a stick but not a bunch of sticks”. Access the market through a trustworthy intermediary and creating job opportunities thereby reducing unemployment and poverty in emerging economies especially in the motherland Africa. We cannot blame the past for all that is happening yet we should take responsibility and act up as youth in agriculture and changing lives. Agripreneurs are required and they need great marketing plans and funding and need to work with intermediaries.

Marketing that is focused on the consumer which is the marketing approach. Produce a product that fills a consumer need, price it correctly, make readily available and promote it properly and the marketing success will follow. Consumers are targeted in different segments to be able to meet their specific needs and wants. Segmenting is cut the market up, choose attractive segments to target and design to appeal to those segments. Dimensions such as geographic, demographics, psychological and product use. The trends and feds that are available to the consumer. Trends change over time and last longer, feds are for a short period of time and faced out of the market. Understanding the customer behaviour the internal and external factors.

We need to make the environment sustainable when producing agricultural products and meeting the needs of the consumers and the market being free and fair. “If you want to go fast, go alone and if you want to go far, go together “– African proverb. All global sectors in agriculture must work together and the goal is to go far as the agricultural industry.