Characteristics of Agricultural Products & Marketing PDF

Chapter One Economic Characteristics of the Agriculture: Prepare: Prof: Mohamed Sayed Shehata Characteristics of agricultural products and agricultural marketing and Other 1-4 Characteristics of agricultural products and agricultural marketing The agricultural product is characterized by sever...

Chapter One Economic Characteristics of the Agriculture: Prepare: Prof: Mohamed Sayed Shehata Characteristics of agricultural products and agricultural marketing and Other 1-4 Characteristics of agricultural products and agricultural marketing The agricultural product is characterized by several characteristics related to the nature of the agricultural product and the agricultural production process. 1.4.1. Not valid for direct consumption. 6.4.2 The greatness and the low price. 6.4.3. Perishable. 1-4 Characteristics of agricultural products and agricultural marketing These characteristics cause problems when marketing agricultural products. It different from marketing products in other economic sectors such as industry and services. his requires an understanding of the nature of the agricultural commodity before practicing agricultural marketing, and it is a prerequisite for the success of marketing agricultural products.  6.4.1. Not valid for direct consumption The majority of agricultural products are considered raw materials that are not suitable for direct consumption without being processed. Those processing operations differ from one product to another, ❑some of them are simple work such as cutting and peeling...,Potato,tomato ❑and others are relatively complex, such as the production of wheat products, sugar cane products, cotton yarn and leather. 6.4.2 The greatness and the low price Many agricultural products are characterized by large volume and low price. this character greatly affects on operations: 1- the transportation, 2- storage, 2- handling, which is reflected in the costs of marketing and consumption.  6.4.3. Perishable Perishable: This characteristic varies from one agricultural product to another: as some products, 1- such as vegetables and meat, are perishable: and can only be stored for limited periods and at great costs. 2-Others, like nutritional grains: can be stored more cheaply and for longer periods of time.  6.4.4. Quality variation Agricultural products are characterized by great variation in the quality of different product. A: in the same cultivated land, B: from one agricultural season to the other. C: from climate change to another, d:from certain production inputs to other inputs. Also, the use of chemicals and natural alternatives from organic fertilizers changes the specifications of the product, Therefore, it is difficult to define agricultural commodity specifications for a long time. However, the technical progress in agricultural methods, such as protected crops, as well as in the means of harvesting, sorting and packing, have brought about a great development in the production and marketing of goods of similar quality.  6.5 Production Inflexibility:: Agricultural goods producers have less flexibility than consumer and industrial goods producers. That forces the former not to adapt to any kind of situation and can’t get out of the problem. For example, the farmers cannot adapt to changes. They prefer to grow the same crops they grow every year. But the consumer and industrial goods producers can modify or update their products in tune with the demand and market trend.  6.6 increase the agricultural production risks: Agricultural production is characterized with high degree of risk and uncertainties compared with other activities. This may be due to the following reasons: A. High fixed capital invested in agriculture which may cause high losses in agriculture, if the farmer must quit farming. B. Difficulty in controlling production due to the impact of agricultural production with natural elements. C. Seasonality in agricultural production and fluctuation of prices. Agricultural production is characterized by high grade risks : 1) the sector faces difficulty in obtaining credit facilities 2) to the high interest rate paid for agricultural loans. 6.7 The lack of farmers associations:: the farmers do not have any association. As a result of this, they are not able to represent their grievances the same in a proper manner. Industrialists have their own associations through which they represent all their grievances to the Government and can find solution to any problem.