The Problem Of Marketing Agricultural Products In Rural Areas

Project and Seminar Material for Marketing

The Problem Of Marketing Agricultural Products In Rural Areas


Abstract


Over the years, major changes have come into effect to improve the agricultural marketing system. Many institutions such as, the regulated market, marketing board co- operative marketing institution, warehousing co-operative etc have been established primarily to aid the farmers.

However, various studies indicated that modernization in agricultural marketing could not jeep pace with the technological adoptions in agriculture. The various marketing function like grading, standardization, storage, market intelligence e.t.c need to be improved to meet the present day requirement of the farmers. In improving the marketing system for food and livestock in rural areas like Dansof farms Auchi, Edo stated it is important to understand the marketing problems because by doing this, workable solution can be found.


Chapter One


Introduction

1.1 Background to the Study

Suck knowledge of marketing problems would give information as to why markets are not developed and what measures are required to develop the market.

Some of these problems include the following:

Large number of middlemen

This is because there are too many middlemen coming to be involved in the complex market process, eventually, the producers share of the naira is reduced.

Force Sales

Report has it that the farmers in general, sell their produce at an unfair place and at an unfair time and usually he gets unfair terms

Small and Scattered Holding

The areas where these crops are produced are scattered, and each of these dispensed holdings are small hence there is a problem in establishing uniform price.

Independent Storage Capacity and Warehousing Facilities

The enormous waste due to inadequate storage capacities and warehousing facilities, or the total absence of it leads to a terrible result in the marketing of these agricultural products.

Lack of transport facilities

Because of the access of good road and vehicles to access rural areas and convey produce to better marketing locations, there is usually poor marketing.

Adulteration of produce in marketing

In some cases, inferior commodities are mixed with superior ones and are sold as superior commodities. This is possible since there are no grades and there are no quality control measures.

Also the main population weights and measures are still prevalent in the unregulated market inspite of the introduction of uniform system of weight.

Arbitrary deductions in the name of sampling are a common feature. Sales under cover is also another feature of these unregulated markets.

Therefore, an empirical analysis of the intercourse of these market variables are very essential to improve on the conditions of marketing agricultural products in rural areas like Dansof Farms Auchi, Edo Stated.


1.2 Statement of the Problem

The problem this research attempts to solve is to unravel the puzzle of what are the conditions to be put in place in order to annul the adverse effect of the marketing problems that are perculiar to the sale of agricultural products in rural areas like Dansof farms.

The research problem is multi-faceted in that, it involves the whole marketing variables, starting from the production to the transportation to the actual market constrains. Hence the approach that would be applied in tackling the problems would be multi- dimensional as well.

Because if there is no proper understanding and the analysis of:

  1. The extraneous variables that influence these market variables and
  2. The tendencies of the market variable,

It is not possible to advance a fully scientific approach to tackling the problem. Hence it is anticipated that at the climax of the research, more light would have been shed on the cause of these problems and therefore possible solutions.


1.3 Research Questions

The following research problems shall direct the trust of this study

  1. Do rural farmers have anything they can do on their own to improve the marketing of their farm products?
  2. Does lack of transport facilities affect agricultural marketing as much as inadequate storage facilities in Dansof farms, Auchi, Edo State?
  3. What are the strategies adopted by farmers in the sale of agricultural products in rural areas?
  4. Has government really contributed to sales of agricultural products in rural areas?

1.4 Research Hypothesis

This research carries out the following:

Hypothesis One
  • Ho: There is no significant relationship between marketing strategy and sales price in agricultural marketing.
  • Hi: There is always a significant relationship between marketing strategy and sales price in agricultural marketing.
Hypothesis Two
  • Ho: There is no significant relation between transportation and storage of agricultural products
  • Hi: There is a significant relationship between transportation and storage of agricultural products.

1.5 Objective of the Study

The main objective of this study is to relate the various problems to the economy with regards to the marketing of agricultural products.

The following are some of the objectives:

  1. To determine those factors that are directly or indirectly related to the marketing of agricultural products and to what extents they have contributed to this.
  2. To know the extents of success/ failure of these marketing strategies adopted by farmers in the rural areas.
  3. To x-ray and analyze the factors responsible for the outcome of these marketing strategies adopted by the farmers in the rural areas.
  4. To come up with what rural farmers or rural agricultural products marketers can do to improve on the marketing of agricultural products in rural areas.
  5. To examine the role of government in the marketing of agricultural products in rural areas.

1.6 Scope of the Study

This study is primarily aimed at a comprehensive study and understanding of the marketing of agricultural products in rural areas and it is strictly limited to Dansof Farms ltd. Etsako West L.G.A Edo State.

From experience, the researcher knows that farmers have been facing a lot of problems ranging from production facilities, method of storage, transportation and distribution of their products. To get more understanding of these activities enumerated above, we ought to search for ways to alleviate the problems of the farmers and the consumers.


1.7 Significance of the Study

The relevance of the study can not be over emphasized and it can be perceived in the changes in consumer behavior or market trend in Edo State, particularly Dansof farms.

This study will create awareness about the problems encountered by farmers and marketers in the marketing of agricultural products and to find possible solutions to these problems. In most rural area, farmers don’t even know whether there is anything like marketing to start differentiating whether it has to do with buying and selling.

This study therefore will be of great benefit to all farmers, producers and marketers marketing agricultural products. It will make them to gain an insight into the benefits and problems of selling farm produce.

Further more, this study will be very relevant to the government of this country ( Nigeria ). This study will enable the government to be aware of the fact that agriculture is important as a foundation of national economic development and also to put more emphasis on agriculture.

The research produces a write-up to reckon with, on the marketing of agricultural products in rural areas which will serve as an instrument to educate future researchers.


1.8 Limitations of the Study

In carrying out this research work, the researcher was faced with numerous constraints. These limitations are as follows:

Indifferent Attitudes Of Respondents

Many of the respondents consulted were uncooperative with the researcher, some responded to questions absent mindedly, while some refused attending to the researcher. There indifferent attitudes of respondent went to the extent of them becoming careless with the questionnaire given to them. Some returned their copies and many others misplaced theirs. Thus , the researcher was able to retrieve few copies.

Illiteracy Of Respondents

Most of the respondents to whom questionnaire were administrated, appeared to be illiterates. This fact was discovered by the researched from the wrong filling done by them.

Time Constraint

The time range for the completion of this research work is quite short which made the researcher to work at a very least rate to be able to meet the allotted time for the completion of the project. Due to crash programmes and the fact that the researcher was pre occupied with course works and examinations, she could not visit enough places or conduct adequate interview.

Financial Constraint

There was also constraints due to financial incapacitations of the research, in carrying out detailed work on the research.


1.9 Operational Definition of Terms

Agriculture

According to Omoruyi et al (2005:1), agriculture is the cultivation of land for growing crops and rearing animals for the use of man. The crops and animals are used in farm of food, clothing, shelter, ornaments and also transport.

Acquaah, (2005:1), Aluyor (2008) opined that agriculture is the science and art of producing crops and animals under the supervision of human in a specific location.

Iwena (2007:2), it is the deliberate effort made by man to till the soil, cultivate crops and rear animals for food and other purpose.

Market

According to Kotler and keller,(2006),they observed that a market is a physical place where buyers and sellers gather to buy and sell goods

Marketing

According to the American marketing Association (AMA) marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefits the organization and its stakeholders.

Armstrong and Kotler (2011) viewed that , it is a process by which companies create value for customers and build strong customer relationship in order to capture value from customers in return.

According to Kotler, Armstrong Sounders and Wong (2001:4) marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating and exchanging products and services of value with others.

Agricultural Marketing

Iwena (2002) viewed agricultural marketing as the activities required to move farm product from the producers (farmers), to the final consumers.

American Marketing Association (2004) sees agricultural marketing as a set of process for producing, communicating and delivering agricultural produce and farm inputs to customers and the managing of customer relationship in ways that will benefit the producers (farmers).

Agricultural marketing includes the selling of farm inputs to farmers or the purchasing of farm inputs such as seeds, chemicals, fertilizers, implements and the disposal of agricultural commodities to the final consumers ( Omoruyi et al 1994)

Product

It is anything that can be offered to the market for attention, acquisition, use or consumption such as personalities, organization, physical objects, ideas (Kerin, Hartley, Rudelius 2007).

According to Stanton (1980), a product is a tangible and intangible attributes, including packaging , color, price manufacturer and retailers services which the buyer may accept as offering want satisfaction.

Pride and Ferri (1991) opines that a product is anything both favorable and unfavorable that one receives in an exchange.

Consumer

According to Akhanoba(2012), consumer is anybody who uses consumer goods and service provided by government, business outfits or individual or being the gift of nature ( e.g water, air, land) for his/her satisfaction and general well being.

Advanced learners dictionary defined consumer as a person who buys goods or uses services.

Stanton (1980) see consumer as the use of a product or service and also the ultimate consumer of a product.


Chapter Five


Summary, Conclusion and Recommendations

5.1 Conclusion

The outcomes of the study were closely related to the purpose of the study. The study outlined the infrastructural constraints, warehousing constraints, the channels of distribution constraints, government policy constraints and the strategies to improve the distribution of agricultural product by local farmers in Taraba state. It is believed therefore that if all these constraints considered by local farmers are corrected and the strategies for improvement utilized, the problem faced local producers in distribution of their products especially tea, tomatoes and dairy in Taraba State will be ameliorated.


5.2 Recommendations

Based on the findings of this study, the following recommendations were made:

  1. The researcher recommends the need for infrastructural development advocacy to revive the rail system of transportation of rural farmers.
  2. There is need for research and dissemination of information in order to improve understanding on rural transport needs and travels in the rural areas to support agricultural development.
  3. Government should ensure construction and regular maintenance of roads leading to major farm sites in every community of the state, through employment of manual labourers. This will pave way for movement of farm products throughout the season to market-places by producers.
  4. Various communities should organize for collective communal road maintenance, at least twice during rainy season. This should be done to take care of major and pathways to where crops will be evacuated for distribution to markets.
  5. Public warehouses should be made available, at least, one in every local government head-quarters. This will enable farmers to harvest and store their products therein, while arranging for the time and place of distribution.
  6. Legislation should be enacted mandating the use of only registered middlemen, in the distribution of agricultural products; and also specifying the skills required of them as well as delimiting their functions in the distribution business. This will check their excesses.
  7. Federal, state and local governments should minimize the number of bodies or agencies established for derivation of revenue on distribution of some agricultural products that are statutorily consumable. This will curtail cost incurred on distribution, hence bringing about a rise in income and standard of living of local producers of agricultural products.
  8. The formation of Marketing Organizations by farmers of different types of products should be tolerated and encouraged by the government. By this, farmers will have a common front and collectively seek ways of surmounting their identical challenges.
  9. Laws limiting the importation of some agricultural products that are sufficiently produced in the country should be promulgated by the government. This act will boost the production and distribution of local agricultural products, thereby avoiding internal markets being flooded with foreign agricultural products.

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