Agricultural Marketing - Essay Example

Agricultural Marketing Name: Class: Instructor: School, City: Date of submission: Introduction Agricultural marketing pools all the services that get incorporated within the movement of already harvested agricultural products, from the farm to the consumer. A portfolio of activities of different magnitude and power are evidenced to take place during this process. It is a long list of paramount steps that have to be there for the end product to reach the consumer safe and sound. For instance, grading, packing, transporting and storage are some of the basic-oriented activities that take place in preparation of supplying the demand. Intensive communication practices also participate in ensuring that thee marketing process is a success. Most importantly, marketing systems are different from one country to the other. For instance, the marketing system that gets adopted in Australia may be different than that which gets adopted in China. The same case applies with the market systems adapted from one agricultural product to the other. Precisely, there are different levels of dynamism within the marketing empire. Substantial marketing dynamic procedures embraced the competitiveness and continued change in the system. For instance, high quality of end products gets achieved, leading to the acquisition of a stable marketing ground. Successful agricultural marketing system in countries such as Australia attributes the success to the knowledgeable management by the managers and the general coordinators of the market. This paper aims at exploring different aspects that get affiliated with agricultural marketing. It will also create an analytical reference to the Australian agricultural marketing systems in some sectors and crops produced with the country. Marking managers and farmers share of the consumer dollar It gets explained that the fact that a farmer acquires a small value and proportion of the dollar does not mean that the farmer necessarily fails to get the best deal. In practice, all these resolutions commence from the operational efficiency level of the marketing strategy. When an agricultural product is disseminated by the farmer, it undergoes several other processes which incorporate costs. The managers of these processes have to achieve their goals of maximizing the desired quality of the finished goods. Accordingly, the initial cost of the product is deemed to be very high if the farmer produced it a finished good. However, that is not the case. Agricultural products undergo several maintenance processes such as refrigeration as a method of preservation. Remember, the objective of the entire process is to ensure that the agricultural product acquires a stable market. Organizations tend to improve the quality of the products through optimizing on the quality strategy. The determination process of what the farmer gets in return after the entire marketing process is dependent on the operational efficiency and the cost of modifying the products to fit the market. Operational efficiency goes hand in hand with the volumes and amount of produce undergoing processing. For instance, it is economically cheap to work on large amounts of agricultural products than small amounts. The inference is that the cost of ensuring that the entire portfolio of products is maintained and sold to the consumer is preferably the same. Therefore, the cost will be higher if the farmers fail to produce substantial volumes of agricultural products. Ideally, the dollar share of the products that is elevated to the managers gets considered as constant. Hence, the farmer remains torn between the prevalent costs of marketing before acquiring the right proportion of dollars earned. Considering the manner in which the farmer acquires the returns, a conceptualized analysis is essential. For instance, a farmer whose major agricultural product is the tomatoes considers the market price and compares it to what he or she will achieve at the end of the marketing process. Ideally, carrying out a spread analysis is essential since it creates a distinction between the share that the farmer gets and the amount that remains consumed within the marketing procedures. The value gets termed as the farm-retail price spread. It measures the percentage value of the ultimate retail price that accrues every participant farmer of the entire marketing system. There are several distinct determiners of the ultimate retail price that the farmer acquires after all the marketing services get concluded. Ideally, if taken an example of three farmers who intend to sell their products, the dollar share depends on the number of marketing services they undertake. The difference in the returns prices depends on the number of marketing services acquired. Therefore, it does not mean that a lower share of the consumer’s dollar does not mean that the retailer fails to achieve a preferable rate of income. Consequences of policies of intervention in agricultural markets Agricultural products get deemed the most essential commodities that are used to sustain his globe. In addition, agriculture as a sector is explained as define sector that bestows the life and national security status of any particular nations. Most governments made frantic and desperate efforts to control the agricultural sector indefinitely. The governments have the mandate to intervene in the agriculture industry since it is the helm of national security and global stability. Therefore, it is part of the global economy. Policies in most of the countries have an impact on the Australian agriculture sector just like the policies in the Australia have. The most dominant sector that shows a significant impact on the agricultural sector through the application of the policies is usually the government. The government of Australia is also very active in installing policies that regulate the marketing systems of the country. These policies have both affirmative and negative consequences which the government installs due to the application of these policies. The Australian government initiated one policy affiliated with wool product pricing strategy. The history of government intervention in the wool industry within the Australian boundaries goes as far as year 2000. First, the government established a pricing scheme. The proposition insisted that the farmers and woolgrowers ought to have a higher share and control over the marketing services of the wool delivery bodies. In addition, the policies proposed that the growers ought to have the chance to express their recommendations concerning the expenditure rates of the levy that got charged. His was a form of privatizing the entire structure such that the growers had full marketing responsibilities. However, persistent intervention by the government led towards a different direction for the market status and pricing policies. The government suspended the pricing scheme of the wool industry. The announcement got followed by a series of degradation in the price levels. In the recent times, the Australian wool industry suffers poor market status since the external market supersedes the local industry. All these impacts are attributed to persistent government intervention to policies that ought to contain full control by respective bodies that will be held liable for the misstatements. Intervention on policies within the marketing sector leads to ultimate destabilization of prices. For instance, poor level of consensus between the government and the wool sector led to depletion and collapse of a well-established wool production sector in Australia. Commonality exists where intervention also affect other elements besides prices. However, alternative intervention policies can also be applied to ensure that there is a change in the market trends. Remember, the problem of depleting the reputable Australian wool growing sector got induced. Accordingly, there must be other policies that can result into affirmative results. Intervention strategies such as the use of optimal control technique policies get induced. The intervention method is deemed to initiate new strategies that will enable the valuing of stability scales. This intervention option facilitates the process of elucidating the incentives that might cause instability of the industry. Grading, branding, price discussion Grading and branding are part of the entire processing. That is; marketing services include the acts of grading and branding which enable the producer to understand the price levels they ought to set. Farm products are of different qualities especially due to the different manner in which the products get grown and the nature of care they get. Accordingly, different qualities are acquired. Therefore, the art of grading, especially in the Australian agricultural sector is advocated. For instance, the quality of the Tobacco plant and product is identified and the blending stage where the leaf tips of tobacco holds the highest quality. Accordingly, the products are graded according to the quality classes. The pricing process gets initiated. High-quality tobacco or even tomatoes get charged at higher prices in the market. This means that the absolute dollar value is constantly high compared to the price of the low-grade agricultural end products. The art of branding emerges. First, the high-quality end agricultural products are branded differently from the one that are of low quality. That is; price distinction gets determined by the branding and grading processes of marketing. Most importantly, the use of the grading and branding strategies influences the prices and the market status of the products. Perfect undertaking of these strategies guarantees increased level of sales and the increasing preference of the products in the market compared to others. The market shows interest if the demands and wants are successfully achieved by the products themselves. Business marketing paradigm, application of farm Farmers, who are the initial stakeholders of the entire marketing process, require alternative ways of approach with respect to the marketing systems. Marketing led extensions ought to focus on enhanced knowledge and skills of the stakeholders of these marketing systems. The core concepts that they ought to undertake underlie the agricultural production and marketing scope. Therefore, the farmers ought to make proper analysis and comparisons of what to produce with respect to the demand. It implies that they paradigm shift of this sector is related to the empowerment of the farmer to acquire full consent and access to all the terminals of the marketing systems. Ideally, a typical production oriented extension of the marketing system is focused on strengthening and developing a newly reformed agricultural marketing system. There are three levels within which this strategy can inflict impacts. The levels are policy levels, managerial level and the farm level. Ideally, the farm level paradigm elements target marketing extensions to enable the farmers update their skills. The art of improvement of the marketing skills of farmers is a key catalyst in increasing levels of remuneration in the level of prices of the produce. Role and orientation of futures markets Farmers and other renowned agricultural sectors ought to engage in a marketing analysis where there is full understanding of the nature of the agriculture market round the four seasons. Prediction and speculation skills are paramount in the process of tailoring strategies to meet the customers’ demands. Market orientation is essential in shunning the past trends of marketing and focusing on the new developments. Farmers ought to have an idea of what the market already expects. It is disadvantageous to find that the farmers still relies on fate of what the market resembles Future markets have a trend of repeating themselves on annual-seasonal basis. Therefore, the marketing skills of the farmers play a vital role in strategizing the production periods. Most importantly, the farmer can achieve the desired market prices and scope if appraise analysis is carried out. Supermarkets, competition and market power A perfect example is the Australian market. Supermarkets within the nation get the reputation of them the most powerful institution whenever competition in trade gets analysed. Analytically, the two largest supermarkets in Australia are Woolworths and Coles. They are dominant in the food marketing systems. Australian agricultural sector has a define food system which facilitates coexistence between small scale operator and large scale operators in the production and marketing fields. The supermarkets, through their marketing strength, elevate the rate of development if the agricultural sector in Australia. Exemplary escalation of the market share that the supermarkets accommodate offers a challenge to the Australian farmers and suppliers. Thus, issues of imbalanced market share frequently occur. The level of competition gets analysed as unhealthy. The supermarket industry in Australia determines the price levels. The levels of profitability made by the supermarkets are very high due to their market dominance in the Australian food system, leaving the farmers at a submission status. Bibliography Malcom, B., & Richardson, B. (2000). Analysing Agricultural Marketing: Agricultural Economics and Agricultural Business Marketing Traditions. Australian Agri-Food 2000 Research folum Melbourne August 17, 1-11. Read More