(Farm Price ÷ Consumer Price) × 100 = Farmer's Share %
Protecting the product and making it easier to handle and identify. 3. Marketing Channels (Systems) There are three main ways farmers sell their produce: Free Marketing: agricultural marketing notes grade 12 best
The “best” notes always highlight these four characteristics because they explain why agricultural marketing costs are higher than industrial goods. (Farm Price ÷ Consumer Price) × 100 =
| Market Type | Description | Pros | Cons | | :--- | :--- | :--- | :--- | | | Central markets where farmers sell produce to buyers via agents. | High volume potential; good for bulk sales. | Agent commissions; price fluctuates with supply. | | Auctions | Products sold to the highest bidder (common for livestock). | Competitive pricing; quick sales. | No control over final price. | | Direct Market | Selling straight to consumer (roadside stalls, farmers markets). | Highest profit margin; immediate cash flow. | Time-consuming; low volume per sale. | | Contract Marketing | Farmer signs agreement to supply a specific quantity at a set price to a processor/retailer. | Price stability; guaranteed market. | Strict quality standards; penalties | Market Type | Description | Pros |
All activities from farm gate to consumer’s plate – assembling, grading, storage, transport, processing, and selling.