- Improvement of the negotiating position when buying or selling products
- More opportunities to borrow money
- Better access to information
- More opportunities to sell to supermarkets or other large-scale buyers
- Opportunities for value addition
- Better opportunities to access transport services
marto answered the question on March 15, 2019 at 08:09
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1 .Choice of product
If an farmer wants to earn money by producing a product and selling it on the market, he has to first choose the right product.. He must start by asking himself a few questions: What does the consumer want? It makes no sense to produce something that no one wants. Even if the harvest is plentiful or the product is very easy to make, the selling price will be low and the farmers’ earnings will be very limited if no one wants to buy it.
2. Location of the market
Farmers/agribusinesses can sell their products in many different ways. The easiest ways to market a product are to sell it to a middleman, a cooperative, or directly to a buyer on a contract basis.
Many small-scale farmers choose to sell their products directly to the consumer, at a marketplace for example. These farmers have to first decide at which marketplace they want to sell their products. There are many possibilities. There are marketplaces in cities and in rural areas. Some are close by and others are far away.
3.The price of a product and the cost it will take to transport the product to a market will determine the choice of location.
There is greater demand for agricultural products in cities than in rural areas. The prices of these products will therefore often be higher in the cities. On the other hand, the farmer will also incur more costs in transporting the product to the city.
The price of a product often varies from market to market. As a farmer, you have to look for the market that offers the highest price for your product. In comparing prices you have to take into account the extra costs involved in getting to some markets. Moreover, different markets (supermarkets, export markets) may make their own demands on the quality of the product, the packaging, sorting, etc.
4.Transport
Products generally have to be transported from the farmer to the consumer. It is important that the products do not get damaged during transport. Every type of product requires a different handling method. Some products cannot tolerate moisture, while other products cannot tolerate heat. Before an farmer transports a product he has to know what the right transportation method is.
The product also has to arrive at the market within a certain time frame. It is important that agreements be made ahead of time, with the truck driver for example, about when the truck is expected to arrive and what the driver should do if the truck breaks down underway.
The product has to retain its quality while being transported and has to arrive at the market on time.
5.Storage
Before a product can be sold it often has to be stored. The quality of perishable products declines if they are stored improperly. Moulds, pests, water, heat, etc. can damage a stored product so much that it can no longer be sold. A farmer who is planning to sell perishable products at a marketplace, on a weekly basis for example, will have to find a good way to store them.
Storing a product can also be a way to get a higher price for it. Many agricultural products are in ample supply during the harvest season. The prices of these products are therefore usually low. During the rest of the year, the prices are usually higher because the supply is lower. If the products can be stored without damaging their quality, they can often be sold for a higher price after the harvest season. However, storing products can involve risks. Even if prices are expected to increase after the harvest season, there is no guarantee that this will happen. If the prices stay at the same level, farmers will lose the money they spent to store the product. To store a product, the farmer has to buy or rent a storage facility and make sure that the product retains its quality. These extra costs have to be recovered. Therefore, before making the decision to store a product, you have to fully understand what the chances are that the price of the product will
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