Agricultural Price and Marketing – Product, Promotion, and More

Agricultural Price and Marketing

The agricultural price is define by the supply and demand curves intersection. The supply curve says that producers are willing to sell a greater quantity of products at a higher price. In the case of vegetables, when there are expectations of higher prices, farmers are eager to plant a larger area and reduce their site growth, even changing items when the price tends to fall. Historical price studies can tell when these high prices occur and schedule production accordingly.

The demand curve says that buyers are willing to purchase fewer goods as prices rise. For example, if a housewife use paprika to prepare a paella, if the price is costly, she may settle for placing only half or smaller paprika, so its consumption decreases.

Both curves are opposite. One goes up, and the extra goes down as the price changes; however, there is a point where the two curves intersect: the price at which buyers and sellers agree to carry out a transaction.

The Product and Agricultural Marketing

The product has characteristics that make it suitable for satisfying human needs. The more needs it helps, the better the product will be. It can even be of better value to the extent that it meets many human needs.

Food is a basic need of humanity. The agricultural market will exist forever; however, the satisfaction of the need for food can be done with different foods, which will make some foods more desirable than others to the extent that they are tastier or healthier.

Promotion in Agricultural Marketing

If consumers do not know about the existence of a product or its qualities, they will not acquire it. For example, an avocado was once consider a fatty food and was discard to increase cholesterol. However, when the concept of good cholesterol was discovered, and bad cholesterol and that on the other hand that the avocado was rich in good cholesterol, the demand for this fruit grew considerably; however, this fact was not consumed until the benefits of the avocado were disclose by promotion.

We can mention the Semeraro, and this tropical plant produces the fruit with the highest content of vitamin C in the world. However, in general, the housewife is unaware of this, even the fruit.

When you are present with an orange, you will say that it has a higher content of vitamin C. Still, the truth is that in tropical areas, there are fruits with a higher content of vitamin C that have not received the publicity that citrus fruits have. That is why we must promote the higher vitamin C content of fruits such as mango over orange to increase the demand for these tropical fruits.

The Plaza in Agricultural Marketing

The square is the place where buyers meet sellers at a specific time. For example, producing flowers for Mother’s Day or Valentine’s Day is an excellent idea since there is a high demand for these products but The next day that order goes to the ground and the flowers that are cut at the wrong time may not have a market.

The street is a square for the marketing of fruit and vegetables

We have another example with the jalapeño pepper, which is spicy, and the sweet pepper grown in Venezuela.

In Plaza Venezuela, sweet chilli is highly demand stews, empanadas, and hallacas. To cite a few examples, hot peppers are consider lower quality products with a small market.

We do not expect to sell much hot jalapeño pepper in the Venezuelan market.

On the other hand, the spicy jalapeño pepper is in high demand in Mexico to prepare burritos and tamales and other dishes widely consumed in that country. If the food is not spicy, they consider the food bland; the sweet pepper does not have much—market in Mexico.

Agricultural Marketing According to Argo-Technology-Tropical

The Agro-Technology-Tropical.com team is developing a new concept of agricultural marketing that we have been recommending to our clients of the Internet technical assistance program.

These are the four “Cs” of agricultural marketing or even the agricultural business, which in our opinion, best meet the qualities of the farming sector. These four “C” s are quality, quantity, continuity and competitiveness.

Quality According to Agricultural Marketing Proposal

Closely associated with the concept of the product discus above, however in this case. We are referring to standards defined by national and international markets, in this case. For the Manzano tomato or paprika in Venezuela, the larger it is consider to be of better quality. And access better prices, however at the international level it is believe that a medium tomato or paprika is the best quality product.

The range of products obtained in a harvest has different characteristics, the ability of the farmer to identify the market. To which he is going to direct his harvest can result in better prices, returning to the example of the apple tomato. We can say that large fruits can be sold in supermarkets from eastern Caracas. The medium-size ones to hamburger franchises and the small ones package them in trays and sell them as a different product in the same supermarkets in east Caracas.

For free trade agreements such as the one signed by the Unit States with Colombia, quality is associate with product traceability and the use of “Good Agricultural Practices”. These practices guarantee that the product is free of pests and diseases that affect crops and free of pathogens and agrochemical residues that affect humans.

The Quantity in the Agricultural Marketing Proposal

The quantity is an essential aspect in the agricultural business; the tomato is produce on surfaces of 10, 20 and up to 30 Hectares in the plains of the Guárico River in Venezuela. This product is sold at affordable prices during the most fantastic tomato supply in Venezuela. It could even be use for industrial processing. A producer who sows 1 or 2 hectares may not place his harvest efficiently since the large buyers are looking for places to buy large amounts of merchandise in that period. On the other hand, in the coastal Andean mountain range, one or two hectares are plant in the rainy season. And the business is viable compare to when produce in the Guárico River.

In Colombia, white corn is not plant in the same quantity as in Venezuela. The precooked flour industry is more critical in Venezuela than in Colombia, given the preference of Venezuelans to consume areas.

For the export business, minimum quantities are require to make the export process profitable, especially those associated. With compliance with international trade restrictions such as phytosanitary permits, inspections, audits, tariffs, etc.

Continuity in the Agricultural Marketing Proposal

Supermarkets require food supplies continuously to their customers. The employees of these business are evaluate through their ability to keep the shelves full, if the stand is empty. Those responsible are sought. Who may be the purchasing managers of the departments or of the personnel in charge of replenishing the merchandise sold.

Agricultural production is by nature seasonal and, in the case of tropical areas, affected by cycles of rain and drought.

A supplier of precooked corn flour must have large grain warehouses to store the corn harvest that occurs mainly from September to November. The industrial production of flour is done on a schedul basic to coincide with supermarkets’ demand. Thus, the continuity of the product offer exists. However, we want to introduce the uncertainty of the convenience of having those large grain stores or. The convenience of investing in irrigation systems to have a staggered harvest.

Conclusion

Agricultural marketing is a combination of activities whose purpose is to allow products to reach. The final consumer conveniently and at the right time and place. That has to do with the production’s collection, adaptation, distribution, and sale. Agricultural.