CONSTRAINTS TO THE DISTRIBUTION OF AGRICULTURAL PRODUCTS BY LOCAL PRODUCERS IN TARABA STATE
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- NGN 3000
EXCERPT FROM THE STUDY
Problems in agricultural marketing include large number of middlemen who intervene between producers and consumers and cause the producers’ share of profit to reduce (John, Oral, Parr & Richard, 2010).Another problem is poor handling and packaging which expose the products to substantial physical damage and quality deterioration and that these losses do not only cut down the supply of products reaching the consumers, but also raise the price of the remaining products. Also, inadequate storage facilities, especially for perishable products such as fruits, vegetables, milk, meat, fish, etc. which results in physical damage due to infestation of pests, rodents and quality deterioration, discolouration and unpleasant odour that make the products unfit for human consumption.
There are a number of critical functions performed by the channel distributor. Ross (2004) described these functions as: product acquisition, which is the acquiring of products in a finished or semi-finished state from either a manufacturer or through another distributor that is higher up in the supply channel. The author further explained that these functions can be performed by independent channel intermediaries or by the distribution facilities of manufacturing companies. Equally, channel distributor performs the function of product movement, which implies significant effort spent on product movement up or down the supply channel. Another function noted by her was that channel distributor carry out product transaction, they can be characterized as selling products in bulk quantities solely for the purpose of resale or business use. This is a form of downstream businesses which then sell these products to other distributors or retailers who will sell them directly to the end customer or to manufacturers who will consume the material/components in their own production processes. Most products are purchased from channel intermediaries whose main purpose is to deliver product from the manufacturers to the end users. The purpose of a channel intermediary is to move products to consumers, whether business or consumer. Some intermediaries take title, or ownership, of the product from the producer. This means that they can set the price and control the final method of sale. This would be an example of a retailer.
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