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Modified Copy of Agri-sector Distribution

Modified Copy of Agri-sector Distribution

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Published by: retepblake8567 on Oct 19, 2008
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05/09/2014

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Using models of consumer buying behaviour, sketch out atleast three distribution channels for the agricultural sector.How does each of these channels meet distinct customer needs?And how does this compare with service delivery channels inthe service industry?
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Introduction and Project Background
Agricultural marketing is the performance of all business activities involved in the flowof goods and services, from the point of initial agricultural production until they are in thehands of the ultimate consumer (Kohls and Downey 1972).In the last four decades, there have been several substantial changes in the patterns of  production, consumption, and trade in agriculture. One is the shift in production andconsumption from grains and other starchy staple crops to higher-value agriculturalcommodities as meat, milk, eggs, fish, fruits, and vegetables. Another is the growingimportance of agricultural marketing channels, including the expansion of agro- processing, large-scale retail (e.g. supermarkets), and food services industries (e.g.restaurants), all of which create a need for various forms of vertical coordination.The coordination and integration of the sector is enhanced by the presence of strategicdistribution systems and processes. Channels provide the basis for bridging the gap
 
 between the producers and consumers. Basically it enables the right products to the rightconsumers at the right price to the right place
.
The importance of channel decisions hasnot always been recognized. For a long time, agricultural marketers only gave thought toappropriate channels of distribution after the development of the product.Based oninformation gleaned, various methods of distribution channels are used by specialty,niche product farmers, and food processors and centralize marketing units within thelocal agricultural sector.Many farms in Jamaica lack access to efficient distribution channels and as a resultcannot supply products at saleable prices or are forced to distribute products using their own labour and vehicles, which is often very inefficient.Understanding how to evaluate and compare distribution channel can greatly improveaccess to markets, improve sales, lower costs, diversify your customer base, and, mostimportantly, improve profitability.In reviewing pertinent literature it became obvious to the writer that countries with welldeveloped distribution network are predisposed to higher levels of viability. TheJamaican agricultural sector has been largely existed on arbitrarily design marketingsystems which have not advanced the sector. For years farmers and technicians in theministry have blame market availability for on distribution deficiency.In addition, there are smaller market outlets such as farm markets that cater to farms and processors producing on a smaller, “sub-commercial” scale. In this regard it is incumbentof the producer to match distribution methods to the size of operation and the types of markets available.
 
The selection of distribution channels will impinge upon decisions about every other element of the marketing mix. Pricing decisions will be greatly affected by whether thecompany attempts to mass market through as many wholesale and/or retail outlets as possible, or purposively target a relatively small number of outlets offering its customershigh service levels. The amount of promotional effort required of a producer will be afunction of how much, or little, of the selling effort is undertaken by the channels of distribution it uses.The primary goals of this research were to:
sketch appropriate channels of distribution
Advance the channel that exhibits the most potential for distributionefficiency and market potential
Assess the channels against those of service delivery channels in theservice sector.
Situational analysis of the local sector
The sector comprises farms which average approximately 1.8 acres. Most of the smallfarmers occupying hillside lands are not amenable to mechanization, therefore most of the farms do not benefit from economies of scales. With the average age of the Jamaicanfarmer over fifty years old coupled with the second highest illiteracy rate in the region theJamaican farmers are highly challenged in facilitating employment of moderntechnology. In addition there is a large element of distrust among framer for middlemen.The often times small margins and adverse weather condition has force them to maximize

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