This document discusses the importance and history of agricultural marketing. It outlines key benefits including increased farm income, market widening, and employment creation. It also examines factors that influence marketable surplus such as farm size, production levels, and consumption habits. Finally, it provides characteristics of ideal marketing systems, including pricing efficiency based on transportation and storage costs.

1. AG. MARKETING & ECONOMIC DEVELOPMENT
A.S.M. Fazlul Hoque
Lecturer,
Dept. of Agribusiness & Marketing.
Sher-e Bangla Agricultural University.

2. Importance of Agricultural Marketing
 Optimization of resource use and output management
 Increase farm income
 Widening market
 Growth of agro-based industries
 Price signal
 Adoption and spread of new technology
 Employment creation
 Addition national income
 Better living
 Creation of utility

3. History of Ag. Marketing Development
 Specialization
 Urbanization
 Transportation& communication
 Technological change in agriculture(HYV,
Inputs,Techniques)

4. Producer surplus
Quantity made available to the non-producing population of the country.
Covering Areas
1.Farming sound price policies
2.Developing proper procurement and purchase
strategies
3.Checking undue price fluctuations
4.Export & Import decision
5.Development of transport and storage systems.

5. Producer Surplus
Marketable surplus : It is the quantity of produce which can be
made available to the non – farm population of the country.
MS = P-C
Where, MS = Marketable surplus
P=Total Production
C= Total Requirement( family consumption, farm
need, payment to labor, artisans, landlord and payment for
social and religious work)

6. Producer Surplus
Marketed Surplus :
Marketed surplus is that quantity of the produce which producer-
farmers actually sell in the market irrespective of their
requirements for family consumption, farm needs and others
payment.
Relationship
Marketed surplus<Marketable surplus( large farmers ,storage capacity , substitute products)
Marketed surplus>Marketable surplus(small, marginal farmers, distress sale)
Marketed surplus=Marketable surplus ( perishable commodities, average farmers)

7. Factors affecting Marketable Surplus
 Size of Holding
 Production
 Price of commodity
 Size of family
 Requirement of Seed& feed
 Nature of commodity
 Consumption Habits

8. Functional Relationship Between Marketed surplus
& its Factors
 M = f(X 1 , X 2, X 3, X4 ………………..Xn )
Where,
M= Total marketed surplus
X1 = Size of holding
X2 =Size of family unit
X3 = Total production of the crop
X4 = Price of the crop

9. Pattern of disposal of marketed surplus
 1. Place of sale( village sale, market sale)
 2.Time of sale

10. Characteristics of good market
 Consumer focused need & want
 Variety of products or services
 No harmful products & consumer protection
 Information available
 No pressure on consumer to purchase
 Retailing service
 Fair & uniform price
 Absent from inefficiency or wastage in the market
 Producers should be able to sell their surplus quickly at proper price

11. Ideal Marketing system
 The ideal marketing system is one that maximizes the long run welfare of society. It
should operate with maximum physical and allocative efficiency .
Pricing efficient
1. Price variation based on transportation cost ( between location)
2. Price variation based on storage cost(between season)
3. Price variation based on processing cost (between form)

12. Characteristics of a good Marketing
System
 Free from govt. interference in free market transaction
 Independent but systematic
 Contributes to rapid development of the urban- industrial economy
 Demand & supply equilibrium
 Employment generation

13. Scientific Marketing of farm product
 Bring the produce for sale after cleaning
 Sell different qualities of products separately
 Sell product after grading
 Keep abreast of market information
 Carry bags/ packs of standard weighs
 Avoid immediate post harvest sale
 Patronize co-operative marketing societies
 Sell the produce in regulated markets
 Choose the right varieties
 Minimize chemical residues