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Distribution channels involved in agribusiness
- 1. Presented By AJIT MAJUMDER Deptt.of ABMFT ABMFT 1601 Presentation On Distribution channels involved in Agribusiness case study: PresentedBy AJIT MAJUMDER Deptt. of ABMFT ABMFT 1601
- 2. Introduction The marketing ofagricultural commodities is poor in India. Global marketing network is not that developed for agricultural commodities. The Marketing channels for agricultural products vary from product to product, production to production and time to time. E.g. Marketing channels for food grains will differ from oil seeds, eggs, and live poultry.
- 3. Few definitions: Distribution: Shipping rightproduct at right quantity in right place on right time. Distribution Channel: Physical flow of goods and services from producers to consumers. Intermediary(Middleman): Wholesaler or retailer that operates between producers and consumers. Dual Distribution: Network that moves products to a firm’s target market through more than one marketing channel. Reverse Channels: Channels designed to return goods to their producers.
- 4. Reverse Channels Inbound DistributionOutbound Distribution Consumer Goods Supplier Company Reseller Customer Agent Producer Producer Producer Producer Wholesale Wholesale Retailer Retailer Retailer Consumer Consumer Consumer Consumer Types of Marketing Channels
- 5. Producer Producer Producer Producer Agent Agent Warehouse Warehouse Business User BusinessUser Business User Business User Service Provider Service Provider Agent Consumer or Business User Consumer or Business User Types of Marketing Channels Business Goods Services
- 6. Uniqueness of AgriculturalProducts Marketing of agricultural commodities is different from the industrial manufactured products Agricultural products are perishable in nature and the period of perishability varies from a few hours to few months Farm products are produced in a particular season and bulky in nature Transportation and storage are difficult as well as expensive Quality of the products varies farm to farm. Uncertainty of agricultural production Most of farmer are either marginal or small
- 7. Role of DistributionChannels in Agribusiness Marketing • Distribution Channels serve as a network, which creates value for the consumer by generating possession, time and place utilities. • There are a number of middlemen and merchants, including govt. and cooperative agencies, who act as links between the producers and consumers. • Place utility of agricultural products. • Time utility to make possible to have efficient and faster delivery of products to the final consumer. • Availability of goods in convenient pack, size, shape and weight creates convenience value for the consumer.
- 8. Channels Involved inAgriculture products Distribution
- 9. Distribution Channels forPaddy/Rice Retention on Farm Home Consumption Seed Payments to landlord Marketed Surplus Buyer Commissi on –agent Sellers Commis sion- agent Primary Wholesale Market Primary Wholesaler Shopkeeper Moneylender Merchant Village Market Mills Terminal-market wholesaler Government Agencies Retailer Wholesaler Cooperative Processing Unit Fair Price Shop Consumer Producer Cooperative Marketing Society c Village Consume r
- 10. Distribution Channels forwheat Retention on Farm Home Consumption Seed Payments to landlord Marketed Surplus Buyer Commissi on –agent Sellers Commis sion- agent Primary Wholesale Market Primary Wholesaler Village Consume r Shopkeeper Moneylend er Merchant Village Market Roller Flour Mills Terminal-market wholesaler Government Agencies Retailer Secondary Wholesaler Fair Price Shop Consumer Producer c c
- 11. Distribution Channels forPotato Retention on Farm Home Consumption Seed Payments to landlord Marketed Surplus Buyer Commissi on –agent Sellers Commis sion- agent Primary Wholesale Market Village Consume r Shopkeeper Moneylend er Merchant Village Market Cold Storage Terminal-market wholesaler Retailer Consumer Producer c
- 12. Distribution Channels forCashew nut Retention on Farm Marketed Surplus Wholesaler Village Consumer Shopkeeper Moneylender Village Market Processors Village Agent Consumer Producer c Merchant Agent District Agents Retailer
- 13. Distribution Channels forvegetables Retention on Farm Home Consumption Seed Payments to landlord Marketed Surplus Buyer Commissi on –agent Sellers Commis sion- agent Primary Wholesale Market Primary Wholesaler Village Consumer Shopkeeper Moneylender Merchant Village Market Processor s Local Agent Retailer Secondary Wholesaler Consumer Producer c c
- 14. Conclusion Distribution Channel inIndia is multi layer structure. And there are multiple nos of middlemen responsible for delivering agriculture products from producer to consumer. Farmers with land less than 0.5 ac usually go to nearer market and keep selling their grains, vegetables, live stocks, etc weekly. Farmers with land not more than 5 ac mostly sell their produce in nearer market or other weekly market. Farmers with land more than 0.5 ac tends to choose different modes of channel