Eofa Chapter 5

CHAPTER 5:
AGRICULTURAL
MARKETING
YEROSAN SH.B(MSc.)
OUT LINE
• 4.1. Marketing characteristics
• 4.2. Functions of agricultural marketing
• 4.3. Marketing agents and enterprises
• 4.4. Integration and diversification of marketing
• 4.5. Transaction costs and marketing efficiency
January 26, 2024 YEROSAN SH.B.(MSc.) 2

Agriculture Marketing
The bridge that links producer & consumer

What Is a Market?
The process of determining the needs and wants of
consumers & being able to satisfy those needs &
wants
Marketing includes all of the activities necessary to

move a product from the producer to the
consumer

What IsIsaa Market?
What Market?
Buyers Sellers
YEROSAN SH.B.(MSc.)
January 26, 2024 5
What Is a Market?
A market is made up of buyers & sellers
Buyers are people who need or want a product or

service and have the money to buy it
A market must also have sellers who are willing &
able to produce goods & services for sale
YEROSAN SH.B.(MSc.)
Two Types of Markets
1) Input market 2) Product market
The input market includes items like This is the market where final
metal, fertilizer, seed & wood products are sold to consumers
These types of products are purchased by Eggs and potatoes from farms
producers Shoes from shoe stores
YEROSAN SH.B.(MSc.)
Types of Agricultural Markets
Input markets Product markets
YEROSAN SH.B.(MSc.)
Supply and Demand
The price of a product is determined by the value
that buyers place on the product.
When many buyers want a certain product the price

will be higher
If few buyers want a product the price will be lower
YEROSAN SH.B.(MSc.)
Supply and Demand
Low quality High quality
YEROSAN SH.B.(MSc.)
Definition and characteristics of marketing
Agricultural marketing is the study of all the activities; agencies & policies
involved in the procurement of farm inputs by the farmers &
It is the movement of farm products from the farms to the consumers.

The agricultural marketing system is a link b/n the farm & on- farm
sectors.
It refers to the whole area of operation of demand and supply.
Further, it refers to the conditions and commercial relationships facilitating
transactions between buyers and sellers.
Therefore, a market signifies any arrangement in which
the sale and purchase of goods take place.

Agricultural Marketing
AM means the marketing of agricultural products to
the first handler.
It is the performance of all business activities

involved in the forward flow of food and fiber from
farm producers to consumers (macro (social)
perspective).
YEROSAN SH.B.(MSc.)
AM includes all the activities associated with:
• Agricultural production and with
• Food,
• Feed, and
• Fiber assembly,
• Processing, and
• Distribution to final consumers.
YEROSAN SH.B.(MSc.)
Numerous interconnected activities are involved in doing this,
such as:
Planning production,
Growing and harvesting,
Grading,
Packing,
Transport,
Storage,
Agro-and food processing,
Distribution,
Advertising and sale, etc
YEROSAN SH.B.(MSc.)
Agril. Marketing activities
.

Characteristics of Marketing of Agricultural
products
The agricultural commodities are characterized by:
Perish ability of the Product
Seasonality of Production
Bulkiness of Products
Variation in Quality of Products
Irregular Supply of Agricultural Products
Processing
Time lag of agricultural products
The law of diminishing returns

Cont.,...
The agricultural marketing system includes:
The assessment of demand for farm inputs & their supply;
Post harvest handling of farm products;
Performance of Various activities required in transferring
farm products from farm gate to processing industry &/ or
ultimate consumers;
Assessment of demand for farm products and
Public policies & programs relating to the pricing, handling,
purchase & sale of farm inputs and farm products.
Thus, the agricultural marketing includes product
marketing as well as input marketing.
GROUP DISCUSSION?
WHY AGRICULTURAL MARKETING

IS IMPORTANT FOR DEVELOPING
COUNTRY?

4.2. Importance of agricultural marketing
Agricultural marketing plays an important role not
only in stimulating production & consumption,
but in accelerating the pace of economic
development.
The importance of AM in economic development

can be well explained based on the parameters of
economic development as indicated here under:

CONT,...
1. Optimization of resource use and output management:
 An efficient marketing system leads to the optimization
of resource use & output management.
2. Increase in Farm Income:
 An efficient marketing system results in elimination of
unnecessary market intermediaries, & malpractices;
 rationalizing market margins, & thereby increasing
farmers share in consumer price.

CONT,...
3. Expansion of markets:
 Expands the market for the products by taking
them to remote corners
 To areas far-off the production points.
 contributes to the expansion in demand & there
by an increase in higher income to the farmers.

CONT,...
4. Growth of agro–based Industries:
 The development of many industries using farm products
as raw material.
 This phenomena in turn results in accelerated growth of
the economy.
5. Price signals/indicator:
 An efficient AMS transmits price signals to farmers, input
supply firms,
 Also to consumers & processing industries to enable them
to make rational decisions in resource & budget allocation.
CONT,....
6. Adoption & spread of new technology:
7. Employment:
8. National income and poverty reduction:
9. Creation utility:

4.3. Market diversification, Integration and
Middlemen (market agents)
4.3.1. Diversification
The typical unit of analysis in microeconomic theory is a
single-product, single-plant firm serving a single market.
In practice, however, many firms produce a range of

products and serve a number of markets.
Such companies are described as diversified.
Diversification occurs when a single-product firm

changes itself into a multi-product or multi-market firm.
Strategies & Types of Diversification Strategies
The strategies of diversification can include

 Internal development of new products or markets,
 Acquisition / achievement of a firm,
 Alliance/agreement with a complementary company,
 Licensing of new technologies, and
 Distributing or importing a products line manufactured by
another firm.

Diversification
There are three types of diversification:
1) Concentric,
2) Horizontal and
3) Conglomerate:

i. Concentric diversification:
This means that there is a technological similarity between
the industries,
which means that the firm is able to leverage its technical
know-how to gain some advantage.
 The technology would be the same but the marketing effort

would need to change.
 It also seems to increase its market share to launch a new
product which helps the particular company to earn profit.

ii. Horizontal diversification:
The company adds new products or services that are
technologically or commercially unrelated (but not always) to
current products,
But which may appeal to current customers.
In a competitive environment, this form of diversification is

desirable;
 If the present customers are loyal to the current products,
 If the new products have a good quality and
 Are well promoted and priced.
Moreover, the new products are marketed to the same economic

environment as the existing products.
For example company was
January 26, 2024
making note books earlier, now 28they
YEROSAN SH.B.(MSc.)
iii. Conglomerate diversification
(or lateral diversification):
The company markets new products or services that
have no technological or commercial synergies with current
products, and appeal to new groups of customers.
The conglomerate diversification has very little relationship with
the firm's current business.
The main reasons of adopting such a strategy are:

 To improve the profitability and the flexibility of the company, and
 To get a better reception in capital markets as the company gets
bigger.
 To increase growth and profitability if successful but this strategy is
very risky in case demand falls.
4.3.2. Market Integration
Market integration refers to how easily 2 or more
markets can trade with each other.
In case of high integration, it means that there is low
barriers on trade as well .
Types of integration that tie together individual firms
are called:
Horizontal,
Vertical and
conglomerate.
a. Horizontal Integration:
Refers to combination of firms that perform similar
functions.
It occurs when a firm gains control over other firms
performing similar activities at the same level in the
marketing sequence.
That is, in which many individual elevators are
brought under one management.
It increases market concentration

b. Vertical Integration:
VI occurs when a firm combines activities unlike,
Those it currently performs but that are related to them in the
sequence of marketing activities.
Its tying together 2 or more successive functions in the
marketing chain for a commodity
It varies from loose contractual arrangement to outright
ownership,
E.g. the poultry industry where feed companies entered into
contracts with growers in order to sell more feed, and
Then went to poultry processing and integration into hatch
egg production.
c. Conglomerate Integration:
Refers to the branching out of business firms into other
lines of activity.
There are 3 main types:
1) Product Extension: two or more different but related
products are produced
e.g. poultry processing and meat packing
2) Market Extension: A given product is sold in 2 different
market areas,
e.g. milk in 2 cities distant from each other. (20km distance)
3) Pure Conglomerate: A firm that is engaged in activities that
are unrelated
e.g. medicine and bread making.
d. Spatial Equilibrium/integration of markets in a
Competitive Economy
What influences whether two regions (locations) engage in trade
with each other?
Suppose you own a truck and you can purchase peaches in Mizan
for $1 per bushel and sell them in Addis for $2.50 per bushel.
If it costs you $0.75 to transport a bushel of peaches from Mizan
to Addis,
Would you make money by purchasing peaches in Mizan and
selling them in Addis?
Yes, your profit from shipping would be:
• Profit per Bushel = PAddis - PMizan- Transport Cost
• = $2.50-$1.00 - $0.75
• = $0.75/ bushel.
Marketing Middlemen
Marketing middlemen: are those individuals or
business firms that specialize in performing the
various marketing functions.
• These are:
1. Merchant Middlemen,
2. Agent Middlemen,
3. Speculative Middlemen,
4. Processors and Manufacturers, and
5. Facilitative Organizations/middlemen
1. Merchant middlemen

2. Agent Middlemen
a. Agent middlemen: commission agents and brokers
in terms of fees, commission, brokerage.

3. Speculative Middlemen

4. Facilitative Organizations/middlemen

4. processors & manufacturers middlemen
e. Processors and Manufacturers, and

4.5. Marketing Efficiency & Transaction
Costs
Efficiency is an important index of performance of
agricultural marketing.
Efficiency of agricultural marketing refers to the
efficiency with which resources are used in
marketing, in terms of physical input and output
ratios.
Marketing efficiency is usually measured in two
ways,
1) Operational efficiency and
2) Pricing efficiency.
1) Operational efficiency (OE)
OE is defined as the provision of goods and services
at least cost and
At a level of output, or combination on inputs,
which ensures that the value of marginal product
equals marginal factor costs.
It is also sometimes referred to as firms’ level
allocative efficiency.
The level of output per combination of inputs are
such that marginal revenues equate with marginal
costs (MR = MC)
OE ,....
There are many potential sources of operational inefficiency
including:
Lack of incentives,
Inadequate information,
Marginal expertise, and/
Or bottlenecks in input supply.
Similarly, another common source of operational inefficiency in
many LDCs is:
The lack of standardized weights,
Measures,
Qualities and
Grades that often makes visual inspection of products
necessary.
2. Price Efficiency (PE)
Concerned with the ability of the marketing system
to efficiently allocate resources and
Coordinate the entire food production and
marketing process in accordance with consumer
directives.
Prices fail to:
(1) Fully represent consumer preferences,
(2) Direct resources from lower to higher-valued
uses, and/or
(3) Coordinate buying and selling activity.
PE,…
Thus to study the performance of the entire marketing system, we
need to develop some indicators of performance.
Marketing performance is defined as how well the food marketing
system performs what society and market participants expect of it.
Evaluating the marketing performance raises the questions like:,
 what do we expect of the food marketing system?
 Is it competitive?
 Are price fairly determined?
 How does it serve farmers and consumers?
 Could its performance be improved? Etc.
PE,…
There are three common approaches to evaluate
the marketing performance of agricultural
marketing system:
1) The structure-conduct-performance approach,
2) Marketing margins approach, and
3) The market integration approach.

1. Structure-Conduct-Performance(S-C-P)
The S-C-P approach was developed in the United States as a
tool of analyses the market organization of the industrial
sector
It is the r/n ship b/n functionally similar firms and their
market behavior as group.
Its basic principle is that, “given certain basic conditions”,
The performance of particular industry depends on the
conduct of its sellers and buyers,
which in turn is strongly influenced by the structure of the
relevant market.

A. Market Structure:
Market structure includes those characterized of
the organization of the market.
The most relevant characteristics of market structure:
1. The degree of concentration of sellers and buyers
2.The degree of the product differentiate.
3. Barriers of entry or freedom to entry into and the
exit from the market

B. Market conduct
MC refers to the behavior that firms pursue in
adopting or adjusting to the market in which they
sell or buy.
Specifically, market conduct includes:
• Market sharing and price setting polices;
• Policies aimed at coercing rivals; and
• Policies aimed at setting the quality of products.

CONT,....
The principal effects aspects of the market performance are:
1. The relative technical efficiency of production
2. The selling price relative to the long-term MC of
production and to the long-run AC of production
3. The size of industry output relative to the largest
attainable
4. The size of sales promotion costs relative to the costs of
production
5. The character of product, or products including design,
level of quality, and variety and
6. The rate of progressiveness of the industry

2.Marketing margin and cost
May be defined alternatively as a D/C B/N the price
paid by consumers and that obtained by producers
or;
The size of market margins is largely dependent upon
a combination of :
The quality and quantity of marketing services
provided;
The cost of providing such services; and
The efficiency with which they are undertaken and
priced.
For instance, a big margin may result in little or no profit or
even a loss for the seller
January 26, 2024
involved; Depending upon51the
YEROSAN SH.B.(MSc.)
Likewise, MM were computed by applying concurrent method with
the GMM calculation formulas as:
 GMMP =Consumer Price - Marketing Gross Margin x 100
Consumer Price
 TGMM = Consumer Price - Producer Price x 100
Consumer Price
 NMM = Gross Margin - Marketing Costs x 100
Consumer Price
Where, GMMp is the producer's share of consumer price.
 GMMp = End buyer price – total marketing gross margin x 100

End buyer price

TGMM is total gross marketing margin.
It is useful to introduce the idea of ‘producer’s
participation’, ‘farmer’s portion’, or ‘producer’s
gross margin (GMMP)
which is the portion of the price paid by the
consumer that goes to the producer.

The net marketing margin (NMM) is the percentage
over the final price earned by the intermediary as his
net income once his marketing costs are deducted.
The equation tells us that a higher marketing margin
diminishes the producer’s share and vice-versa.
From this NMM measure, it is possible to see the
allocative efficiency of markets.
Higher NMM or profit of the marketing
intermediaries reflects reduced downward and
unfair income distribution
Example: Calculation of marketing margins
When the buying price from the farmer is $0.50 per
kg, the weighted average wholesale selling price is
$0.90 per kg and the weighted average retail price
is$1.17 per kg.
solution
 Share to the producer ($0.50/$1.17= 0.427 or 43%
 Wholesale margin ($0.90-$0.50)/$1.17= 0.342 or 34%
 Retail margin ($1.17 - $0.90)/$1.17= 0.231 or 23%
 Total margin= WSM +RM = 0.342+0.231
= 0.573 or 57%
Exercise -2
E.g. Price of Honey in the market channel
Market chain participants selling price were;
 Producers’ price -----------------------------------3.26br/kg
 Rural assemblers price ---------------------------4.5br/kg
 Wholesalers’ price --------------------------------5br/kg
 Retailers’ price -------------------------------------6 br/kg
 Consumers’ price ----------------------------------6br/kg
Then Find/caculate the following;

A) GMMRA
B) GMMw
C) GMMr
D) TGMM
E) GMMp
Solution;
A) GMMRA = 21%
B) GMMw = 8%
C) GMMr = 17%
D) TGMM = 21%+8%+17%=46%
E) GMMp = 100%-46%= 54%
So from the above calculation, it is clear that 21%, 8%,17% and
54% of the final consumers price is shared by rural assemblers,
wholesalers, retailers and producers respectively.
However it is evident that market participants in a given
market chain do not only get profit from the transaction.
They also incur a cost inYEROSAN
January 26, 2024
the marketing
SH.B.(MSc.)
activities. 57
Marketing function and marketing costs:
First it is better to understand marketing function.
Marketing functions can be broadly classified as following:-

1. Buying
A. Exchange Functions
2. Selling
3. Storage
4. Transportation
B. Physical Functions 5. Processing
6. Packaging
7. Standardization
8. Financing
C. Facilitating Functions 9. Risk Bearing
10.Market intelligence

Marketing costs:
MC refers to those costs, which are incurred to perform
various marketing functions/activities in the shipment of
goods from producers to consumers
MC includes:
Handling cost (packing and unpacking, loading and
unloading putting inshore and taken out again),
Transport cost,
Product loss (particularly for perishable fruits and vegetable),
storage costs,
processing cost, and
capital cost (interest on loan),
market fees, commission
January 26, 2024
and unofficial payments.
YEROSAN SH.B.(MSc.) 59
Packing and packaging
Packing means, the wrapping and crating of goods

before they are transported.
Goods have to be packed either to preserve them or
for delivery to buyers.
Packaging is a part of packing, which means placing
the goods in small packages like bags, boxes, bottles
or parcels for sale to the ultimate/final consumers.


1. Packaging costs
Packaging serves three basic purposes.
• Firstly, it provides a convenient way of handling and
transporting produce.
• Secondly, it provides protection for the produce.
• Finally, packaging can be used to divide the
produce into convenient units for retail sale and
• to make the product more attractive to the
consumer,
Thus increasing the price at which it can be sold.

Example: Calculating packaging costs:
• Assume that oranges are packed 20 kg at a time in wooden
boxes which, with occasional repairs, can be used for 10
trips. A box costs $10, repairs and cleaning during its life
costs $2 and each time transporting back the empty box to
the producing area costs $1.
• Solution; Then the packaging cost per trip is:
• PC = [(original cost + repairs) ÷ no. of trips] +
transport cost when empty or
• PC = [($10 + $2) ÷ 10 trips] + $1
• PC = $2.20 per 20 kg and
• PC = $2.20 ÷ 20 kg = $0.11 per kg

2. Transport costs
Transportation function concerned with making the goods
available at the right place.
TC incurred by farmers when they take their product to the market
and by traders
Direct payment by a farmer or trader to a truck owner or, in some
cases,

Transportation
Example: Assume that there are 40 m3 of space
available in the truck to be used and that it costs
$500 to hire the truck.
A container of 0.2 m3holds 8 kg of tomatoes and a
container of 0.4 m3holds 10 kg of green peppers.
THEN, Calculating transport costs for tomatoes and

for green peppers per container and per kilogram :

SOLUTION:
Then the transport cost for tomatoes per container
and per kilogram is:
 TCT = $500 ÷ (40 m3 ÷ 0.2 m3) = $2.50 per container and
 TCT = $2.50 ÷ 8 kg = $0.3125 per kilogram
While the transport cost for green peppers per

container and per kilogram is:
 TCGp = $500 ÷ (40 m3 ÷ 0.4 m3) = $5.00 per container and
 TCGp = $5.00 ÷ 10 kg = $0.50 per kilogram
3. Product losses
Post-harvest losses of produce, particularly fresh produce, can be
quite considerable, both in terms of quantity and quality and
considerably affect the selling price.
Eg. Assume that at 10% loss levels, 1 kg of tomatoes purchased by

the trader from the farmer results in 900 grams (0.9 kg.) available for
sale to consumers.
The trader buys tomatoes from the farmer at $5 per kilogram and
marketing costs are $2 per kilogram for the tomatoes originally
purchased. The selling price of tomatoes is $8 per kilogram.
Then Calculating the cost of product losses:

3. Product losses
1 kg purchased at $5 per kg = $5.00
1 kg packed and transported at $2 per kg = 2.00
_________________________________________
Total Costs = $7.00
Sales Revenue or $8 x 0.9 kg = $7.20
Thus the margin to the trader = $7.20 - $7.00 = $0.20
Below is an example of the more usual and wrong, method of calculation.
1 kg purchased at $5 per kg = $5.00
1 kg packed and transported at $2 per kg = 2.00
10 percent losses or $5 x 0.1 = 0.50
__________________________________________
Total Costs = $7.50
Sales Revenue or $8 x 1 kg = $ 8.00
Thus the margin to the trader = $ 8.00- $7.50 = $0.50
The 2nd calculation is clearly wrong bcz here the trader is seen to be
obtaining revenue from produce
January 26, 2024
which has already been "lost".
YEROSAN SH.B.(MSc.) 68
4. Storage costs
Storage function concerned with making goods available
at the desired time.
Storage can be carried out by the farmer, the trader (or
marketing board) or by the consumer.
With regard to more perishable crops, storage can be used
to extend what is often every short period of availability.

4. Storage costs (SC)
Example: Calculating storage costs:
Assume that a warehouse is hired for 120 days of the year at a total cost of $600
and that the weighted average contents are 250 bags of potatoes.
Then the storage cost is...
$600 ÷ 120 days = $5.00 per day = $5 ÷ 250 bags = $0.02 per bag/day
Calculating storage costs over time
Assume that a trader buys potatoes at $10 per bag and keeps them in store for 4
months. To do this he has to borrow money at 12 percent per year.
Then the cost of bank interest is...
$10 x 0.04 (12% p.a. over 4 months) = $0.40 per bag
Thus a realistic calculation of SC per bag for our consignment of potatoes is.
Storage charge for 120 days at $0.02 per day = $0.02 *4MNTH
= $0.02 *120Days = $2.40
Interest charge of $0.40 per bag = $0.40
Total Storage cost per bag = $2.40 + $0.40 = $2.80
5. Processing costs
The processing function would include all those
essentially manufacturing activities that change the
basic form of the product.

5. Processing costs
The transformation of a product from one form to
another clearly involves costs associated with the
operation of the processing facility.
we need to consider two other important aspects of
processing costs.
Firstly, as with product losses
Secondly, there may be a by-product as a result of
the processing and this by-product can often be
sold
The value of the by-product must therefore be
included in the calculations.
5. Processing costs
Example: Calculating processing costs:
Assume that a rice milling operation converts paddy
at the rate of 70 percent (0.7) and has saleable by-
products equal to 25 percent of the paddy weight.
Processing costs per kilogram of paddy have been
calculated at $0.20 per kilogram on the basis of the
mill's total annual costs divided by the number of
kilograms of paddy processed.
The buying price of the paddy was $1.50 per kilogram
and the by-products have a value of $0.50 per
kilogram.
Then the processing cost per kilogram of paddy is...
5. Processing costs
Then the processing cost per kilogram of paddy is...
 One kilogram of paddy purchased = $1.50
 Processing costs or 1 kg x $0.20 = $0.20
 Total Costs = $1.70
 Less the by-product revenue of 1 kg x 0.25 x $0.50 = $0.12
____________________________________________
 Break even selling price per kilogram of paddy is
 BESP = TC-By product revenue
 BESP = $1.70-$0.12 = $1.58 (BESP of Paddy)
 Thus the break even selling price per kilogram of milled
rice is ...$1.58 ÷ 0.7 = $2.28
Exercise-3
1) How to Reducing costs and losses

2) What are Marketing Problems of Agricultural
Products in Ethiopia?

END OF LECTURE-5
THANK YOU!
FOR YOUR
01/26/2024
ATTENTION!!
@ YEROSAN S. BENTI (MSc.) 76

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CHAPTER 5:

January 26, 2024 YEROSAN SH.B.(MSc.) 2

January 26, 2024 YEROSAN SH.B.(MSc.) 3

Marketing includes all of the activities necessary to

January 26, 2024 YEROSAN SH.B.(MSc.) 4

Buyers are people who need or want a product or

When many buyers want a certain product the price

If few buyers want a product the price will be lower

It is the movement of farm products from the farms to the consumers.

January 26, 2024 YEROSAN SH.B.(MSc.) 11

It is the performance of all business activities

January 26, 2024 YEROSAN SH.B.(MSc.) 15

January 26, 2024 YEROSAN SH.B.(MSc.) 16

WHY AGRICULTURAL MARKETING

January 26, 2024 YEROSAN SH.B.(MSc.) 18

The importance of AM in economic development

January 26, 2024 YEROSAN SH.B.(MSc.) 19

January 26, 2024 YEROSAN SH.B.(MSc.) 20

January 26, 2024 YEROSAN SH.B.(MSc.) 21

January 26, 2024 YEROSAN SH.B.(MSc.) 23

In practice, however, many firms produce a range of

Such companies are described as diversified.

Diversification occurs when a single-product firm

The strategies of diversification can include

January 26, 2024 YEROSAN SH.B.(MSc.) 25

January 26, 2024 YEROSAN SH.B.(MSc.) 26

 The technology would be the same but the marketing effort

January 26, 2024 YEROSAN SH.B.(MSc.) 27

In a competitive environment, this form of diversification is

Moreover, the new products are marketed to the same economic

The main reasons of adopting such a strategy are:

January 26, 2024 YEROSAN SH.B.(MSc.) 31

January 26, 2024 YEROSAN SH.B.(MSc.) 36

January 26, 2024 YEROSAN SH.B.(MSc.) 37

January 26, 2024 YEROSAN SH.B.(MSc.) 38

January 26, 2024 YEROSAN SH.B.(MSc.) 39

January 26, 2024 YEROSAN SH.B.(MSc.) 40

January 26, 2024 YEROSAN SH.B.(MSc.) 46

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January 26, 2024 YEROSAN SH.B.(MSc.) 48

January 26, 2024 YEROSAN SH.B.(MSc.) 49

January 26, 2024 YEROSAN SH.B.(MSc.) 50

 GMMp = End buyer price – total marketing gross margin x 100

January 26, 2024 YEROSAN SH.B.(MSc.) 52

January 26, 2024 YEROSAN SH.B.(MSc.) 53

Then Find/caculate the following;

Marketing functions can be broadly classified as following:-

January 26, 2024 YEROSAN SH.B.(MSc.) 58

Packing means, the wrapping and crating of goods

January 26, 2024 YEROSAN SH.B.(MSc.) 60

Packing and packaging

January 26, 2024 YEROSAN SH.B.(MSc.) 61

January 26, 2024 YEROSAN SH.B.(MSc.) 62

January 26, 2024 YEROSAN SH.B.(MSc.) 63

January 26, 2024 YEROSAN SH.B.(MSc.) 64

THEN, Calculating transport costs for tomatoes and

January 26, 2024 YEROSAN SH.B.(MSc.) 65

While the transport cost for green peppers per

Eg. Assume that at 10% loss levels, 1 kg of tomatoes purchased by

Then Calculating the cost of product losses:

January 26, 2024 YEROSAN SH.B.(MSc.) 67

January 26, 2024 YEROSAN SH.B.(MSc.) 69