Agro Food Marketing

What is Agro – Food Marketing?

Agro food marketing is a form of marketing in which food products use general marketing approaches like the other products and services in the market.  All the marketing topics that are relevant for other products and services like segmentation, positioning, branding, targeting etc. are very important for food marketing.

Why it is different?

Agro food marketing differences in a way that involves challenges such as dealing with a perishable product whose quality and availability depends on the current harvest condition. We need to pay attention to the other differences and problems involved in food marketing. One problem farmers face is the limited control they have over market conditions. If a farmer increases his production, thus increasing his supply and resulting with decreased market prices the farmers have no power over that situation. Another problem is the adjustment time of the farmer for his output. Even if a farmer decides to raise the production of hogs when the prices go up, by the time the farmer got his stock ready, the market prices may have decreased. Farmers often face a “cost-squeeze” that happens when we have a change of market prices. When market prices decline, prices paid to farmers decline too. But however, even though the prices decline, the costs of the farmers do not. These price fluctuations may change a crop from being profitable to cause significant loss.

Growers, producers and manufacturers now work together to create products and services that meet customers’ standards. Because competition is increasing globally, in order to beat that competition you can not only use managerial skills, you also need technical knowledge. Science has allowed agricultural and food marketing to have an increased level of productivity and adaptation of products to market needs.

Food Marketing Efficiency
Value to the product
Meeting customer standard
Increased level of productivity
Adaptation of products to market needs

Why it is important?

One important characteristic of food marketing is food marketing efficiency. That means providing services to customers at the lowest cost possible. This does not mean to minimize cost after the materials leave the farm, because services added later may be very valuable to the consumer. The goal is to add the needed value steps as efficiently as possible.

Another very important aspect is the extent to which certain parties add value to the product – or in other words, the importance of the value chain. The value chain provides an opportunity for the firms to add value to a product. This influences the retail prices to be pushed, but these added costs result from the demand side of the customer because the customer is the one who is willing to pay additional price for that product.

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