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.