Intermediaries in the marketing process of agricultural products.

지난달
Dear readers, at the time of marketing an agricultural product, some producers sell directly to consumers, but in my sector there is usually a group of people known as intermediaries, who are responsible for the mobilization of products from agricultural production units to retailers or final consumers.

Design by @amestyj with public domain image taken from PIXABAY

In this sense, Aldana (2001) and Castellano (2000) mention that as urban areas increase in countries, the demand for agricultural products increases and therefore the needs of consumers, which is why intermediaries are considered important, since they are the ones who facilitate the transfer of products so that product demands can be met.

Now, despite observing the importance of intermediaries in the marketing process, many people consider them as one of the negative elements in the marketing process, making them responsible for the increase in prices, in society we always hear that those who end up with a higher profit is the intermediary and producers who are responsible for establishing and maintaining crops their income is lower, I think from my point of view that everything will depend on the company or person who make the connections between producers and consumers, since some may speculate with prices.

Taking into account the aforementioned, we will detail the type of intermediaries that exist in the commercialization of agricultural products according to Castellano (2000).

- Rural stockpilers: as their name indicates, they are in charge of concentrating agricultural products from different production units and then taking them to the agribusiness. For example, in the southern area of Lake Maracaibo there are milk stockpilers, where trucks travel to different production units and then take them to the dairy industry.

- Wholesalers: in this line there is an intermediary that can be called rural wholesalers and urban wholesalers, rural wholesalers are in charge of buying from producers or rural stockpilers to sell to urban wholesalers; as for urban wholesalers, they are in charge of selling products to retailers, as we all know retailers are composed of warehouses, butchers, cheese shops, bakeries and other establishments that specialize in the sale of agricultural and livestock products.

The intermediaries

Design by @amestyj

Dear readers, as can be seen, intermediaries play an important role in the marketing of agricultural products, in order to reach consumers who are the ones who generate the demand and who consume these products, which is the last link in the production process.

Bibliographic References
- Aldana, H. (2001). Agricultural Economics, Administration and Marketing. Terranova Editions.

- Castellano, A. (2000). Commercialization of agricultural products. Ediciones de la Universidad Nacional Experimental Ezequiel Zamora UNELLEZ. Barinas: Venezuela.


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Hello friend amestyj!
Certainly intermediaries play an important role in the distribution of products, and allow them to reach our hands. Especially today in our country with so many problems related to supply. However, I think that sometimes they feel they have the power to set high prices and that makes them more expensive to acquire, on the other hand, there are the costs that may arise along the way because some people want to get a share of the work of others and no sanctions are applied. Thanks for sharing, greetings!

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Greetings dear friend, I completely agree with you, although intermediaries are indispensable, some tend to manipulate prices at will, creating a great speculation in the market.

See you later, have a great week.

Hi @amestyj
They certainly play an important role, for such a reason, and very often abused. I see it even here in Bogota, with potatoes there is something like that, the product of the field sells to intermediaries very cheap, then these transport and sell to commercial premises already quite expensive, and losocales.comerciales raise you another good percentage, which makes the product can reach up to 100% increase if we are based on the cost at which the producer sells, it's crazy. But, it is the business, and I don't think that will change.

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Hi @josevas217, you made an accurate radiography of what generally happens in the agricultural sector, the producers who have a great job to maintain the crops, sometimes their profits are lower compared to the intermediary.

Have a great week my friend.

hello @amestyj, it is very true what you mention about the perception that is held at the marketing level with intermediaries, as it is believed that they are responsible for causing price speculation and therefore an unstable economy or otherwise a volatile market that causes many collateral damage in negotiations.

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Hello friend @yongleantonio you hit on important key point, intermediaries sometimes cause the market to be very volatile because of the price increase they make to the products.

Have a great week.

Hello friend @amestyj, certainly intermediaries play an important role in the distribution chain of agricultural products, in these times they are mostly used by large agricultural producers since small producers prefer to take their products to popular markets because they get higher profits.

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Hello friend @carlir you are right small producers to achieve higher profits prefer to sell their products directly in popular markets, hence this type of establishment becomes very famous in the cities because the costs of the products are lower.

We do not continue reading brother.

We can't dispute the fact that intermediaries are of great use. Most importantly, they bring buying connections for products while the farmer have less worries than to ensure his farm brings forth a quality products. But I think different countries and citizens ideologies play a part in how we make use of intermediaries.
In my country, it is widely known that Intermediaries accumulates the highest profit from every farm products, and these might later result into people and farmers thinking they have been cheated on. Intermediaries don't really have much to do, but ended up having more than enough gain. This issue occur most where there is not standard price control system.
Would drop my pen here.
Thanks for sharing with us.

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Hi @benie111 no doubt speculation by intermediaries has become very common, but you mentioned something very important, if there was supervision and price control, I am sure that the situation would be regulated a little.

See you later brother, have a great week.

Greetings @ amestyj In the marketing of agricultural products in Venezuela intermediaries are responsible for managing market prices, as they make the purchase of the product directly to the producer and then resell the retail or wholesale markets, placing in many cases a profit margin of 100% of the product, but in other countries the figure of intermediaries are supervised by laws and regulations with a profit margin that does not affect the final consumer.
Thank you very much for sharing your publication

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Greetings @dgalan, in Venezuela as you rightly mention, this situation of speculation by intermediaries occurs, the supervision you mention would be ideal to implement it in our country to regulate this situation.

See you later, have a great week.