| Market Type | Description | Pros | Cons | | :--- | :--- | :--- | :--- | | | Central markets where farmers sell produce to buyers via agents. | High volume potential; good for bulk sales. | Agent commissions; price fluctuates with supply. | | Auctions | Products sold to the highest bidder (common for livestock). | Competitive pricing; quick sales. | No control over final price. | | Direct Market | Selling straight to consumer (roadside stalls, farmers markets). | Highest profit margin; immediate cash flow. | Time-consuming; low volume per sale. | | Contract Marketing | Farmer signs agreement to supply a specific quantity at a set price to a processor/retailer. | Price stability; guaranteed market. | Strict quality standards; penalties
| | Specific Functions | Explanation for Grade 12 | | :--- | :--- | :--- | | Exchange Functions | Buying & Selling | Involves price discovery, negotiation, and transfer of ownership. The core of marketing. | | Physical Functions | Transport, Storage, Processing | Getting the product physically moved, kept safe, and changed in form. | | Facilitating Functions | Standardisation, Grading, Financing, Risk Bearing, Market Intelligence | These help the exchange and physical functions run smoothly. E.g., grading ensures quality standards. | agricultural marketing notes grade 12 best
The point where supply equals demand, establishing a single market price. 2. Functions of Agricultural Marketing | Market Type | Description | Pros |