CAEE 5131 - Agricultural Marketing and Price Analysis
Transportation and standardization of agricultural commodities
Transportation and standardization of agricultural commodities are important in agricultural marketing and influence each other. On one hand, transportation is the movement of agricultural commodities from where they are produced to various consumption centres. It plays an important role in market development, expansion and competition. Transportation is the key link in the agricultural marketing system connecting geographically specialized farmers and an urbanized consumer population. It contributes to the creation and preservation of place utility for consumers. The key questions to be considered in transportation of agricultural commodities are what are the features of the commodity being transported? and how such features affect choice of transport mode. The choice of the mode of transport will be guided by considerations of merits and demerits of alternative transportation modes. Owing to special agricultural commodity characteristics agricultural sector has special transportation needs. Therefore, depending on transportation needs, freight rates, routes and schedules adjust freely.
On the other hand, standardization refers to measurable quality of agricultural commodities that differentiate them for consumers. Standardized commodity grades can contribute to operational and pricing efficiency as well as increased consumer satisfaction and producer returns.
On the other hand, standardization refers to measurable quality of agricultural commodities that differentiate them for consumers. Standardized commodity grades can contribute to operational and pricing efficiency as well as increased consumer satisfaction and producer returns.
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This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation