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Problems farmers encounter in marketing agricultural produce include;Perishability - Most agricultural products are perishable and deteriorate in quality very rapidlySeasonality - Farm crops mature in relatively short periodsBulkiness - The cost of storage and transport is higher in relation to their value.Poor transport system Changes in market demandLimited elasticity of demand - The demand for agricultural products is inelasticLack of market informationEfficiency in marketing - there is no absolute measure for the level of efficiency in marketing.
Factors that influence importation and exportation of goods include;Government policy through legislation. The government can encourage or discourage trade.Demand for goods both locally and outside Kenya encourages importation and exportation of goods.Availability of means of transport and communication enhances trade inhabit/non-availability.Level of industrialization/development dictates the types of goods to be imported and those exported.Distribution of resources/type of goods determine what a country exports and what it imports.
Importance of Intermediaries in the Chain of distribution.Reduce the number of transactions between manufacturers and buyers.They assist in breaking bulk.They assist in storage of goods.They assist in transportation of goods.They assist in product promotion.They assist in customs clearance.They assist in accumulation of stock and hence stabilizing prices.They assist in documentation in international trade.They assist in debt collection on their principals behalf e.g. auctioneers.They assist in establishing contracts between buyers and sellers e.g. brokers.Assist in preparation of goods for sale e.g. packing, grading, branding, sorting, blending etc.Assist in availing variety of goods to consumers.Help in sharing risks involved in the process of distribution
Disadvantages of a long chain of distribution.Increased priceChances of damage to goods due to handlingFeedback to the manufacturer / producer is slowPerishable goods will go badLikelihood of delay of goods.
Factors that influence the choice of a product to produce include;Market/Supply-gapFinance/fundAvailability of and access to raw materialsTechnical implicationsProfitability/MarketablilityAvailability of qualified personnelGovernment policiesGovernment objectives