State three advantages and one disadvantages of each of the following marketing agents (i) retailers (ii) Wholesalers (iii) co-operative societies.
Explanation
(a)(i) Advantages of retailers: (i) they extend or give credits to consumers (ii) they make products readily available to consumers (iii) they give information to consumers/wholesalers (iv) they grade and standardize produce (v) packaging of produce for sale in small packs. Disadvantages of retailers: (i) they inflate prices (ii) they suffer losses through stealing and decay of produce.
(ii) Advantages of wholesalers: they (i) buy farmers produce in bulk and assemble them (i) ease transportation problem of producers (iii) pass information from retailers to producers and vice versa (iv) extend credit to farmers/retailers (v) provide storage facilities (vi) package produce for distribution/sales (vii) save producer's time in marketing its produce. Disadvantages of wholesalers: they (i) create artificial scarcity of farm produce (ii) exploit producers by offering low farm gate prices. (iii) exploit retailers and consumers by selling at higher prices.
(iii) Advantages of Cooperative societies: they (i) improve the bargaining power of farmers (ii) improve storage facilities (iii) stimulate competition in produce marketing (iv) give loans to members (v) provide transport and storage facilities. Disadvantages of cooperative society: (i) they do not encourage individual enterprise (ii) funds are often mismanaged (iii) dishonest officers connive with buyers to cheat the cooperators.
(b) Effects of poor storage facilities on agricultural marketing: (i) perishable produce get spoilt (loss in quantity) (ii) reduction in quality of produce leading to low market value (iii) low prices of income during bumper harvest because of inability to store (iv) low demand for produce of low quality (v) farmers get discouraged to continue with production (vi) heavy infestation by storage pests.