A formal business plan acts as a roadmap for the farm and is essential for securing bank loans or government grants. It includes:
Moving products from the farm to storage or markets. agricultural marketing notes grade 12 best
When the price of a product increases, producers want to supply more to maximize profit. When the price decreases, the quantity supplied drops. Factors Influencing Supply Cost of production inputs (seed, fertilizer, fuel, labor). A formal business plan acts as a roadmap
Do not confuse marketing channels (how the product moves) with marketing functions (the activities performed on the product). When the price decreases, the quantity supplied drops
Some products (like basic food staples) have low elasticity—demand doesn't change much if price increases. 5. Marketing Strategies for Farmers
A large change in price results in a very small change in the quantity demanded. Most staple foods (e.g., maize meal, bread, milk) have inelastic demand because people must eat regardless of minor price hikes.