Unity University, Gerji Campus

COURSE OUTLINES

Course Title: Agricultural & Commodity Marketing

Course No: Mrkt 312
Credit Hrs.: 3 hrs.
Prerequisites: Principle of Marketing I & II /Mrkt 221, Mrkt 222/
Instructor: Yared Ademe /EMBA, MBA in Marketing/
Email: [email protected]

Teaching and Learning Methods:

 Lecture, Term paper (students are expected to prepare marketing plan)

Course Descriptions:
This course provides a general introduction to the marketing activities associated with the
movement of agricultural products from farmer to consumer. The course of study will
examine the essential marketing functions of buying, selling, transportation, storage,
financing, standardization, pricing, and risk bearing. The agricultural marketing system is
vast and complicated. Its participants are as numerous as they are varying. Through this
course the student will become confident in their abilities to develop and assess successful
agricultural and food marketing strategies.

Course Objectives:
At the end of the course students will be able to:
 Understand how agricultural products progress through the food marketing system to
become food products
 Describe the organization of the food and agricultural industry and the role of
middlemen
 Evaluate and analyze the use of price, product, place, and promotion for the marketing
and distribution of agricultural commodities and food products
 Discuss structure and characteristics of agricultural products, agricultural production,
food processing and retailing; and their influence on the marketing of agricultural
products
 To recognize and describe the major participants in the food supply chain and how
each contributes to the final products and services offered to consumers.
 Describe food price relationships, cycles and variations
 Discuss types of advertising used in agricultural marketing
 Describe and compare transportation options for the food and agricultural marketing
system
 Define food storage components
 Be able to manage more effectively the price risk that faces agricultural producers,
processors and agribusinesses sector in a global market place using commodity
exchanges and futures contracts
Course Content
Chapter One: Overview of Agricultural Marketing
1.1. Introduction
1.2. Meaning of Agricultural Marketing
1.3. The Role of Agricultural Marketing to LDCS
1.4. Characteristics of Agricultural Products
1.5. The Common Problems Encountered In Marketing Of Agricultural Products In
Less Developed Countries (LDCS)
1.6. Suggestions To Improve Agricultural Marketing
1.7. Differences in the Marketing of Agricultural and Manufacturing Products
1.8. Types Of Agricultural Marketing Infrastructures
1.9. Producer's Surplus of Agricultural Commodities
Chapter Two: Agricultural Marketing Functions
2.1. Introduction
2.1. Types of Agricultural Marketing Functions
2.1.1. Storage Function
2.1.2. Grading and Standardization
2.1.3. Transportation
2.1.4. Processing
2.1.5. Risk Bearing
2.1.6. Packaging
2.1.7. Exchange Function
2.1.8. Finance Function
2.1.9. Intelligence Function
Chapter Three: The Marketing of Agricultural Commodities
3.1. Introduction
3.2. Stages in a Commodity Marketing System
3.3. Agricultural Commodities Marketing
3.3.1. Grain Marketing
3.3.2. Livestock and Meat Marketing
3.3.3. Poultry and Eggs Marketing
3.3.4. The Marketing of Fresh Milk
3.3.5. The Marketing of Coffee
3.3.6. The Cotton and textile marketing
3.3.7. The Horticulture Marketing
Chapter 4: Marketing Strategies for Agricultural Products
4.1. Introduction
4.2. Basic Concepts of Agricultural Marketing Strategy
4.2.1. Strategy, Policy and Planning
4.2.2. Agri-business Corporate Strategy
4.2.3. Business Policy
4.2.4. Marketing Planning
4.2.5 Strategic Business Units
4.3. The need for marketing planning in agricultural products
 4.4. The process of marketing planning for agricultural products
4.4.1. Types of Plan
4.4.2. The Contents of the Marketing Plan for Agricultural Products
4.5. 4 P’s in Agricultural Marketing
4.5.1. Product Strategies
4.5.2. Pricing in Agricultural & Food Sector
4.5.3. Distributing Agricultural Products
4.5.4. Promoting Agricultural Products
Chapter Five: Agricultural Commodity Exchange
5.1. Introduction
5.2. Definition of Commodities Exchange
5.3. Role and Functions of Agricultural Exchange
5.3. What Problems Can A Commodity Exchange Address?
Chapter Six: Managing Agricultural Marketing Risks Using Future Market
6.1. Agricultural Marketing Risks
6.1.1. Meaning of Risk
6.1.2. Types of Risk in Agricultural Marketing
6.2. Risk Management Strategies in Agricultural Marketing:
6.2.1. Speculation
6.2.2. Hedging
6.2.3. Futures Trading/Market
6.2.4. Contract Farming/Contract Marketing (Farmer – Processor Linkages)
6.2.5. Mechanics of a Futures Market
6.2.6. Example of Futures Market Participation
6.2.7. Market Risks - price variability
6.2.8. Market Risks - Placed out of the Market
6.2.9. Hedging Risk using Futures Markets
6.2.10. BASIS
6.3. Futures Market Practice
6.4. Options
Chapter Seven: Managing Market Shocks /Additional/
7.1. Introduction
7.2. Basics of demand for agricultural products
7.2.1. An overview of demand
7.2.2. Meaning of demand
7.2.3. Demand curve
7.2.4. Numerically solving for quantity demanded and price
7.2.5. Elasticities and flexibilities of demand for agricultural products.
7.2.5. Analyzing more complex relationships
7.3. Equilibrium displacement model
7.3.1. Introduction
7.3.2. Types of equilibrium displacement model
 7.3.2.1. Single commodity equilibrium displacement model
7.3.2.2 General equilibrium displacement model
Evaluation Modalities
Continuous Assessment ............................................................ 50%
 Attendance................................................................... 5%
 Tests............................................................................ 20%
 Individual Assignments.............................................. 5%
 Team Assignments..................................................... 20%
Final Exam................................................................................ 50%
Grand Total..............................................................................................100%

Texts and References

Textbook
1. Kohls, R. L. and Uhl, J. N. 2002. Marketing of Agricultural Products. Ninth
Edition. Prentice Hall.
2. Crawford, I. M. 1997. Agricultural and Food Marketing Management.
Rome: Food and Agriculture Organization of the United Nations.
Available online at:
http://www.fao.org/docrep/004/w3240e/w3240e00.HTM
3. Kohls, R.L. and Uhl, J.N. (1990), Marketing of Agricultural Products, 6th edition,
Macmillan Publishing Company, New York.

Reference
 Kotler, P. and Keller, K. L. 2006. Marketing Management. Twelfth edition. Prentice
Hall, Englewood Cliffs, N.J.,
 https://www.sellingcoffeeonline.com/marketing/