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Transportation-MKT 355

Chapter 3 discusses the importance of transportation in agricultural marketing, highlighting its role in moving farm products to consumers and its impact on market efficiency. It outlines the advantages of transportation, factors influencing costs, and problems faced in the transportation of agricultural commodities. Suggestions for improvement include better utilization of transportation capacity, reducing spoilage, and enhancing infrastructure.

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Rokeya Binte Tonima 1911647630
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13 views12 pages

Transportation-MKT 355

Chapter 3 discusses the importance of transportation in agricultural marketing, highlighting its role in moving farm products to consumers and its impact on market efficiency. It outlines the advantages of transportation, factors influencing costs, and problems faced in the transportation of agricultural commodities. Suggestions for improvement include better utilization of transportation capacity, reducing spoilage, and enhancing infrastructure.

Uploaded by

Rokeya Binte Tonima 1911647630
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 3

Transportation

DR. MEHE ZEBUNNESA RAHMAN(ZBR)


AGRICULTURAL MARKETING
MKT 355
NORTH SOUTH UNIVERSITY (NSU)

ZBR,NSU
Objectives
• Understand transportation concept
• Explain the advantages of transport functions
• Describe the means of transportation
• Explain the determinants of cost of transportation
• Problems in transportation of farm produce
• Suggest measures for improvement

ZBR,NSU
• The word “TRANSPORT” has been derived from the Latin word “TRANSPORTARE
“TRANS” means across or the other side and “PORTARE” means carry.
Transport thus means to carry to the other side.

• Transportation or the movement of products between places is one of the most important
marketing functions at every stag

• All farm commodities have to be brought from the farm to local market, > wholesale market>
retail market> Consumer
Inputs,
Factory> warehouse> wholesalers> retailer> consumer
ZBR,NSU
Importance
• World food industry depend on physical distribution
• Influence marketing efficiency ratio
• Contributes to market development, expansion, and completion
• Transportation influences other marketing functions and dimensions
• Influences storage capacity, inventory level & cost
• Transportation cost influences location of processing plants

ZBR,NSU
Advantages of transportation function

• Widening of the market


• Narrowing price differences
• Creation of employment
• Facilitation of specialization of the economy
• Transformation of the economy
• Mobility of factor of production

ZBR,NSU
Stage of Transportation is done Means of transport
by used
marketing
Threshing floor to Farmer Head load, cart,
village marketing point tractor-trolley

Village marketing to Trader Trucks, bus, Railway


rely station/wholesale wagons
marketing

Farm retail Consumer Rickshaw, Van, push


market/wholesale cart, head load
marketing to consumer

ZBR,NSU
❑ Transportation cost ? Importance/ Influencing
factors?

1. Distance
2. Quantity of the product
3. Mode of transportation
4. Condition of road
5. Nature of products

ZBR,NSU
❑ The cost of transportation per unit is higher for the

products having the following characters:

1. Perishability (veg.)
2. Bulkiness (straw)
3. Fragility (tomatoes)
4. Inflammability (petrol)
5. Requirement of a special type of facility (livestock, milk)
6. Availability of return journey consignment
7. Risk associated

ZBR,NSU
Problems in Transportation of Agricultural
Commodities
1. The means of transportation used are slow moving
2. There are more losses/damages in transportation.(poor packaging materials,
overloading of the produce, poor handling)
3. The transportation cost per 100 Tk. worth of farm produce is higher than that
for other goods.
4. There is a lack of coordination between different transportation agencies, eg,
railway and truck agencies
5. The multi-gauge system of railways

ZBR,NSU
Suggestions for improvement

1. Full utilization of capacity of the transportation facility in terms of load


2. Fixing the rate of transportation for different means
3. A reduction in spoilage, damage, breakage and pilferage during the period of movement
4. A reduction in bulk of the produce by processing helps in minimizing transport cost
5. The speed and capacity of the vehicles used in transportation should be increased
6. Development of roads and railways

ZBR,NSU
Reference

Agricultural Marketing in India


S.S Acharya and N.L. Agarwal,

Marketing of Agricultural products


R.L. Kohls and J.N. Uhl

ZBR,NSU
ZBR,NSU

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