Agricultural marketing

Risks in Storage: 
The storage of agricultural commodities involves three major types of risks. These are: 

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1. Quantity Loss: The risks of loss in quantity may arise during storage as a result 
of the presence of rodents, insects and pests, theft, fire, etc. Dehydration too, 
brings about an unavoidable loss in weight. It has been estimated that about 10 
million tones of foodgrains are lost every year because of poor and faulty storage. 
2. Quality Deterioration: The second important risk involved in the storage of 
farm products is the deterioration in quality, which reduces the value of the stored 
products. These losses may arise as a result of attack by insects and pests, the 
presence of excessive moisture and temperature, or as a result of chemical 
reaction during the period of storage. Dehydration of fruits, vegetables and meat 
during storage may lower their sale value. Butter, if not properly stored, may 
become rancid, which reduces its sale value. The loss in the quality of farm 
products varies with their quality at the time of storage, the method of storage and 
the period of storage. 
3. Price Risk: This, too, is an important risk involved in the storage of farm 
products. Prices do not always rise enough during the storage period to cover the 
storage costs. At times they fall steeply, involving the owner in a substantial loss.
Farmers and traders generally store their products in anticipation of price rise and 
they suffer when prices fall. 
 
PROCESSING: 
Processing is an important marketing function in the present-day marketing of 
agricultural commodities. A little more than 100 years ago, it was a relatively 
unimportant function in marketing. A large proportion of farm products was sold in an 
unprocessed form, and a great deal of the processing was done by the consumers 
themselves. At present, consumers are dependent upon processing for most of their 
requirements. Many technological changes have occurred in the recent past, such as the 
introduction of refrigeration, modern methods of milling and baking food grains, new 
processing methods for dairy products, and modern methods of packing and preservation.
These technological changes have had a significant impact on the standard of living of 
the consumers, on the economic and social organizations of society, and on the growth of 
trade in the country.