Agricultural marketing

Meaning: 

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The processing activity involves a change in the form of the commodity. This function 
includes all of those essentially manufacturing activities which change the basic form of 
the product. Processing converts the raw material and brings the products nearer to 
human consumption. It is concerned with the addition of value to the product by 
changing its form. 
Advantages: 
The processing of agricultural products is essential because very few farm products – 
milk, eggs, fruits and vegetables – are consumed directly in the form in which they are 
obtained by the producer – farmer. All other products have to be processed into a 
consumable form. Processing is important, both for the producer – sellers and for 
consumers. It increases the total revenue of the producer by regulating the supply against 
the prevailing demand. It makes it possible for the consumer to have articles in the form 
liked by him. The specific advantages of the processing function are: 
1. It changes raw food and other farm products into edible, usable and palatable 
forms. The va lue added by processing to the total value produced at the farm 
level varies from product to product. It is nearly 7 percent for rice and wheat, 
about 79 percent for cotton and 86 percent for tea. It is generally higher for 
commercial crops than for food crops. Examples of the products in this group 
are: the processing of sugarcane to make sugar, gur, khandsari; oilseeds 
processing to make oil; grinding of food grains to make flour; processing of 
paddy into rice; and conversion of raw mango into pickles. 
2. The processing function makes it possible for us to store perishable and semi – 
perishable agricultural commodities which otherwise would be wasted and 
facilitates the use of the surplus produce of one season in another season or year.
Examples of the processing of the products in this group are: drying, canning and 
pickling of fruits and vegetables, frozen goods, conversion of milk into butter, 
ghee and cheese and curing of meat with salting / smoking. 
3. The processing activity generates employment. The baking industry, the canning 
industry, the brewing and distilling industry, the confectionary industry, the sugar 
industry, oil mills and rice mills provide employment to a large section of society. 
4. Processing satisfies the needs of consumers at a lower cost. If it is done at the 
door of the consumer, it is more costly than if it is done by a firm on large scale.

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Processing saves the time of the consumers and relieves them of the difficulties 
and botherations experienced in processing. 
5. Processing serves as an adjunct to other marketing functions, such as 
transportation, storage and merchandising. 
6. Processing widens the market. Processed products can be taken to distant and 
overseas markets at a lower cost.