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THE IMPACT OF MARKETING ON AGRICULTURAL DEVELOPMENT IN A DEVELOPING COUNTRY

CHAPTER ONE

INTRODUCTION

In most developing economics and in Nigeria particularly, there is abundant land and human resources but the diverse resources and capacities are at present under-utilized due to mismanagement and inadequate finance for agricultural development. As a result, the nation is confronted with problems urban drift in the economy. These like inflation unemployment, rural problems brought about the need for the adoption of a development strategy that would restore agriculture to the pre-eminent position it once occupied in the economy of this country.

As in most other development countries, subsistence agriculture on small plots of land is a way of life of the cast majority of Nigeria farmers, but a gradual transformation from subsistence type of agricultures to commercialized agriculture is taking place all over country.

In addition, a few plantations have sprouted in different parts of the country. In recent times under government direction and persuasion, agriculture financing and marketing firms are enjoined to direct a sizeable proportion of their loans and advances and also management advice to agriculture, however the responses has poor relative to other sectors. This is also obvious in the 1999 budget where only N7.5 billion was allocated to agriculture compared economy depends largely on the provision of foods for the survival of the populace.

All economics depends largely on the marketing activities, in linking of the investor that generate surpluses with those that utilize them for investment.

Agriculture marketing developed as a result of people (and economy) desire to deliver their farm products to where it is needed in the right quantity and quality, price and at the right time. It was also developed so that improvement could be made on agriculture in the form of research, which will invariably aid the farmers in producing more high quality yield and creation of awareness to the unknown public.

Generally speaking, Agriculture Marketing plays a very important role in the economy, because plantation products such as cocoa, rubber are being exported to generate foreign exchange which are used to augment the economy’s revenue for instance, it has been established that rubber brings an estimated revenue of N3 billion annually. Agriculture aids the development in a developing economy. Although the past two decades have witnessed a fall in the contribution of agriculture to the national economy, this has been due to two related factors, the neglect of the agricultural sector and the increased contribution of oil to national economy. Agriculture however, is no doubt enjoying, one of its best moments in terms of attention being showered on its by both the federal and state government, by the established of agricultural development programme and centers. This apart and despite its neglect, agriculture still provides the bulk of the food we eat. It provides raw materials for our industries, effect of this contribution on the well being of the rest of the economy are themselves sufficient to justify the top priority that should be giveh’t6 the sector. One area in which this priority is being reflected is agriculture marketing and financing. There is no doubt that many enterprises whether business or otherwise, marketing constitutes has been described as a function that identifies unfulfilled needs and wants, defines and measure their magnitude, determine which target markets the organization can best serve, decides on appropriate products, services and programmes to serve these market and call upon everyone in the organization to think and serve the customer. To buttress, this further, it has been said that market should not market what management think he can produce but what customer thinks he is buying. The morale is that the marketers should blend his value system and logic. Agriculture is no exception. It is for this reason that agriculture, marketing firms were established to tackle the problems experience in agriculture development and hence the choice of the impact of marketing on agriculture development in Nigeria in other to measure the effect of marketing activities determines ‑its problems and provides effect solution to the problem.

1.2   PURPOSE OF STUDY

The idea of a research of this nature was borne out of the need to deal with the problems of marketing agriculture. This study is necessary to critically examine these problems and make out a way of solving these problems, which will support the rapid recovery, growth and development of the agriculture of the agricultural sector of the economy.

1.3   SIGNIFICANCE OF STUDY

All modern economies depend largely on the intermediary functions of marketing services in linking up the various sectors. The existence of marketing is very significant when considerations are made for agricultural development. In fact, there is high correlation between the indices of agricultural development and the marketing activities. It is in the effort to mitigate these problems and accelerate the pace of agricultural development that agricultural marketing have been established as catalyst to stimulate development.

This project will therefore enable us to know how the marketing activities have been able to perform since the founding of the agricultural marketing programmes. Such as agricultural extension. It will also help us to reduce to a manageable level the problems associated with the development of agriculture sector through marketing in other that the society at large may enjoy the benefit. It is believed that at the end of this study, the findings and recommendations will be of assistance to the agricultural marketing firms in decision based on the implementation of the agricultural development activities. Also it is hoped that this research work will be useful to other researcher and those interested in the development of agriculture in Nigeria.

1.4   STATEMENTS OF PROBLEMS

One of the major problems facing agricultural development in a developing economy in recent times is the problems of marketing which can be traced to problem encountered in the transportation of agricultural produce to the near by market place as a reject of bad road, lack of storage facilities of form products and channel of distribution of agricultural produces.

Moreso, the problem of insufficient capital to develop agricultural plantation method and as well purchase of modern harvesting equipment and machinery. To this, we need to investigate the impact of marketing on agricultural development in a developing economy.

1.5   SCOPE AND LIMITATION OF STUDY

The basic for this study is to show the impact of marketing on agricultural development in a developing economy. However, there are variables that effect agricultural development other than marketing. These variability resources are:

-              Inadequate capital

-              Lack of good modem agricultural tools and machinery for plantation and harvesting.

-              Poor management style

-              Lack of good road for easy transportation of form products to the market place.

Another limiting factor to this research work is the willingness on the part of some people who were approached to give some vital information during the interview that were officially confidential. More so, some questionnaires distributed out were not easily completed.

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