Pricing of agricultural produce

Back to: AGRICULTURAL SCIENCE JSS3

 

Welcome to class! 

In today’s class, we will be talking about the pricing of agricultural produce. Enjoy the class!

Pricing of Agricultural Produce

CONTENT

1. Meaning of price
2. Meaning of Market
3. The concept of demand and supply
4. Factors that determine the pricing of agricultural produce.                                           

Pricing:

The price of an agricultural product is the amount of money which a product is to be paid by people who desire to buy the products.

Market:

A market is described as a specific place where producers and buyers meet for exchange of materials. The price of any agricultural product depends on the environment which is called.

Evaluation

1. What is Price?
2. What is the Market?

The concept of supply and demand

1. Supply: The supply of a product is the total quantity of the product that producers offer for sale in the market.
2. Demand: The demand for a product is the total quantity of the product desired by all traders and customers for the product.

Determination of price by supply and demand

If the supply of an agricultural product is low, which means there is a shortage of the product in the market, many people will want the product and some traders and customers will be prepared to pay extra money to buy the product. In this situation, the price of the product will be high.

When the supply of an agricultural product is high, it means there is a large quantity of the product in the market; some producers will be willing to sell for a low price, to attract buyers. The price of the product will, therefore, become low.

Evaluation

1. Define demand and supply.
2. Explain how demand and supply affect prices.

Factors that determine the pricing of agricultural produce

1. Cost of production: the production costs are put into consideration to fix the selling price of any agricultural produce.
2. Quantity of Produce: if the farmer produces a large quantity of products to make the market saturated the selling price will fall, vice versa.
3. Quality of produce: the demand for high-quality produce is high, therefore the selling price of such produce is also high.
4. Demand and supply.
5. Market Places: the farther the distance to the site of production, the higher the selling price. Also, farm produce sells more in cities than villages where the demand is low.
6. Seasons: The prices of crops are low at their seasons of production and high when their season is gone.

General  self-evaluation

1. What is demand?
2. What is supply?
3. Explain how demand affects pricing.
4. What is a market?
5. List 5 factors that determine Pricing.

Reading assignment

Junior Secondary Agriculture for Nigeria School, Book 3, Chapter 2, Pages 11-15

Theory

1. What is a market?
2. Define demand and supply.
3. Explain how the demand and supply affects prices.

 

In our next class, we will be talking about Advertising in agriculture.  We hope you enjoyed the class.

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