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Posted by Chester Morton / Friday 6 January 2017 / No comments
The functions of marketing Boards
Definition of marketing board
THE FUNCTIONS OF
MARKETING BOARDS
Mobilizing money
One of the functions of the marketing board is to help the government to mobilize money for the purchase of the products that are produced by the farmers. This may be through syndication by financial institutions that have been mandated to do so. This money is used to purchase the products and after they are sold at a profit, the difference is paid into government coffers.
One of the functions of the marketing board is to help the government to mobilize money for the purchase of the products that are produced by the farmers. This may be through syndication by financial institutions that have been mandated to do so. This money is used to purchase the products and after they are sold at a profit, the difference is paid into government coffers.
Buying and selling
One can see from the point above that one of the major
reasons for the establishment of marketing boards is to buy the products from
the producers and sell them to buyers, whether the buyers are from within the
country or outside. In other words, the products are exported to the
international markets for profit.
Grading of produce
Another function of the marketing boards is to categorize the
produce into various grades. Not all the produce will be of the same standard
so they cannot all be boxes into one. In order to maximize profits, the board
separates and prices them to get more profit.
Conduct of research
Another function of the marketing board is to conduct
research or commission one to be conducted into any problems that might be bedeviling
the industry. For example, is the cocoa trees in Ghana are being attacked by
any disease, it is the duty of the Cocoa Board to research into the causes and
to find solutions to it so that it does not affect the other trees.
Finding of good prices for products
Another function is to ensure good prices for the produce.
Marketing Boards ensure that they negotiate the best prices, under every circumstance
for the producers so that if for nothing at all, they can break even. In some
cases, where there is a glut and prices are driven down as a result, the
marketing board can decide to hold onto to the produce until prices stabilize.
Provide inputs
The marketing board is also duty bound to ensure the supply
of inputs to the industry. The procurement of seedlings, fertilizers,
pesticides, spraying cans, etc are some of the items that are needed by the
producers and the marketing board must make sure it procures and resources the
producers. The aim, among other things is to boost production.
Funds infrastructural projects
The Ghana Cocoa Board, for example, finances roads projects
in the cocoa producing areas of the country. This project, called cocoa roads,
is aimed at improving the roads infrastructure of the producing areas to
enhance the living standards of the people and to facilitate the easy movement
of the goods and passengers. So, marketing boards function to bring infrastructure
development to the people.
SAMPLE QUESTIONS
1. What are the functions of marketing boards?
2. Highlight six functions of marketing boards in your
country.
3. Advance six reasons why marketing boards are established.
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ECONOMICS
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