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Marketing is important when selling products and providing services - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1
Question 3
Marketing is important when selling products and providing services. 3.1.1 State THREE problems faced by a farmer selling livestock at an auction. 3.1.2 Describe t... show full transcript
Worked Solution & Example Answer:Marketing is important when selling products and providing services - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1
Step 1
State THREE problems faced by a farmer selling livestock at an auction.
Answer
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Auction fees can be costly: Farmers often incur significant costs associated with participating in auctions, which may reduce their overall profit.
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Market price is not always favourable: The reserve price set for livestock may not reflect the current market demand, leading to unsatisfactory returns for the farmer.
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Risks of disease outbreaks: Livestock can be exposed to diseases due to poor organisation and lack of proper health measures at auctions.
Step 2
Describe the free-market system.
Answer
In a free-market system, producers have the liberty to sell their products as they wish, choosing the items and determining the prices based on market demand. This system operates without substantial government intervention, and prices are established through competition, benefiting consumers by allowing access to goods at the highest possible price.
Step 3
State TWO advantages of fresh-produce markets.
Answer
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Higher earnings during shortages: Farmers can benefit from increased prices during times of limited supply, directly impacting their revenue positively.
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Flexible selling options: Fresh-produce markets allow farmers to sell larger quantities of produce directly, offering more control over their sales processes.