Structures & Market Unions For The Sale Of Products

STRUCTURES AND MARKET UNIONS FOR THE SALE OF PRODUCTS

PRIMARY AND SECONDARY PRODUCTS

Primary Products

Primary products are products in their natural states for example, raw materials that are “extracted” from the land or ocean. They include products of mining, agriculture, forestry and fisheries. These goods are either sold as it is or used as raw materials for use in processing or manufacturing.

Primary products include:

•    Logs

•    fruits

•     vegetables

•      nuts

•     flowers

•     seafood

•    metals, and

•    precious stones

Secondary Products

These are products that have been processed. Examples are:

•     Textiles

•     Shoes

•     Sugar

•     Bread

•     Books

•     Caps

•     Calculators, etc.

Another way of looking at primary and secondary products is that primary products are also products associated with a particular organization as contained in its mission statement. For example, the primary product of a transport company is transport services. Any other service like the running of canteen in their premises should be regarded as secondary product.

PRIMARY PRODUCERS

Primary producers are the people and organisations that work with our natural resources to grow, harvest or extract primary products. Most products from the primary industry sector are considered raw materials for other industries.

Major industries in this sector include agriculture, fishing, aquaculture, forestry and all mining and quarrying industries.

Primary producers are the people who work in these primary industries to produce raw materials. There are quite a lot of people and organisations that are a part of this, ranging from farmers, fishers, croppers, growers, foresters, timber fallers and miners.

Here is an introduction to the industries which primary producers work in. Agriculture and horticulture (farming)

Farming is the first step in food production, with farmers growing food, feed and fibre for our communities. Food is a straightforward idea – we know people eat it and it’s vital for life! Feed is used to sustain animals which provide us with a range of meat and other animal products like eggs. Fibre is a little more difficult to grasp, as fibre comes from a range of sources including crops, trees and some animals, and is used to make a range of products, including paper, cotton and wool.

Commercial fishing and aquaculture

Commercial fishing is the active collection of fish and other aquatic life such as prawns, crabs and squid via nets, traps and lines.

Aquaculture is a form of aquatic farming, including the breeding of fish and prawns to harvest or to restock waterways. Growing cultured pearls is also an emerging aquaculture industry.

Mining (minerals and petroleum)

Mining is the process whereby natural resources are extracted from the ground and turned into raw materials. The extraction of base metals such as gold, and fossil fuels like coal and natural gas, can all be considered mining.

Forestry

Forestry involves the active management of forests for a range of products and values, with timber production a key aspect of this management.

MARKET UNIONS

Market unions are association of traders in particular commodities who come together to promote their own objectives.

According to Agbonifoh et al, market unions perform two main functions, one social and one political.

Socially, they help members financially during important occasions such as marriages and funeral ceremonies.

Politically, they lobby the authorities to ensure adequate supply, maintenance and improvement of facilities at the traditional open markets. They also restrict and regulate entry into their types of trade. They also control price through collusive price fixing.

STRUCTURE FOR MARKETING PRODUCTS

Some of the institutions such as wholesalers and retailers involved in the marketing of primary and secondary products were discussed in chapter 11.

In this section, we shall look at the marketing structure for agricultural products Food processing industries who convert primary products to secondary products may sell directly to consumers or through intermediaries such as wholesalers and retailers, supermarkets, and traders in traditional markets.

Sales depots in states or area offices may also sell to hotels and other institutions who sell directly to consumers. Farmers could also sell non processed foods directly to consumers.

SUMMARY

Primary products are products in their natural states for example, raw materials that are “extracted” from the land or ocean. Secondary products are products that have been processed.

Primary producers are the people and organisations that work with our natural resources to grow, harvest or extract primary products. Most products from the primary industry sector are considered raw materials for other industries.

Market unions are association of traders in particular commodities who come together to promote their own objectives.

Institutions that constitute the market structure of primary and secondary products are: Food processing industries, wholesalers, market unions, and retailers.