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Identify agricultural marketing systems A, B and C represented in the diagram above.

Business/Management

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Step-by-step solution

6 steps

2.1.1

  1. Identify marketing system A.

    System A describes members working together voluntarily for a common goal. This is characteristic of a cooperative.

  2. Identify marketing system B.

    System B describes farmers selling freely to achieve the highest price. This is characteristic of individual marketing or a free market system.

  3. Identify marketing system C.

    System C describes the government deciding on prices to stabilize them. This is characteristic of control marketing or state-controlled marketing.

    • A: Cooperative marketing
    • B: Individual marketing (or Free market marketing)
    • C: Control marketing (or State-controlled marketing)

    2.1.2

  4. State two principles of marketing system A (Cooperative marketing).

    • Voluntary and open membership
    • Democratic member control (one member, one vote)

    2.1.3

  5. State one disadvantage of marketing system B (Individual marketing).

    • Individual farmers have limited bargaining power, which can lead to lower prices for their produce.

    2.1.4

  6. State one benefit of marketing system A (Cooperative marketing) to the members.

    • Members gain increased bargaining power due to collective selling, leading to better prices for their products.
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