| Challenge | Explanation | |-----------|-------------| | | Poor storage and handling lead to spoilage. In South Africa, up to 30% of fresh produce is lost before reaching consumers. | | Lack of market access | Small farmers are far from major markets; poor roads and lack of transport increase costs. | | Information asymmetry | Farmers may not know current market prices, so middlemen exploit them. | | Inadequate infrastructure | No cold chains, bad roads, limited processing facilities. | | Price volatility | Weather, global markets, and currency fluctuations cause unpredictable prices. | | Power imbalances | Large retailers may dictate terms (delivery schedules, packaging, credit periods) to small farmers. |
(Farm Price ÷ Consumer Price) × 100 = Farmer's Share % agricultural marketing notes grade 12 best
Loss of individual farmer independence, potential for slow management decisions. Contract Farming | Challenge | Explanation | |-----------|-------------| | |