REVIEW argued, transaction costs and other causes of

REVIEW OF RELATED LITERATUREAccording to Moti,(2007) “Although markets are essential in the process of agricultural commercialization, as many people argued, transaction costs and other causes of market imperfections could limit the participation of farm households in different markets. This implies that markets may be physically available but not accessible to some of the farm households. Under such circumstances, farm households may tend to choose crops that can easily be sold at the accessible markets. Such tendency is much stronger for households producing perishable crops like horticulture.” It defines that even the process is important the transaction cost causes of market blemish that leads to the limit cooperation of farm households and other factors affecting the transaction in different markets. Even markets are accesible but it is deficient in farm household that’s why we feel shortage of vegetables.

Some vendors were selling vegetables in high price and customers are buying it without thinking the price but because in terms of their need, but others think of alternative vegetable that can help them to save money also to help them to grab the nutrients it has. Farm households choose crops that can easily sold at the accesible markets because it is one of the basic needs. Farmers mostly produce perishable products but they sell it in the market to be consumed by the customers. It means that even if we have a lot of market which sell product but if our need is none in their products its useless. CIAT (2004) states that “The traditional form of agriculture started to change as communities and nations started to be modernized. Urbanization was fostered by industrialization and this led to increased demand for food for urban dwellers.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

” In developing countries like us, the traditional form of agriculture started to change from hunter-gatherers to post-industrial. Hunter-gatherers way of life is based on the exploitation of wild and plants and animals. They are nomadic or nomads. Typically hunter-gatherer societies women gather fruits, nuts, and roots. Next is pastoralist which has domesticated livestock, but they are also somewhat nomads. In horticulturalist the subsistence is cultivation of crops that uses hard tools. They are the ancient farmers.

Followed by the agrarian, agrarian societies can make machineries that can help them to lessen the work and fasten the procedure of what they made and is modernized. Next is the Industrial society that manufactures processed food in cans, they also look for their laborers to work for them. The last one is the post-industrial where we belong. Post-Industrial society give service to people like in hotel, salon, spa, restaurant, division, etc. It means that the modernization came even agricultural products were innovated and upgraded. Now people are demanding vegetables thinking that it will help them to be healthy and sick free.

“Fresh horticultural produce including vegetables deteriorate after harvest. The rate of deterioration of individual products depends on its overall rate of metabolism. This has created the need for post-harvest techniques that will allow quality to be retained over an increasing longer period” (Wills, et al, 1998). Horticultural including vegetables deteriorate individual products depends on its chemical process that occuring humans in order to maintain life. Goetz and Weber (1986) stated that ” Dimensions before a commodity be available to the urban consumer to include: the temporal, spatial and form dimensions. The temporal dimension is regarding the storage and providing reliable supply, the spatial dimension regards the transport of the produce from point of production to urban centers, and the form dimension discloses the processing, labeling, packaging, sorting and cleaning activities before the product arrive at the final consumer.” The temporal dimension provides the needs of the community.

Example of this is the farmers who work to plant and produce rice. Without them we can’t eat rice, if they didn’t work and provide for our need we will die. Farmers are planting to have rice and supply it to the different parts of the Philippines. Because of the services of the farmers we eat atleast three times a day, so it is a huge problem if our farmers were completely gone or decreased.

We should thank them because they are our provider of our primary needs. The spatial dimension is the transaction where the transport of the produce from point of poduction to urban centers. The spatial dimension is the bridge between transporting produce and point of production. The form dimension is the last phase of the dimension. It discloses the processing and labeling, they put emphasize on procedures and labels on products the details and nutrition facts. They also include the packaging , sorting, and cleaning activities , they put details how to contact them for inquirers and the separation and cleaning activities before thd product arrive at the consumers. A clear understanding of marketing function with an investigation of strengths and weakness help where to improve the marketing system. The level of functions could differ from product to product and hence in the horticulture marketing study this part always draws attention.

The quality of vegetables is important to rach product in these society. Particularly consumer choose the best quality of a product can be. The effective way on selling and buying a product is the quality it has.

In the field of marketing business enterprise ensures the quality of a product, it undergo some process to retained the quality of a product. According to Dixie, (2005) Marketing involves finding out what your customers want and supplying it to them at profit. This concept stresses two important points: the marketing process has to be customer oriented and marketing, a commercial process, has to provide farmers, transporters, traders, processors, etc. with a profit otherwise they will be unable to stay in business. Vegetable marketing therefore involves identifying buyers and understanding what they want in terms of products; how they want to be supplied; operating a production-marketing chain that delivers the right products at the right time; and making enough profit to continue to operate vegetable production and trade. According to Prasad, (2001) Vegetable crops are more profitable than other crops particularly food crop commensurate with the fact that these crops are highly labor intensive and widely cultivated by small and marginal farmers. Farmers do not much add time to other crops that has difficulties in plantation such as for time consuming, insect-prone plants and also the over consumption of space in the farm. However farmers give their attention for easy growing plants that has big return of income.

Also, there have been provided evidences that gives factual reason that traders put higher price who have been a influencer to others. Vegetable growers has not been active in participating in market also because of lack of space. Unuseful facilities and absence of market space is also an issue. In rural areas there is a weakness in adapting technology in involvement of post-harvest.”The difference between taste of the urban and rural customers is continuously decreasing” (Shrivastava and Praveer, 2009). It simply shows that if we only choose to live in rural areas we don’t have to buy the vegetables we needed but in order to save money we can plant vegetables in our backyards, atleast we know where our vegetables came from and we are confident that it is completely safe and fresh because we can use organic farming than the vegetables that were used chemicals to grow faster and bigger, on the other hand if we choose to live in urban areas were population still increases the need and demand of vegetables is higher than we can expect but people can also formulate chemicals that is used to vegetables to grow faster and bigger that can also have disadvantage in our health. “They have the different aspects with regards to their consumption and livelihood. Besides urban consumers have been increasingly responding towards changes in equality food intake and becoming more conscious in terms of nutritional diet, health and food safety issues.

” (Geyal and Singh, 2007) It implies that people getting conscious within their body as we observed in todays lifestyle. Consumers are also responding because they are the first who will be affected of inflation or high increase of goods including vegetables. They are complaining because almost of the vegetables they cannot afford to buy. In the conducted study of Loanna Reziti, (2003) entitled ” An investigation into the relationship between producer, wholesale and retail prices of Greek agricultural products confirmed the nature of the reaction of the wholesale prices to the changes in the price of producer”. In most markets the occasion runs from retailers to wholesalers and giving to producers.

Reziti found that the changes in price at one stage sometimes need to be imparted to another stage for different reasons such as policies depository holding and transport process resulting to delays. According to Lee Morgan, (October 18, 2018) there are factors affecting the Supply & Demand, Economists study supply and demand to understand various influences that drive our economy. Several factors come in to play, affecting demand and supply in various positive and negative ways. Supply and demand work like a seesaw in some ways, always responding to market pressures.Price fluctuations are a strong factor affecting supply and demand. When a product gets expensive enough that the average consumer no longer feels it is worth it to buy the product, then the demand declines. This leads to cuts in production that will hopefully stabilize the product’s value.

Lowering the price of a product may increase demand, indicating that the public feels the product is suddenly a great value. This may also cause changes in production to increase to keep up with the demand.First is the Income and Credit, changes in income level and credit availability can affect supply and demand in a major way. The housing market is a prime example of this type of impact. Also, the availability of credit may be less because of the average person’s inability to qualify for a loan. To help encourage those who can afford to buy, prices fall which can boost sales, and even more so if interest rates decrease.

Second is the availability of alternatives or competition, When an alternative product hits the market, the competition between the existing product and the new one can cause demand to drop for the existing product. Just as many people may be buying the product, a large portion of them may elect to buy the alternative brand. This leads to price wars that ultimately lower the price of the product and may require a cut in supply to fall in line with the decrease in demand.

Third is the trends, demand rises and falls on trends in many cases. Even food and shelter aren’t immune to the effects of changing trends. When the attention is focused on something else, the bean sprout market might rebound.

Fourth is commercial advertising, commercials on television, internet and radio have an effect on supply and demand in that they make more people aware of the availability of a product. People do not buy what they don’t know is for sale. If it is an appealing ad, there is a good chance demand will increase and supply will have to follow suit.And fifth is the seasons, The seasons can affect supply and demand drastically.


I'm Casey!

Would you like to get a custom essay? How about receiving a customized one?

Check it out