Why has the food marketing system become more complex and expensive?

The food sector is one of the largest sectors in all over the world. It has a larger marketing system than any other industry. This system brings huge food products together and places them in a convenient location for the customer.

The food product processing firms first collect raw materials from individual farmers. Then they go for food product production. In this process, they make various types of food products.

For example:  Make chips, French fries from potato; make biscuits, bread, the cake from wheat and so many products.  The food marketing firms work so hard to bring out their food product in the market. Because the farm products are much perishable and quality also varies in different seasons.

So After collecting raw materials, they go for production. And this is so much seasonal and geographically concentrated in areas. Some farm products are collected or stored for later use, sorted, and swiftly moved to market. the basic marketing activities are related to the characteristics of the commodity such as storage, transportation, processing, and the like. Few products make more stringent demands on their marketing systems.

The firms have their own production house. There, they produce a food product. There are lots of workers who work for it. Besides, they need some other materials for food products. After adding all the ingredients, they become successful to make food products.

This food product goes through a very complex process and that is very expensive. Today, our targeted customer’s tastes and preferences are changing. That’s why. The producing firms have always keep in their eyes on the changing nature of the customer.

Sometimes, they add some diversification to attract potential customers and keep a regular customer. Whatever the customers are demanding, the food marketing firms are always trying to bring these into their hands. Food marketing firms promote their product based on the preferences of the customer.

The food marketing process is very expensive. Because it has many stages. Have a look-

  • Farming
  • Food processing
  • Related manufacturing
  • Wholesaling
  • Retailing
  • Eating places
  • Supporting activities

After completing all of the tasks, food marketing firms want to gain the greatest profits. But it is rarely possible because this process is very costly to handle. As we already saw that it has several stages to completing this task. Today the food marketing firm faces high labor cost that exceeds the total value of the commodity prices sold by the farmers. As a result, marketing costs have a great influence on retail food prices

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