Channels of Distribution of Agricultural Produce in Nigeria

Abstract

Channels of distribution consist of a set of independent organizations involved in making a product or service available for use or consumption. Basically there are two types of channel used for the distribution of goods; marketing channel for industrial good as well as that that for consumer goods .Both types of channels   directly and indirectly make goods available to end-users. While all goods and services pass through the marketing channels of distribution, the perishability of farm produce sometimes compel farmers to make use of direct distribution channels. Also, since majority of farmers reside in rural areas and are separated from their customers they on the other side make use of the indirect marketing channels. This paper therefore explores gaps between the producers or farmers and the final users of farm produce that justify the use of  channels of distribution; steps involved in selecting a marketing channel of distribution; the main functions of distribution channels and the centralized and decentralized channels of distribution of agricultural produce in Nigeria. The paper concluded that because of the high risks involved in agricultural production in Nigeria, there is the need for the channels of distribution to buy produce from farmers at a rate that would compensate for their efforts and continue to keep them in business.

Keywords: Channels of Distribution, Agricultural produce, Nigeria, Distribution intensity, Direct and Indirect marketing channels,. Centralized and Decentralized marketing channel