A marketing board is an organization formed by a group of producers to promote their product and thereby boost consumption and, consequently, prices. Additionally, it can be defined as an organization established by a government to regulate the buying and selling of a particular product within a designated geographical area. When fully operational, the farmer’s marketing board is funded by farmers or farm produce processors in collaboration with the appropriate regional government. This means that agro-commodities traded within a local government are supervised by a board appointed by the local government, and items traded across the state require the support of a state government-backed marketing board. They are typically supported by farmers or processors of farm products such as milk, eggs, or meat.
The marketing boards’ leadership and strategy are determined by the vote of the farmers who serve on the board. Generally, boards have the authority to conduct or support research, information dissemination, or product promotion activities, and the majority has the authority to acquire and sell the goods they oversee. Marketing boards help farmers manage risk in a fluctuating market by establishing strong relationships with supermarkets and wholesale customers and using more formal contracts to ensure continued demand. The marketing board operates in several developed countries, including the United Kingdom, the United States of America, Ireland, and Canada, and it is a mechanism by which producers of commodities regulated by the marketing board attempt to promote their products collectively. However, it appears that the marketing board has outgrown its purpose in many areas in recent years as a result of changing economic structures and models in the majority of cultures. For instance, the proliferation of large retail outlets or shopping malls has enabled small-scale producers to sell directly to these retailers at their agreed-upon best pricing, resulting in price variations between similar farm products at each shopping outlet.
Nigerian Marketing Board’s History
We know from history that marketing boards existed in Nigeria and were closely tied with the agricultural sector. Reintroducing the marketing board appears to be the best answer for regulating pricing, increasing farmer profits, and encouraging more people to consider establishing a farm. This opinion is advocated because large retail shops common in foreign nations which may enhance demand for farm produce and hence increase farmers’ profits as a result of supply and demand factors are not present in Nigeria.
Additionally, it has been observed that agricultural commodity prices that are not regulated or managed by marketing boards fluctuate unreasonably. As a result of the aforementioned, it may be concluded that marketing boards are as vital to the Nigerian economy as agriculture itself, and hence their activities should be encouraged.
Agricultural Marketing Board in Nigeria: Prospects and Challenges
While billboards promoting popular pasta, noodles, or drinks are relatively common, small scale farmers lack this kind of visibility due to a lack of cash and a brand to market. With marketing boards, these farmers may pool their resources under a single brand and increase demand for their product – providing them with sufficient exposure collectively. If marketing boards are established for various agricultural products, this will encourage young people to pursue careers in agriculture and agribusiness, as their labour will be rewarded with earnings.
However, marketing boards have some issues, one of which is their reluctance to adapt to changing times. Additionally, given the extent to which the government is involved, the boards may be affected by some of the negative features of government operations. Additionally, marketing boards must contend with corruption, which can occur in any human institution..
In Nigeria, the marketing board has been inactive for a lengthy period. However, reestablishing such a board, if rigorously supervised, will help reinforce Nigeria’s agribusiness. Strict regulation entails eliminating or limiting loopholes created by the marketing board structure. For example, a significant difficulty entails government intrusion, and one approach to address this is to guarantee that the board functions as an autonomous entity accountable to itself. To combat the corruption that often occurs when a marketing board is adopted, a digital marketing system that promotes transparency and accountability should be implemented. If well managed and carefully structured to ensure accountability, the marketing board has the potential to help Nigeria’s agricultural industry.