Reviewed by Omotolani Ajileye
Edited by Paul Elegbeleye
Table of Contents
History and Functions of Marketing Boards
History of Marketing Boards
Marketing boards were introduced in West Africa during the colonial period, mainly to regulate the production and marketing of major cash crops such as cocoa, groundnuts, cotton, palm produce and coffee.
The colonial governments established these boards to control the buying, pricing, storage and export of agricultural commodities. The boards bought produce from farmers, fixed or influenced the prices paid to farmers, ensured that products met certain quality standards and arranged their sale in local and international markets.
They also helped governments generate revenue from agricultural exports.
After independence, countries such as Nigeria continued to operate marketing boards because agriculture remained an important source of employment and foreign exchange. However, the boards were increasingly criticised for paying farmers relatively low prices, excessive government control, bureaucracy and inefficiency.
In Nigeria, the commodity marketing boards were eventually abolished in 1986 as part of the economic reforms of the period, with agricultural marketing becoming more open to private traders and other market participants.
Today, agricultural commodities are largely marketed through farmers, cooperatives, traders, processors and private companies, while government agencies continue to regulate aspects of agricultural trade and standards.
Functions of Marketing Boards
1. Buying Agricultural Commodities
One of the major functions of marketing boards was to buy agricultural commodities from farmers. The boards purchased crops such as cocoa, cotton, groundnuts, palm produce and other cash crops. This gave farmers an organised market where they could sell their produce instead of searching for individual buyers.
By purchasing large quantities, the boards also helped organise the movement of agricultural products from farming communities to local and international markets.
2. Price Stabilisation
Marketing boards helped to stabilise the prices of agricultural commodities. Agricultural prices can rise and fall because of changes in supply, demand and world market conditions.
The boards attempted to protect farmers from sudden and severe price fluctuations by setting or regulating the prices paid to producers.
This was intended to give farmers some degree of income stability and encourage them to continue producing agricultural commodities.
3. Quality Control
Marketing boards were responsible for maintaining and improving the quality of agricultural commodities. They inspected, graded and classified products according to their quality before they were sold or exported. For example, cocoa of good quality could receive a higher grade than poor-quality cocoa.
Quality control was important because high-quality products were more likely to attract good prices in international markets.
4. Storage of Agricultural Commodities
Marketing boards provided or arranged for the storage of agricultural products after they had been purchased from farmers. Agricultural products are not always sold immediately after harvesting.
Proper storage prevents products from being damaged by moisture, insects, rodents and other causes. Storage also allowed commodities to be kept until suitable market conditions existed for their sale.
5. Marketing and Export of Commodities
Marketing boards helped to market and export agricultural commodities. They organised the sale of products within the country and, particularly in the case of major cash crops, facilitated their export to foreign countries.
This helped connect local farmers with international markets. The export of agricultural commodities also enabled the country to earn foreign exchange, which could be used to pay for imports.
6. Provision of Market Information
Marketing boards provided farmers and other participants in the agricultural sector with information about markets and agricultural commodities. Such information could include prices, quality requirements, demand and available markets.
Access to reliable market information helped farmers make better decisions about what to produce and where and when to sell their products.
7. Support for Agricultural Research
Marketing boards also contributed to agricultural research and development. Research could focus on improving the quality and quantity of agricultural products, developing better farming methods and controlling pests and diseases.
For example, research could help develop crop varieties that produce higher yields or are more resistant to diseases. This helped improve agricultural production in the long term.
8. Provision of Assistance to Farmers
Marketing boards could assist to farmers to improve their production. Such assistance could include providing agricultural inputs, supporting extension services and encouraging the use of improved farming methods.
By helping farmers improve their production and the quality of their commodities, marketing boards could increase the quantity and value of agricultural products available for sale.
9. Promotion of Agricultural Production
Marketing boards helped to encourage farmers to produce cash crops by providing an organised marketing system for their products. When farmers were confident that there was a market for their produce, they were more likely to continue farming and increase production.
The boards therefore played a role in promoting the production of important agricultural commodities that were needed for domestic consumption and export.
10. Generation of Government Revenue
Marketing boards could also contribute to government revenue, particularly through the marketing and export of agricultural commodities. By controlling or supervising the sale and export of major cash crops, the government could earn revenue from activities associated with these commodities.
Such revenue could be used to finance public expenditure and agricultural development programmes.
Summary
Marketing boards were government-established organisations created to regulate the marketing of selected agricultural commodities.
Functions of Marketing Board
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Buying agricultural commodities
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Price stabilisation
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Quality control
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Storage
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Marketing
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Export promotion
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Provision of market information
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Support for agricultural development
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Protection of farmers
Also Read: Exceptional Benefits of Systemised Agriculture in West African Economy – Part 1
