Explain five circumstances that would influence a producer to use wholesalers in distributing farm produce. (10 marks)

Explain five circumstances that would influence a producer to use wholesalers in distributing farm produce.

1. Where the producer lacks adequate storage The wholesaler may relieve the producer of the storage costs
2. Where goods require bulk breaking. The wholesaler may re-package the goods in smaller quantities as required by customers.
3. Where there is need to prepare goods for final sale. The wholesaler may pack. brand. blend, grade sort and weigh goods to the relief of flic producer.
4. Where the market is wide and the goods have to be distributed far. The wholesaler will reach the consumer more easily.
5. Where the producer would want feedback on the market status. The wholesaler may reach consumers through the retailers and get feedback regarding the product more easily.
6. Where the  producer would want to engage wholesaler to assist with advertising so as to save on costs.
7. Where the producer wants to sell in bulk since the wholesalers can afford to buy in large quantities.
8. Where the  producer lacks transport. the   wholesaler would relieve him of the cost.
9. Where it is the  government policy to distribute through wholesalers then the producer would have no choice.
10. Where the marketing risks are high since the wholesalers can bear some of the risks.
11. Where flic producer wants to concentrate/specialize in production. then the distribution can be handled by wholesalers.
12. Where the producer needs to maintain fewer records by dealing with wholesalers who are few.

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