Marketing Individually A farmer marketing individually represents a small competitor individually controlling meagre resources. This limits farmers bargaining power in the market, which is further weakened by a poor financial position and inability to keep up with rapid changes in market conditions. The small size of surplus marketed by farmers makes it difficult for them to sell to companies interested in bulk purchases. Farmers are generally unaware of markets for their produce, and in some instances even when they are aware, they do not know how to market their products. This ignorance is perpetuated by a lack of information on markets and prices.
Farmers sell to whoever wants the produce at prices usually set by the buyer.
Each farmer makes non-systematic independent decisions which are not planned. They thus lose out to unscrupulous traders. They remain essential for commodities that require time, storage, space and energy inputs, for example for products that must be dried, stored, transported, processed and packaged before distribution. In many cases these commodities are sold and bought several times, adding value at each step, before reaching the consumer. The technology and finance to perform these functions are usually beyond the reach of low-income farmers and are left to middlemen who have the resources.