Livestock Economics and Marketing: Understanding Markets and Classification

UNIT-6 (LIVESTOCK ECONOMICS AND MARKETING)
UNIT-6 (LIVESTOCK ECONOMICS AND MARKETING)
Lecture- 7
Lecture- 7
th
th
 day
 day
Speaker :-  Dr. Puspendra Kumar Singh
Speaker :-  Dr. Puspendra Kumar Singh
Asstt. Professor
Asstt. Professor
Department of Veterinary & Animal Husbandry Extension
Department of Veterinary & Animal Husbandry Extension
Education, BVC
Education, BVC
Topics covered
Market, Classification of market.
Market
Market
Market derived from Latin word “
Marcatus
It is a 
place
 where actual 
buying
 and 
selling
 takes place.
A place where 
goods 
and 
services
 are 
exchanged
.
Meeting together of people for their private purchases and sale
of goods at a stated time and place.
Essentials of market
Essentials of market
1.
Commodity
 which has to purchase or sale
2.
Presence of 
buyer 
and 
sellers
 for that commodity
3.
A 
place or platform 
where buying and selling has to be done
4.
Such type of 
interaction
 between buyer and seller 
so that the same
price prevails for same products at the same time.
Livestock market
Livestock market can be classified in to following component:
1.
Live animal marketing
2.
Livestock product marketing
3.
Other products
a.
Byproduct
b.
Waste product
 
1.
Location
2.
Area or Coverage
3.
Time span
4.
Volumes of transaction
5.
Nature of transaction
6.
Number of commodities
7.
Degree of competition
8.
Nature of commodities
9.
Stage of marketing
10.
Extent of public intervention
11.
Type of population served
12.
Visibility
Classification of Markets
A. Location
1.
Village markets
: 
These markets cover a village. Transaction take place
between buyers and sellers who belong to the village.
2.
Primary markets
: 
These markets are located in big towns. The producers
bring their produce in these markets and transactions are mainly take place
between these and the traders.
3.
Secondary wholesale markets
:
 These markets are mostly located in district
headquarters, larger towns or near important railway junctions. Producers from
far away primary market or other markets come with their produce.
Transactions take place in large quantities with wholesalers/traders.
4.
Terminal markets
: 
These markets are located mostly in metropolitan cities
and sea ports. These markets at Organized, operate under government
regulations and have advanced processing and storage infrastructure.
5.
Seaboard markets
: 
These are markets specifically meant for trade in
international markets. These are located in seaport towns.
B.  Area or Coverage
1.
Local market : 
The area covered by this market is limited to some groups of
villages. These markets are hence also known as village markets or primary
markets. In these markets, mostly perishable commodities are bought and sold.
2.
Regional market 
: The area of operation under a regional market may range
from 1-3 districts to even an entire state. Food grain market is the most common
example under regional market.
3.
National market 
: Here, the entire country is the area of operation of the
market. Common examples are mostly related to durable goods like jute, tea,
textiles, etc.
4.
International/world market 
: Here, the area of operation of the market is
extended over the entire world. Naturally, this market exists for those
commodities which have world-wide demand.
C.  Time span
 
Short period market:
Held for a day or few hours
Highly perishable products
Prices of commodities governed mainly by extent of demand
 
Long period market :
Comparatively held for a longer period
Commodities traded are less perishable
Prices are governed both by the supply and demand forces
 
Secular market:
Market of permanent nature
Trades durable commodities
D. Volumes of transactions
 
Wholesale market:
Commodities are bought and sold in large lots
Generally located in towns/cities
Economic activities are so intense
Balancing supply and demand, discovery of the prices
 
Retail market:
Commodities bought and Sold to the consumers as per their
requirements
Transactions take place between retailers and consumers
Near to consumers
E. Nature of transactions
 
Spot or Cash market
Goods are exchanged for money immediately after the sale
 
Forward market:
Purchase and sale of a commodity take place but exchange
take place 
on some specified date in the future
Sometime there may not be any exchange, instead differences
in the purchase & sale prices are paid or taken
F. Number of commodities
 
General market:
All types of commodities are bought and sold
 
Specialized market:
Notified commodities are bought an sold
G. Degree of competition
 
Perfect market
 :
Large number of buyers and sellers, All have perfect
knowledge of demand, supply and prices
Prices are uniform over a geographical area, period of time,
different forms of a product
 
Imperfect market:
Conditions of perfect competition are lacking
Different prices for the same basic product
a.
 Monopoly market
b.
 Monopsony market
c.
 Duopoly market
d.
 Duopsony market
e.
 Oligopoly market
f.
Oligopsony market
H. Nature of commodities
 
Commodity market
 Manufactured & semi manufactured goods market
 Bullion market
 Service and labour market
 Capital market 
: It responsible for meeting the financial
requirements of big industrial and commercial concerns
 
MONEY MARKET
: Allow those who are in need of money
to take loans in turn by way of interest
 
STOCK EXCHANGE MARKET
: Shares are purchased and
sold  to make investments in public and private sector
undertakings
 FOREIGN EXCHANGE MARKET
: Buying and selling of
foreign currencies concerned with export and import trade
I. Stage of marketing
 
Producer market
Mainly assemble the commodity for further distribution
 
Consumer market
Collect the produce for final disposal to the consuming
population
J. Extent of public intervention
 
Regulated market
Business is done in accordance with the rules and
regulations framed by the statutory market organization
representing different sections involved in markets
Marketing cost are standardized and practices are regulated
 
Unregulated market
Traders frame the rules for the
K. Type of population served
 
Urban market
 Rural market
L. Visibility
 
Black market
Scarce commodities are sold at a very high price in a
secret manner
Situation arises on account of excess of demand over
limited supply
It is an anti social activity which gives way to black
money.
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Livestock markets are essential for the buying and selling of livestock and related products. Markets can be classified based on various factors such as location, nature of commodities, time span, and more. Understanding the essentials of markets, livestock market components, and classification helps in better market analysis and decision-making in the livestock industry.


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  1. UNIT-6 (LIVESTOCK ECONOMICS AND MARKETING) Lecture- 7thday Speaker :- Dr. Puspendra Kumar Singh Asstt. Professor Department of Veterinary & Animal Husbandry Extension Education, BVC

  2. Topics covered Market, Classification of market.

  3. Market Market derived from Latin word Marcatus It is a place where actual buying and selling takes place. A place where goods and services are exchanged. Meeting together of people for their private purchases and sale of goods at a stated time and place.

  4. Essentials of market 1. Commodity which has to purchase or sale Presence of buyer and sellers for that commodity 2. A place or platform where buying and selling has to be done 3. Such type of interaction between buyer and seller so that the same 4. price prevails for same products at the same time.

  5. Livestock market Livestock market can be classified in to following component: 1. Live animal marketing 2. Livestock product marketing 3. Other products a. Byproduct b. Waste product

  6. Classification of Markets 1. Location 8. Nature of commodities 2. Area or Coverage 9. Stage of marketing 3. Time span 10. Extent of public intervention 4. Volumes of transaction 11. Type of population served 5. Nature of transaction 12. Visibility 6. Number of commodities 7. Degree of competition

  7. A. Location 1. Village markets: These markets cover a village. Transaction take place between buyers and sellers who belong to the village. 2. Primary markets: These markets are located in big towns. The producers bring their produce in these markets and transactions are mainly take place between these and the traders. 3. Secondary wholesale markets: These markets are mostly located in district headquarters, larger towns or near important railway junctions. Producers from far away primary market or other markets come with their produce. Transactions take place in large quantities with wholesalers/traders. 4. Terminal markets: These markets are located mostly in metropolitan cities and sea ports. These markets at Organized, operate under government regulations and have advanced processing and storage infrastructure. 5. Seaboard markets: These are markets specifically meant for trade in international markets. These are located in seaport towns.

  8. B. Area or Coverage 1. Local market : The area covered by this market is limited to some groups of villages. These markets are hence also known as village markets or primary markets. In these markets, mostly perishable commodities are bought and sold. 2. Regional market : The area of operation under a regional market may range from 1-3 districts to even an entire state. Food grain market is the most common example under regional market. 3. National market : Here, the entire country is the area of operation of the market. Common examples are mostly related to durable goods like jute, tea, textiles, etc. 4. International/world market : Here, the area of operation of the market is extended over the entire world. Naturally, this market exists for those commodities which have world-wide demand.

  9. C. Time span Short period market: Held for a day or few hours Highly perishable products Prices of commodities governed mainly by extent of demand Long period market : Comparatively held for a longer period Commodities traded are less perishable Prices are governed both by the supply and demand forces Secular market: Market of permanent nature Trades durable commodities

  10. D. Volumes of transactions Wholesale market: Commodities are bought and sold in large lots Generally located in towns/cities Economic activities are so intense Balancing supply and demand, discovery of the prices Retail market: Commodities bought and Sold to the consumers as per their requirements Transactions take place between retailers and consumers Near to consumers

  11. E. Nature of transactions Spot or Cash market Goods are exchanged for money immediately after the sale Forward market: Purchase and sale of a commodity take place but exchange take place on some specified date in the future Sometime there may not be any exchange, instead differences in the purchase & sale prices are paid or taken

  12. F. Number of commodities General market: All types of commodities are bought and sold Specialized market: Notified commodities are bought an sold

  13. G. Degree of competition Perfect market : Large number of buyers and sellers, All have perfect knowledge of demand, supply and prices Prices are uniform over a geographical area, period of time, different forms of a product Imperfect market: Conditions of perfect competition are lacking Different prices for the same basic product a. Monopoly market b. Monopsony market c. Duopoly market d. Duopsony market e. Oligopoly market f. Oligopsony market

  14. H. Nature of commodities Commodity market Manufactured & semi manufactured goods market Bullion market Service and labour market Capital market : It responsible for meeting the financial requirements of big industrial and commercial concerns MONEY MARKET: Allow those who are in need of money to take loans in turn by way of interest STOCK EXCHANGE MARKET: Shares are purchased and sold to make investments in public and private sector undertakings FOREIGN EXCHANGE MARKET: Buying and selling of foreign currencies concerned with export and import trade

  15. I. Stage of marketing Producer market Mainly assemble the commodity for further distribution Consumer market Collect the produce for final disposal to the consuming population

  16. J. Extent of public intervention Regulated market Business is done in accordance with the rules and regulations framed by the statutory market organization representing different sections involved in markets Marketing cost are standardized and practices are regulated Unregulated market Traders frame the rules for the

  17. K. Type of population served Urban market Rural market

  18. L. Visibility Black market Scarce commodities are sold at a very high price in a secret manner Situation arises on account of excess of demand over limited supply It is an anti social activity which gives way to black money.

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