Top 10 Marketing Blunders Farmers Make - And How to Fix Them

Repeating avoidable marketing mistakes is the reason many farmers unknowingly sabotage their profits not because they lack hard work or experience. Whether you're a seasoned farmer or a new entrant, here's a breakdown of the most common errors and practical ways to sidestep them.

10. Chasing Unrealistic Goals Without Clear Benchmarks

The Mistake: You always say you aim to “sell at the highest price possible” But when prices rise after a sale, you feel disappointed saying you could have waited a bit and catch that high price.

The Fix: Establish a realistic financial target. For example, this season I want 400 million from my coffee enterprise. You can also consult your financial advisor or professional in this regard to be very specific.

9. Operating Without a Solid Marketing Plan

The Mistake: You always hear experts cautioning farmers to have a Marketing plan but here you are, you do not know what a Marketing plan is. This is why crisis hits you unaware always.

The Fix: A marketing plan is not as hard as rocket science. Do this instead:

• Get on paper and add up all your costs for that specific commodity, e.g. Ugx 5 million, then set a price that will give you 5 million plus a profit after selling all your produce. Read our Article about the Nine Pricing Strategies

• Then list down all your strategies to access customers and create awareness.

8. Assuming the Market Cares About Your Production Costs

The Mistake: The labor costs were so high for you, plus the fertilizers, the herbicides and the acaricides so you have a feeling that the marketing prices are also going to be high. You heart has been broken when you reach the market and the prices are so low.

The Fix: Focus on lowering your cost of production wherever possible.

7. Thinking Prices Can’t Drop Lower as they did Before

The Mistake: You always have a feeling that the worst and lowest cost you saw a  couple of years ago will never show up again. We saw Vanilla, cotton and even coffee drop to the lowest in Uganda. Though we don't want it to happen again but anything can happen.

The Fix: Always plan for a downside risk. 

6. Freezing During Falling Markets

The Mistake: When the market prices are falling you don't want to sell off your produce because you think the market price will get back to normal. While you wait the price may take forever to normalize.

The Fix: You should be prudent enough to tell if the market is generally going low and sell off before the worse comes to the worst. Use trend analysis techniques.

5. Ignoring or Underutilizing Marketing Tools

The Mistake: You always end all your sales solely on spot cash, spot cash is all you know. Without understanding other options limits your ability to manage risk and capture better prices.

The Fix: Learn about tools like forward contracts, options, hedging strategies, and storage decisions. Partner with an advisor if needed but prioritize understanding over delegation.

4. Getting Reluctant About Value Addition

The Mistake: You think of harvesting as the last stage in your cycle, this is why you are paid peanuts. The people who are adding a little value to that produce are billionaires in shillings.

The Fix: Make a simple investment and launch into the stage of value addition, this will set you apart.

3. Confusing Risk Management with Speculation

The Mistake: Sometimes you predict a certain agricultural commodity and say "two years from now, its prices will increase" this prediction might tempt you to sign supply contracts and invest in a crop or livestock you are not sure of and the loss gets unbearable when prediction misses the mark.

The Fix: Do not sign supply contracts basing on mere guess work of the future prices of a certain agricultural commodity, consult a trading expert before signing.

2. Delaying Sales Decisions

The Mistake: You get a bit relaxed and want to wait and watch the market until you reach a “perfect” price. Opportunities to sell better pass you while you are still waiting.

The Fix: Set price targets in advance and act when they’re reached. perfect markets do not exist but perfect price goals do.

10. I Can Outguess the Market

The Mistake: Relying on predictions, hunches, or market rumors to guide selling decisions is a high-risk strategy.

The Fix: Markets are complex, influenced by weather, geopolitics, investor behavior, demand and supply mechanisms and many more. Instead of forecasting, focus on managing risk exposure and locking in profits when opportunities arise.

Final Thoughts

The digital era has revolutionized the way we market our agricultural produce, introducing Feasts Farms App to help you access the market for your produce in your hands on your mobile phone.