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A guide to marketing costs and how to calculate them


Contents

Prepared by Andrew W. Shepherd

Marketing and Rural Finance Service
Agricultural Services Division

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome 1993

Reprinted 1996

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Copyright

Permission to make digital or hard copies of part or all of this work for personal or classroom use is hereby granted without fee and without a formal request provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and full citation on the first page. Copyright for components of this work owned by others than FAO must be honoured. To copy otherwise, to republish, to post on servers, or to redistribute to lists, requires prior specific permission and/or fee.

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The Chief Editor,
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00100 Rome, Italy,
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(c) FAO 1993


Contents

Foreword

Introduction

What are marketing costs and why do they vary?

Produce preparation and packaging costs

Handling costs

Transport costs

Product losses

Storage costs

Processing costs

Capital costs

A marketing cost calculation

Marketing margins

Endnotes