Marketing strategies:
Short channels of distribution are required e.g. from the producer to the industrial user directly. One intermediary agent my be used.Because of limited supply, the industrial goods users assure themselves by signing contracts in advance to buy the goods for a whole season.Little branding and other product differentiation are applied by marketers
Competition is based on price and certainty of specified supply by producerMany small producers supply agricultural products used as industrial raw materials, transport consideration is essential because of the distance between the producer and the user.Small and numerous producers lead to many intermediaries. Hence long distant channels of distribution are used to acquire the raw materials for agricultural products.