Farm gate value
The market value is not the same as the price farmers get for their product, as (if an auction is used), the value they get per weight may be well below the market price. In some cases, the value they get per weight may even be below the breakeven price.
When selling by auction, the price the farmers get for their product is typically lower than the price they get if they sell directly to the consumer (as they are able to set this price themselves).
The farm gate value is also far lower than the retail price consumers pay in a store as it does not include the additional costs the store makes (shipping, handling, storage, marketing) nor the profit margin the involved companies ask.
|This economics-related article is a stub. You can help Wikipedia by expanding it.|
|This agriculture article is a stub. You can help Wikipedia by expanding it.|