CAPRICORN SOUTH DISTRICT

NATIONAL
SENIOR CERTIFICATE

GRADE 12

AGRICULTURAL SCIENCES PAPER 2

REVISION PACK 2 MG 2024

REVISION PACK 2 MG

QUESTION 2: AGRICULTURAL MANAGEMENT AND MARKETING SET 1

2.1 Marketing functions

2.1.1 The main functions of marketing

B - Storage  (1)
D - Transportation  (1)

2.1.2 TWO guidelines for packaging

 Product identification 
 Recyclability/biodegradability 
 Containment/easy handling 
 Protection 
 Should improve shelf life 
 Health risk/free from chemicals/cleanliness 
 Appeal to the target market  (Any 2) (2)

2.1.3 TWO advantages of processing to the consumer

 Provides job opportunities 
 Easy to handle the product/convenience 
 Can buy farm products and keep for longer at home 
 Product availability in all seasons/ensures food security 
 Provides quality improved products 
 Makes the products more appealing  (Any 2) (2)

2.2 Demand and supply curves

2.2.1 The curves of demand and supply

(a) Demand - H (F E D)  (1)
(b) Supply - G (A B C)  (1)

2.2.2 Reason of the demand curve

 The higher the price of a product  the lower the demand 
 The lower the price of a product  the higher the demand 
 There is an inverse relationship  between price and demand 
 Has a negative/downward slope  to the right  (Any 1) (2)
 2.2.3 TWO factors influencing demand of agricultural products
 Price of the product/price expectations 
 Quality of the product 
 Consumer taste and preferences 
 Fashion/advertising 
 Change in consumer income 
 Number of consumers 
 Socio-economic factors/buying power 
 Legislation 
 Research 
 Price of substitutes/competitive or complementary products 
 Festive season 
 Usefulness of the product  (Any 2) (2)

2.2.4 The relationship between price and supply

 The higher the price  the more the quantity supplied 
 The lower the price  the lower the quantity supplied  (Any 1) (2)

2.3 Entrepreneurial success factors

2.3.1 Identification of the letters

(a) C  (1)
(b) A  (1)
(c) B  (1)

2.4 Marketing approaches

2.4.1 Identification of the types of marketing approaches

A - Mass marketing  (1)
B - Multi-segment marketing  (1)
C - Niche marketing  (1)

2.5 Marketing

2.5.1 The marketing process

Agri-business/marketing/supply-demand chain  (1)

2.5.2 TWO costs influencing the high price at stage 4

 Processing costs 
 Distribution/transportation costs  (2)
 2.5.3 TWO factors hampering marketing of the product at stage 3
 Accidents/delays 
 Poor infrastructure/bad roads 
 Theft 
 Perishability/spoilage/damage of the product 
 High cost of fuel  (Any 2) (2)

2.5.4 ONE way to streamline and improve agri-business chain

 Improve road infrastructure 
 Improve access to market information 
 Provide storage facilities 
 Provide access to finance 
 Use cold storage and refrigerated transport 
 Grading/standardisation of products to facilitate marketing/pricing 
 Processing products close to where they are produced 
 Combining loads with other producers  (Any 1) (1)

2.6 Marketing channel

2.6.1 TWO advantages of fresh produce market

 Large volumes can be sold 
 Farmer takes advantage of higher price in times of short supply 
 Farmer can employ an agent to perform the task of marketing 
(Any 2) (2)

2.6.2 Justification of an agent increasing the marketing cost

The farmer pays the commission to the agent  (1)

2.6.3 Indication of the marketing system

Free marketing  (1)

2.7 TWO roles of legislation in agricultural marketing

 Increases market access to all participants 
 Controls sale and export of perishable products 
 Sets and maintains national standards 
 Promotes food safety 
 Regulates market agents and improve their functioning 
 Promotes a fair accessible and sustainable market place for consumer
products and services 
 Prevents unfair marketing and business practices  (Any 2) (2)
2.8 Business plan

2.8.1 Component of a business plan showing ownership of a business

Title page  (1)

2.8.2 TWO reasons for drawing up a business plan

 Document the business idea 
 Test the feasibility and economic viability of a business 
 Determine the financial needs of the business 
 Secure funding for the business 
 Guide daily operations 
 Ensure effective business management 
 Allow the farmer to foresee problems 
 Gain knowledge about marketing opportunities/competitors 
 Reposition the business to deal with changes in the market 
(Any 2) (2)
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QUESTION 2: AGRICULTURAL MANAGEMENT AND MARKETING SET 2

2.1 Marketing

2.1.1 Definition of the concept marketing

The process of planning and executing the conception, pricing,
promotion  and distribution of ideas, goods and services to
consumers  (2)

2.1.2 The differences between marketing and selling

(a) Marketing  (1)
(b) Selling  (1)
(c) Selling  (1)

2.2 Inelasticity of demand

2.2.1 Deduction of the marketing concept

Price inelasticity of demand  (1)

2.2.2 A reason for the answer

The demand changed slightly despite the huge change in price  (1)

2.2.3 Explanation of the reason why consumers responded in this way

Maize meal is a necessity/staple food  people will therefore buy
maize meal even with a price increase  (2)
 2.2.4 Identification of the factor leading to the differences in the
number bags demanded
Price  (1)

2.3 Cooperative marketing of avocadoes

2.3.1 Identification of the agricultural marketing system

Cooperative marketing  (1)

2.3.2 Indication of the role of agricultural marketing system

Production/selling/marketing  (1)

2.3.3 TWO benefits for the marketing system to farmers

 Lower marketing costs/cost distribution 
 Requirements/services are supplied cheaper/bulk purchasing 
 More bargaining power 
 Access to funding/credit to producers 
 Higher prices are obtained 
 Elimination of the intermediaries 
 Potential for growth 
 Access to better infrastructure 
 Branding 
 Risk sharing 
 Farmer spend more time on producing than on marketing 
 Access to professional expertise  (Any 2) (2)

2.3.4 TWO factors that may hamper the marketing of avocadoes

 Perishability/spoilage 
 Seasonal fluctuations in production 
 Lack of capital 
 Poor infrastructure 
 Wide distribution of production areas 
 Ineffective control over production 
 Risk/theft/accidents 
 Standardization 
 Large volume in relation to value/bulkiness  (Any 2) (2)
2.4 Marketing function

2.4.1 Identification of the marketing function

Packaging  (1)

2.4.2 THREE characteristics of the cardboard boxes which make them

suitable
 Clean/dry/undamaged/suitable for the product 
 No foreign tastes/odours 
 Free of visible signs of fungal growth 
 Strong/rigid/solid 
 Recyclable/biodegradable 
 Easy to handle 
 Identification  (Any 3) (3)

2.4.3 Reason for using cardboard boxes with holes

Allow air flow/reduce spoilage/health reasons  (Any 1) (1)

2.5 Drawing up a business plan

2.5.1 ONE aspect that should be included in

(a) The title page
 Name of the business/person 
 Logo 
 Address 
 Contact details of the business/person  (Any 1) (1)

(b) Human resource plan

 Number and type of employees 
 Competencies and skills needed  (Any 1) (1)

2.5.2 Indication of an electronic resource

Computer software programmes  (1)

2.5.3 TWO reasons for drawing up a business plan

 To test the feasibility/economic viability of the business idea 
 To secure funding 
 To determine financial needs/budget 
 To guide daily operations/outlines roles and responsibilities 
 To allow the entrepreneur to foresee problems 
 To reposition/analyse the business 
 To gain knowledge about marketing opportunities and
competitors 
 To ensure effective business management 
 Mapping out the objectives/goals of the enterprise 
 Provides information on the internal/external business
environment 
 Provision of time frames  (Any 2) (2)
 2.5.4 ONE problem encountered when drawing up a business plan
 Incomplete/with gaps 
 Vague 
 Unrealistic assumptions/over ambitious 
 Hiding weaknesses and risks 
 Not taking the competition into account 
 Using the incorrect format 
 Insufficient research 
 Insufficient technical details  (Any 1) (1)

2.6 Entrepreneurship

2.6.1 Rearrangement of the phases of the entrepreneurial process

 D  (1)
 A  (1)
 C  (1)
 B  (1)

2.6.2 TWO aspects of the SWOT analysis

(a) Internal - Strength  weaknesses  (2)

(b) External - Opportunities  threats  (2)
[35]

QUESTION 2: AGRICULTURAL MANAGEMENT AND MARKETING SET 3

2.1 2.1.1 Identification of price determining factor
Supply (1)

2.1.2 Explanation of how factors will cause a shift in the supply

curve
(a) Technology – Better technology can result in reduced
production costs  resulting in improved supply 
(b) Environmental conditions – Conducive environmental
conditions will result in higher yields  leading to increase in
supply  (4)

2.1.3 Factors influencing supply

 Price 
 Production costs 
 Subsidies 
 Seasonality 
 Competitive products 
 Legislation (Any 2) (2)

2.2 2.2.1 Name of process

Agri-business chain / Marketing chain  (1)

2.2.2 Marketing channel shown by the arrow

 A – Farm gate marketing 
 B - Fresh produce markets  (2)
 2.2.3 Advantage of marketing channel A to the consumer
Prices are lower than retail prices  (1)

2.2.4 Methods of dealing with factors hampering the marketing

chain
(a) Processing products close to where they are produced  (1)
(b) Using cold storage / refrigerated transport / processing  (1)

2.2.5 Description of how the following affect the agri-business chain

(a) Increases transportation costs  (1)
(b) Seasonality of produce interrupts the market’s demand for
consistent supply  and increases storage costs  (2)

2.3 2.3.1 Identification of marketing approaches

A – Niche marketing 
B – Mass marketing 
C – Multi-segment marketing  (3)

2.3.2 Identification of a marketing approach with high prices

A  (1)

2.3.3 TWO reasons to support your answer

Consumers are prepared to pay high prices for unique
products 
There is less competition  (2)

2.4.2 Methods of promoting products that are suitable for marketing

approach B
 Newspapers 
 Television 
 Radio 
 Billboards
 Magazines 
 Electronic media  (Any 2) (2)

2.4 2.4.1 Name of marketing system

Cooperative marketing  (1)

2.4.2 Principles cooperative marketing

 Voluntary and open membership 
 Democratic member control 
 Autonomy and independence 
 Concern for community 
 Risk is shared by all members  (Any 2) (2)

2.4.3 Benefits of cooperative marketing

  Economies of scale 
 Increased bargaining power 
 Reduced risk due to risk-sharing 
 Ability to meet market requirements for volume and consistent
supply 
 Access to funding 
 Access to better infrastructure  (Any 2) (2)
2.4.4 Name of document
Business plan  (1)

2.4.5 Components of a business plan

 Title page 
 Contents page  / Summary of enterprise details 
 Executive summary 
 Overview of the industry 
 Overview of the business 
 Organisational structure and ownership 
 Human resources plan 
 Marketing plan 
 Financial plan 
 SWOT analysis  (Any 2) (2)

2.5 Aspects of a SWOT analysis

A. Opportunity 
B. Strength 
C. Threat  (3)
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QUESTION 2: AGRICULTURAL MANAGEMENT AND MARKETING SET 4

2.1 Marketing channels

2.1.1 Identification of the following

(a) Marketing system - Free marketing  (1)
(b) Marketing channel - Direct/contract marketing  (1)

2.1.2 Indication of the letter

(a) D  (1)
(b) B  (1)
 2.1.3 TWO disadvantages of a free marketing system
 Farmers are likely to experience price fluctuations 
 High marketing/production costs 
 The producer has a limited bargaining power 
 The producer runs a risk because wrong production decisions may
lead to a greater financial loss 
 Producers may set the price artificially 
 There is a risk of product rejection if it is not accepted by
consumers 
 Cartels are formed and consumers/other suppliers are exploited 
 Over production can lead to big surplus 
 Farmers may lack the necessary skills 
 Farmers bear all the risk alone 
 Small scale farmers struggle to keep up production as they focus
on marketing 
 Competition is high for individual farmers  (Any 2) (2)

2.2 Price elasticity and inelasticity

2.2.1 Identification of the product

(a) Inelastic - Product B  (1)
(b) Elastic - Product A  (1)

2.2.2 Reason for inelasticity

The change in price  has little influence on the quantity of product
demanded  (2)

2.2.3 TWO factors that resulted in price elasticity of product

 Nature of the product 
 Availability of substitute products 
 Consumers income 
 Fuel costs 
 Time period/seasonality 
 Price  (Any 2) (2)
2.3 Marketing problems

2.3.1 Deduction of the problem

(a) Picture A - Wide distribution of production areas and distance to
markets/poor infrastructure/accidents/theft/delays/
transportation costs  (1)
(b) Picture B - Perishability/spoilage/storage costs  (1)

2.3.2 How the problem of transportation can be addressed

 Improving road infrastructure 
 Provision of security 
 Insurance 
 Production closer to markets  (Any 1) (1)

2.3.3 Cost factor aligned to picture B

Supply of energy/electricity/storage costs  (1)

2.3.4 TWO roles of legislation in the effective marketing

 Promoting/optimising efficient marketing of products 
 Increasing market accessibility to all participants 
 Enhancing the viability of agricultural sector 
 Controls the sale and export of certain agricultural products
 Promotes meat safety at abattoirs 
 Controls the export of perishable products from South Africa 
 Promotes a fair/sustainable market place for consumer products
and services  (Any 2) (2)
2.4 Supply and demand of wheat

2.4.1 A bar graph showing the supply and demand of wheat from 2018
to 2022
The supply and demand of wheat from 2018 to 2022
300
Supply Demand
250

200

150

100

2018 2019 2020 2021 2022

Years

CRITERIA/RUBRIC/MARKING GUIDELINES
 Correct heading 
 X-axis: correctly calibrated with label (Years) 
 Y-axis: correctly calibrated with label
(Quantities supplied and demanded) 
 Correct unit (tons) 
 Bar graph 
 Accuracy (80% + correctly plotted)  (6)

2.4.2 Deduction of trends

(a) Supply - Quantities supplied increased from 180 tons (2018) to
250 tons (2022)  (1)
(b) Demand - Quantities demand decreased from 230 tons (2018) to
140 tons (2022)  (1)

2.5 Entrepreneurship

2.5.1 TWO phases of entrepreneurship in the scenario

 Identification of a business opportunity 
 Determining the resources required/resource mobilization 
 Starting the business  (Any 2) (2)

2.5.2 Marketing function

Processing  (1)
 2.5.3 Advantage of processing
It provides job/skill opportunities  (1)

2.6 SWOT analysis

2.6.1 Purpose of SWOT analysis

It helps to evaluate the business  (1)

2.6.2 Identification of the letter

(a) C  (1)
(b) B  (1)
(c) A  (1)
(d) D  (1)
[35]