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D-commission Dictionary

Commission

The percentage of the selling price kept by an agent for selling the produce

All termsIntroduced in Module 4Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
The percentage of the selling price kept by an agent for selling the produce
How to use it
Deduct commission from the selling price before comparing channels. A higher price through an agent may earn less than a lower direct price.
South African benchmark
South African fresh-produce market agents work on a commission deducted from sales (Article 47).
Country notes
Applies the same way in all five markets.
Go and read
C4 Lesson 4.1, M4-U2, M9-U1
Calculate it
T-C-05 Delivered Cost Calculator
Library sources
LIB-A047, LIB-A059, LIB-A071
See also
Market agent, Farm-gate price
Route from farm gate to consumer with each party’s share of the priceFrom farm gate to buyer: who takes a share of the priceYour farmfarm-gate priceTransportR per tonne-kmMarket agentcommission %Retaileror processorConsumershelf priceFarmTransportAgentRetailShare of the shelf price (illustrative split)Selling closer to the consumer keeps more of the price on the farm, but adds cost and work.
From Module 4, Getting to the Buyer, where this term is introduced.

Introduced in C4 Getting to the Buyer.