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The distribution of food

After farmers have produced food such as fruit, vegetables and meat these products need to be distributed so that the public can buy them. There are many ways in which this can be done.

Farmers may sell peas to the manufacturers who would put them into cans which would be sold to larger retailers or wholesalers. They could sell potatoes directly to retailers such as a chain of greengrocers.

Fruit can be sold directly to members of public who visit farms.

Farmers could also sell what they have produced at wholesale markets. A town might have a cattle market on certain days of the week where local farmers could buy or sell. There are also national markets where, for example, farmers, wholesalers and retailers from all over the country are able to buy and sell. Examples of national markets are Smithfield (meat), New Covent Garden (fruit and vegetables), Billingsgate (fish).

The distribution of raw materials

Raw materialssuch as cocoa, copper and gold are produced by extractive industry. There are many ways in which these raw materials can be distributed to those who wish to use them.

Many of these raw materials, which can come from all over the world, are sold on UK commodity exchanges. Examples of these exchanges and the products in which they deal are, the Baltic Exchange for grain, the London Metal Exchange for copper, tin, lead and zinc, the London Commodity Exchangefor tea, coffee, cocoa and sugar, the Liverpool Cotton Exchangefor cotton.

Some of these raw materials can be sold to manufacturerswho are able to buy in large enough quantities directly from extractive industry. Some, e.g. coal, can be sold directly to the public.




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