Analysis of Factors Influencing Marketing Channel Choices by Smallholder Farmers: A Case Study of Paddy Product in Wet and Dry Season of Prey Veng Province, Cambodia

Rachana Chiv,Fengying Nie,Shu Wu,Sokea Tum

doi:10.5539/jsd.v13n4p15

Abstract

This study analyzes factors influencing marketing channels that were chosen by paddy smallholder farmers in the wet and dry season. The aims focused on determining the factors influence marketing channel choices to be able to reveal out the need for smallholder farmers to increase their productions and investments to formulate policies to enhance them such as increasing revenue, poverty alleviation, food security, and sustainable development. The primary data was collected through structured and semi-structured interviews with 216 smallholder farmers cultivated in both seasons, 12 collectors, 12 traders, 12 millers, 6 wholesalers, and 6 retailers by analyzed with Multinomial Logit. Results revealed that socio-economic, institutional, and marketing factors were different statistically significant influence into marketing channel choices in both seasons. These findings relate to factors that need to resolve and stimulate smallholder farmers to choose the right marketing channels by suggestion to policymakers. The outcomes of policies aim to stimulate and encourage extension office to support, sharing experiences, and knowledge to smallholder farmers who older, low experiences, and low educations. To improve extension services by the focus on telecommunications, storage facilities, and rural infrastructures. Moreover, urge smallholder farmers to market participation, and enhance market competitions. Finally, the policymakers should work efforts to improve and enhance the ongoing investments in the water supporting such as small, medium, large irrigation systems, and so forth for reducing the constraints.

Highlights

The marketing of agriculture products plays an important role in achieving the common aims of food security, poverty reduction, and sustainable agriculture, especially among smallholder farmers in the rural area (Kyaw et al, 2018). Baines et al (2017) found that a marketing channel might be set as an organization or agency that implements an activity linking producers with consumers to make a product or service available
The results showed that smallholder farmers had high products sold to indirect marketing channels increased due to they might challenge with high transportation costs, lack of transportation infrastructures, and storage items
It increased the probability to a farmer sold to a collector relative to a miller by marginal effect about 5.35% if increased one ton. On another hand, decreased the probability to a farmer sold to a trader was a direct marketing channel by marginal effect about 4.33%. This illustrated that, smallholder farmers with large volumes of products sold to indirect marketing channels increased due to they might challenge with high transportation costs, lack transportations, and lack of storage items

Summary

Introduction

The marketing of agriculture products plays an important role in achieving the common aims of food security, poverty reduction, and sustainable agriculture, especially among smallholder farmers in the rural area (Kyaw et al, 2018). Baines et al (2017) found that a marketing channel might be set as an organization or agency that implements an activity linking producers with consumers to make a product or service available. Baines et al (2017) found that a marketing channel might be set as an organization or agency that implements an activity linking producers with consumers to make a product or service available. It was divided into two categories such as a direct and indirect marketing channel (MacInnis, 2004; Brumfield, 2005; LeRoux, 2010; Seemanon et al, 2015). Producers were challenged with the predicament of selecting between sales directly to consumers at a higher price or sale indirect marketing channels at a relatively low price in the product large volumes (LeRoux, 2010; Seemanon et al, 2015). Fafchamps and Hill (2005) revealed the evidence of smallholder farmers got crop's price differences between the channels for selling their products to the market and had implications for the welfare effect of commercialization. Ouma et al (2010) found that mostly smallholder farmers who lived in rural areas face low reliable market information and partners exchange information jsd.ccsenet.org

Methods

Results

Conclusion