Factors influencing the choice of marketing channels: evidence from dairy farmers in Thailand

Abstract

This study assessed the factors influencing marketing channel choice of dairy farmers in Thailand using primary data obtained from 385 randomly selected dairy farmers in central and north-eastern regions of Thailand. Two types of farmers were surveyed: members of dairy cooperatives (DCs) and members of private organisations (POs) representing the two key marketing channels. Descriptive statistics were used to identify the socio-economic characteristics of farmers, and a binary probit regression model was used to examine the factors influencing farmers' decision regarding the choice of marketing channels. The study revealed that dairy farming experience, the number of years of membership in the milk collecting centres (MCCs), distance to the MCCs, milk price, payment period, access to market information, advisory service, credit service and farm input service had positive influence whereas marketing experience had negative influence on the choice of selling to the DCs. The recommendations are presented.