Measuring Marketing Channel Efficiency and Strategy to Improve Income to Local Communities Dependent on Tropical Forests

Abstract

Quantification of channel efficiency in the marketing of non-timber forest products (NTFP) is essential for developing strategies to improve income to communities dependent on forests at existing harvest levels. A methodology for quantification of marketing channel efficiency is suggested. For illustrative purposes the method has been applied to a small sample of four NTFP gathered in twelve villages and the associated market functionaries in India. The NTFP gatherers' share in the consumer price and profit earned by a manufacturing unit from NTFP has been estimated. An attempt has been made to relate these two estimates to the marketing channel efficiency for the NTFP. An analysis of the marketing channel efficiency formulation shows that the operation cost in an organization is a constraint limiting the gatherers' share in the consumer price.