Choice Of Marketing Channels Research Articles

Factors affecting market outlet choice of wheat producers in North Gondar Zone, Ethiopia

BackgroundSelecting the appropriate channels to deliver farm products is not an easy task because there are various factors that affect producers to select such relevant channels. Hence, the study was aimed to investigate the factors that influence market channel choices among wheat producers in Northwestern Ethiopia.MethodsUsing multistage sampling technique, 163 smallholder wheat producers were selected to collect primary data through semi-structures questionnaires. Combinations of data analysis methods such as descriptive statistics and econometrics model (multivariate probit model) were used.Result and conclusionThe study identified four major wheat market channel choices such as retailers, assemblers, consumers and wholesalers as alternatives to wheat producers to sell majority of their products. Thus, retailers who accounted for 40.49% of total sold, assemblers (39.2%), consumers (37.5%) and wholesalers (23.93%). The results of a multivariate probit model indicated that age of household, education status, credit access; livestock number, off-farm income and total land-holding size of farmers significantly affected the market channel choice decisions in one or another way. Therefore, strengthening institutions to deliver timely and appropriate credit service and training to a farmer is among the major recommendations from this study.

Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks

This paper assesses the effect of transportation and communication networks on farmers’ choice of market channels for paddy and wheat, and subsequently on the prices they receive from these channels. It is found that smallholder farmers sell more to informal channels i.e. local traders and input dealers, and typically receive lower prices from them compared to the government-set minimum support prices (MSP). The prices realized from the sales in regulated markets are also less than the MSP despite these being claimed to be more transparent in price discovery. Econometric results show that farmers’ access to transportation and information enables them to obtain better price terms from informal as well as formal channels. The effect of information is relatively stronger, implying that farmers’ access to transportation itself is not sufficient but is effective when combined with provision of market information. Further, our proposition is that despite a positive impact of the improved market access on price realization from informal traders, farmer-trader relations are unlikely to undergo a meaningful change because of the tied transactions involving inputs, credit and outputs.

The impact of poverty, risk aversion and time preference on maize marketing channel choice decisions: the case of Zvimba and Makonde districts of Zimbabwe

ABSTRACTThe study deployed the experimental and behavioural economics toolkit to determine how risk aversion attitude, time preference and poverty status influenced farmers’ marketing channel preferences between the state-owned Grain Marketing Board (GMB) and the private buyer market. Following maize market deregulation and subsequent entry of private buyers in the Zimbabwean grain sector, marginalised poor farmers remained confined to the low return private buyer market that offered very low prices, as they avoided GMB whose payment plan was uncertain and delayed. The question therefore was: To what extent did farmers’ risk aversion attitude and time preference explain the poor farmers’ choice for low return private buyer market at the expense of the high return GMB market? Using survey data obtained from 433 maize farmers in Makonde and Zvimba districts, an instrumental variable probit regression model was estimated. The results confirmed that risk aversion attitude and time preferences (as measured by farmers’ discount rate) reduced the likelihood of a farmer participating in a high return state-owned GMB market. Poor farmers were found to be more risk averse and impatient than non-poor farmers in marketing channel selection. Their high risk aversion attitude and impatience constituted the greatest market impediments that restricted them to the low return private buyer market. To make agricultural markets work for poverty reduction the study recommended that policies that promote the development of risk transfer markets and futures markets for maturity transformation of farmers’ payments are critical in guaranteeing effective participation of poor households in high return markets.

What drives the choice of poultry market channel and the change of purchase behavior due to highly pathogenic avian influenza outbreaks?

In Indonesia, market channels play an important role in food security in poultry meats. This review explains Indonesian consumers' choice of market channels to purchase poultry, and consumer concern of food scares and food safety in their consumption due to highly pathology avian influenza (HPAI) outbreak. The survey was conducted for the traditional and the modern channels and involves a sample of 1096 respondents in the Greater Jakarta Area. The logistic regression analysis reports the model proved that the substantial findings in the choice for the modern poultry market channel are the price/quality relationship, the safety feature, and the level of consumer trust. Some variables explaining the change in purchase behavior due to HPAI outbreaks are similar to the results of the choice of market channel. This study shows that the developed assessment can be used by the government to make the poultry supply more safe.

Factors affecting marketing channel choice decisions of smallholder Citrus growers

PurposeDespite the fact that citrus industry is growing in Pakistan where production is dominated by small-scale citrus growers, no research has been done to evaluate and analyse the marketing channel choice decision-making process of these citrus growers. The purpose of this paper is to review the existing factors affecting decision making of small-size citrus growers in citrus supply chain in Pakistan and also measures and analyses the factors that affect the marketing channel decisions of these small size growers.Design/methodology/approachA multivariate decision analysis technique, conjoint analysis, was used to analyse and evaluate the major factors affecting marketing channel choice decisions of small-size citrus growers.FindingsIt was concluded that among nine very important factors, six factors played a major role in the marketing channel choice decision making. Only three factors namely, “price”, “time of complete fruit picking” and “number of fruit pickings” were considered highly important factors and reflected that citrus growers not only want to secure his payments but also to save their orchards for next season(s).Research limitations/implicationsThe research would provide valuable information about citrus grower’s marketing decision-making process and thus would contribute to improving the efficiency and effectiveness of citrus industry in Pakistan.Originality/valueThis analysis would suggest them to make rational decisions and help choosing them the most appropriate combination of different levels of different factors which would increase their profits. This study identifies the most relevant factors and their levels which citrus growers and pre-harvest contractors preferred in citrus marketing channel choice decision making, thus, server as a guideline for the buyer’s to deal with them accordingly. This would improve the efficiency and reduce the transaction cost along the citrus supply chain in Pakistan.

Determinants for Choice of Fish Market Channels: The Case of Busia (Uganda/Kenya) Border

The study investigated factors influencing the choice of fish traders’ marketing channel by fish trader and the determinants of their gross margins. A multistage sampling technique of 115 fish traders was used. Four key informants and two focus groups participated in the study. A Probit model was used to determine factors that influenced the choice of fish traders’ marketing channel. Findings from the study revealed that volumes of fish traded per month, distance to market, membership to a fish marketing organization, payment mode, household size, presence of other sources of income were statistically significant in determining traders’ choice of marketing channel. In addition, it was found that a formal trader on average sold 6.882 tons of fish whereas 2.095 tons of fish were sold by the informal trader per month. The study therefore recommends that Informal traders be clustered into a marketing organisation; through which they can be trained on business diversification, collective marketing, and group savings to ease access to credit. It is important to eliminate the challenges encouraging informal cross border fish trade by harmonizing regional fish standards, facilitating exchange and use of fishery trade information. Further, there is need to strengthen the data collection systems in order to have accurate estimates on the contribution of fish to trade and food security.

Profitability of organic vegetable production in Northwest Vietnam: evidence from Tan Lac District, Hoa Binh Province

This study compares the profitability of organic and conventional vegetable production in Tan Lac, a mountainous area in Northern Vietnam. The study is motivated by three questions: (1) Is organic vegetable production profitable, compared with conventional production? (2) Who among the vegetable farmers in Tan Lac tended to adopt organic production methods? And (3) what could be done to improve the overall success of organic farmers in Tan Lac? Data were collected from a household survey of 95 smallholder farmers. Focus group discussions and key informant interviews were also used to learn about farming practices and challenges in the area. A series of regressions are used to examine the comparative profitability of organic and conventional vegetable production and common characteristics of organic adopters. The results show that, on average, 1 ha of vegetables produced organically is about 41% less profitable than 1 ha of vegetables produced using conventional methods. However, this average difference can be attributed largely to the success of a small number of conventional farmers in the sample. Quantile regression results show that median outcomes did not differ significantly between the two groups. The choice of marketing channel is correlated with profitability. Organic farming success could be improved if marketing plans were established in conjunction with production plans and if smallholders cooperated on production and marketing plans.

Examining Saffron Income and Choice of Marketing Channel Connection

The study identified the marketing channels involved in the marketing of saffron and revealed grower preference to various marketing channels. Furthermore, it found that the choice of marketing channel depends on income of the saffron grower. The primary data was collected from the respondents (201 saffron growers, 6 dalals and local traders, 17, retailers/wholesalers and 5 firms) in the three selected villages of Pampore namely Letpora, Ledhu and Konibal based on interview schedule framed in accordance with the objectives of the study. Proportional sampling framework was followed for selecting the respondents of the study. The chi-square test for association has been used to find the relationship between two categorical variables which in case of present study is income and channel.

Determinants of market participation and marketing channels in smallholder groundnut farming: A case of Mudzi district, Zimbabwe

This paper investigates the factors that are associated with market participation and choice of marketing channels by smallholder groundnut farmers in a semi-arid district of Zimbabwe. It contributes to the existing body of knowledge on groundnuts, especially the marketing aspect. Data was derived from a literature review and a cross-sectional household baseline survey. We applied simple logistic regression framework to determine the factors associated with market participation and choice of marketing channel. Our study findings show that land size, access to transport information, distance to the nearest town, age and education of the household head are among the important factors influencing the decision to participate or not to participate in selling of groundnuts. Choice of a particular marketing channel is influenced by distance to the nearest town, education level of the farmer, access to remittances, and market information. In conclusion. these findings suggest that an adjustment in each of these significant variables can influence the probability of market participation and an informed choice of marketing channels. In terms of policy, this implies that technological changes, infrastructural improvements, agricultural institutional developments, and capacity building of smallholder farmers can help to improve farmers’ market participation and informed market channel choice.

English

Market outlet choice for small holder onion producers is mandatory, since onion crop is a perishable horticultural crop. This study was aimed at assessing determinant of market outlet choice by smallholder onion farmers in Fogera District of Ethiopia. A stratified random sampling technique was employed, to select 150 onion producers in the study area. Multivariate probit model was employed to identify the factor affecting onion market outlet choices. The result of multivariate probit model showed that literacy status, owning transport facility, livestock holding, onion yield and access to extension service significantly influenced the choice of onion market outlet. The common underlying factors of market channel choice were also identified. Based on the results, the study recommended that the government and stakeholders should focus on strengthening the existing of formal and informal education, onion production system, improving extension system, strengthening the existing rural-telecom and rural-urban infrastructure development and improving crop-livestock production. Key words: Onion, determinant, channel choice, multivariate probit model.

Market participation and marketing channel preferences by small scale sorghum farmers in semi-arid Zimbabwe

ABSTRACTA fundamental concern of agricultural development is the efficient marketing of goods and services. This paper examines the determinants of market participation and marketing channel choice decisions by small scale sorghum farmers using a case comprising 380 households from five Wards in the mid Zambezi Valley of Zimbabwe. Mixed data collection approaches including a questionnaire, observations and focus group discussions were used. Secondary data triangulated and validated farmers’ responses. A double hurdle based on probit and multinomial logit regression models was applied to the two decision making stages. Ninety six percent of the sampled farmers participated in some market as influenced by payment time, number of buyers in the market, age of principal decision maker and distance to market. Three marketing channels were isolated as local, traders and a combination. The local marketing channel dominates due to its convenience and relatively lower transaction costs. Using the local market option as the referent category, weighted average market price of sorghum, number of buyers in the market, distance to the market, dependency ratio and household income are the most robust determinants of marketing channel selection. Sorghum marketing channel options are limited for small scale farmers in Zimbabwe. Strengthening cooperative based and extension anchored marketing can reduce the risks associated with relating to external traders who usually exploit farmers for price, payment time and quality requirements. Decentralisation of the sorghum markets and promotion of value addition activities in the sorghum value chain is likely to reduce transaction costs and increase the market size.

Determinants of dairy farmers’ choice of marketing channels in Bihar, India

In the past one and half decade, milk production in Bihar has increased substantially, from 2.7 million tons in 2001–02 to 8.7 million tons in 2016–17 lifting the per capita daily milk availability in the state from 88g to 228g. However, dairy sector is dominated by small farmers, and because of their small scale they are forced to sell milk to informal buyers who often exploit them by paying less than the market price. This paper analyses farmers’ sale pattern of milk and identifies factors influencing their choice of market channels. Results indicate that small farmers prefer selling milk directly to consumers because of the higher offer prices and nearness to the production centres. Large and educated farmers sell to formal buyers. However, if the payments from formal buyers are delayed, farmers tend to switch over to informal buyers. The likelihood of selling to informal buyers increases if farmers find it difficult to sell directly to the consumers located far away from the production centres.

Farm Gate Dairy Milk Marketing Channel Choice in Kericho County, Kenya

This study examined the factors that determined dairy farmer households’ choice of a commercial milk marketing channel in Kericho County, Kenya. Multistage cluster sampling technique was employed in collecting data from 432 dairy farmers and survey data was analyzed using multivariate probit regression model. Marginal effect results revealed that a unit change in household’s pasture farm size and partnership in lobbying for better milk price increased the probability of selling milk only to commercial milk buyer by one and 19 percentage points respectively. The number of cows milked per day and milk storage/cooling raised the probability of selling raw milk to commercial buyers by 2.3 and 16.1 percentage points respectively. Commercial milk buyers valued security in raw milk supply which came from trusted relationships and from contracts with the dairy milk seller households. To increase the choices of commercial dairy milk marketing channels and hence the switching power of the dairy farmer households in Kericho County and by extension, Kenya as a whole, this study recommends strengthening the capacity of dairy farmer households by up scaling their technical knowhow and by enlarging their herd sizes. Further, the study recommends group formation, partnership development and increased financial investments in livestock milk markets by national and county governments.

Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China

Cooperatives are established to improve farmers' production conditions, to increase their bargaining power and to enable them to benefit from modern value chains. In China, farmers are members of a cooperative for multiple reasons. Little is known on whether and how cooperative membership affects farmers’ choice of marketing channels. This paper examines determinants of farmers’ choice of marketing channels, especially how cooperative membership impacts upon this choice. Our analysis is based on survey data collected in 2015 among 625 apple growing farm households in the provinces Shaanxi and Shandong. We employ endogenous switching probit models to deal with potential endogeneity of membership in estimating the determinants of marketing channel choices. We find that cooperative membership has a positive impact on selling to wholesalers and a negative impact on selling to small dealers, but no significant impact on selling to the cooperative itself. As products sold through cooperatives generally comply with relatively stringent food quality and safety standards, these results imply that policies promoting cooperative members to sell their products through cooperatives are likely to have a significant impact on food quality and food safety in China.

Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan

Farm marketing has been recognized as an important factor for a successful farm business. Due to the increasing interest of consumers in food safety, direct marketing of farm products to consumers in the local farmers’ markets has become very popular. Compared to traditional farm marketing channels, relatively little is known about the use of direct-to-consumer marketing strategies by farmers. This paper aims to provide a more comprehensive picture of farmers’ choices among available farm marketing channels using the case study of Taiwan. Using a population-based survey of 5600 family farms in Taiwan in 2014, in this study we quantify the extent to which demographic characteristics of farm operators, farm production and family conditions may influence the decision of farms to sell farm products to the government, wholesale markets, and in direct-to-consumer sales. We develop a trivariate probit model, and our results indicate that education level and engagement in the off-farm labour market of farm operators, the number of household members, farm size, land ownership, and the type of farm are the key factors in determining farmers’ choice of marketing channels. The findings of this study may have important implications for the design of more effective farm marketing programs by agricultural authorities.

The welfare impacts of market channel choice by smallholder farmers in Tanzania

ABSTRACTThis article analyses the impact of market channel choice on household welfare by maize and pigeon pea smallholder farmers in Tanzania, using a multinomial endogenous treatment approach. The study utilises farm household-level data collected from a randomly selected sample of 700 smallholder farmers. The results show that participation with traders in nearby markets and wholesalers in nearby towns have a positive effect on consumption expenditure per capita relative to brokers at the farmgate, for both maize and pigeon pea-farming households. The study suggests that interventions that aimed at inclusion of smallholder farmers in more profitable markets could improve household welfare and reduce poverty among rural households.

Factors influencing rubber marketing by smallholder farmers in Thailand

ABSTRACTThis article assesses the factors determining the type of rubber product that farmers are willing to sell and the factors influencing their marketing channel choice in Thailand. Primary data were collected through questionnaire administration from 280 rubber farmers in two southern provinces. The results of the logit regression model revealed that membership of farmers’ organisation, access to knowledge and information, and total area of immature rubber positively influenced the sale of fresh latex. Membership of farmer organisations and accessibility to market infrastructure also significantly positively influenced the sale of fresh latex to farmer groups. The implications for rubber marketing are presented.

ANALISIS PENENTUAN RAFAKSI DAN PENGARUHNYA TERHADAP PILIHAN SALURAN PEMASARAN PETANI UBI KAYU DI KABUPATEN LAMPUNG TENGAH

Cassava becomes an important commodity in Indonesia because Indonesia is one of the major producer of cassava in the world. Besides exporting cassava, in fact Indonesia also imported cassava in large quantities. Altough the price of cassava was increasing in Lampung but the production and harvested area were decreasing, moreover factory and trader also set rafaksi on cassavas sold by farmers. Rafaksi is a penalties quantity to assess the quality of cassava farmers. Cassava marketing channels play role in determining the price and rafaksi that received by farmers. The aims of this research are (1) to analyze mechanism of determining rafaksi (2) to analyze price received by farmers’ after obtained rafaksi (3) analyze influence rafaksi to choice of marketing channels cassava farmers in Central Lampung Regency. Primary data were collected rendomly from 74 respondents. Data were analyzed by describe, correlation and binary logistic regression. The results showed that in the perception of farmers, determination of cassava rafaksi determined by several criteria such as the age of harvest, varieties, aci levels and the amount of dirt but not obtained a measure to ensure that criteria and only use the visual observation. The results of correlation analysis showed that there was no statistically significant connection between harvest time and the varieties of cassava with rafaksi of cassava which received by farmers. The result of binary logistic regression analysis showed that rafaksi loan significantly affected the choice of marketing channels.

FACTORS INFLUENCING CHOICE DECISION FOR MARKETING CHANNELS BY COFFEE FARMERS IN KARAGWE DISTRICT, TANZANIA

Marketing channel choice is among the most complex and challenging decisions facing farmers. This study therefore assessed the factors influencing choice decision of marketing channels by coffee farmers in Karagwe District of Tanzania. A cross-sectional research design was employed to collect data from 120 smallholder coffee farmers using semi-structured questionnaire, participatory group discussions and key informants interviews. The data were analysed using qualitative analytical techniques such as descriptive statistics as well as quantitative methods such as regression analysis. The Multinomial Logit Model was employed to determine the factors influencing farmers’ choice for marketing channel. The study found that farmers sell coffee through three main marketing channels namely; Rural Primary Societies (35%), Private Coffee Buyers (46.7%) and Village buyers (18.3%). The Model results show that three factors significantly influenced the farmer’s marketing channel choice namely; Age of household head, price of dry coffee cherry and distance to selling center from homestead. Further results showed that there were wide variations of farm gate prices between farmers selling in different market channels. The study recommends the restructuring of cooperative societies, introduction of formal credit facilities to provide favourable credit to farmers and the establishment of more rural primary cooperative societies’ and private coffee buyers’ buying centers in the remote villages to reduce transportation costs.

Influence of multi-stakeholder innovation platform approach on smallholder farmers marketing decisions

One of the very numerous decisions that smallholder farmers face world wide relates to market participation in agricultural markets and, consequently choosing the appropriate marketing channel for their agricultural produce. Such decisions impact on their incomes and subsequently on their welfare. The objective of this study was to determine how a multi-stakeholder innovation platform approach influences pigeon pea (Cajanus Cajan L.) marketing decisions in smallholder farming in Malawi. The study relied on primary data collected from 115 households in Balaka District in Malawi during an impact survey done in November 2014. Results confirmed that the multi-stakeholder innovation platform approach improves decision making in pigeon pea marketing. Variables such as access to transport services and market information, improved extension, capacity building through farmer training, adoption of conservation agriculture and membership to farmer groups influenced marketing decisions.Keywords: Marketing channel choice, market participation, pigeon pea