Choice Of Marketing Channels Research Articles

Assessment of the Factors Influencing the Irish Potato Producers’ Market Channel Choice in Rwanda: A Case of Study Musanze District

Assessment of the Factors Influencing the Irish Potato Producers’ Market Channel Choice in Rwanda: A Case of Study Musanze District

Separability, spillovers, and segmented markets : Evidence from dairy in India

AbstractA long history of empirical research has focused on testing whether and when household consumption and production decisions are separable. If markets were perfect, household consumption would be independent of production. In this article, we propose that market channel choice complicates this relationship. Our analysis of household panel data from rural India, focusing on dairy, leads us to four key conclusions. First, milk consumption is correlated with production, and markets are not a complete substitute for household production. Second, a large presence of formal milk buyers in a village is associated with lower milk consumption in dairy households, overturning the positive association of participation in formal value chains with household milk consumption. Third, contrary to expectations, for households that do not own dairy animals and net buyers, the presence of formal value chains remains uncorrelated with milk consumption. Fourth, we infer, test for and find suggestive evidence of segmented milk markets, that is, different types of households participate in different markets for milk that do not seem to interact with each other. Policymakers focused on market development or production‐based strategies need to factor in the possibility of market segmentation based on market channels while designing interventions.

Cooperative membership effects on farmers’ choice of milk marketing channels in Rwanda

Although cooperatives play a critical role in reducing transaction costs and enhancing farmers’ adoption of better farming practices, little is known on the effects of dairy cooperative membership on the choice of milk marketing channels. This paper employs an endogenous switching probit model to estimate the determinants of farmers’ choice of milk marketing channels while controlling for the potential selection bias of cooperative membership. We find that cooperative membership has positive and significant effects on the choice of both MCCs and milk traders as marketing channels along with a negative effect on the choice of other buyers (direct consumers and restaurants). The varying effect of cooperative membership on choice of different marketing channels holds also for non-members had they been cooperative members. Furthermore, we find that the selling price positively affects farmers’ choice of MCCs, but the longer distance to MCCs may make farmers (including cooperative members) to choose milk traders who offer lower prices than MCCs. Since the MCCs are managed by dairy cooperatives and they are the only marketing channels that conduct basic milk quality tests while offering higher prices to farmers, we recommend policies that support easy access to MCCs and enhance dairy cooperatives’ governance. This will facilitate dairy farmers’ access to a better marketing channel while meeting an already growing consumer demand for products safety and quality in the food industry.

Determinan yang Memengaruhi Pemilihan Saluran Pemasaran Bunga Potong Krisan di Kabupaten Cianjur

Chrysanthemum is one of the main commodities in Cianjur Regency with 52% of the total chrysanthemum production in West Java Province. This study aims to analyze the determinants that influence the choice of marketing channels for chrysanthemum farmers in Cianjur Regency. Farmers have two choices of marketing channels to distribute their chrysanthemum cut flowers to final consumers, namely through collectors and also through wholesalers in Rawabelong Market. The most efficient marketing channel is channel 2, where farmers sell to wholesalers in the swamp belong before finally selling to the final consumers. The channel most chosen by farmers is channel 1, in which farmers sell their chrysanthemum cut flowers to the collectors and then from the collectors they sell them to wholesalers in Rawabelong Market, before being received by the final consumers. Respondents in this study were chrysanthemum cut flower farmers in two central districts, namely Cugenang District and Sukaresmi District, with a total of 60 farmers. This research was analyzed using binary logistic regression analysis by setting efficient marketing channels as the reference variable. The results of this study indicate that there are 6 factors that influence the choice of marketing channels, namely age (-), education (+), sales volume (+), price per bundle (+), capital bond (-) and transportation costs (+). Farmers prefer to sell to collectors (channel 1) because of the attachment of capital to collectors due to the lack of capital owned by farmers. Another factor is that as they get older, farmers tend to choose inefficient channels. In addition, the increasing length of education, sales volume, bond price, and transportation costs incurred, farmers tend to choose the efficient channel (channel 2). This research has policy implications for the regional government, especially the Cianjur Regency Agriculture Service, so that they can provide capital assistance in the form of seeds, fertilizers and financial so that farmers do not depend on village collectors for capital.

Determinants of farmers’ decision to choice market outlets: Evidence from milk producer farmers in Ada’a Berga District Ethiopia

In Ethiopia, many initiatives have been implemented to empower smallholder dairy farmers to develop viable livelihoods from the sector. The problem with these policies is the inability to reach farmers at large, and dairy farmers in rural areas are always challenged to deliver milk and milk products faster to the final market. The study was aimed at investigating factors that influence market channel choices among dairy producers in Ada’a Berga district Ethiopia. This paper uses data from a survey of 123 dairy producer households in four rural kebeles to analyse the factors that influence the choice of a milk marketing channel. Multivariate probit econometric model results show that income from dairy source, market information and educational level of household affected wholesaler outlet. The choice of consumer outlet is influenced by family size, membership in a dairy cooperative, market information, non-dairy income and income from dairy source. Number of milking cows, membership in a dairy cooperative and non-dairy income determined the choice of dairy cooperative outlet. The choice of district retailer’s market outlet was affected by sex of households, membership in a dairy cooperative and income from dairy sources. Choice of rural collector outlet is negatively influenced by non-dairy income and access to an extension contact. Therefore, policies should be designed that encourage farmers’ cooperatives, contract farming and collective action in order to lower transaction costs, expand market information for dairy producers, expand extension services and expand infrastructures such as road and transportation facilities, which are needed to promote the effective marketing of milk through all outlets.

Factors affecting the choice of marketing channel by beekeepers in Türkiye

This study aims to analyze the factors affecting the marketing channel choices of beekeepers in the sale of strained honey. The primary data was collected with questionnaires conducted with 162 bee breeders in Türkiye. When beekeeper characteristics by marketing channel selections were compared, it was determined that breeder's education status, income other than beekeeping, the status of getting support, payment method, satisfaction with the marketing channel, way of determining the price, the source of information, and credit usage status were the variables influential in choosing a marketing channel. As a result of comparing the group selling strained honey through the direct channel and the group selling it through the indirect channel, significant differences were found between the groups in terms of beekeeper's age, the share of beekeeping in annual income, the number of hives, the share of strained honey in beekeeping income, and the selling price of honey. Providing training for beekeepers, ensuring their access to market information, improving infrastructure conditions, and encouraging the production of bee products and cooperative membership will increase their income.

Effects of marketing information on coffee farmers and trader’s performance in Kibinge sub county, Bukomasimbi district of Central Uganda

Marketing channel choice is among the most complex and challenging decisions facing farmers. This study therefore evaluate the impact of marketing information available to coffee farmers and traders in Bukomansimbi district of Uganda. The specific objective was to identify the methods through which coffee farmer’s access market information and to determine the challenges they face in an effort to access market information. A cross-sectional research design was employed to collect data from 48 smallholder coffee farmers using semi-structured questionnaire, participatory group discussions and key informants interviews. Using a purposive and stratified simple random sampling procedure, 48 respondents comprising of coffee farmers and traders were selected and interviewed. The study results revealed that Coffee farmers don't access information on some of the opportunities and programmes that could enable them to improve the production process and hence access better markets. When farmers market their coffee through cooperatives, they gain more because there will be no middlemen involved in the value chain. Through Co-operatives, it is also easy to ensure product quality besides accessing good markets that pay premium prices for the coffee. It was discovered that 35% of the cooperatives in the study district produce speciality Arabica coffee and fine Robusta coffee, which fetch premium prices on the global market. The study also established that farmers use word of mouth from other farmers and traders as source of their information. The policy recommendation is that Coffee farmers should conduct market assessment and research to get update information about the market dynamics and current price changes. The ideal extension model should be farmer centered with necessary linkages to markets, researchers, subject matter specialists, inputs providers, credit facilities, and other support services. An appropriate extension system should focus on farmer groups rather than individuals with an emphasis on group extension methods. Thus a sustainable extension model which is farmer-owned with a strong market focus should be promoted. The Uganda Coffee Development Authority should conduct training programmes to equip farmers with the skills and knowledge on how to ensure quality along the coffee value chain as well as on coffee marketing.

How does who-you-sell-to affect your extent of market participation? evidence from smallholder maize farmers in Northern Ghana

This study examines the effect of marketing channel choice on the extent of market participation, with the goal of helping farm managers and policymakers to identify ways of enhancing market participation outcomes. The study uses data from 383 smallholder maize farmers who were part of the respondents to the Agriculture Production Survey conducted in 2014 and the Population-Based Survey conducted in 2012 in Northern Ghana. Econometric analysis was performed using the double hurdle model to account for data censoring in a more flexible way. Findings indicate that smallholder farmers in Ghana sell larger maize quantities when they sell to aggregators than when they sell directly to consumers. By changing from selling to consumers to selling to aggregators, farmers can increase the amount of maize sold by 128.46 kg conditional on participation and by 43.41 kg unconditional on participation. This is potentially due to the scale advantages and non-pecuniary cost savings that aggregators present. The results imply that facilitating access to aggregator-type middlemen may improve market participation in markets where market infrastructure and institutions are not developed enough to substantially lower pecuniary and non-pecuniary marketing costs of selling directly to consumers.

Analysis of Rice Marketing Channels Choices in Mwea Irrigation Scheme, Kirinyaga County, Kenya

The National Rice Development Strategy in (Kenya vision 2030) aims to improve food security, rural employment, and income for smallholder farmers in the Mwea irrigation scheme (MIS) through planned and intentional efforts. A study was conducted to identify major influences in choosing market avenues among rice farmers. The study used a sample size of 384 small-scale rice farmers to analyze the different rice marketing channels used in MIS, and to understand the factors that influence farmers’ choices of marketing channels. A pretested semi-structured questionnaire was used for data collection. Descriptive statistics were used to characterize the marketing channels, multinomial logit model was used to evaluate channel choices. The marketing channels were Channel 1: Farmer-Consumer (0.3%); Channel 2: Farmer-Brokers-Millers-Consumer (51.1%); Channel 3: Farmer-Brokers-Millers- Retailer-Consumer (42.3%); Channel 4: Farmer- Millers-Retailer-Consumer (62.72%) and Channel 5: Farmer- Millers- Wholesaler-Retailer-Consumer (37.28%). The most profitable channel was direct sales to consumers, which accounted for only 0.3% of total rice production in MIS. The study also found that factors such as education level, participation in marketing groups, distance to market, and age of the household head significantly influenced farmers’ choice of marketing channels. The study is critical in enriching literature on rice agricultural supply chains in Kenya. The study recommends policy considerations to protect small-scale farmers from exploitative brokers and suggests registering brokers to monitor their activities and set standards for fair practices, with the goal of regulating their activities to prevent exploitation of small-scale farmers in rice marketing.

Determinants of the Milk Marketing Channel Options among the Dairy Farmers of Punjab

Background: Dairying is an integral part of farming system of India. In 2019-20, milk production in Punjab was 13,347 thousand tonnes and growth rate was about 5.60 per cent per annum. Milk production is only profitable if there are proper marketing facilities. The objective of the present study is analyzing the determinants that affect the choice of milk marketing channels by the dairy farmers of Punjab. Methods: The present study is based on primary data, collected through a detailed schedule from 420 dairy farmers in 2019 belonging to different farm size categories from 21 villages situated across three different agro-climatic zones of Punjab state of India, using a multi-stage sampling technique. Binary Logistic Model has been used for the purpose of analysis. Result: The significant variables affecting the choice of milk marketing channels by the dairy farmers are found to be the presence of milk collection centre in the village and herd size of the dairy farmer. The value of Cox and Snell R-square indicates that around 17.00 per cent of the variations in the choice of marketing channels are attributed to the variations in the explanatory variables included in the study.

Improving the design of local short food supply chains: Farmers’ views in Wallonia, Belgium

While consumers' preferences and willingness to pay for local food have been widely explored, farmers' choice of marketing channels in high-income countries has received far less attention. This study identifies important factors affecting fresh vegetable farmers’ decisions to participate in local short food supply chains in Wallonia, Belgium. We use quantitative data from a farmer survey comprising a discrete choice experiment complemented by qualitative data to conduct our research. We show that farmers are not eager to participate in newly established short food supply chains, especially if it involves selling large shares of their yield through these channels. Farmers are interested in internal certification systems with label, such as Participatory Guarantee Systems, and direct-to-consumer selling on-farm. Commitment from the buyer before planting is highly valued, even more than a high selling price. Preference heterogeneity is linked to farm size and current organic certification status. Our findings allow to evaluate the relevance and improve the design of local food initiatives, including newly established short food supply chains and certification systems.

Producers marketing a novel crop: a field-level view of hemp market channels

Abstract We assess emerging relationships between production decisions and market channel selection among a small sample of hemp growers (22) in Colorado and Kentucky using qualitative interviews. We found producers differences by market channel, product and state. For instance, producers who relied on intermediated marketing strategies cultivated more acres on average and used fewer distinct market channels and strategies than those relying on direct markets. Product differences were found regarding processing, storage and perishability. Respondents identified four factors critical to their choice of market channels for their hemp products: research, profitability, trust and knowledge. The findings can help inform public and private decision-making regarding best hemp marketing practices and future needs of the hemp industry.

Determinants of Choice of Market Channel of Broiler Value Chain Main Actors in Southwest, Nigeria.

This study on Determinants of choice of market channel of broiler value chain main actors in Southwest, Nigeria was carried out in Lagos and Ogun States, Nigeria. Multistage sampling procedure was used to select two hundred and thirty respondents made up of broiler producers, broiler processors, live broiler marketers, and dressed broiler marketers. Primary data were used for the survey. Data were analysed with the use of descriptive statistics and multinomial regression analysis. Male farmers in their active age dominated the broiler enterprise across the value chain in the Southwest. Majority (53.3%) of the actors had tertiary education; about 70.9% of the respondents had and average experience of 6years in broiler value chain enterprise with an average household size of 3 persons. However, majority (64.8%) of the respondents did not belong to any association. Results revealed that level of education and transportation cost were significant as determinants of preference of local market over farm gate, however, only transportation cost had odd ratio greater than 1. The Age, years of marketing experience, price of broiler chickens and membership of association of the respondents were significant as determinants of preference of urban market over farm gate, however, the age of the respondents had odd ratio less than 1. The study recommends that, entrepreneurial trainings should be organized for young adults by various government agencies and NGOs and, actors be encouraged to form themselves into association to promote sales outside the farm gate.

Farmers’ Choice for Output Marketing Channels of Cauliflower in Himachal Pradesh, India: A Multinomial Logit Model Analysis

The market channel choice are the contributing issues which has impact on production and sales of cauliflower crop. Despite their importance, yet adequate research has not been carried out on it, particularly in hill regions of India. Considering this, the present study focuses on the factors affecting cauliflower farmers’ choice of output marketing channels and what level their market choice influences the market participation in Himachal Pradesh. The field survey was employed on a sample of 200 farmers through field interviews based on a structured questionnaire. The multinomial logistic regression model was employed to determine the factors influencing farmers’ choice for output marketing channels. The finding of this paper reveals that there are five output marketing channels used by cauliflower growers in the study area, producer-retailer-consumer (1%) followed by producer-retailer-consumer (2.50%) producer-commission agent-retailer-consumer (39%), local trader-wholesaler-retailer-consumer (24%) and producer-wholesaler-retailer-consumer (33.50%) respectively. Further, the empirical results shows that education, farm income, experience, market distance market information found to be significant at 1%, 5% and 10% significant level which affects farmers choice to choose marketing channel. However, slows sale slow sales of cauliflower crop in marketing Channel-A affects farmers choice to participate in other marketing channels such as Channel-B, D and E. Moreover, the study concluded with the suggestion for development of suitable institutional support programmes, such as public–private partnerships, to better connect farmers to markets.

Assessing the trade and welfare effects of certification schemes: The case of GlobalGAP in Ghana's mango sector

The study analyzes the trade and welfare effects of GlobalGAP certification using primary data collected from 224 mango farmers in Southern Ghana. The multivariate probit model and an endogenous switching regression (ESR) model were used to estimate the effects of certification on the choice of marketing channels, quantity sold and income, respectively. The results show that certified farmers are less likely to supply to local traders and more likely to sell to industrial processors and the export market. The study found that certification increased quantity sold to high-value markets by 12% for certified farmers. GlobalGAP certification also has the potential to increase income by 20% more for farmers who opt to be certified. It is, therefore recommended that government and development partners shouldcontribute to the development of the technical and financial capacities of farmers in order to enhance farmers’ participation in certification schemes.

Exploring market choices in the US ornamental horticulture industry

AbstractIn 2019, the US ornamental horticulture industry had a farm gate crop value of roughly $17 billion, contributed $348 billion in total output to the nation's economy, and created 2.32 million employment opportunities. However, as the industry matures and reaches a slow‐growing stage, interfirm rivalry may appear among grower firms for marketing channels and sales opportunities. Independent garden centers and retailers report facing increased competition from mass merchandisers. Market channel choices, as part of the competitive strategy, are alternative ways for ornamental production to reach consumers. However, marketing practices of this industry have not received adequate attention from researchers despite the economic significance of the industry. Combining four waves of the National Green Industry Survey from 2004 to 2019, this study provides a comprehensive analysis of factors influencing firms' market participation and market channel choices. Over the survey period, traditional wholesale market channels such as landscape services companies, rewholesalers, and single‐location garden centers have remained mainstream channels. The direct‐to‐consumer (DTC) channel showed the potential to gain significant market share. Thirty percent of the firms participated in DTC channel in 2018, and their sales represent about 22% of total sales by all survey firms. Our empirical results show firms' wholesale market participation and choices of market channels are largely influenced by plant types and firm perceptions (variables potentially affecting firms' assessment of the “size” of their market) and variables approximating the market size such as regional dummies and housing price index, confirming the impact of market size on entry decision. [EconLit Citations: C50, M31, L14].

Factors Affecting Smallholder Farmers’ Marketing Channel Choice in China with Multivariate Logit Model

Facing the changes in China’s agricultural products marketing channel, smallholder farmers with different characteristics choose various strategies to obtain more benefits. To analyze factors affecting smallholder farmers’ marketing channel choice, we classify four types of channels—Broker Channel, Farmers’ Retailing Channel, Wholesale Market Channel, and Cooperative Channel—and inspect 14 variables based on the survey data of 317 households from four provinces. We use a principal components analysis (PCA) to simplify these 14 variables into seven common factors and a multivariate logit model to study how the factors influence smallholder farmers’ choices. We find that compared with the Broker Channel, the Farmers’ Retailing Channel is mainly affected by the logistics factor, skill factor, risk factor, and size factor; the Wholesale Market Channel is influenced by the logistics factor and age factor; and the Cooperative Channel is mainly influenced by the age factor, logistics factor, and price factor. In conclusion, the logistics factor has a significant positive effect on each channel choice, and the improvement of the market and transportation conditions has a general promoting effect.

Status of farmers' garlic market channel choices in response to garlic value chain in libokemkem district, South Gondar Zone, Ethiopia

This research was conducted to identify the key market outlets and their determinants. Primary data was collected from 400 garlic producers, 37 traders, and 12 consumers. Collectors, wholesalers, retailers, and consumers’ marketing channels were identified. Of these, wholesalers were the preferred market channel by 93.75% of garlic producers. The results from a multivariate probit model showed that lagged price, experience, quantity produced, land allotted, education, sex, oxen, and market information influence garlic producers' market outlet choice decisions. The study suggested that garlic producers need to be supported to select the right market-place for maximizing their farm profit.

Determinants of Market Channel Choices by Vegetable Farmers in Sri Lanka

Purpose: The traditional vegetable supply chain in Sri Lanka is that the majority of farmers are small-scale farmers who have not had the ability or capacity to meet the final customer directly. As a result, more than 90% of the supply and distribution of vegetables is managed by a limited number of private intermediaries. It causes to distribute low profitability for producers and higher prices for consumers. The main aim of the study is to investigate factors that concurrently underpin Sri Lankan vegetable farmers' decision-making and influence their market channel choice.
 Methods: Drawing on the prior studies socio-economic, institutional, and marketing factors were selected. The primary data was collected from 150 vegetable farmers in Central province through a structured questionnaire. The cross-tabulation and ordinal regression analysis were utilized to identify the significant factors.
 Findings: The cross-tabulation analysis results indicated that there are significant differences in the farmers’ market channel choices in relation to various socio-economic, institutional, and marketing factors. The ordinal regression analysis revealed that socio-economic factors like age, gender, education level, number of family members; institutional factors such as distance to the nearest marketplace, access to market information, farm size; and marketing factors like price offer, network build significantly affect the market channel choices of the farmers.
 Implications: This study is useful to identify relationships between these variables and marketing channel choices can be further researched and these relationships can be utilized to enhance the knowledge and practices of farmers about selecting effective market channels.
 Originality: The study makes a unique and substantive contribution to the knowledge of vegetable farmers' decision-making about market channel choice in Sri Lanka and theoretically contributes to the role of socio-economic, institutional, and marketing aspects in predicting potential market choices.

ANALISIS PILIHAN SALURAN PEMASARAN INDUSTRI AMPLANG: STUDI KASUS DI KECAMATAN SANGA-SANGA KABUPATEN KUTAI KARTANEGARA

This research aims to: (1) analyze the effect of factors selling price, profit and business duration to marketing channel choice and (2) identify main problems facing in the local fish cracker or ‘amplang’ product in Sanga-Sanga District.
 Research method applied in this research was survey method and field observation with census approach as sampling technique and interviews. Data were analyzed by both qualitative and quantitative approach with the number of respondents were 11 people those distributed within five districts.
 Results showed that based on the likelihood ratio test or simultaneous test it was known selling price and profit variables significantly affect to producers’ choice of to choose amplang industry marketing channel (α=5%) meanwhile years of bussiness does not affect it. In addition, according to logistic multinomial regression it was seen that selling price, profit and years of business do not affect partially to marketing channel of amplang product both in the logit equation 1 and the equation 2. Main problems identified in amplang product marketing performance were raw material supply, labor force limitation, the implementation of P-IRT and halal label, and the product promotion discontinuity. 
 Key words: amplang, logistic multinomial regression, marketing channel, Sanga-Sanga