Choice Of Marketing Channels Research Articles

Effect of agribusiness support services on choice of dairy cooperative market channel in Kenya

Kenya is witnessing an immense increase in number of smallholder dairy agripreneurs sourcing income from the dairy sub-sector. Smallholder dairy agripreneurs who dominate the production sector are forced to sell milk to informal buyers such as middlemen/women, who exploit them by paying less than the market price. As a result of this, the Kenyan Government has made significant efforts to upgrade dairy cooperatives to link the dairy agripreneurs with consumers. In spite of this, milk marketing is still dominated by traditional informal outlets. This study sought to determine the effect of provision of agribusiness support services on choice of dairy cooperative market channel. Data were collected from a cross-sectional survey of 682 respondents from Muranga County in Kenya, using a semi-structured questionnaire. Results revealed that provision of business plan training, group marketing, pregnancy diagnosis and deworming support services had significant and positive effects on the choice of cooperative market channel. In contrast, access to vaccination services and supply of feeds had negative effectson the choice of cooperative market channel. This study recommends strong coordination among the agribusiness support service providers and the dairy cooperatives in order to increase adoption of the cooperative marketing channel. In addition, dairy cooperatives need to redesign their business models to ensure that their members not only receive agribusiness support services, but also get better prices and prompt payments to increase supply of milk to cooperatives by dairy agripreneurs.

Moringa oleifera: Production and Marketing in Tiruppur District

Aim: The study aimed at analyzing both the production and marketing aspects of Moringa oleifera. The main objective of this study was to analyze price and cost along the existing marketing channels of Moringa, and identify the most efficient channel. The study also sheds light on factors that affect the choice of market channel for Moringa marketing.
 Methodology: Tiruppur district of Tamil Nadu was selected for the study based on Moringa area and production statistics. Non- probability sampling technique was used to select the sample respondents. The sample consisted of 40 Moringa farmers and 35 market intermediaries (10 Local traders/Commission agents, 10 Wholesalers, 5 Processors and 10 Retailers). Conventional analysis using percentage; price spread along the chain was estimated by calculating farmer’s net price, marketing margin and farmer’s share in consumer’s rupee; technical efficiency of the farmers were measured using Data Envelopment Analysis (DEAP software version 2.1).
 Results: Moringa was the most cultivated crop as it was drought tolerant and generated higher profits. About 50 percent of farmers operated in a technical efficiency range greater than 0.90 and, technical efficiency varied substantially between 0.67 and 1.00, with a mean technical efficiency of 0.89. Majority of the farmers preferred selling their produce to local traders and the reason for preferring that channel was it saved their time. Marketing Margin of processors were the highest.
 Conclusion: Farmers can sell their produce directly to the retailers, as it was found to be the most efficient channel. Farmers could be better educated through government aided consultancy services and these consultancy firms and farmers associations, could work together. Price fluctuation presents a favorable climate for value addition processes in the study area and processors can expand the existing small-scale activities to meet out the demand.

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

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.

How traders influence their neighbours: Modelling social evolutionary processes and peer effects in agricultural trade networks

Marketing channel choices in agricultural trade networks affect the networks’ overall performance and influence rural livelihoods. This study identifies key determinants of these choices among natural rubber traders in Indonesia to evaluate four policy scenarios and their potential effects on rural incomes.Since traders’ marketing decisions are based on past interactions, resulting trade networks are formed in recursive processes and can be understood as complex adaptive systems. Due to inherent endogeneity in these systems, process-based approaches such as agent-based modelling (ABM) can be effective in understanding them. Using a self-gathered primary dataset from Jambi Province, Indonesia, we implement and parameterise an ABM to simulate the formation of the rubber trading network and analyse the effects on rural livelihoods of four hypothetical policy scenarios: improved micro-credit availability, increased access to education, better infrastructure and transportation capacity, and market information availability. The model is calibrated through a genetic algorithm which maximises the similarity between the simulated network and the actual network observed in the data.Results indicate that sellers’ decisions on a buyer are primarily determined by debt obligations and past peer-interactions. The most influential sellers have a similar level of formal education as their peers and live in close physical proximity. Results of the policy scenario analysis suggests that policies aimed at reducing sellers’ dependence on credit from buyers and increasing education are the most effective policies for improving value chains and reducing poverty in the region under consideration.

Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania

Rice production is an increasing source of income and food security for smallholder farmers in many parts of Tanzania. Improving market access for rice farmers is essential to raise rural incomes and reduce poverty. This paper aims to determine the most efficient rice marketing channel and analyse the factors affecting marketing channel choices by smallholder rice farmers. Marketing efficiency was tested using Acharya and Aggarwal's composite index method. A multinomial logit model was used to analyse the marketing channel choices. The results showed that the miller–wholesaler marketing channel is the most efficient. The results show that most farmers in rural areas still sell their rice to local collectors because of failure, fear or inability by farmers to venture out of the farm gate into the markets. The findings suggest that there is a need to improve rural infrastructure, market information systems, smallholder access to productive assets, prudent use of credit and strengthening collective action through well‐organised farmer groups in the country.

Factors influencing marketing channel choices for improved indigenous chicken farmers: insights from Baringo, Kenya

PurposeImproved indigenous chicken is considered a sustainable agricultural practice with social, economic and environmental indicators. Therefore, the analysis of the choice of market channels is of considerable importance to farmers with reference to improved livelihoods and poverty alleviation in developing countries. The purpose of this study is to investigate the factors that influence market channel choices among improved indigenous chicken farmers in Baringo County and to rank the determinants according to their level of importance in influencing farmer's choice of marketing channels.Design/methodology/approachA multistage sampling technique was employed to collect data from 209 households for the study conducted between April and July 2019, out of which, 198 useful responses were obtained. Multinomial logit regression and neural network models were used to analyze the factors influencing market channel choice based on socioeconomic, demographic and farm characteristics.FindingsIt was established that group membership, education, market distance, transport costs, farm size, cost of information and bargain costs were statistically significant in the choice of market channels (wholesaler, brokers, processors and supermarkets). With the direct consumer as the base market choice. The cost of transport had the highest normalized importance in the prediction of a farmer's selection of market channels for both radial basis function (RBF) and multilayer perceptron (MLP) neural networks. However, flock attributes and age of household head had the least normalized importance in MLP and RBF, respectively.Research limitations/implicationsDue to the insufficiency of resources and time, this study only focused on a small part of the country (Baringo County). However, improved indigenous chicken farming is widely practiced in Kenya. Further studies can be carried out in other counties to validate the results of this study.Practical implicationsThe outcome can be used in policy implementation involving improved indigenous chicken production in Kenya.Originality/valueThis study suggests the methods aimed at enhancing poultry sector in other counties in Kenya as well as other developing countries.

Marketing of baobab pulp in Kenya: Collectors’ choice of rural versus urban markets

Baobab products provide cash income and supplement diets for local communities living in marginalised, arid and semi-arid regions. However, these products are neglected by research, selectively traded and considered underutilised. This study endeavours to narrow this information gap by analysing the determinants of baobab collectors’ choice of marketing channels in Kenya. A multinomial logit was employed, using a dataset of 268 baobab collectors from three counties. The results show that the majority of baobab collectors sell their baobab pulp through rural markets (assemblers and rural wholesalers), as opposed to urban buyers (urban wholesalers, retailers and processors). Export channels are conspicuously missing from the chain. Human capital and transactional and institutional factors significantly influence the collectors’ choice of marketing channels. The results reveal that building capacity around market development, research and education, road networks and institutional services is essential to create more profitable channels for generating income, enhancing food security and reducing malnutrition.

The choice of marketing channel and farm profitability: Empirical evidence from small farmers

AbstractOne longstanding research issue in agricultural marketing is the relationship between farm marketing channels and farm profitability. Due to the increasing consumer demand for food safety, direct‐to‐consumer marketing channels have been promoted. However, recent evidence shows that the adoption rate of farms that use direct‐to‐consumer marketing channels is still low, and it is not clear whether they can increase farm profitability. This study contributes to this issue in several ways. First, we examine whether the choice of different marketing channels, including sales to wholesalers, wholesale markets, and direct‐to‐consumer outlets by farm households affects farm profitability. Second, we discuss the mechanism behind these evident effects. We construct a large‐scale sample of fruit and vegetable farms drawn from the 2015 Taiwanese Agriculture Census Survey and estimate a semiparametric multivalued treatment effect model. Although the government is promoting direct marketing, we find that wholesale markets are the most profitable marketing channel for farms in Taiwan. Furthermore, results from the quantile analysis shows that this finding is more pronounced for farms with higher profits. With respect to the mechanism behind these observed effects, we find that profit differentials between marketing channels are likely attributable to the use of pesticides and fertilizers on farm production. [EconLit Citations: Q12, Q13].

Innovation platform for improving rice marketing decisions among smallholder farmers in Homa-Bay County, Kenya

Smallholder farmers are normally faced with making a decision on market participation and consequently choosing the appropriate marketing channel for their agricultural produce. This study focuses on how a multi-stakeholder innovation platform approach for improving the uptake of System of Rice Intensification and rice productivity influences marketing decisions among smallholder rice farmers. The study relies on primary data collected from 102 households in Homa-Bay County, Kenya. Logistic and multinomial logistic regression models were used in the analysis. The practice of system of rice intensification, membership to farmer groups, frequency of access to extension services, distance to the nearest market and access to transportation facilities were important determinants to market participation among farmers. A farmers’ choice of marketing channel was commonly influenced by size of land under rice cultivation, access to transport facilities and whether rice was to be sold collectively or individually. We therefore conclude that the multi-stakeholder innovation platform approach improves decision making in marketing. We thus recommend that governments embrace multi-stakeholder Innovation Platforms as a framework for improving farmer participation in rice markets and improving decision making when approaching available markets.

Choice of paddy marketing channel and its impact: evidence from Indian farm households

Choice of paddy marketing channel and its impact: evidence from Indian farm households

Analysis of Chickpea Outlet Choices in Dembia District, North Gondar Zone, Ethiopia

Chickpea marketing system in Ethiopia is highly immature and poorly organized. This indicates outlet choice is comparatively new and greatly inconstant depending on production situations. The product channeled through complex channel of marketing chains that involve a number of mediators and marketing agents. So, the study was aimed to identify determinant of market outlet choice on chickpea farmers in Dembia district. A two stage sampling technique was used to determine sample size. A total of 150 sample households were randomly selected for an interview using a semi-structured questionnaire and key informants were the other method of data collection. Multivariate probit model was employed to identify the factor affecting chickpea market outlet choices. The result of multivariate probit model showed that literacy status, owning transport facility, livestock holding, chickpea yield and access to extension service significantly influenced the choice of chickpea market outlet choice in the study area. The common underlying factors of market channel choice were also identified. Based on the results, the study recommended that traders, local and national governments, none governmental organizations, policy makers and stakeholders should focus on strengthening the existence formal and informal education, chickpea production system, in improving extension system, strengthening the existing rural telecom and rural-urban infrastructure to achieve good market chain system in the study area as well as at the country level.

FARMERS’ INCOME RISKS AND MARKETING CHANNEL CHOICES: CASE OF DATE PALM PROCESSING IN BISKRA, ALGERIA

This article aims at analyzing Algerian farmers’ choices of marketing channels in the date-palm supply chain. Five main marketing channels were investigated: local market, intermediaries, conditioning structure, processors contracting and complete integration. Primary data collected from a sample of 118 date farmers through a field survey in Biskra region. Beside some basic statistical tools, a multinomial discrete choice model was used to analyze and evaluate the major factors affecting marketing channel choices. From the main results of this study, it was concluded that downstream vertical integration practices are lead by income-related risks minimization, and the upstream vertical integration is favorable for further downstream vertical integration. The research would provide valuable information about the date palm producer’s marketing decision-making process and thus would contribute to improving the efficiency and effectiveness of dates industry in Algeria.

Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector

Cash crops such as specialty rice and other high‐value varieties produced for domestic and international markets are considered an increasing source of income for smallholder farmers in many Asian countries. The present study focuses on the factors affecting Vietnamese specialty rice farmers' choice of marketing channel and how their choice influences farm performance. The analysis has been conducted using multinomial logit and linear regression models on quantitative data collected from 280 specialty rice farmers in the Red River Delta, one of the main rice production regions in Vietnam. Results reveal that even though local collectors and wholesalers are still the most common recipients of farmers' goods in rural areas, reduction in transaction costs with regard to uncertainty influences farmers to choose modern marketing channels through collective action (via specialty rice farmer associations). This collective marketing channel helps farmers increase average prices received by US$0.028 per kg of paddy. Based on the results, manifold political implications are derived.

English

Following institutionalisation of certified organic agriculture in Uganda in 2002, more farmers have adopted organic pineapple farming to boost their economic livelihoods. However, farmers have continued to engage in the less profitable conventional market due to organic market’s limited capacity to absorb all their produce. This study seeks to examine organic pineapple farmers’ market choices, improve the empirical understanding of factors determining these choices and how they relate to the success of organic pineapple marketing in Uganda. Data was obtained from a random sample of 116 organic pineapple farmers from central region and three pineapple export companies, in cross-sectional household and key informant surveys. Descriptive statistics revealed that 68% of the farmers sold organic pineapples via both organic and conventional market channels at the same time. The study employed a conditional logit model to explain the factors influencing organic farmers’ market channel choice which established that organic and conventional market price differences in peak and lean seasons, pineapple harvests and losses significantly influenced farmers’ market choice. Farmers’ organic market share can be increased by policy makers’ promotion of local and regional organic market outlets and value addition at farmer and company levels. Key words: Organic pineapple, market choice, Uganda. &nbsp

Direct marketing channel choices among US farmers: evidence from the Local Food Marketing Practices Survey

AbstractDue to strong interest in local foods by US consumers, farmers are now marketing not only to traditional wholesale outlets but also via short supply chains to consumers, grocers, restaurants, schools and other local intermediaries. Our research questions are: (1) what farm and farmer characteristics predict farmers’ participation in various direct marketing channels, and (2) what farm and farmer characteristics predict farmers’ choice of a particular combination of direct marketing channels? This work is important because prior research suggests that while total direct sales via short supply chains continue to grow, direct-to-consumer sales (e.g. via farmers’ markets and Community Support Agriculture, or CSAs) are plateauing. Our work highlights key relationships and implies potential barriers and opportunities for farmers in this maturing local foods landscape. To answer our research questions empirically, we employ the 2015 Local Food Marketing Practices Survey, collected by USDA in 2016, and binomial and multinomial logit regressions. Our research yields a number of useful results. For example, we find evidence suggesting the existence of product-specific barriers to participation in certain channels; livestock producers are less likely than other farmers to sell directly to retailers, whereas vegetable farmers are less likely to sell to intermediaries. We also find that beginning farmers are more likely to sell directly to retailers, but less likely to sell to intermediaries than more established farmers, suggesting potential barriers and opportunities for entry into this channel for less experienced farmers. These insights suggest potential areas of attention for policymakers and other decisionmakers, as well as areas for future study.

Determinants of marketing channel choice among smallholder beef cattle farmers in Ghana's forest-savannah transitional zone

This study sought to understand the determinants of market channel choice among smallholder beef cattle farmers in Ghana's forest-savannah transitional zone. Data was collected from 200 farmers through the administration of a structured questionnaire and analysed using a multinomial logit regression model. The results revealed that the producers' level of education, herd size, mode of payment and price for cattle sold positively influence the producers' choice of marketing channel, whereas the quantity beef cattle sold, the reason for production, farmer access to extension services, years of farming experience, membership of a producers association and marketing cost negatively influenced the choice of marketing channel. The role of farmer-based associations, standardisation of the beef cattle trade, provision of market information to the producers, and profiling of the producers based on the basis of their production capacity are critical for the improvement of the businesses of the beef cattle farmers.

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

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.

Determinants of market channel choice utilised by maize and sunflower farmers in the North West province, South Africa

Determinants of market channel choice are the contributing issues that influence production and sales. Despite their significance, yet adequate research has not been carried out on it, particularly in the North West Province, South Africa. Consequently, this paper assessed the socio-economic profile and the determinants of the choices of market channel utilized by Maize and Sunflower farmers in the North West Province, South Africa. A semi-structured questionnaire was used to interview 163 respondents categorized according to those who were financially assisted (n = 101) and those who were not (n = 62). The choice of Market channels utilized by respondents was then analyzed using a Multinomial Logit Regression Model with Non-market participation as a reference category. Overall, the finding demonstrated that most respondents (65%) were utilizing informal markets, followed by non-market participation and formal markets with 20% and 15% respectively. The findings emanated from the Multinomial Logit Regression analyses revealed that factors such as age, marital status, gender, credit access, education, and farming experience significantly influenced the choice of the market channel among maize and sunflowers farmers in the study area. Policies aimed at improving the farmers’ access to formal markets should be informed by these factors.

Preference towards marketing channels: A case of tomato farmers in Kolar district of Karnataka

Tomato, Solanum lycopersicum L (Solanaceae) is the world's largest vegetable crop cultivated extensively for its edible fruits. The profitability of marketing of this perishable, seasonal and bulky agricultural produce critically depends on the choice of proper marketing channels. In the present study the preference of farmers towards marketing channels for tomato in Kolar district of Karnataka was analysed. Based on area and production, Kolar district in Karnataka and Mulbagal Taluk were purposively chosen where 60 farmers were selected randomly. Results indicated that three marketing channels for tomato were patronized by the farmers. Nearly 43 per cent of the farmers had chosen combination of channels I and II to market their produce. They sold 212.28 q tomato on an average and per unit price realized was Rs 1360.26/q. The net price received by the tomato farmers by marketing through Channels I,II and III was Rs 974.60,1328.70 and 823.68per quintal respectively. Among these channels the farmer's share in consumer rupee and the marketing efficiency were highest in Channel II. Excessive post-harvest losses was the major hindrance faced by the tomato growers The implications of the study were that farmers could realize better prices by using a combination of channels to market their produce.

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

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