Marketing Margin Research Articles

Marketing Margin and Value of Farmer's Share on Rendang Product In Payakumbuh City

Rendang products can provide a considerable contribution to each marketing institution involved. The study aims to analyze the value of and marketing margin and farmer's share for producers of the beef-based rendang industry in Payakumbuh City. The research was conducted in 2022 in the central area of the rendang industry in West Sumatra, namely Payakumbuh City. The study involved twelve rendang industries that produce rendang using beef. Data were analyzed using the marketing margin and farmer's share (Fs) formulas to determine the value received by each marketing margin and the share received by rendang producers. The result showed that the average value of marketing margin based on the number of rendang variants produced (one variant, two variants, and three variants) showed that three rendang variants produced were able to provide the highest marketing margin value of 75.21%, compared to marketing margin of two rendang variants (72.85%), and one rendang variant (59.18%). Meanwhile, marketing margins based on the type of rendang variants produced are rendang sliced (74.41%), rendang suir (75.26%), and rendang tumbuak (73.48%) with Fs value by sequentially are 13.76%, 14.28%, and 13.58%.

The market efficiency analysis of China’s copper options based on risk-free arbitrages

ABSTRACT This paper probes into the market efficiency and relevant issues of copper options, the first industrial options product launched in China and currently the only non-ferrous metals option. Since its listing on 21 September 2018, the copper options market, developing on the fast track, has become the largest copper options market in the world, and thus it is of important meaning to study its market efficiency. Taking the data of China’s copper options market from its debut to 30 April 2022 as a sample, this paper studies the efficiency of this market using three typical risk-free arbitrages such as put-call-future parity arbitrage, box spread arbitrage, and boundary arbitrage strategies. To better reflect the actual situation, this paper, when establishing options arbitrage strategy models, not only took into account various actual trading factors such as transaction costs, market impact costs, liquidity costs, margin, and capital opportunity costs but also combined daily and high-frequency data to present highly practical arbitrage strategies. According to empirical results, there are few arbitrage opportunities with a very low proportion when actual trading factors were considered. Overall, no evidence was found to prove that China’s copper options market significantly violates the market efficiency rule.

Agricultural Produce Supply Chain Network of Capsicum: Empirical Evidence from India

Vegetables are important for both nutritional and economic stability and contribute significantly to the agricultural landscape of India. The demand for vegetables is rising, driven by population growth and increased awareness of their benefits. This empirical study highlights the dynamics of agricultural production supply chain networks of capsicum crops in the northwestern Himalayan region, specifically Himachal Pradesh, India. The study employs the Acharya approach to analyse the various marketing channels utilized by farmers in the capsicum supply chain. This methodology sheds light on the economic nuances at each stage and examines marketing channels, costs, margins, price spread and marketing efficiency. Simultaneously, the Garrett ranking method is applied to discern and prioritize constraints faced by farmers. This comprehensive approach ensures a nuanced understanding of the economic and logistical intricacies of capsicum marketing. The analysis of marketing channels reveals five distinct pathways employed by farmers, with Channel-C (Producer–Commission Agent–Retailer–Consumer) standing out as the most dominant, representing 47.25% of the total quantity. Moreover, Channel-A (Producer–Consumer) proves to be the most cost-effective for producers and boasts the highest producer price, while Channel-C, involving commission agents, incurs higher costs. This suggests a preference for intermediaries, emphasizing factors like market access and negotiation skills, whereas Channel-D (Producer–Local Trader–Wholesaler–Retailer–Consumer) has the highest gross marketing margin, emphasizing the trade-offs between efficiency and transaction volume. The results indicate that while Channel-A is the most efficient, it is not the preferred choice due to the lower transaction quantity. Further, the absence of market consultation services, inadequate road infrastructure, high commission charges, nonremunerative prices and untimely availability of vehicles are the major constraints in marketing. The findings of the study call for targeted interventions to create a more robust and farmer-friendly marketing environment for capsicum crops in the region. The study proposes targeted recommendations, emphasizing collaborative efforts between stakeholders, government bodies and farmers. This research contributes to the academic discourse and also offers actionable insights for researchers and policymakers, fostering sustainability, profitability and equity within the capsicum supply chain.

Analysis of marketing performance of onion (<i>Allium cepa</i>) among participants in Kaduna and Katsina States, Nigeria

The study analyzed the marketing of onion in Kaduna and Katsina States, Nigeria. A survey of 100 onion farmers and 200 traders in these two states was conducted in 2022. Four villages and four markets were purposively selected. Random sampling was used to select respondents using structured questionnaire alongside oral interview. The analytical tools used were descriptive statistics, marketing margin and multiple regression. Majority of the traders (71%) had marketing experience between 5 to 25 years. Analysis on marketing margin shows that the producer’s share in the price that the final consumer pays was 56%, the wholesaler receives 14% and the retailer gets 30%, while the total marketing margin in the complete distribution chain was 43%. Analysis on the effect of marketing costs on marketing margin using multiple regression reveals that commission paid to agents was significant at 1% for regional wholesalers and 5% for inter-regional wholesalers. Transportation cost had positive coefficients significant at 10% for regional wholesalers and 5% for inter-regional wholesalers. At the level of retailers, the commission and transport charges have insignificant effect and where they exhibited significant effect, they have negative t-values. The loading/un-loading cost, revenue charges and storage cost had insignificant coefficients and negative t-values. The study recommends provision of simple drying machine for processing onion into durable products, provision of efficient transport system, onion exportation to create competition, market access to reduce glut and enlightenment of market participants on joining cooperative societies for solving many of the marketing problems.

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

AbstractThis study aimed to investigate the level of cost accounting (CA) implementation in small- and medium-sized enterprises (SMEs). CA is a management accounting tool whose application in small companies has always been difficult. Nevertheless, academicians and practitioners recommend CA implementation in SMEs, especially because of the deep market instability, competitive pressure, and margin erosion that have occurred following the COVID-19 pandemic and 2022 European war scenario. Company size influences CA implementation; however, it is not the only influencing factor and perhaps not even the most important. To investigate the barriers to the adoption of CA and which conditions or actions can remove these barriers, leveraging from the contingency theory, a questionnaire was sent out in July 2022 to limited liability SMEs operating in the manufacturing, construction, and distribution macro-sectors in Verona and Vicenza provinces (Italy). Respondents answered a set of questions regarding CA implementation in their SMEs as of July 2022. Using a multivariate regression model to analyze data from the 120 questionnaires received, we found that lack of resources, limited training and skills, firm age, and the presence of the founder in the firm had a negative influence on CA implementation in SMEs. The low level of CA implementation was also associated with its supposed inefficiency, uselessness, and unsuitability for business. The effect of company size on CA implementation was not statistically significant. Despite this study’s limitations regarding the sample and period considered, we believe that it contributes to both academic debates and practice by illustrating the limiting factors and ways in which CA implementation can be fostered in SMEs in turbulent years.

Value chain analysis of jute fiber in Bangladesh

Jute often referred to as Bangladesh's “golden fiber” offers numerous environmental advantages along with significant industrial and economic importance. It is a crucial source of export earnings for Bangladesh. Beyond its use in house decoration materials, jute is employed in the production of twine, mats, carpets, sacks, and hessian clothing, among other products. This study aimed to assess the value chain of jute fiber in Bangladesh. Primary data were collected from 90 jute farmers and 233 chain participants across different stages of the value chain selected through simple random and purposive sampling, respectively, in 2019. Mapping strategies and marketing margins were employed to analyse the value addition of each actor. The benefit-cost ratio of 1.44 demonstrates the profitability of jute cultivation. The study identified that the highest share of the total value addition by farmers was 52.80% through the ‘Farmer-Faria-Kutcha Baler-Mill’ channel in Faridpur district, 59.66% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Rangpur district, 60.52% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Dinajpur district, and 58.87% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Kishoreganj district. Per quintal, gross and net marketing margins for farmers were Taka 569 and Taka 537, respectively. Pucca balers cum exporters accounted for the highest proportion of gross marketing margin (41.30%) and net marketing margin (44.34%), while Farias contributed the lowest share (6.77% and 3.63%). Finally, based on the research findings, several policy measures are recommended to revitalize this potential sector in Bangladesh.

Analysis of Value Chain of Cow Milk: The Case of Itang Special Woreda, Gambella, Ethiopia

Ethiopia has a long and rich history of dairy farming, which was mostly carried out by small and marginal farmers who raised cattle, camels, goats, and sheep, among other species, for milk. Finding the Itang Special Woreda cow milk value chain is the study's main goal. In order to gather primary data, 204 smallholder dairy farmer households were randomly selected, and the market concentration ratio was calculated using 20 traders. Descriptive statistics, econometric models, and rank analysis were used to achieve the above specified goals. Out of all the participants in the milk value chain, producers, cafés, hotels, and dairy cooperatives had the largest gross marketing margins, accounting for 100% of the consumer price in channels I and II, 55% in channels III and V, and 25.5% in channels V. The number of children under five, the number of milking cows owned, the amount of money from non-dairy sources, the frequency of extension service contacts, the amount of milk produced each day, and the availability of market information were found to have an impact on smallholders' involvement in the milk market. Numerous obstacles also limited the amount of milk produced and marketed. The poll claims that general health issues, sickness, predators, and a lack of veterinary care are plaguing farmers. In order to address the issue of milk perishability, the researchers recommended the host community and organization to construct an agro milk processor, renovate the dairy cooperative in the study region, and restructure the current conventional marketing to lower the transaction and cost of milk marketing.

Securities Prices are Set by Those at the Market's Margins

Securities Prices are Set by Those at the Market's Margins

Supply Chain Analysis of Raw Materials for the Seaweed Industry (Eucheuma cottonii) in the PT. Bantimurung Indah area

Seaweed stands out as a significant mariculture commodity with substantial economic potential, contributing to the advancement of the national economy. The supply chain represents the seamless integration of company activities, collaboratively producing semi-finished to finished products and facilitating their delivery to end consumers. This study utilizes research interviews to gather data, following the systematic stages of seaweed supply chain analysis. The primary objective of this research is to gain insights into the operational mechanisms and efficiency of the seaweed supply chain within PT. Bantimurung Indah. The key components of this supply chain include seaweed farmers, suppliers, retailers, and seaweed exporters, collectively referred to as seaweed suppliers. Notably, seaweed farmers, suppliers, retailers, and exporters form the main circuit, consolidated under the umbrella term “seaweed suppliers.” The calculated total marketing margin for seaweed amounts to IDR 5,900 per kg, with a comprehensive profit of IDR 3,650 per kg and total costs of IDR 2,250 per kg. The percentage of the price received by farmers (farmer share) is 70.5%. The seaweed supply chain in the PT. Bantimurung Indah attains classification as efficient, given that the FS percentage exceeds 70%.

Impact of COVID-19 on Fractal Capital Market Recursion

We present the optimization of the current prices function of the Mexican Stock Exchange index and we will focus our attention on aspects of maximizing stock market margins with limits in the bookkeeping operation. We ourselves will model the possible stochastic recursion scenarios in "n" as a fractal annihilation factor within this stock market. Finally we will obtain the expected delta of the price range and its Hamiltonian to minimize the operational risk of the capital market with the presence of COVID19 in Mexico.

Marketing of non-timber forest products as products from the Protected Forest Management Unit Batutegi, Lampung, Indonesia

Batutegi PFMU has much potential for NTFPs, which have been developed in coffee, palm sugar, and honey. The marketing of NTFPs needs attention because what often happens is inefficient marketing, so it doesn’t provide additional income for the community. This study aimed to identify marketing channels, functions, and efficiency based on marketing margins, farmers’ share, and profit-to-cost ratio. There are three marketing channels for coffee, two for palm sugar, and three for honey. The marketing functions performed by farmers, collectors, wholesalers, exporters, KUPS, cooperatives, and resellers are exchange, physical, and facilitation functions. Channel 1 palm sugar is an efficient marketing channel with a marketing margin of IDR 13,724.19 per kilogram, a farmer’s share of 100%, a profit ratio of 15.03, and marketing channel 1 honey with a marketing margin of IDR 224,112.70 per kilogram (Trigona honey), and IDR 124,494.35 per kilogram (Cerana and Dorsata honey), a farmer’s share of 100%, and profit ratio of 10.21 (Trigona honey) and 6.47 (Cerana and Dorsata honey).

Formulation of SCP-Based Coconut Sugar Marketing Model Through Analysis of Marketing Patterns in Central Java Province, Indonesia

This study aims to analyze the marketing pattern of coconut sugar products, describe the stakeholders involved in the marketing of coconut sugar, and develop a structure, conduct, performance (SCP) based marketing model for coconut sugar. This research method is a quantitative descriptive method. The research location was determined purposively in the coconut sugar production center of Central Java Province (Banyumas, Purbalingga, and Cilacap Regencies). The research respondents were 60 people consisting of coconut sugar makers who were members of the Joint Business Group (KUB) and 60 people, 10 collectors traders, 2 wholesalers, and 4 institutional exporters. Data were analyzed descriptively. Data analysis for the basic structure by measuring market share size and concentration (CR4). The basis of conduct is through analysis of sales and purchasing processes, payment systems, and institutional cooperation. The basis of performance is obtained from the analysis of the margins of the trading system and the level of prices received by farmers. The results showed that there are two marketing channels for coconut sugar. A tight oligopsony is formed based on the CR4 (Concentration Ratio for the Big Four) value, while the Herfindahl index value shows that the market formed is an oligopoly. Market behavior occurs when the payment system is made in cash at the level of collectors and non-cash at the level of wholesalers. In market performance, the largest marketing margin is in the marketing channel pattern 1 of Rp. 8415.4/kg, the lowest in the channel 2 pattern of Rp. 6500/kg. The highest Farmer share value is in the marketing channel pattern 2 as 74%, and the lowest is in the channel 1 pattern at 66.3%.

Analysis of economic, production, and marketing aspects of potato farming in Changunarayan Municipality of Bhaktapur, Nepal

A comprehensive study was undertaken in the Changunarayan Municipality of Bhaktapur District to conduct a thorough cost-benefit analysis, analyze production functions, and evaluate the various marketing channels and associated challenges of potato cultivation. total of 100 farmers were surveyed, and gathered data were, analyzed using Excel and SPSS software. Despite an average cost per hectare of potato cultivation reaching NRs 370,662.58, which is comparatively higher than in other regions, the productivity was notably greater at 22.021 Mt/ha, surpassing the national average of 16.73 Mt/ha. With a benefit-cost ratio of 1.68, potato production was found economically viable in the region. The production function analysis, conducted using the Cobb-Douglas Model, revealed noteworthy insights among the six variables examined. Fertilizers, machinery, plant protection measures, and micronutrients were identified as underutilized inputs, as indicated by a RUE value surpassing unity. Conversely, labor cost and various other factors exhibited negative associations with average returns. The study also revealed that potato production in the area exhibited an increasing Return to Scale (RTS) value of 1.619, indicating that a 1% increase in input expenditure would lead to a 1.619% increase in returns. Farmers primarily choose a marketing channel with three intermediaries, which results in a larger market margin but a smaller share for the producers. Among the five key marketing challenges reported by farmers, the influence of intermediaries stands out as the most significant issue. In conclusion, this study highlights the pressing need for efficient marketing channels and fair pricing systems to support potato farmers in the region.

Market Efficiency and Price Spread in Jaipur District, India

“Price spread or farm retail spread” is the difference between the price paid by the consumers and the price received by the producer for an equivalent quantity of farm produce. Sometime, this is called as gross marketing margin. The marketing margin refers to the difference between the price received by seller at a particular stage of marketing and the price paid by him at preceding stage of marketing during an earlier period. The producer’s net share, total marketing costs, total marketing margins, consumer’s price and price spread in channel-III are given in Table 3. Table 3 reveals that, out of price of Rs 5765.00 per quintal paid by consumer, chickpea producer got Rs 5102.00 per quintal which accounted for 88.50 percent share. The share of marketing costs paid by chickpea-producer, wholesaler-cum-commission agent and retailer was 1.37, 2.05 and 0.49 percent of total consumer’s price, respectively. Total share of wholesaler-cum-commission agent was highest followed by chickpea-producer and retailer. Thus, total share of marketing cost of intermediaries in consumer’s price was 3.90 percent Agarwal et al 2015, Hazari et al. 2015. Total margin earned by middlemen, wholesaler-cum-commission agent and retailers was 5.60 and 1.94 percent of price paid by consumer. Wholesaler earned more as compare to retailer. So, total share of market intermediaries in consumer’s price was 7.55 percent. Price spread in channel –I was Rs 660.00 per quintal which was 11.45 percent of consumer’s price Chavhal et al. 2014, Khorne 2014, Bondare et al .2014 and Kumar 2014.

Analisis Pemasaran Beras Organik di Provinsi Sumatera Barat

Rice is one of the leading commodities for organic products, organic rice commodities are one of the widely consumed organic products. West Sumatra Province is one of the regions that have the largest organic rice land in Indonesia. The development of Organic Agriculture has become a policy of the West Sumatra Provincial Government since 2006. There are several problems in marketing organic rice, namely the lack of market access by farmers so that only a small portion of the harvest of organic rice farmers is absorbed as the final product of organic rice and the product is sold at the price of conventional rice. The purpose of this research was to determine and analyze the marketing efficiency and marketing operations (margin, farmer's share, and profit ratio) of organic rice in West Sumatra. The research location is decided by purposive method. To find farmer respondents using purposive sampling and trader respondents using snowball sampling. Qualitative descriptive analysis is used to analyze organic rice marketing channels. Meanwhile, quantitative descriptive is used to measure the marketing efficiency of organic rice using marketing margin analysis, and farmer's share. The results showed that organic rice marketing in West Sumatra consists of 4 marketing channels, which involve five marketing institutions, namely intermediary traders, large traders, city farmers, small-scale retailers, and large-scale retailers (supermarkets). Farmers - intermediary traders - wholesalers - small-scale retailers (channel 2) is the channel pattern chosen by most farmers which are 50%. The most efficient channel pattern is channel 4 because it is the shortest channel with the lowest margin of Rp. 5,500 and the highest farmer's share value of 50%.

Marketing Analysis of Lemongrass (Cymbopogon citratus) in Cialam Jaya Village, South Konawe District

Costs of marketing and the length of marketing channels will influence the marketing margin. This research aims to determine the marketing channels for lemongrass, marketing margins, and efficiency of the marketing channels for lemongrass. A quantitative descriptive approach with marketing margin analysis was used to measure marketing margins and efficiency. The research results show that the marketing channels for lemongrass are Producers, Wholesalers, Retailers, Consumers, and Producers, Collectors, Wholesalers, Retailers, and Consumers. The performance of the lemongrass marketing channel in Marketing Channel I is a marketing margin of IDR 4,000/Kg and IDR 3,000/Kg with a marketing profit of IDR 3,083/Kg and IDR 2,432/Kg, while in Marketing Channel II the marketing margin is IDR 2,000/Kg, IDR 2,000/Kg and IDR 3,000/Kg with marketing profits of IDR 1,130/Kg, IDR 1,348/Kg and IDR 2,558/Kg. The results of the analysis show that the percentage of price share received by producers (Famer's Share) from the two marketing channels each shows above 50%, which means that both marketing channels are efficient.

Distribution of Garlic Marketing Margin in Miomafo Barat Sub-District, North Central Timor District, East Nusa Tenggara

Garlic farming is the livelihood of the community in Fatuneno village, North Central Timor Regency, East Nusa Tenggara Province, to meet the needs of children's life and education. The income of garlic farmers is the marketing margin obtained by garlic postharvest actors. The purpose of this study is to find out 1). How much is the marketing margin receipt of postharvest actors? 2). Is there a marketing margin distribution gap between garlic postharvest actors? This research method is a survey, and data collected randomly stratified; respondents consist of 46 farmers, eight collecting traders and three intermediary traders. Analysis tools used:1). To determine the marketing margin received by postharvest actors, the Marketing Margin equation is used. 2) For marketing margin distribution, use Gini Coefficient. There are three postharvest actors in garlic marketing distribution: producer farmers, collecting traders, and intermediary traders. In all three garlic marketing channel models, a short marketing channel benefits all three garlic postharvest actors. The distribution of marketing margins in the first and second marketing channels is at moderate evenness, and the third marketing channel is at high evenness.

Assessing the influence of artisanal fishing on income and livelihood of the coastal communities in Tanzania: the case of Mkinga district, Tanga region

This study unveiled the influence of artisanal fishing on a coastal community's income and livelihood in the Mkinga District, Tanga region. Particularly, it seeks to: determine fish catch and gross margins across, investigate the influence of fish income on the households total incomes, and factors affecting income earnings in the marketing chain. The study used interviews and focus group discussions on obtaining primary data. Simultaneously, the internet, government documentation units at different levels were the sources of secondary data. It involved a total of 125 randomly selected respondents. Moreover, Gross Margin (GM), Marketing Margin (MG), and Statistical Package for Social Sciences (IBM SPSS Statistics 25) were employed for analysis.Results show the socio-economic status of the respondents was generally poor. The majority of fishers have low education levels (44%), and they depend on fishing for livelihoods. Furthermore, compared to other groups computation of gross margins revealed that artisanal fishers earned the lowest (12.2%) with a gross margin of T.shs 443.6. Despite the lowest gross margin earning than other players, the fish income contributes highly (83.8%) to the total household incomes. Therefore, improvement in the fisheries sector results has a high impact on artisanal fishers' wellbeing. Moreover, factors affecting their income include lack of credit to purchase modern fishing and storage equipment, high cost of fishing gear, poor roads, low bargaining power, inadequate extension services, and lack of market information. Hence, the study recommends the government address observed constraining factors affecting artisanal fishers' incomes to increase their incomes

How Was the Staple Food Supply Chain in Indonesia Affected by COVID-19?

During the COVID-19 pandemic, there were significant restrictions on the transportation of food products in Indonesia. The research objective of this study was to investigate the extent to which these restrictions impacted changes in marketing margins at the provincial level in Indonesia. The approach taken was through the examination of trade and freight margin statistical data before the pandemic (2019) and after the pandemic (2020) across a number of different commodity markets: rice, shallots, red chilli pepper, beef, chicken meat and eggs, sugar, and cooking oil. The evidence indicates that the pandemic brought a rapid rise in Indonesian domestic prices as a result of purchasing panic at its start. But after the imposition of transportation restrictions, there were wide variations: some durable food options experienced increased marketing margins, whereas non-durables tended to experience decreased marketing margins in some regions, as fresh products such as red chillies and shallots were discarded as a result of declining consumer purchasing power. The conclusion for policymakers is that any future restrictions should take into account this likely difference in response, in order to minimise economic disruption by calibrating support along the supply chain.

SOCIOECONOMIC AND PERFORMANCE OF AGRIPRENEURS: A CASE STUDY OF DRIED MELON VALUE CHAIN IN OWO LOCAL GOVERNMENT OF ONDO STATE, NIGERIA

The study was carried out to examine the socioeconomic and performance of the dried melon value chain in Owo Local Government Area of Ondo State, Nigeria. The data for the study were collected primarily using a well-structured questionnaire. A two-stage sampling procedure was used to randomly select 120 respondents. Descriptive statistics, budgetary techniques, and multiple regression models were used to analyse the data. The results of the socioeconomic characteristics revealed that male dominates the producers’ chain while female dominates the processors’ and marketers' chains. All the actors were still in their economic active age with a mean age of around 40 years old. Many of the actors were married and had good years of experience with the producers being the highest (18 years). Apart from the producers, many of the actors were educated with at least a primary school education. Processors made more income (N190,374.7) than the producers (N175,709.3) and the marketers (N132,374.4). Despite that, the budgetary techniques confirmed that each chain was profitable, the return on investment was at the highest (0.59) for the processors followed by the producers (0.44) and then, the marketers (0.40). The market margin results showed 0.31, 0.37, and 0.29 for the processors, producers, and marketers, respectively. The results of the multiple regression indicated that costs of labour, transportation, and fixed input significantly influenced producers’ volume of sales. The variables like education, unit price, and labour cost significantly influenced processors’ volume of sales, while age, sex, income, experience, and unit price significantly influenced the marketers’ volume of sales. Therefore, it can be recommended that government intervention is crucial in the melon value chain by subsidizing the inputs to reduce the cost of production and processing. The government should also provide credit facilities and other infrastructure, such as roads, which will reduce the high cost of transportation.
 Keywords: Gross Margin, Market Margin, Melon, Profitability, Volume of Sales, Nigeria