A Comparative Analysis of Marketing Margins of Fruit and Vegetables in Mindanao, the Philippines

Ebarle, E.J.N.

doi:10.17660/actahortic.2013.1006.16

Cited by 1 publication

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“…Oguoma (2010) stated that each intermediary contributes an expense to the deal, and the more middlemen there are, the greater the sales cost. Ebarle (2013) found that marketing intermediaries can compensate for the high costs incurred due to transportation and storage by increasing prices, and so does the marketing margin.…”

Section: Logistics Cost To Marketing Marginmentioning

confidence: 99%

The Impact of Logistics on Marketing Margin in the Philippine Agricultural Sector

Quintana

Chong

Cordova

et al. 2022

JEFAS

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The logistics industry is a fundamental aspect of fulfilling the supply chain in agriculture. Agricultural farmers in the Philippines often use the services of middlemen to transact on their behalf since these intermediaries possess better information, and engaging in logistics affects the marketing margin in the process. Frequently, logistics costs cause marketing margin to increase, leading to high farm-retail prices of agricultural goods. This paper examines if the existence of middlemen improves farmers' wages even with the additional logistics costs incurred. The variables' secondary data were all gathered from the Philippine Statistics Authority, and its annual frequency spanned the period of 1995 to 2019. Using Ordinary Least Squares (OLS) regression analysis procedure and diagnostic tests prove that logistics cost negatively affects marketing margin while farmers' wages have a positive relationship. The findings of this study address the presence of a longer supply chain, asymmetric information, technology, storage and facilities, and added logistics costs in agricultural transactions. Although middlemen have greater market power than the farmers, these mediators are still affected by the changes in the logistics costs since it is unavoidable for them to reduce the price due to the need to competitively sell the commodities.

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Section: Logistics Cost To Marketing Marginmentioning

confidence: 99%