A contribution to transaction costs: evidence from banana markets in Ethiopia

Woldie, Getachew Abebe; Nuppenau, Ernst‐August

doi:10.1002/agr.20279

Cited by 13 publications

(21 citation statements)

References 22 publications

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“…A number of studies (Arinloye et al , 2015; Mabuza et al , 2014; Ouma et al , 2010; Shiimi et al , 2012; Woldie and Nuppenau, 2011) also found that farmers marketing channel decisions were predominantly affected by different transaction cost, socio-economic, demographic and farm characteristics variables. The most common and important variables in these studies include age and education of the farmer, years of experience, farm size, transportation cost, market information search costs, bargaining power, level of payment uncertainty and distance to markets (Arinloye et al , 2015; Mabuza et al , 2014; Ouma et al , 2010; Shiimi et al , 2012; Woldie and Nuppenau, 2011). Although these different studies did not account for the similar types of variables, they can be categorised broadly under transaction cost, socio-economic, demographic and farm characteristics.…”

Section: Review Of Literaturementioning

confidence: 99%

Factors affecting marketing channel choice decisions of smallholder Citrus growers

Siddique

Garnevska

Marr

2018

JADEE

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Purpose Despite 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/approach A 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. Findings It 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/implications The 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/value This 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.

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Section: Review Of Literaturementioning

confidence: 99%

Factors affecting marketing channel choice decisions of smallholder Citrus growers

Siddique

Garnevska

Marr

2018

JADEE

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“…Searching information costs are costs incurred before the transaction. This is a common practice by farmers to gather some sort of price information and this is not free of charge (Woldie and Nuppenau, 2011). In this study, the cost is calculated by the action of searching for a market price before farmers selling their produce.…”

Section: Variables Definition and Descriptive Analysismentioning

confidence: 99%

Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam

Hung

Khải

2020

Asian Journal of Agriculture and Rural Development

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The aim of this study is to determine the marketing channel and the factors affecting farmer's selection of a distribution channel of chili produced in Tra Vinh province, Vietnam. With primary data of 193 chili farmers, the study based on the theory of transaction cost economics to estimate the determinants of marketing channels using the approach of the Probit model. The results showed that the marketing choice decision of chili farmers was affected by transaction costs, price risk attitude and farmers' characteristics. Cooperatives mainly used seedling supply as an interlocked exchange to encourage farmers to remain in the cooperative channel. The finding also revealed that cooperative channel was not just the preferred channel when farmers were confronted with selling pressure due to the perishable nature of the chili, but also was a safe channel for more risk-averse farmers. Contribution/ Originality The choice of marketing channel is one of the main decisions for producers because different channels are characterized by certain levels of profitability and cost. The study aims to identify factors affecting the chili farmer's selection of a distribution channel. The results of this study could provide policymakers useful information to master chili farmers' distribution channels.

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“…Moreover, a producer's choice of a marketing outlet according to Park and Lohr (2006) is dependent on his/her utility maximization, outlet characteristics and the producers' marketing experience. In addition to farmer and farm characteristics, transaction costs form another major part of the marketing channel choices among producers (Woldie and Nuppenau, 2011).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Market channel options for smallholders in dual markets: A case of organic pineapple farmers in Uganda

Kyomugisha¹,

Nuppenau²,

Mugisha³

2019

J. Dev. Agric. Econ.

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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 crosssectional 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.

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A contribution to transaction costs: evidence from banana markets in Ethiopia

Cited by 13 publications

References 22 publications

Factors affecting marketing channel choice decisions of smallholder Citrus growers

Factors affecting marketing channel choice decisions of smallholder Citrus growers

Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam

Market channel options for smallholders in dual markets: A case of organic pineapple farmers in Uganda

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