Marketing Efficiency of India's Horticultural Commodities under Different Supply Chains

Dastagiri, M. B.; Kumar, B. Ganesh; Hanumanthaiah, C.V.; Paramsivam, P.; Sidhu, R.S.; Manickam, S.; Mandal, Subhasis; Singh, B.; Chand, Khem

doi:10.5367/oa.2012.0103

Cited by 14 publications

(12 citation statements)

References 1 publication

(1 reference statement)

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“…The finding is also consistent with Dastagiri (2010) who concluded the highest percentage of benefit goes to potato wholesalers. The study result further indicated that the intermediaries play a crucial role in securing their profit margins.…”

Section: Profit Margin and Share Of Profit Along Potato Marketing Channelssupporting

confidence: 90%

Profitability and market performance of smallholder vegetable production: evidence from Ethiopia

Aliyi

Faris

Ayele

et al. 2021

Heliyon

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Regardless of the fact that the vegetable crop is crucial for Ethiopia's economy, public research on vegetable crops was negligible, and limited attention has been given to the sector. The main objective of the study was to analyze profitability of vegetable production, market performance and identify major constraints of smallholder vegetables production, specifically potato, tomato and cabbage. A multi-stage sampling procedure was employed to select 420 sample households randomly from nine kebeles , and 139 traders were selected purposively. Both qualitative and quantitative data were collected from primary and secondary sources by using structured questionnaires. Descriptive statistics, gross profit formula and structure-conduct-performance model was applied to analyze the data. The result of profitability analysis showed that potato, tomato and cabbage production in the study area was profitable. The result of structure analysis indicated that the market structure for potato, tomato and cabbage was characterized by weak oligopolistic market. The analysis of market conduct showed that the price of vegetables was determined by traders. Performance analysis demonstrated that the total gross marketing margin and profit margin was highest when producers sold vegetables to consumers and the lowest when they sold vegetables to collectors across the channel. Shortage of inputs, pests and diseases, lack of improved storage, post-harvest loss, brokers' interventions, low price of the product, poor transportation facility and information flow were the major constraints. Therefore, policy initiatives aiming at increasing farmers' access to quality vegetables inputs, strengthen vegetable extension services, improving infrastructure, disseminating reliable market information, reducing unfair profit distribution and increasing bargaining power of farmers to accelerate rural economic growth and poverty reduction. In addition, research institutes and universities should significantly contribute in releasing high yielding and disease resistant varieties to improve production and productivity of vegetables sector.

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Section: Profit Margin and Share Of Profit Along Potato Marketing Channelssupporting

confidence: 90%

Profitability and market performance of smallholder vegetable production: evidence from Ethiopia

Aliyi

Faris

Ayele

et al. 2021

Heliyon

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“…The concept of efficiency is simply measured by the output-input ratio (Sartina et al, 2021;Dastagiri et al, 2012). Similarly, efficient marketing is the ultimate goal to be achieved in the marketing system (Alderson, 2006;Gruen, 1997).…”

Section: Marketing Efficiencymentioning

confidence: 99%

“…Accordingly, the study extends the existing literature by linking the matters of the efficiency of marketing and distribution channels and input costs, which could possibly affect the selling price at the corn producer level. These two matters together could cause a severe impact on producer's welfare (Dastagiri et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

The choice of a marketing channel to benefit corn producer’s welfare in Indonesia

Jusni

Aswan

2021

Innovative Marketing

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This study aims to examine the marketing channel optionsavailable for corn producers in South Sulawesi, the production center in Indonesia, as well as impact of such a choice on their income level. The target group was corn producers and corn traders. The total sample comprised 150 people, consisting of 120 corn producers and 30 corn intermediary traders within South Sulawesi Province. The results showed that three marketing channels accessed by producers are zero-level, one-level, and two-level channels. The net profit margin obtained by intermediary traders per kg is different by types for each marketing channel due to different marketing activities leading to different costs spent. The most efficient marketing channel is the zero-level channel that conducts direct selling to breeders. It followed by the one-level channel (from farmers to collectors and consumers). Finally, the two-level channel (from producers to merchant traders) showed the lowest efficiency. It should be mentioned that the zero-level channel offers a slight price increase for producers compared to other channels. Its consumers only buy limited number of products so that it does not have a wide impact on producer’s welfare. The study also found high input costs spent to cultivate corn due to land rent, fertilizers, and pesticides. AcknowledgmentThe welfare of corn producers and marketing channel choice is part of an internal research grant project from Hasanuddin University. The research involves the regional government at village and sub-district level, and farmer groups in villages within the Province of South Sulawesi.

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“…Further, the traditional Indian AFSC was empirically analyzed by the set of survey articles (Dastagiri et al, 2012;Hegde and Madhuri, 2013;Mitra et al, 2018;Negi and Anand, 2019;Panda and Sreekumar, 2012;Raghunath and Ashok, 2009) and reported the costs incurred in the distribution of products from farmers to customers. These authors reported that the small farmers individually transport their products from village to market in which they have to bear higher transportation cost in the range of 30-40% of total transactions costs.…”

Section: Literature Reviewmentioning

confidence: 99%

A mathematical model formulation to design a traditional Indian agri-fresh food supply chain: a case study problem

Patidar

Agrawal

2020

BIJ

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PurposeThe purpose of this paper is to study and develop supply chain structure of traditional Indian agri-fresh food supply chain (AFSC). This paper proposes a mathematical model to design a traditional Indian AFSC to minimize total distribution cost and post-harvest losses in the chain.Design/methodology/approachThis paper formulates two mathematical models to structure and represent the flow of products in the existing chain. First, a three-echelon, multi-period, multi-product, mixed-integer linear programming (MILP) model is formulated to minimize the total distribution cost incurred in the chain. Further, the developed formulation is extended by considering the perishability of products in the second model.FindingsA real case study problem of Mandsaur district (India) is solved in LINGO 17.0 package to check the validity of the formulated models. The perishable (second) model of AFSC reports better results in terms of costs and post-harvest losses minimization. The results revealed that 92% of the total distribution cost incurred in the transportation of products from farmers to the hubs.Research limitations/implicationsThis paper includes implications for redesigning an existing supply chain network by incorporating an appropriate transportation strategy from farmers to hubs to minimize transportation inefficiency and enhance the profitability of farmers.Practical implicationsThe formulated AFSC model would help managers and policymakers to identify optimal locations for hubs where required infrastructure would be developed.Originality/valueAccording to the author's best knowledge, this paper is the first to design traditional Indian AFSC by considering the perishability of products.

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Marketing Efficiency of India's Horticultural Commodities under Different Supply Chains

Cited by 14 publications

References 1 publication

Profitability and market performance of smallholder vegetable production: evidence from Ethiopia

Profitability and market performance of smallholder vegetable production: evidence from Ethiopia

The choice of a marketing channel to benefit corn producer’s welfare in Indonesia

A mathematical model formulation to design a traditional Indian agri-fresh food supply chain: a case study problem

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