Market Channels in a Dry Sample Clauses

Market Channels in a Dry. Pigeonpea Value Chain Market channels describe how the pigeonpea marketed from different market in the value chain. Products pass through a number of actors along the different marketing channels linking producers and consumer hence produce a marketing chain (so called a value chain) (Xxxxxxxx, et al., (2007). In this study, the marketing channels link the farmers and exporters. Within the marketing channels, transaction cost such as the cost of searching the buyer and seller and weighing charges are incurred when bringing pigeonpea to the end point before export. This tends to increase the total cost and lower the farmer‟s share on the final price. The channels identified helps in analysis of the market price, cost and profit by different actors in different point in a value chain and finally help in identification of strategies that can be implemented to improve the situation. The strength of the value chain depends on the degree of trust and relationship that exists among different participants. In situation where sharing of information is poor and players behaves in ways that undermine the activities of the others, the value chain is under develop and largely inefficient and inequitable (Xxxxxxxx, et al., (2007). By looking at the volume traded between the participants in a pigeonpea value chain, Urban exporter is the critical player in a value chain because they buy 100% of dry pigeonpea from participants in the upstream of the value chain (see table 6.8). The issue of volume traded between actors in a value chain can bring the issue of control among actors. According to Piyapromdee, Hillberry and MacLaren, in 2009 they suggest that the downstream firms can act as oligopsonists in purchasing produce from farmers, by the exercise of market power. In the situation where participant transact high volume, can have control over the market. From this study, it shows that exporters are critical player buying all dry pigeonpea from the value chain. This shows that, once the farmers produced pigeonpea, since they don‟t have access to external market, they depend on assemblers, wholesalers and exporters to market their produce since they basically buy all that is not consumed domestically. Therefore this brings the issue of power dependency among actor (i.e. Monopoly/monopsony power). Therefore exporters have control of pigeonpea value chain and sellers don‟t have that control because they depend on exporters. This is caused by having only export market for pig...
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