An exploration on corn industry marketing channels
2015
Rohaya Ibrahim | Nalini Arumugam
This study was focus on the marketing margin analysis to deal with issues in relation to the marketing of corn produce in Terengganu. The price change in corn is the main problem in providing reasonable price to both farmers and consumers of products. The held up payment by the commission agents, rather high transportation cost to middleman and lack of education on definite marketingcondition gave problems to the farmers in marketing their produce. The farmer suffered from high cost in corn production, while getting low economic return for their produce when the other members in the channel got higher profit. For this purpose this study had been conducted at all the districts of Terengganu and focusing the main location of corn production which is the Kuala Berang area. The data collected for this study were cost of production and net marketing margin of corn industry. The marketing margin analysis is used to interpret the data. The main factors that affects marketing margin in corn industry were marketing cost and the cost of production faced by the farmers. There were three channels thatare involved in corn industry. The extent of price transmission among the different levels of the corn marketing chain in Terengganu had been studied during thesurvey, which had shown retailers as the main share contributor in the profit margin of corn.
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