An analytical Study of Wholesale Markets in the Syrian Arab Republic - an Example of the Central Hal Market in Damascus Governorate

The wholesale market for agricultural products in Damascus (Zablatani) is one of the largest markets in Syria. This study analyzed the marketing chain of the most important agricultural products in the wholesale market of Damascus governorate. considering the market structure, behavior and performance for the two years (2018-2019). The primary data were obtained from wholesalers, agents and administration in the market by collecting (207) questionnaires. Descriptive statistics were used to describe the economic and social characteristics of marketing agencies. The Gini coefficient and the Lorenz curve were also used to define the degree of market concentration. The absolute and relative margins, marketing efficiency, price increase rate and wholesalers' share of consumer price were used to measure market performance. The results of the producers' survey revealed that all marketing agencies of the wholesale market were only males. The Gini coefficient for tomato market was 0.204 and 0.330 for wholesalers and semi-wholesalers, respectively, indicating a low-concentrated market and thus more competitive. For potato market, it was 0.642 and 0.588 for wholesalers and semi-wholesalers, respectively, indicating a high-concentrated market (oligopoly) and thus less competitive. For apple market, it was 0.269 and 0.192 for wholesalers and semi-wholesalers, respectively, indicating a low-concentrated market and thus more competitive. The study demonstrated an increase in marketing costs for wholesalers compared to semi-wholesalers due to transport and storage costs, as the marketing costs for a potato wholesaler reached 31000 SP/ton versus 8025 SP/ton for the semi-wholesaler. The absolute marketing margin for wholesalers and semi-wholesalers of tomato was 18 and 13 SP/kg, respectively. The marketing efficiency of tomato wholesaler according to the first and second indicators was 90.83% and 6.15%, respectively. The difficulties facing wholesalers and semi-wholesalers were analyzed using the Likert quartet scale, and the results revealed that the increase in marketing costs was one of the most important difficulties with a standard deviation of 0.733, and a mean of 3.34 for wholesalers. This was due to the high price of energy sources (electricity and fuel) and, consequently, the high cost of transportation, storage, labor, and rent. However, promotion of import and export was one of the most important solutions proposed to face difficulties. The results also showed that the price per kilogram of potatoes will reach (199.3) Syrian pounds in November 2020 with a maximum of 553.66 and a minimum of 49.83 Syrian pounds, using the (Box - Jenkins) forecasting method. These findings illustrate the urgent need to promote market information delivery226systems, modernize market facilities. Therefore, the study recommends the concerned bodies to develop a policy that restricts monopolistic trends currently occurring in potato market in order to establish a fair trade for all market actors.