Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market
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Getachew Abebe Woldie
In this paper, we propose an optimal marketing decision model in the context of poor agrarian economies. We consider a risk averse banana producer who faces an optimal allocation decision on how much to sell to a cooperative vis-à-vis private traders. To validate the model, a numerical exercise was undertaken using farm-gate transaction data. The overall result suggests that under different risk scenarios, an optimal earning is obtained if a farmer allocates 70 to 85 percent of his produce to a cooperative and the rest in the private market. Any allocation more than 85 percent or less than 70 percent is likely to result in a sub-optimal solution given the current market structure and price setting.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Article
- Evaluating Reforms in Canadian Chicken Marketing Mechanisms Using a Linear-Quadratic Inventory Model
- Prices as Quality Signals: Evidence from the Wine Market
- The Effect of Proposition 2 on the Demand for Eggs in California
- An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans
- Protected Designation of Origin Revisited
- The Influence of Local Selling Decisions on Organic Farm Incomes
- Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market
- Prices, Promotions, and Supermarket Mergers
- The Impact of Perceived Prices on Willingness to Pay in Experimental Auctions
- The Demand for Seafood Eco-Labels in France
- Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case
