Translated Titles

A Study on Farmers’ Share of Retail Price through Farmers’ Marketing Organization in Korea





Key Words

產地流通組織 ; 農家收益率 ; 批發商的流通比率 ; 大型零售商的流通比率 ; 產地流通綜合評價 ; Farmers’ marketing organizations ; Marketing margin share of retail price via wholesalers ; Marketing margin share of retail price via large retailers ; Farmers’ Marketing Comprehensive Evaluation



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English Abstract

Until the mid-1990s, agricultural marketing policy was based solely on the construction and management of the wholesale market. The number and sales of large retailers have been growing since the mid-1990s and consumer-oriented marketing started. Corresponding to the rise in powerful consumer-oriented marketing, the government started strengthening producer-oriented marketing policies. The purpose of this policy, called “Farmers’ Marketing,” is to increase the bargaining power of farmers and direct dealings. The core of the policy is fostering farmers’ marketing organizations. Previous studies on farmers’ marketing are mainly about the improvement in the efficiency of the farmers’ marketing organizations itself. The main point of this research is to analyze the influence of the farmers’ marketing organizations increasing the composite farmers' share of the retail price. This study runs an OLS (Ordinary Least Square) model. The two independent variables and one dependent variable are, respectively: 1. marketing margin share of the retail price when the farmers’ marketing organizations trade through wholesalers (hereunder ‘marketing margin share via wholesalers’) 2. marketing margin share of the retail price when the farmers’ marketing organizations trade through large retailers (hereunder ‘marketing margin share via large retailers’). The dependent variable is the “composite farmers' share of the retail price” (hereunder ‘composite farmers’ share’), which is computed across all the marketing channels. The composite farmers' share can be increased when it is significant with the marketing margin share via large retailers. To measure the performance of the organizations’ management, we use the Farmers’ Marketing Comprehensive Evaluation, which is held by the government in the relevant year and 10 main items are considered. However, this study only analyzes 8 items (tangerines, apples, pears, onions, garlic, potatoes, persimmons and cabbage) due to a lack of data. Thus, we analyze which items’ dependent variable “composite farmers’ share” is more affected by the independent variable “marketing margin share via large retailers”. According to our results, the composite farmers’ shares of tangerines and apples, which represent more than 50% of the total production of the farmers’ marketing organizations, are increased through trading with large retailers. However, the composite farmers’ shares of the remaining 6 items (pears, onions, garlic, potatoes, persimmons and cabbage) are more affected by the marketing margin share via wholesalers. The government should seek plans to diversify the sales of apples and tangerines and sell the remaining 6 items, thereby focusing on trading with large retailers and ensuring risk taking when the composite farmers’ share increases enough.

Topic Category 生物資源暨農學院 > 農業經濟學研究所
生物農學 > 農業
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