Analyzing Optimal Marketing Channels in the Vegetable Supply Chain: Exploring Factors Influencing Marketing Channel Selection

Abstract

Potato is amongst most important vegetables being used in kitchens of ordinary and common men. The income elasticity of demand of potato is relatively high as compared with other vegetables. In Pakistan, the traditional fruit and vegetable markets and considered to be the places of pure competition and farmers are linked to these markets via different marketing channels. This study delves into the analysis of optimal marketing channels within the vegetable supply chain, with a focus on understanding the factors that influence the selection of these channels. The study used cross-sectional primary data gathered from different supply chain actors, including 120 potato growers, 20 retailers, 20 consumers, 16 commission agents, and 16 wholesalers from two districts of Punjab, namely Okara and Chinote.  This research employs a two-fold methodology. First, it involves the identification of the optimal marketing channel among five alternatives using a unique ranking technique methodology. Second, it employs regression analysis with binary endogenous treatment to discern the factors affecting the choice of marketing channels. The study sheds light on the intricacies of marketing channel decisions in the vegetable supply chain, offering insights into the preferences and considerations of stakeholders in the Okara and Chinote districts of Punjab, Pakistan. The findings of the study contribute not only to the understanding of optimal channel selection but also to the broader knowledge of the factors that influence these decisions. These insights are valuable for practitioners, policymakers, and researchers aiming to enhance the efficiency and effectiveness of marketing strategies within the agricultural sector, benefiting farming communities and the country as a whole.