Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan

https://doi.org/10.17221/148/2016-AGRICECONCitation:Liao P.-A., Chang H.-H., He J., Saeliw K. (2017): Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan. Agric. Econ. – Czech, 63: 493-501.
download PDF
Farm marketing has been recognized as an important factor for a successful farm business. Due to the increasing interest of consumers in food safety, direct marketing of farm products to consumers in the local farmers’ markets has become very popular. Compared to traditional farm marketing channels, relatively little is known about the use of direct-to-consumer marketing strategies by farmers. This paper aims to provide a more comprehensive picture of farmers’ choices among available farm marketing channels using the case study of Taiwan. Using a population-based survey of 5600 family farms in Taiwan in 2014, in this study we quantify the extent to which demographic characteristics of farm operators, farm production and family conditions may influence the decision of farms to sell farm products to the government, wholesale markets, and in direct-to-consumer sales. We develop a trivariate probit model, and our results indicate that education level and engagement in the off-farm labour market of farm operators, the number of household members, farm size, land ownership, and the type of farm are the key factors in determining farmers’ choice of marketing channels. The findings of this study may have important implications for the design of more effective farm marketing programs by agricultural authorities.
Agriculture and Food Agency (2014): Reports on Agricultural Farm Household Survey. Council of Agriculture, Taipei, Taiwan.
Boisvert R., Chang H. (2006): Multifunctional agricultural policy, reduced domestic support and liberalized trade: an empirical assessment for Taiwanese rice. Comprehensive Assessment of Water Management in Agriculture Research Report 014, International Water Management Institute. Sri Lanka.
Chiappe Marta B., Butler Flora Comelia (1998): Gendered Elements of the Alternative Agriculture Paradigm. Rural Sociology, 63, 372-393 https://doi.org/10.1111/j.1549-0831.1998.tb00684.x
Chib S (1998): Analysis of multivariate probit models. Biometrika, 85, 347-361 https://doi.org/10.1093/biomet/85.2.347
Curtis K. (2010). Direct marketing local foods: Food safety considerations. All Current Publications, Paper 99, Utah University State. Available at http://digitalcommons.usu.edu/extension_curall/99
Executive Yuan, Republic of China (Taiwan) (2014): Small landlords, big tenant-farmers. Available at http://www.ey.gov.tw/en/Dictionary_Content.aspx?n=A240F8389D824425&sms=D8F3EB15472D7847&s=FCB30CD97702CF3F
Gale F. (1997): Direct Farm Marketing as a Rural Development Tool. US Department of Agriculture, Washington.
Gong Wen, Parton Kevin, Cox Rodney J., Zhou Zhangyue (2006): Transaction costs and cattle farmers’ choice of marketing channels in China. Management Research News, 30, 47-56 https://doi.org/10.1108/01409170710724296
Hewett E (2012): High-value horticulture in developing countries: barriers and opportunities.. CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources, 7, - https://doi.org/10.1079/PAVSNNR20127054
Hu S., Tai Y., Huang P., Chao G., Hua P. (2014): Agriculture in Taiwan – rich and enriching. In: Council of Agriculture, Executive Yuan, Taiwan.
Kim M., Curtis K., Yeager I. (2014): An assessment of market strategies for small-scale produce growers. International Food and Agribusiness Management Review, 17: 187–204.
Lišková S., Tomšík P. (2013): Competency-based approach to human resources management. Agricultural Economics – Czech, 59: 496–504.
Low Sarah A., Vogel Stephen J. (): Direct and Intermediated Marketing of Local Foods in the United States. SSRN Electronic Journal, , - https://doi.org/10.2139/ssrn.2114361
Lyson Thomas A., Guptill Amy (2004): Commodity Agriculture, Civic Agriculture and the Future of U. S. Farming. Rural Sociology, 69, 370-385 https://doi.org/10.1526/0036011041730464
Mafukata M. (2015): Factors having the most significance on the choice and selection of marketing channels amongst communal cattle farmers in Vhembe district, Limpopo province. Journal of Human Ecology, 19: 77–87.
Mojaverian S., Rasouli F., Hosseini-Yekani S. (2014): Citrus marketing channel strategy and its determinants in Mazandaran province of Iran: An application of nested logit model. Journal of Agricultural Science and Technology, 16: 1469–1479.
Monson J., Mainville D., Kuminoff N. (2008): The decision to direct market: An analysis of small fruit and specialty-product markets in Virginia. Journal of Food Distribution Research, 39: 1–11.
Morgan T., Alipoe D. (2001): Factors affecting the number and type of small-farm direct marketing outlets in Mississippi. Journal of Food Distribution Research, 32: 125–132.
Nyaupane N. P., Gillespie J. M. (2010): Louisiana crawfish farmer adoption of best management practices. Journal of Soil and Water Conservation, 66, 61-70 https://doi.org/10.2489/jswc.66.1.61
Gani Osmani, Hossain Elias (2015): Market participation decision of smallholder farmers and its determinants in Bangladesh. Ekonomika poljoprivrede, 62, 163-179 https://doi.org/10.5937/ekoPolj1501163G
Park T. (2015): Direct marketing and the structure of farm sales: An unconditional quantile regression approach. Journal of Agricultural and Resource Economics, 40: 266–284.
Stojanová H., Tomšík P. (2014): Factors influencing employment for tertiary education graduates at the selected universities. Agricultural Economics – Czech, 60: 376–387.
Timmons David, Wang Qingbin (2010): Direct Food Sales in the United States: Evidence from State and County-Level Data. Journal of Sustainable Agriculture, 34, 229-240 https://doi.org/10.1080/10440040903482605
Train K. (2009): Discrete Choice Methods with Simulation. 2nd ed. Cambridge University Press, USA.
USDA (2014): Agricultural Biotechnology Annual-Taiwan. GAIN Report, United States Department of Agriculture, Foreign Agricultural Service. Available at http://www.google.com.tw/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjblNbKhfjLAhUEx6YKHR-VAsIQFggjMAE&url=http%3A%2F%2Fgain.fas.usda.gov%2FRecent%2520GAIN%2520Publications%2FAgricultural%2520Biotechnology%2520Annual_Taipei_Taiwan_7-15-2014.pdf&usg=AFQjCNHWbDrHnRISahcy8YwR4fVN8ueBPQ
USDA (2015): Farms and Land in Farms – 2014 Summary. United States Department of Agriculture, National Agricultural Statistics Service. Available at http://www.google.com.tw/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwj6nvzlhPjLAhWGJqYKHd0lC80QFggiMAE&url=http%3A%2F%2Fwww.usda.gov%2Fnass%2FPUBS%2FTODAYRPT%2Ffnlo0215.pdf&usg=AFQjCNE7upffFRj-HXq2pT5lRbiDFhFwAA
Uva W. (2002): An analysis of vegetable farms’ direct marketing activities in New York State. Journal of Food Distribution, 33: 186–189.
ZHANG Min, KAGATSUME Masaru, YU Jin (2014): Market Channel Choice and Its Impact on Farm Household Income: A Case Study of 243 Apple Farmers in Shaanxi province, China. Japan Agricultural Research Quarterly: JARQ, 48, 433-441 https://doi.org/10.6090/jarq.48.433
download PDF

© 2018 Czech Academy of Agricultural Sciences