Agricultural Economics and Development

Agricultural Economics and Development

Raw Milk Marketing Channel Choice within Dairy Supply Chain in Kerman County of Iran: A Multinomial Logit Approach

Document Type : Original Article

Authors
N. Ali Aabadi 1
Sedighe Nabieian
H. Mehrabi Boshrabadi 2
1 M .Sc. Graduate in Agricultural Economics, Department of Agricultural Economics, Shahid Bahonar University of Kerman, Kerman, Iran
2 Professor, Department of Agricultural Economics, Shahid Bahonar University of Kerman, Kerman, Iran
10.30490/aead.2020.252556.0
Abstract
This study aimed at investigating the raw milk distribution channels and the factors affecting the channel choice to improve the effectiveness of the marketing system in Dairy Supply Chain in Kerman County of Iran. For this purpose, a simple random sample of 200 dairy farmers was collected, and respective questionnaires were completed. Then, the effective factors were determined by the use of multinomial logit model. The study results showed that in the first and third marketing channels, the product was led to milk factory while in the second and fourth marketing channels; it was delivered to the final consumer. In addition, the findings showed that change in payments caused the farmers trust local raw milk purchasers in the county more than the intermediaries while with milk prices rising, livestock breeders preferred them to sell their products; also, by increasing milk production, they preferred mediator elimination and by increasing the distance to the sales center, the likelihood of milk transfer to the plant increased. In this regard, it was recommended that dairy plant managers would monitor the purchase price from the breeders as well as gain their satisfaction and trust, especially by cash payments.
Keywords
Discrete Choice Models
Multinomial Logit Model
Milk Marketing Channels
Dairy Farmers
Kerman (County)
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