ISHS Acta Horticulturae 369: Symposium on Small Scale vegetable production and Horticultural Economics in Developing Countries
EFFECTS OF SUPPLY ON MARKETING MARGINS : THE CASE OF SOUTH SUMATRA'S FRESH PINEAPPLE |
| Author: | P. U. Hadi |
| Abstract:
The present study aims to show the effects of supply changes on the marketing margins and farmgate price using a descriptive analysis approach for South Sumatera's fresh pineapple (Ananas comosus L. Merr cultivar Natal Queen). It covers four seasons in 1991. It found that the local wholesale and farmgate prices decrease while marketing margins increase as pineapple supply increased. The major cause of increased margins is the increased transportation costs due to increased demand for transport services. The Local Wholesalers, who have major roles in the marketing of farmer's pineapple in the study area, have not made excessive profits. They reduce their profits as supply increases and increase their profits as supply reduces. The middlemen's profits vary inversely with transportation costs. This is, profits decrease (or increase) when transportation costs increase (or decrease) as pineapple supply increases (or decreases). There was no strong evidence that middlemen made excessive losses to farmers by suppressing farmgate prices. | |
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