Factors affecting choice of cash sales versus forward marketing contracts

Fraser McLeay and Tony Zwart
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Fraser McLeay: Department of Agricultural Economics and Food Marketing at Newcastle University, Postal: Department of Agricultural Economics and Food Marketing at Newcastle University
Tony Zwart: Department of Economics and Marketing at Lincoln University, Postal: Department of Economics and Marketing at Lincoln University

Agribusiness, 1998, vol. 14, issue 4, 299-309

Abstract: Although the use of various forms of marketing contracts is increasing within agricultural marketing channels, there has only been a limited number of research efforts that investigate the factors influencing the structure of agricultural marketing channels and individual firms selection decisions. This article examines issues relating to why alternative forms of sales transactions may predominate in different industries and how the marketing competencies of individual firms influence the type of contract selected by a business. The results of an empirical analysis of New Zealand farmers indicates that for an individual farmer sales transaction choice is influenced by marketing competencies and strategy, farm and farm manager characteristics, and the structural characteristics of the industry in which the transaction is taking place. © 1998 John Wiley & Sons, Inc.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:14:y:1998:i:4:p:299-309

DOI: 10.1002/(SICI)1520-6297(199807/08)14:4<299::AID-AGR4>3.0.CO;2-X

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