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A transaction cost analysis of Malaysian dairy farmers' marketing channel selection

Nurul Aisyah Mohd Suhaimi, Yann de Mey and Alfons Oude Lansink

No 261436, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: In order to meet increasing demand and boost self-sufficiency, Malaysia wants to strengthen the production and marketing of domestic dairy products. This study aims at explaining Malaysian dairy farmers’ marketing channel selection based on transaction cost theory. A multivariate probit analysis is used to explain 200 farmers’ selection between three non-mutually exclusive marketing channels: through (i) the government, (ii) direct selling or (iii) intermediaries. Our results highlight the dependency among the market channel choices and identify the following influential factors: price expectation, delay of payment, trust in buyer, price fluctuation, price expectation and provision of farm services.

Keywords: Agricultural and Food Policy; Marketing (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-sea
Date: 2017-08-28
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae17:261436

DOI: 10.22004/ag.econ.261436

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