Advances in Environmental Biology Dezful Township, Iran Ahmad Reza Ommani

Advances in Environmental Biology, 8(6) Special 2014, Pages: 2995-2998
AENSI Journals
Advances in Environmental Biology
ISSN-1995-0756
EISSN-1998-1066
Journal home page: http://www.aensiweb.com/aeb.html
Analyzing Agricultural Product Marketing Management (APMM) of Citrus Farmers in
Dezful Township, Iran
1
Ahmad Reza Ommani and 2Azadeh N. Noorivandi
1and2
Department of Agricultural Management, Shoushtar Branch, Islamic Azad University, Shoushtar, Iran
ARTICLE INFO
Article history:
Received 15 April 2014
Received in revised form 22 May
2014
Accepted 25 May 2014
Available online 15 June 2014
Key words:
Marketing, Citrus Farmers, Marketing
Management
ABSTRACT
The main objective of research was analyzing Agricultural Product
Marketing Management (APMM). The research method employed was correlativedescriptive. The population consisted of citrus farmers in Dezful Township, Iran. A
random sample of farmers (n = 120) was selected. The questionnaire was developed to
collect data. Content and face validity were established by a panel of experts. A pilot
test was conducted. Questionnaire reliability was estimated by calculating Cronbach,‟s
alpha. Reliability for the overall instrument was estimated at 0.86. Based on the results
the correlation between job motivation, risk oriented, responsibility, competitiveness,
participation on education programs, income level, educational level and level of
APMM was significant in 0.01 level. The result of regression was indicated job
motivation, risk oriented, responsibility, competitiveness, participation on education
programs, income level, educational level, may well explain for 71% changes (R2=0.71)
in agricultural product marketing.
© 2014 AENSI Publisher All rights reserved.
To Cite This Article: Ahmad Reza Ommani and Azadeh N. Noorivandi, Analyzing Agricultural Product Marketing Management
(APMM) of Citrus Farmers in Dezful Township, Iran . Adv. Environ. Biol., 8(6), 2995-2998, 2014
INTRODUCTION
In many countries, and virtually every less developed country (LDC), agriculture is the biggest single
industry. Agriculture typically employs over fifty percent of the labour force in LDCs with industry and
commerce dependent upon it as a source of raw materials and as a market for manufactured goods. Hence many
argue that the development of agriculture and the marketing systems which impinge upon it are at the heart of
the economic growth process in LDCs.
Agricultural and food marketing system comprises all functions, and agencies who perform those activities,
which are necessary in order to profitably exploit opportunities in the marketplace. Agricultural and food
marketing system consists of the following sub-systems: input, production, distribution, consumption and
regulatory [9]. Kriesberg [7] points out; in LDCs the consumer frequently spends in excess of fifty percent of
the household's income on basic foodstuffs - much of which is inadequate both in quality and nutritional
content. By contrast Americans spend approximately twelve percent of their total disposable income on food. In
Western Europe the figure ranges from about sixteen to nineteen percent of disposable income. Furthermore,
whereas in developed countries the poor are relatively few in number, and therefore it is economically possible
to establish special food distribution programmes to meet their needs, the scale of poverty in most LDCs is such
that the commercial marketing system must be relied upon to perform the task of food distribution to poor and
not-so-poor alike. This being so, it is imperative that the marketing system performs efficiently.
Akridge, Barnard and Downey [2] suggested that the set of decisions agribusiness managers make as part of
the strategic marketing planning process may be among the most fundamental choices facing an agribusiness
firm. Decisions about what markets to pursue and what position to take in these markets drive much of the rest
of the firm‟s business activities.
Kohls and Uhl [5] define agricultural marketing as the performance of all business activities involved in the
flow of food products and services from the point of initial agricultural production until they are in the hands of
consumers.
Effective agricultural and food marketing is important to developing countries for the following reasons [9]:
 Agriculture is the biggest single industry in developing countries
o Largest employer
o Source of raw materials
Corresponding Author: Ahmad Reza Ommani, Department of Agricultural Management, Shoushtar branch, Islamic Azad
University, Shoushtar, Iran. Email: ommani754512yahoo.com
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Ahmad Reza Ommani et al, 2014
Advances in Environmental Biology, 8(6) Special 2014, Pages: 2995-2998
o Market for manufactured goods
 Economic growth and development in developing countries
o Increasing urbanization
o Increasing incomes
o Increasing employment of women
 Improvement of rural incomes in developing countries
o Income inequality between the rural and urban areas
o Rural-urban migration
 Adoption of market liberalization and privatization policies
o Decreased participation of the public sector in marketing
o Increased participation of the private sector in marketing
One of the most important factors for agricultural development is marketing of agricultural products.
Information, as the most important facilitator and main core of the marketing system, has an effective role in
increasing the marketing system efficiency. Today, farmers need access to updated and exact information in
order to improve the quality and quantity of the agricultural products marketing [8]. Marketing functions are
classified into multiple groups [5]:
Storage: Balances supply of and demand for agricultural and food products. Agricultural production in
developing countries is usually seasonal whilst demand is generally continuous throughout the year. Hence the
need for storage to allow a smooth, and as far as possible, uninterrupted flow of product into the market.
Transportation: Making the product available where it is needed, without adding unreasonably to the overall
cost of the produce. Adequate performance of this function requires consideration of alternative routes and types
of transportation, with a view to achieving timeliness, maintaining produce quality and minimizing shipping
costs.
Processing: Most agricultural produce is not in a form suitable for direct delivery to the consumer when it is
first harvested. Rather it needs to be changed in some way before it can be used. The form changing activity is
one that adds value to the product. Changing green coffee beans into roasted beans, cassava into „gari‟ or
livestock feed, full fruit bunches into palm oil increases the value of the product because the converted product
has greater utility to the buyer.
Standardization: concerned with the establishment and maintenance of uniform measurements of produce
quality and/or quantity. This function simplifies buying and selling as well as reducing marketing costs by
enabling buyers to specify precisely what they want and suppliers to communicate what they are able and
willing to supply with respect to both quantity and quality of product.
Financing: In almost any production system there are inevitable lags between investing in the necessary raw
materials (e.g. machinery, seeds, fertilizers, packaging, flavorings, stocks etc.) and receiving the payment for the
sale of produce. During these lag periods some individual or institution must finance the investment.
Risk bearing: In both the production and marketing of produce the possibility of incurring losses is always
present. Physical risks include the destruction or deterioration of the produce through fire, excessive heat or
cold, pests, floods, earthquakes etc. Market risks are those of adverse changes in the value of the produce
between the processes of production and consumption. A change in consumer tastes can reduce the
attractiveness of the produce and is, therefore, also a risk. All of these risks are borne by those organizations,
companies and individuals.
Market intelligence: It is the process of collecting, interpreting, and disseminating information relevant to
marketing decisions. The role of market intelligence is to reduce the level of risk in decision making. Through
market intelligence the seller finds out what the customer needs and wants. The alternative is to find out through
sales, or the lack of them. Marketing research helps establish what products are right for the market, which
channels of distribution are most appropriate, how best to promote products and what prices are acceptable to
the market. As with other marketing functions, intelligence gathering can be carried out by the seller or another
party such as a government agency, the ministry of agriculture and food, or some other specialist organization.
There is a widespread belief that information and knowledge are vital for rural and agricultural
development [10]. Information has been identified as worldwide as a veritable tool for development and good
governance. In fact, in many situations, it can be utilized as means of gathering policy alternatives for running
governments, organizations and even small communities [1]. Within agricultural sector, with appearance of
sustainable agricultural systems, information is become as a major input for agricultural production because
sustainable agriculture is more information-intensive rather than technology-intensive [4].
Akridge, Barnard and Downey [2] suggested that the set of decisions agribusiness managers make as part of
the strategic marketing planning process may be among the most fundamental choices facing an agribusiness
firm. Decisions about what markets to pursue and what position to take in these markets drive much of the rest
of the firm‟s business activities.
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Ahmad Reza Ommani et al, 2014
Advances in Environmental Biology, 8(6) Special 2014, Pages: 2995-2998
MATERIALS AND METHODS
The research method employed was correlative-descriptive. The population consisted of citrus farmers in
Dezful Township, Iran. A random sample of farmers in Dezful township, Khouzestan province, Iran (n = 120)
was selected. The questionnaire was developed to collect data. Content and face validity were established by a
panel of experts. A pilot test was conducted. Questionnaire reliability was estimated by calculating Cronbach,‟s
alpha. Reliability for the overall instrument was estimated at 0.79. Data collected were analyzed using the
statistical package for the social sciences (SPSS). Appropriate statistical procedures for description (frequencies,
percent, means, and standard deviations) were used.
RESULTS AND DISCUSSION
Table 1 illustrates the farmers‟ view point about the role of psychological, economical and personal
characteristics on marketing management . For example based on the results 27 farmers believed that the role of
job motivation in storage as one option of marketing was high.
Table 2 illustrates the situation of psychological, economical and personal characteristics. For example
30.83 of farmers had very high job motivation. Table 3 shows situation of using agricultural product marketing.
For example based on the results 29.06% of farmers explained they use very high storage in agricultural activity.
Based on the results the correlation between job motivation, risk oriented, responsibility, competitiveness,
participation on education programs, income level, educational level and level of APMM was significant in 0.01
level (Table 4).
Table 1: Role of psychological, economical and personal characteristics on marketing management
Agricultural
Characteristics
Product
Job Motivation
Risk Oriented
Responsibility
Competitiveness
Marketing
options
H*
M*
L*
H
M
L
H
M
L
H
M
L
Storage
H 27
8
9
24
8
8
21
8
9
24
8
15
M 13
7
12
13
10
13
13
11
13
13
12
11
L
12
9
23
12
9
23
11
9
25
10
9
18
Transportati H 24
8
15
26
8
9
16
8
11
22
8
13
on
M 13
12
11
13
13
13
13
13
13
13
12
13
L
10
9
18
11
4
23
12
9
25
12
9
18
Processing
H 21
8
5
26
8
9
14
8
11
14
8
5
M 13
13
13
13
13
13
13
18
16
23
12
13
L
13
11
23
11
4
23
11
9
20
13
11
21
Standardiza H 26
8
9
18
10
9
22
5
17
30
4
12
tion
M 13
13
13
13
11
12
13
5
12
13
4
17
L
11
4
23
11
21
15
4
21
21
14
5
21
Financing
H 33
4
9
26
8
9
16
8
11
22
8
13
M 13
4
17
13
13
13
13
13
13
13
12
13
L
11
5
24
11
4
23
12
9
25
12
9
18
Risk
H 26
8
9
24
8
15
14
8
11
14
8
5
bearing
M 13
13
13
13
12
11
13
18
16
23
12
13
L
11
4
23
10
9
18
11
9
20
13
11
21
Market
H 18
8
12
21
8
9
22
5
17
30
4
12
intelligence M 13
13
13
13
11
13
13
5
12
13
4
17
L
11
9
23
11
9
25
4
21
21
14
5
21
H: High, M: Moderate, L: Low
H
18
13
11
18
13
11
16
13
12
14
13
11
22
13
4
16
13
12
14
13
11
Education
Programs
M
8
13
9
10
11
21
8
13
9
8
18
9
5
5
21
8
13
9
8
18
9
Table 2: Situation of psychological, economical and personal characteristics
Characteristics
Very High
High
Moderate
f
%
f
%
f
%
Job motivation
37
30.83
23
19.17
24
20
Risk Oriented
38
31.67
31
25.83
15
12.5
Responsibility
28
23.33
32
26.67
24
20
Competitiveness
33
27.50
23
19.17
22
18.33
Education Programs
45
37.50
21
17.50
22
18.33
Income Level
34
29.06
23
19.66
24
20.51
Educational Level
21
17.50
21
17.50
22
18.33
Table 3: Situation of using Agricultural product Marketing Management
Marketing Options
Very High
High
Moderate
f
%
f
%
f
%
Storage
34
29.06
23
19.66
24
20.51
Transportation
21
17.50
21
17.50
22
18.33
Processing
25
20.83
23
19.17
21
17.50
Standardization
33
26.61
25
20.16
14
11.29
Financing
23
19.17
24
20.00
32
26.67
Risk bearing
54
45.00
22
18.33
15
12.50
Market intelligence
3
3
2
1
2
1
9
2.50
1
7.50
1
7.50
Income Level
L
12
13
23
9
12
15
11
13
25
11
16
20
17
12
21
11
13
25
11
16
20
H
26
13
11
16
13
12
14
13
11
22
13
4
30
13
14
22
13
12
14
23
13
M
8
13
4
8
13
9
8
18
9
5
5
21
4
4
5
8
12
9
8
12
11
Low
f
19
21
19
15
17
19
27
19
27
24
23
22
21
2
1
%
16.24
22.50
20.00
18.55
18.33
17.50
17.
50
H
24
13
10
22
13
12
14
23
13
30
13
14
16
13
12
14
13
11
22
13
4
M
8
12
9
8
12
9
8
12
11
4
4
5
8
13
9
8
18
9
5
5
21
L
15
11
18
13
13
18
5
13
21
12
17
21
11
13
25
11
16
20
17
12
21
Very Low
f
%
17
14.17
15
12.50
17
14.17
27
22.50
15
12.50
17
14.53
29
24.17
%
15.83
17.50
15.83
12.50
14.17
16.24
22.50
Low
f
Educational Level
L
9
13
23
11
13
25
11
16
20
17
12
21
12
17
21
13
13
18
5
13
21
f
Very Low
%
17
14.53
29
24.17
27
22.50
29
23.39
19
15.83
8
6.67
1
8
15.00
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Ahmad Reza Ommani et al, 2014
Advances in Environmental Biology, 8(6) Special 2014, Pages: 2995-2998
Table 4: Correlation between Agricultural Product Marketing and psychological, economical and personal characteristics
Agricultural Product
psychological, economical and personal characteristics
Marketing
Management
Job Motivation Risk Oriented Responsibility Competitiven
Education
Income Level
ess
r
p
r
Storage
0.435**
0.00
Transportation
0.245*
0.03
Processing
0.274*
0.02
Standardization
0.243*
0.03
0.354*
*
0.335*
*
0.315*
*
0.208*
p
Financing
0.244*
0.04
Risk bearing
0.345**
Market intelligence
APMM
r
p
r
p
0.00 0.337** 0.00
0.241* 0.03
0.00 0.329** 0.00
0.244* 0.04
0.00
0.00
0.449* 0.00 0.339** 0.00
*
0.235* 0.03 0.438** 0.00
0.345*
*
0.351*
*
0.332*
*
0.243*
0.434**
0.00
0.229* 0.02
0.04
0.241* 0.04
0.345**
0.00
0.346* 0.00 0.386** 0.00
*
0.335* 0.00
*
0.256*
0.03
0.04 0.389** 0.00
0.237*
Programs
r
p
0.432* 0.00
*
0.225* 0.03
0.00
0.272* 0.02
0.00
0.233* 0.03
0.00
0.244* 0.04
0.03
0.335* 0.00
*
0.434* 0.00
*
0.343* 0.00
*
r
p
Educational
Level
r
p
0.331* 0.00 0.337* 0.00
*
*
0.322* 0.00 0.369* 0.00
*
*
0.252* 0.03 0.246* 0.03
0.339*
*
0.333*
*
0.432*
*
0.232*
0.00 0.359*
*
0.00 0.349*
*
0.00 0.435*
*
0.04 0.235*
0.00
0.00
0.00
0.04
0.386* 0.00 0.386* 0.00
*
*
The result of regression was indicated job motivation, risk oriented, responsibility, competitiveness,
participation on education programs, income level, educational level, may well explain for 71% changes
(R2=0.71) in agricultural product marketing. This relationship is described in the following formula:
Y=5.654+0.302X1+0.235X2+0.434X3+0.543X4+0.344X5+0.458X 6+0.543X7
Table 7: Linear regression used for predicting
characteristics
Variable
Job motivation
Risk Oriented
Responsibility
Competitiveness
Education Programs
Income Level
Educational Level
Constant
F = 11.721, Signif F = 0.000; R2 = 0.710
changes in Agricultural Product Marketing by psychological, economical and personal
B
0.302
0.235
0.434
0.543
0.344
0.458
0.543
5.654
SE B
0.391
0.066
0.254
0.335
0.034
0.434
0.448
0.469
Beta
381
0.015
0.312
0.213
0.365
0.545
0.434
-
T
2.090
3.556
1.965
1.235
3.982
2.337
3.443
4.522
Tsig
0.012
0.009
0.001
0.015
0.002
0.003
0.000
0.000
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