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

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

Abstract

THIS IS A WORKING DRAFT. PLEASE DO NOT CITE WITHOUT PERMISSION OF THE AUTHOR. 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.

Suggested Citation

  • Mohd Suhaimi, Nurul Aisyah & de Mey, Yann & Oude Lansink, Alfons, 2017. "A transaction cost analysis of Malaysian dairy farmers' marketing channel selection," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261436, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae17:261436
    DOI: 10.22004/ag.econ.261436
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    References listed on IDEAS

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    Keywords

    Agricultural and Food Policy; Marketing;

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