International Flower Networks: Transparency and Risks in Marketing Channel Choice
AbstractTwo thirds of Kenyan cut flowers are marketed through Dutch flower auctions, while the remainder is marketed directly to retailers. Auctions do not restrict the volumes marketed; however price determination is based on a spot market. A Transaction Cost approach is used to investigate the differences in marketing costs between the channels. The results suggest that there are no differences between the channels in terms of uncertainty about prices, finding buyers or transparency of quality standards. Auction growers pay a higher marketing fee but they have significantly fewer office employees and flower varieties compared to growers who market directly.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 99th Seminar, February 8-10, 2006, Bonn, Germany with number 7759.
Date of creation: 2006
Date of revision:
Transaction Costs; Auction; Flowers; Kenya; Netherlands; Agribusiness; International Relations/Trade;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jill E. Hobbs, 1996. "Transaction costs and slaughter cattle procurement: Processors' selection of supply channels," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 509-523.
- Mulu Gebreeyesus & Tetsushi Sonobe, 2012.
"Global Value Chains and Market Formation Process in Emerging Export Activity: Evidence from Ethiopian Flower Industry,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 48(3), pages 335-348, September.
- Mulu Gebreeyesus & Tetsushi Sonobe, 2011. "Global Value Chains and Market Formation Process in Emerging Export Activity: Evidence from Ethiopian Flower Industry," GRIPS Discussion Papers 11-13, National Graduate Institute for Policy Studies.
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