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Economic overview of the distribution channels used by Eastern European small farms for their agricultural products

Author

Listed:
  • Vladimir Ristanović

    (Institute of European Studies, Belgrade, Serbia)

  • Aleksandra Tošović-Stevanović

    (Institute of International Policy and Economy, Belgrade, Serbia)

  • Silvia Maican

    (Business Administration and Marketing Department, Faculty of Economics, '1 Decembrie 1918' University of Alba Iulia, Alba Iulia, Romania)

  • Andreea Muntean

    (Business Administration and Marketing Department, Faculty of Economics, '1 Decembrie 1918' University of Alba Iulia, Alba Iulia, Romania)

Abstract

The role of small farms in agricultural production is particularly important for less developed economies, with a high share of agriculture in GDP and a lower level of national income. These economies have a high share of small-scale farms in the total number of registered farms, measured by the size of an agricultural holding. The paper thoroughly analyses the distribution channels of the agricultural products of Moldova (MDA), Romania (ROM), and Serbia (SRB). The data sources for this analysis are taken from the survey conducted on 1 608 small-scale farms in the above-mentioned countries in 2019. The aim of the paper is to develop a model that could enable the structured analysis of distribution channels. Analytical Hierarchy Process (AHP) method was used for efficient assessment and as a criterion for choosing the most appropriate distribution channel. The results of the analysis show that small-scale farms mostly place their products in green markets and processing plants and that the quality and the price of agricultural products are the dominant criteria for the selection of a channel. The results of the applied model indicate that the model is stable and that small-scale farms can choose the optimal distribution channel by using this study.

Suggested Citation

  • Vladimir Ristanović & Aleksandra Tošović-Stevanović & Silvia Maican & Andreea Muntean, 2022. "Economic overview of the distribution channels used by Eastern European small farms for their agricultural products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(8), pages 299-306.
    • Handle: RePEc:caa:jnlage:v:68:y:2022:i:8:id:168-2022-agricecon
    DOI: 10.17221/168/2022-AGRICECON
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    References listed on IDEAS

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    1. Ali Akbar Barati & Hossein Azadi & Milad Dehghani Pour & Philippe Lebailly & Mostafa Qafori, 2019. "Determining Key Agricultural Strategic Factors Using AHP-MICMAC," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    2. Yun-Cih Chang & Min-Fang Wei & Yir-Hueih Luh, 2021. "Choice of Modern Food Distribution Channels and Its Welfare Effects: Empirical Evidence from Taiwan," Agriculture, MDPI, vol. 11(6), pages 1-13, May.
    3. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    4. Aleksandra Tošović-Stevanović & Vladimir Ristanović & Dragan Ćalović & Goran Lalić & Milena Žuža & Gorica Cvijanović, 2020. "Small Farm Business Analysis Using the AHP Model for Efficient Assessment of Distribution Channels," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    5. Kallirroi Nikolaou & Efthimia Tsakiridou & Foivos Anastasiadis & Konstadinos Mattas, 2017. "Exploring Alternative Distribution Channels of Agricultural Products," International Journal of Food and Beverage Manufacturing and Business Models (IJFBMBM), IGI Global, vol. 2(2), pages 36-66, July.
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