Volume 1 , Disember 2008

3. The Broiler Chicken Industry in Malaysia: Some Evidences on The Structure, Conduct and Performance

Author(s): Bisant Kaur and Fatimah Mohamed Arshad
Keywords: Structure-conduct-performance, industry concentration, market integration, cointegration, livestock, Malaysia.

Abstract: The broiler chicken industry in Peninsular Malaysia has undergone major structural changes in recent years, notably the increasing vertical integration in the industry, which has led to concerns over market power by wholesalers at the expense of producers and consumers. This paper investigates the performance of the broiler market by applying the Structure, Conduct and Performance approach. Using primary data collected from a survey on the wholesale market for broilers, it was found that there was a high degree of concentration in most of the wholesale markets as evident by the high concentration ratio and Herfindahl-Hirshman Index. There are also several conditions that restrict the entry of new players. However, in spite of structural rigidities, the study found evidence of spatial market integration using cointegration analysis. This finding suggests that the government could reconsider price control policy measures in the market.

4. Distribution Channel  of Tropical Fruits in the Netherlands Market

Author (s): Siohong Tih, Azhar Ahmad, Mohd Fauzi Mohd Jani
Keywords: Tropical fruits, Distribution Channel, Netherland Market, Importer, Supermarket

Abstract: Tropical fruits have started to gain acceptance in the European market. For instance, banana, papaya and pineapple are commonly available at the retail food outlets in Europe. However, only selected tropical fruits are distributed and the main source of these fruits are the Asian countries. With the increased awareness of the value of these fruits that is associated with healthy eating, the potential of fruits in general and tropical fruits in particular is huge. Subsequently, it is crucial to understand the structure of tropical fruit supplies in the European market in order to design appropriate channels that would reach the ultimate targeted market segments. Hence, the objectives of this paper are to explore the supply and distribution structure of tropical fruits in the Netherlands market; and to identify distribution channel structure of tropical fruits. In this study, 100 industry channel members were interviewed to gain first-hand information about tropical fruit supplies in the context of the Netherlands. The Netherlands is chosen due to its strategic location as a gateway to European markets. Content analysis of interview responses and percentage counts of quantitative data were included in the research results. Findings of this research indicated that tropical fruits are brought into the Netherlands through importers and wholesalers and then they are distributed to retail outlets such as supermarkets, retail stores and traditional open markets. In addition, the findings indicate that in order to access high-end consumer segments via supermarket chains, the quality of tropical fruits is important. The alternative channels via retailers and traditional grocers are also available at a lower margin. The findings from this research can serve as useful guidelines for tropical fruit producers and exporters to support their decision making.