Marketing Margins And Market Efficiency For Vegetables In Malaysia

Author(s): Bisant Kaur

Keywords: Marketing margins, food marketing, food security, market efficiency, agricultural marketing

DOI:
 

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Abstract: :The vegetable industry of Malaysia plays an important role in meeting the food requirements of the domestic population. The per capita consumption of vegetables has increased from 54.1 kg in 2008 to 57.3 kg in 2013, and the self-sufficiency level of the country has increased to an estimated 91.3% in 2014 compared with 58.4% in 2012. However, the efficient distribution of food is an important consideration toward ensuring food security. This study examined the marketing costs, margins, and returns for ten types of vegetables. Primary data were collected from five states that represented the various regional zones of Malaysia. Face-to-face interviews were carried out with 215 respondents consisting of farmers, wholesalers, and retailers. The study obtained mixed results, which indicated the existence of marketing efficiency for five of the ten vegetable types studied. The farmers’ share of the consumer dollar ranged from 32% to 60%, the wholesalers’ margin varied from 17% to 29%, and the retailers’ margin was between 18% and 30%.

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