Marketing Margins And Marketing Efficiency For Fruits In Malaysia

Author(s): Bisant Kaur*, Mohd Hafiz Mohd Adnan, Faidz Afizi, Mohamed Mohd Riduwan Mohd Hussin, Mohd Mukhriz Mohd Moktar

Keywords: Marketing efficiency, fruit marketing, fruit industry, farmer returns, food security, marketing margins, agricultural marketing

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Abstract: : Fruit marketing in Malaysia is characterised by a large number of smallscale growers producing fruits with inconsistent quality and quantity, with a few players concentrating on the wholesale level. This research was carried out to study the marketing costs, margins, and returns for fruits in Malaysia and to determine whether marketing efficiency exists in the fruit sector based on a comparison between net returns and value of services. A total of 185 respondents were interviewed in a survey that included 11 types of fruits at farm, wholesale, and retail levels. The study found that the marketing of six types of fruits was efficient, whereas that of the other five fruits was inefficient. The farmers’ share of the consumer ringgit ranged from 40% to 61%, whereas the wholesalers’ margin varied from 30% to 59% and the retailers’ margin was between 15% and 28%. Farmers should focus on those fruits that yield for them the highest share of the consumer ringgit, i.e., above 50%. These fruits are Berangan banana, Chokanan mango, Sarawak pineapple, and papaya.

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