Indian Journal of Marketing
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJM-June12-Article2-Coffee Market Liberalization And Private Sector Performance In Tanzania
- Price : 80.00
- Published on March 23, 2013
- Associated Management Consultants (P) Ltd.
- Issues 520
- Language - English
- Published monthly
About this issue
In the traditional neo-classical view, a high market share usually implies market power and exploitation of consumers or producers. However, following high transaction cost of marketing in developing countries, concentrated markets can sometimes be seen as efficient outcomes of competitive behaviour. This paper analyzes the performance of coffee traders in Rungwe District Tanzania following market liberalization in 1994. The focus of the study was on market share, producer price and gross margins across the 11 coffee-buying companies which participated in the 2008/9 marketing season. Using Concentration ratio and Herfindal Index techniques, the results show a high market concentration suggesting that only few companies were controlling a large share of the coffee trade in the district. Nevertheless, there was no strong evidence to suggest that traders were exploiting farmers as companies’ gross margins were modest and producer price increased as compared to the period before the market liberalization. High marketing costs resulting from expensive and time-consuming licensing procedures, poor transport infrastructure and low coffee production levels seem to erode most of the coffee profits in the district.
About Indian Journal of Marketing
INDIAN JOURNAL OF MARKETING (ISSN 0973-8703) is a double blind peer reviewed refereed monthly journal, which was started in 1968. It is the oldest and the only monthly journal of Marketing in India. It is an authentic research publication dealing with Marketing; Advertising; Consumer Behaviour; Sales Management; Advertising & Promotion Management; Business Education; Business Information Systems (MIS); Business Law; Communication; Direct Marketing; E-Commerce; Global Business; Health Care Administration; Marketing Research; Marketing Theory & Applications; Office Administration/Management; Organizational Development; Production/Operations; Public Administration; Retailing; Sales/Selling; Services; Tourism, Hospitality & Leisure; and Industrial Organization.