Transcript Agricultural marketing in Saudi Arabia

Agricultural marketing in Saudi
Arabia: Existing, difficulties
and solutions
Dr. Safar H. Al-Kahtani
Dept. of Agricultural Economics
College of Food and Agriculture
Science
King Saud University
Saudi Arabia
Agricultural marketing in Saudi Arabia:
Existing, difficulties and solutions
-Introduction
-Research methodology
-Results
Introduction
• The structural changes that have occurred in agriculture of Saudi
Arabia increased the relative importance of vegetables and fruit
products at production and marketing,
• Reaching the planted area of vegetables in Saudi Arabia about 106
thousand hectares annually, while the area planted with fruit about
195 thousand hectares annually, in the average for the period 19992004,
• The Kingdom produced about 2.127 million tons of vegetables and
about 1.259 million tons of fruit in the average period.
• The markets of Saudi Arabia is open to global markets, interact with
export and import activities in the framework of the trade policies of
Saudi Arabia, in the light of controls and conditions and obligations
of the Kingdom joining the World Trade Organization and regional
and international obligations.
The Importance of this study was seeking to respond to a
series of fundamental questions that can be identified as
follows:
1. Is marketing margin of vegetables and fruits high?
2. If high marketing margin, what is the stage or the organization
responsible for the high marketing margin in the marketing system
of vegetables and fruits?
3. What are the ways and means that can be followed in order to
reduce the marketing costs of vegetables and fruits?
4. Is it possible to improve the quality of products and marketing
services that already exist, and at what cost?
5. Is it possible to improve the performance of equipment , materials,
methods and approaches to marketing-based system, is it possible
to improve the level of marketing technical practice?
6. What are the problems and impediments to the efficiency of the
marketing, and what are the cost to improve the performance of
existing marketing techniques?
•
•
•
•
•
•
Is it possible to find some pictures of coordination and integration in
vegetables and fruits marketing channels so as to facilitate the
marketing operations and raise efficiency of marketing?
Is there a marketing information that would allow good performance
of the marketing system?
What are empowered to provide efficient information system that
improves the marketing price efficiency?
Is there a system for the marketing of vegetables and fruits in the
Kingdom market environment suitable to prevent monopoly, fraud
and guarantee the rights and facilitate dealings and protect the just
interests of all parties to the marketing?
What are the appropriate procedures and regulations to improve
the regulatory environment and infrastructure for the marketing of
vegetables and fruits?
What is the expected return for producers when improvements
variables related to the improvement of efficiency process and price
and market environment in the marketing of vegetables and fruits?
Research Methodology
•
•
•
Research depends on both descriptive and analytical methods through reliance on
the secondary data published in the official organization, and the preliminary data will
be gathered through field studies on samples representative of the community of
producers , marketing organization and traders from different parts of the Kingdom.
The research interest is to estimate each of the marketing profit , marketing margin ,
structure cost , assess the spoilage of products in the marketing stages, and shares
of producers of consumer payments, as well as shares of the various organization
and functions, including marketing, and the factors responsible for weak marketing
efficiency for all commodities studied at all levels, agencies, and marketing channels
of vegetables and fruits products,
The study and analysis of the factors that can be upgraded to all the technical
services and marketing functions, identify ways to move from the current situation to
the optimal situation, to raise the efficiency of the marketing in the context of accurate
scientific knowledge in all its aspects and variables and inclined, and then to define
the role of private and government organization in improving the efficiency of the
current marketing and determine the size of investments required for this
improvement.
The research will focus on the relevant variables and
efficient marketing of the products studied. And it
could limit the study variables as follows:
• Marketing margins and its distribution between marketing cost
and profit according to the various marketing stages.
• Loss and damage in various vegetables and fruit products.
• Price level of vegetables and fruit.
• Marketing information.
• Marketing risk.
• Financing of marketing operations and investment returns in
marketing activities.
• Market structure variables of vegetables and fruit products and
also for marketing services conduct.
• Marketing devices conduct related to vegetables and fruit
marketing in the Kingdom.
• This study focused on products that represent various regions of the
Kingdom of both producers and various marketing organization of the main
products of vegetables and fruits (potato, tomato, cucumber, onions,
melons, honey dew, dates, oranges, grapes, other fruit).
•
The study covered 12 cities represent the five regions as follows:
1-Jeddah, Medina: The western region.
2-Riyadh, Al-Kharj, Al Qassim: The central region.
3-Dammam, Ahsa: The eastern region.
4-Ha'il, Jawf, Tabouk: The northern region.
5-Khamis Mushayt, Jizan: The southern region.
• The sample size was 311 form questionnaire distributed as follows:
6 agricultural companies.
90 farm producers.
44 farm to palm growers.
56 dealer wholesale and importer.
87 retailer.
12 wholesale market.
10 forms of transport companies.
12 form of cold stores.
5 – 4 – organization ‫ع‬
Research results
The agricultural marketing status and the general market
features of the vegetables and fruit in the Kingdom
Vegetables and fruit marketing system
Mrkt. Equli.
And Integ.
Evaluation
Marketing
Services
Information
finance
Fiscal:
Exchange:
Selling
Storage
moving
spatial
temple
Marke
ting
Proble
ms
Market.
Efficiency
analysis
Mrkt.
margin
price
levels
buying
Proposals to improve the efficiency of systems marketing of
vegetables, fruits and making appropriate mechanisms for application
The agricultural marketing status and the general features
of the markets of vegetables and fruit in the Kingdom
• Limited equipments of most the current market for vegetables and
fruit, as most of the markets not surrounded by fence for ease of
control, and the lack of regular or cold warehouse for storage, and
there is no weight gates of weight inside and outside of products,
and most of store shops are not conditioned and, in addition to the
lack of presence parks to trucks and cold stores in most markets.
• Weak market regulation, as there is no mechanism to record
incoming and outgoing quantities of vegetables and fruit, the lack of
effective control over the functioning of auctions in all markets, in
some cases allow for individuals to combine work as auctioneers
and retailers in the same market, the spread of the phenomenon of
indiscriminate selling without a license within the market, the
difficulty of monitoring Saudization, and the high rents in some
market stores.
•
•
•
•
•
Monopoly control auctioneers on the market through controlling the price
award in the auctions, to the disadvantage of farmers.
There were some wrong practices by the retailers (the owners Alambasit)
through competitive relationship turning them to a cooperative relationship
with respect to serving joint agreement not to maneuver in the auction and
at the expense of producers.
The low number of practitioners in auction and the disappearance of
farmers during the bid.
Increased supply in the market, especially in the peak seasons of
production, export competition and non-effective application of the
agricultural calendar.
Differing views dealers in the market on the application of the Saudization in
the market among agreed to the application to provide an opportunity for
citizens to work and increase their income, and opponents on the basis that
Saudization led to a lack of activity, dealings in the market.
Marketing problems
• Marketing problems from the viewpoint of producers of
vegetables and fruit .
• Marketing problems from the viewpoint of the farmers
palm.
• Marketing problems from the viewpoint of wholesalers
and importers.
• Marketing problems from the viewpoint of retailers.
• The most important problems facing the marketing of
agricultural products contributing companies.
‫ التسويق الزراعي في المملكة العربية‬:‫الواقع والصعوبات والحلول السعودية‬
5–4–‫عس‬
Marketing problems from the viewpoint of vegetables and fruit
producers and their relative importance in the Kingdom in 2005
Labor problems
High price risk
unorganized whole market
Imoprt competiton
High production cost
Production surplus
Auction problems
Lack of marketing services
High natural hazard
High marketing cost
Shortcoming of mkt. institution
Lack of mkt. supervision
Inability to finance product
20.6
17.3
13.6
12.1
8.4
6.5
6.1
4.7
3.7
2.3
2.3
1.9
0.5
Marketing problems from the viewpoint of dates producers and their
relative importance in the Kingdom in 2005
High price risk
unorganizing wholesale markets
Production surplus
Auctions problems
Shortcomings of institutions
Lack of supervision
High natural hazards
Labor problems
Lack of marketing services
High production costs
Competition importer
High marketing costs
Inability to financial products
19.8
15.4
8.8
8.8
8.8
6.6
6.6
6.6
6.6
5.5
4.4
1.1
1.1
‫ التسويق الزراعي في المملكة العربية‬:‫الواقع والصعوبات والحلول السعودية‬
5–4–‫عس‬
Marketing problems from the viewpoint of whole market trader ,
importers , and their relative importance in the Kingdom in 2005
Unorgnized whole market
Labor problems
High marketing cost
High price risk
Lack of mkt. services
Production surplus
Lack of supervision
Import competition
Inability to finance products
High production cost
High natural hazard
Auction problems
Lack of mkt. institution
27.1
17.7
10.4
8.3
7.3
6.3
5.2
5.2
4.2
3.1
2.1
2.1
1
‫ التسويق الزراعي في المملكة العربية‬:‫الواقع والصعوبات والحلول السعودية‬
5–4–‫عس‬
Marketing problems from the viewpoint of retailer and their relative
importance in the Kingdom in 2005
19.9
Unorganized whole market
18.6
High price risk
High natural hazard
13.5
Labor problems
12.2
Auction problems
7.7
Lack of mkt. services
7.1
6.4
High marketing cost
5.8
Production surplus
Lack of supervision
2.6
Lack of mkt. institution
2.6
Inabiltiy to finance products
2.6
Import competition
1.3
The most important problems facing the marketing
of agricultural products contributing companies
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•
•
•
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•
•
Auctioneers control of the central markets of vegetables and fruit and their
influence on the mechanisms of supply and demand, which is determined
by the market price and therefore the negative impact on the levels of sales
prices obtained by the companies.
Compete with imported products.
The absence of institutions that organized production in particular seasons,
and in a similar synchronized supply of agricultural products both locally and
from neighboring countries.
Lack of coordination among the agricultural companies, despite their
agreement on the composition of the Saudi agricultural.
The problem of providing labors which impact negatively on the efficiency of
production and marketing.
High production costs.
Lack of commitment by some customers and factories contracts result of
access to lower prices in the market.
Marketing systems efficiency of vegetables and fruits can
be analyzed through answering questions on the following
subparagraph:
• Is marketing margin of the products of vegetables and fruit under
study high?
• If marketing margin is high, what stage or organization is
responsible for high marketing margin?
• What is the quality of marketing services in the marketing of
products, vegetables and fruit under study? What level of technical
used in the performance of such services? Is it appropriate?
• How integration or coordination or balance in marketing systems of
vegetables and fruit in terms of place and time and form?
• What is the level of concentration or relative balance in marketing
systems of vegetables and fruits?
• Are marketing environment of vegetables and fruits in the Kingdom
appropriate to reduce the monopoly and achieve stability, efficiency
equity and growth?
‫ الواقع والصعوبات والحلول‬:‫التسويق الزراعي في المملكة العربية السعودية‬
5–4–‫عس‬
The former questions Could be answered by Beginning with an
analysis of price levels and marketing margins , Then evaluate the of
markets equilibrium and integration of vegetables and fruit.
Mkt. equilib.
&integ.
evaluation
Marketing
equilibrium
Marketing
integration
Marketing
efficiency
analysis
Marketing
margins
Price
levels
Marketing systems efficiency analysis:
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•
•
Through study and analysis at the price of vegetables and fruit have been
learned:
Lower prices of imported products that compete the domestic products
during the months of calendar-as in the case of tomatoes and onions-as
well as lower wholesale and retail prices of crops produced locally during
the calendar application, and this could be interpreted to increase domestic
production, and sometimes increase the quantity of imports during the
calendar-as in the case of watermelons - This reflects the problem of
competition importer and the actual implementation of the problems
calendar.
Rates drop in wholesale prices larger than the decline in the rates of retail
prices of all vegetable and fruit for domestic and imported, and coefficient
values for the difference in real retail prices at the level of the Kingdom of all
vegetable crops and fruits imported and local-except onions imported is less
than the valuable factor for the difference at wholesale prices, or retailers
prices were more stable, which means that vegetable and fruit farmers
suffering from the highest price risks.
• Wholesale and retail prices of vegetables and fruits imported
relatively higher than those of local vegetables and fruits as well as
the margin between the wholesale and retail for imported onions
only, but for the margin was equal to the margin of the local potato
and less than local tomato, and for the wholesale and retail fruit
prices for imports were higher than those of local. The margin was
the highest values of the local except Apricot.
• Coefficient difference values of retail real price less than the
difference coefficient values of the margin between the wholesale
and retail, for all crops of vegetables and fruit. This reflects that
much of the instability in prices is absorbed by intermediaries more
from the consumer. It should be noted that this result is supported
by Tweeten (1979) where he the marketing sector serve as shocks
absorb in developing countries in the short term, but in the long term
the high prices at the farm gate are charged to the consumer in full.
Marketing margin and marketing cost structure based on field data
derived from all parties of marketing products regulations answers the
weakness of the efficiency of marketing systems where possible to draw
the following:
• The marketing margin between the farm price and retail price 0.97,
1.27, 0.84, 0.80, 0.92 and 0.90 Riyal/ kg of tomato, cucumber,
potatoes, onions, melons and honey dew, respectively.
• Descent represented 20.0% to 25.0% of the marketing margin
between the farm and wholesale price while 75.0% to 80.0%
between the price of wholesale and retail, for various crops.
• Farm share of the retail price at the level of parts of the Kingdom
was 52.45%, 51.50%, 47.80%, 45.60%, 44.24% and 50.28% for the
same crops respectively.
• Marketing margin between the farm and retail price of the dates was
14.13, 6.88, 2.86, 2.68, 1.55 and 2.55 Riyal / kg of varieties
diabetes, Albrahi, Asalj, Nbot Seif, and Almnevi Alrothen
respectively.
• The bulk of the marketing margin between the wholesale and
retail price of the various kinds of dates (more than 80.0% on
average).
• The share of the retail price farms 40.60%, 50.10%, 56.00%,
57.50%, 74.20% and 63.60% ‫ل‬same items dates respectively.
• Marketing and high margin decline in the share of farm crops
vegetable crops compared to the relatively dates although the
share of farms generally is not low does not give a clear
reference to the inefficiency of the marketing of vegetable crops
and dates in the Kingdom.
• Included marketing costs for vegetables and fruit crops for local
sorting and grading and packing on the farm, transportation costs
from the farm to the wholesale market, and transport costs of the
wholesale market for retail location and the costs of sorting and
grading the retail level and other costs borne by the retailerinclude rent, and depreciation and higher energy-cost items
marketing of vegetables and fruit crops represented costs borne
by the retailer, the cost of sorting and grading the retail level and
the cost of sorting and grading and packing on the farm, and
storage costs for the crops dates.
• Total marketing costs level over the Kingdom hit 0.53,
0.51, 0.54, 0.53, 0.51, 0.55 and 1.23 Riyal / kg of tomato
crops, cucumber, potatoes, onions, melons, cantaloupe,
dates respectively.
• The proportion of total marketing costs of marketing
margin on the total level of the Kingdom was 54.6%,
44.0%, 64.3%, 66.3%, 55.4%, 57.3% and 24.1% for the
same crops mentioned respectively.
• Results indicate that a large part of the margin goes to
marketing profits wholesalers, brokers and retailers for
crops dates, which may indicate the weakness of the
efficiency of the marketing of crops dates in the
Kingdom.
• Included marketing costs for imported vegetables and
fruit crops transportation costs from wholesale market to
retail location, refrigerated transport costs, the cost of
sorting and grading and re-packing, refrigerated storage
costs ,and the costs incurred by the retailer.
• The highest cost items represented costs borne by the retailer, the
cost of sorting and grading and re-packaging and refrigerated
transport costs.
• Marketing costs total vegetable and fruit crops at the level of
imported parts of the Kingdom were 0.45, 0.34, 0.33, 0.48 and 0.57
Riyal / kg of crops tomatoes, potatoes, onions, oranges, grapes,
respectively.
• Total marketing costs as a proportion of total marketing margin of
vegetables and fruit crops at the level of imported parts of the
Kingdom were 60.8%, 56.7%, 57.9%, 39.3% and 32.0% for the
same crops mentioned respectively.
• Results indicate that a large part of the marketing margin for fruit
crops (oranges, grapes) goes to wholesalers, brokers and retailers,
which may refer to the weakness of the efficiency of the marketing of
imported fruit crops in the Kingdom.
Price relations and integration between the
markets of vegetables and fruit
•
Within the framework of analysis of the relations between price and
integration markets vegetables and fruit crops could arrange vegetables
according to the percentage of the markets that have shown the existence
of relations between price as follows:
Imported potatoes, Cantaloupe, potatoes local, local tomatoes, melons,
option, local onions, tomatoes imported Finally onion importer.
In terms of the presence of a perfect integration between the markets of
imported potatoes came to the fore, followed by tomatoes and potatoes
imported and local Melon and onion and then the local option. It notes the
absence of a full integration between any of the local markets tomatoes and
onions imported melons.
As for the fruit crops can be arranged in accordance with the moral relations
between the market price, it comes Apricot crop importer in the order
followed by grapes imported surges diabetes and then imported oranges
and dates sorts of salvation then classified Albrahi. It notes the lack of full
integration in any of the markets Apricot importer and dates and the type of
diabetes type Albrahi. It also notes the existence of a perfect integration in
the five pairs of markets oranges imported couple of markets dates
classified salvation, and one pair of imported grape markets.
•
This can be explained non-integration of markets to the lack of full information, where
information plays a key role in the disposal of non Altoaznet differences in prices
between markets through intermediaries. Besides the absence of market information
will lead to a deviation from the equilibrium prices in the long term and thereby
decreasing the likelihood of the presence of integration between these markets. It
should be noted that the flow of information is not necessarily to be through direct
contact between market participants, it may be through communication networks
remotely as trade in the shares, since the reliance solely on the direct contact
between sellers and buyers market gives a specific geographic location.
Also, the efficiency of the transport plays a key role in the integration of markets, in
addition to the high cost of transportation leads to a lack of utilization of the
comparative advantages in production in various regions, as well as the value of
agricultural products unit weight less than their counterparts in industrial products.
Here are highlights the importance of manufacturing to increase integration between
markets.
The greater the degree of risk and cost associated with trade and exchange of a
commodity market, the fewer opportunities there complementarities.
Finally, the existence of a state of full competition in one or both markets leads to a
lack of integration of markets.
The study and analysis of the spatial and
temporal dimension of vegetable markets
•
Through study and analysis of temporal dimension to vegetable markets under study
could draw:
Despite the increased supply of local potatoes to meet consumer needs during
periods period November-January and April-June imports large quantities of
potatoes. This, of course, leads to lower prices for potatoes to unacceptable levels to
producers, and raises questions about inadequate storage timetable for achieving
economic balance in the presentation of potatoes.
Potatoes produced in all parts of the Kingdom, but most of its production is
concentrated in the central region (49%) and North (50%), and give the central region
during production periods, ranging from the first of November till January (61%),
extending the second during April and May (39 %). The North is produced during the
period November-January (60%), a monthly in May and June (40%).
Shows Gini coefficient calculated (0.778) on the concentration of productive
disproportionate with the population distributions.
Shape problems potato producers in the region of Central and Northern how to
manage supply, and how to find some kind of balance of the time during the post of
storage.
The national production of onions about 38% of consumption needs, and continues to
import onions is most importantly to meet the needs of the market (62%) in terms of
quantity and quality.
•
Beyond the monthly supply of potatoes (domestic and imported) average
monthly requirements during the period from February until the end of May,
ranging from a low of 3.6 tons in May, a maximum of 25 thousand tons in
the month of April.
Local onion concentrated in the northern region (47%), Central (45%), and
give the central region produced gradually over six months (February-June),
while production is limited to the northern region only three months
(February-April).
The region is the central and northern regions are supplying other regions of
onions local needs, especially in the period from March to June for the
region of Central and February to April for the northern region.
Despite the existence of a permanent presentation of local tomatoes
throughout the year almost, except that the height of this presentation is
concentrated in the months of October, November, December and June and
July rates 9.09%, 16.50%, 14.03%, 9.88%, 9. 65% respectively. The
fluctuations in the presentation of tomatoes and the difficulty of storing one
of the most prominent features that hinder efficient distribution schedule
them.
• Different regions of the periods surpluses on productivity needs and
according to months, in the period January-February is the eastern
region is the supply of other regions, and in the period June-August
and October are the central region is the only area of supply, either
in the month of November each of the participating central region
The North and South to supply other regions.
The central region is considered the most important sources of
supply option in the Kingdom (44%) followed by the southern region
(21%) and North (14%) and East (13%) and finally the West (8%).
The central region is the northern region as well as areas of supply
option for other regions throughout the year except almost monthly
in April and October.
The months of June and July monthly peak production Cantaloupe
melons and exhibiting them about 88% of the production of melons
and about 96% of the Melon.
Concentrated melon production in the region and the North Central
(66.4%, 93%, respectively), followed by the Northern region (30%
and 3% respectively) are the main areas of supply for other regions.
Equilibrium market (spatial and temporal) of potato
among Saudi's region
Supply and store Central region
Northern region
area
Demand area
Nov-Jan Apr-Jun Nov-Jan Apr-Jun
July
Central
6359
0
0
0
region
August
6359
0
0
0
September
6294
0
0
0
October
6359
0
0
0
February
0
12063
0
)36(
March
0
12063
0
)36(
Apr-Jun
Western
)61(
0
20775
0
region
July
)61(
0
6461
0
August
)61(
0
4453
0
September
)61(
0
5333
0
October
)61(
0
169
0
Nov-Jan
0
0
0
40319
February
0
0
0
13444
March
0
0
0
13624
Apr-Jun
Eastern
9264
0
0
0
region Jul-Oct
13204
0
0
0
Nov-Jan
0
17714
0
(37)
Feb-Mar
0
12525
0
(37)
(130)
Northern Jul-Oct
0
7308
0
region Feb-Mar
(94)
0
6931
0
Southern Apr-Jun
36
0
9155
0
region Jul-Aug
36
0
7214
0
September
36
0
0
0
October
0
0
3607
0
Southern Nov-Jan
0
12606
0
5588
region February
0
0
0
6397
March
0
0
0
6459
Import Total
(ton) demand
(ton)
65
)36(
)36(
721
2729
1849
7013
0
0
0
0
0
(37)
(37)
0
0
798
0
3607
0
1989
0
84
6359
6359
6294
6359
12063
12063
20775
7182
7182
7182
7182
40319
13444
13624
9264
13204
17714
12525
7308
6931
9954
7214
3607
3607
20184
6397
6543
Equilibrium market (spatial and temporal) of tomato
among Saudi's region
Supply and store Central
area region
Demand area
Eastern
region
Northern
region
Southern
region
Imports
(ton)
January
Central region
-
1484
-
-
286
Western region
-
(102)
-
-
5087
Northern region
-
(151)
-
-
2462
Southern region
-
(59)
-
-
591
February
Central region
-
181
-
(88)
(81)
Western region
-
2187
-
375
7003
Northern region
-
(49)
-
(100)
1972
-
1580
1706
(100)
1362
March
Western region
1943
3472
Northern region
(68)
(49)
Transfer vegetables and fruit
•
Through the study of the transfer of vegetables and fruit during the
stages of marketing found:
•
Depends about 82% of the producers on the means of transport owned
them in the transfer of their products to wholesale markets. The capacity of
onions available about 37 tons of farm and about 75 kilograms of dunums.
The average investment per farm in providing transportation means about
133 thousand riyals.
The movement of farm products to wholesale markets shipments
consecutive numbering in the average shipment during the 1530 season
one, and the average amount transferred about 822 tons, and the average
mileage of one farm about 17 thousand meters during a single season and
needs of each product tons of vegetables to leap distance $ 209 km on
average, which leads to higher transportation costs.
The small farms are the most intensive use of the means of transport
compared to their size, and the farm more specialized in the production of
vegetables and fruits more intensive use of the means of transport least
specialty.
•
•
•
Transfer vegetables and fruit
•
•
The producers of dates has transfer capacity higher than the others, where
the average transport capacity available to the farm about 92 tons of dates
on average, and the movement dates farms produced waves of up to 36
payment, depending on the items and the dates of collection.
Owns wholesalers of auto-cooled small, medium and large 2.5, 2.5 and 3.6
in the average car, and cars refrigerated small, medium and large 2.4, 1.8
and 8.1 in the average car. The wholesalers who engage in activities import
more categories of intermediaries are equipped means of transport,
especially large and refrigerated. The use of such intermediaries such
means in the transfer products to the shops or stores, as well as the central
market of shops or stores to their customers, and notes that the auctioneers
are more categories of traders contribute to the transfer of products to
market and cost less than other groups (56 riyals / tonne), but traders
understand more brokers sentence contribute to the delivery of vegetables
and fruit wholesale markets central to the places referred to the retail level.
The role of auctioneers in transport activity in the front or rear direction in
the channel marketing at small distances.
•
•
•
•
Retailers rely usually on the means of transport available in a simple
wholesale markets, and owns some wholesalers and special shops with
private car transfer half of a small amount not exceeding 29 thousand riyals.
Despite the existence of a specialized transport companies and has
potential transfer of refrigerated and non-refrigerated great, but that its role
in transporting vegetables and fruits limited (21 tons per year) not to exceed
10% of the volume of activity, usually carrying vegetables and fruit imported
from Jordan, Lebanon, Syria and Turkey Egypt, Kuwait, the United
Emirates, Bahrain, Qatar and South Africa as it begins operation of the
border points of the Kingdom is the case of Ammar and modern Jeddah
Islamic Port and Mina boy and Dammam.
Carriers usually transported vegetables and fruit in refrigerated trucks load
of 20 tons, or in non-refrigerated trucks load of 10 tons, according to the
products transported, and transportation costs vary according to distance
and the nature of the commodity transported.
There are many technical problems, administrative and economic barriers
efficient transfer of vegetables and fruit through specialized carriers.
The vegetables and fruit storage
services
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Through study and analysis service of storage vegetables and fruit found the
following:
Vegetables and fruit do not be stored in the traditional farms , where directly transfer
to the market after collection, and finds many of the farmers need to provide regular
and refrigerated warehouses at the farm level through marketing loans.
Has 59% of the producers of dates warehouses for storage on the farm for up to five
months.
The mediators sentence are the largest groups interested in the function of storing
vegetables and fruit as normally have their warehouses and refrigerated normal
average area of 215 m 2 and 2 in 1239 at an average cost of 119 A and 3.214 million
riyals respectively, as well as the availability of machines and download the
necessary loading.
The approximately 68% of the mediators sentence disposing vegetables and fruit
products directly without storage.
Refrigerator limited role in the storage of vegetables and fruits, especially local and
confined to store seed potatoes imported products are mostly on the activities of most
refrigerators, especially oranges, grapes imported as well as other fruits such as
apples, bananas, pears and others.
Some refrigerators used in storage for the benefit of their owners are leasing to
others in addition to storage for the benefit of the owner.
Information-risk funding
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The risk affecting economic activity marketing for producers, wholesalers and
retailers, the actual proportion ranged Kingdom or the possibility that some producers
to sell their products at prices less than their counterparts prevailing in the market at
a 95% confidence between a minimum 56.2% 57.4% ceiling. Also present
wholesalers and importers to market risks, which suffered a number of losses
amounted to wholesalers accounted for 75%, due to weak demand and rising wages
and low productivity employment and the difficulty of obtaining financing, in addition
to price and natural risk.
The marketing information deficient and inconsistencies in data from different
quarters therefore focused development plans seventh and eighth creation of a
detailed data on the economic and social aspects in different regions.
The finance marketing of factors stimulating activity of marketing for producers,
wholesalers and retailers. It was found that different regions of producers wishing to
obtain loans to purchase and transport means and the establishment of warehouses
and sorting and grading machines. The retailers rely on their marketing on selffinancing, while the percentage of loans to capital investor for 17.7%.
Proposals to improve the efficiency of marketing systems of
vegetables and fruits and making appropriate mechanisms
for application
• Practical solutions to raise the efficiency of marketing vegetables
and fruit
The application of the mechanisms proposed solutions to raise
the efficiency of the marketing of vegetables and fruits
• The organization of production and supply in the market
• Improving the infrastructure of the central markets
• Performance management market
Preparation and processing of marketing
• Providing information and data market
• Organization of Saudization, rehabilitation and training of national
employment
•
Activating the role of agricultural cooperatives in the area of
agricultural marketing
• Take advantage of the WTO provisions
• In the light of the findings of the study could suggest
some practical solutions that will contribute to improve
the marketing efficiency of vegetables and fruit in the
Kingdom, in line with local materials available and
consumer needs of local and global variables, as follows:
• The organization of production in the regions and supply
in the market to find some kind of balance and spatial
and temporal price between markets.
• Attention to the preparation, processing and marketing in
the fields of production, including sorting and grading,
packaging, refrigeration and storage first and then ship
the products to the market.
• Improving the infrastructure of the central
markets of vegetables and fruit or the creation of
new markets.
• The organization dealing in the market, and
activate the role of the municipalities and
monitoring auctions.
• Provide data and market information through a
database and integrated market information and
accurate serves all parties to the process
marketing.
• Ization organize agricultural labor productivity
and marketing with the rehabilitation and training
of national employment.
• Support and encourage agricultural cooperative
societies and activate its role to raise the
efficiency of agricultural marketing through
market coordination and market equilibrium
temporal, spatial and formal and benefit savings
capacity of marketing services.
• Take advantage of the provisions of the World
Trade Organization, and negotiations for the
accession of the Kingdom of the organization to
upgrade marketing of vegetables and fruits.
Thank you,,,
May peace and God's mercy and
blessings