oa Agriprobe - Marketing margins for agricultural products : why farm and retail prices differ

Volume 5, Issue 4
  • ISSN : 1810-9799



Why are farm and retail prices different? Both consumers and producers have expressed concerns about the size of margins and have asked why marketing margins change over time. Moreover, if a margin increases (or decreases), what is the incidence of the change on farm and retail prices? Why do margins differ among products? What can farmers do to capture a larger share in the final retail price? If a marketing cost, such as wage rate increases, does this result in a higher retail price or a lower farm price, or some combination of the two? An attempt is made in this essay to provide some useful insights into these questions.

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