CIRDAP – Enabling Rural Communities

Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP)

An Intergovernmental & Autonomous Organization; Established in 1979, Mandated for Promoting & Strengthening Integrated Rural Development Systems for 15 Asia-Pacific Countries; Namely Afghanistan, Bangladesh, Fiji, India, Indonesia, IR Iran, Lao PDR, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Sri Lanka, Thailand & Vietnam.

Webinar on ‘why do Organized and Unorganized Marketing Channels Co-exist? A Case of Milk Marketing in Nepal’

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CIRDAP is going to organize its next webinar titled ‘why do Organized and Unorganized Marketing Channels Co-exist? A Case of Milk Marketing in Nepal’ on February 12, 2025. The honorable speaker is Binoy Goswami, PhD Associate Professor, Faculty of Economics, South Asian University, Maidan Garhi, and New Delhi, India.

Abstract

Marketing channels ensure that agricultural produces reach their target consumers, fetch fair prices, and contribute to the overall profitability of farming enterprises. Particularly for perishable goods like fruits, vegetables, milk, and so on, marketing channels are essential. This paper examines
the dynamics of milk marketing channels in Nepal through a case study of 103 milk-producing farmers in Lalitpur district.

The findings reveal that larger milk producers predominantly prefer organized marketing channels, such as milk collection centers operated by cooperatives or the private sector, whereas smaller producers utilize both organized and unorganized channels, including direct sales to households and businesses. An analysis of the factors influencing the choice of marketing channel highlights that pecuniary transaction costs are minimal for producers. However, unorganized channels involve significant non-pecuniary transaction costs such as, challenges in transporting milk to points of sale and handling fluctuations in milk production. On the other hand, fat-based pricing system in the organized channels discourages farmers from choosing these channels. Both exploratory and regression analyses validate these results.

The study explains the coexistence of organized and unorganized channels in terms of the distinct advantages that each type of channel offers. Furthermore, it identifies several socio-economic factors that shape producers’ choices of marketing channels. The paper contributes to the
understanding of the dynamics of milk marketing, and provides valuable implications for policy and practice in Nepal’s dairy sector.

To attend the webinar, click here for the zoom link:
https://zoom.us/j/95124674993?pwd=GlmaMO7gMgJpQpIAWbihvsbOD87Sjh.1
Meeting ID: 951 2467 4993
Passcode: 656793

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