Academic journal article International Journal of Marketing Studies

Site Selection of Local Marketing Cooperatives of Agricultural Crops in West Azerbaijan Province, Iran

Academic journal article International Journal of Marketing Studies

Site Selection of Local Marketing Cooperatives of Agricultural Crops in West Azerbaijan Province, Iran

Article excerpt

Abstract

Undoubtedly one of the necessities of today's world is the competition with other countries to achieve a balanced position, yet superior in many aspects of economic, social, political and cultural aspects. Based on the statistics, 31.54 percent of the Iran total population lives in rural areas where agriculture is the main source of their income. One of the major problems of agricultural economy in Iran refers to many brokers and intermediaries in the transfer of goods from the producer to the consumer. This reduces the producer's share of the proceeds from the sale of products. Agricultural marketing cooperatives are very important tools to decrease this gap. So in this research have been tried to know and recognize the best places in creating Local Marketing Cooperatives of Agricultural Crops in West Azerbaijan Province, Iran.in this regard, 18 place information layers have been used and finally the best places were known.

Keywords: local marketing, cooperatives, agricultural crops, West Azerbaijan, Iran

1. Introduction

West Azerbaijan province produces about 30 percent of total apple production in Iran and is allocated to the first position (Statistical Yearbook of Agriculture, 2004). However, despite of having 7 frontier areas and 9 active customs, the main market is affected by the brokers and intermediaries. Based on available statistics, west Azerbaijan with about13 million dollars exports has the 4th rank of agricultural exporters in Iran. Approximately 16 million dollars of agricultural commodities produced in the West Azerbaijan province have not been exported from formal customs and areas in fact only 42 percent of agricultural export commodity has been exported from the customs Province (Iran exporting Workgroup, 2011). Jalalzadeh (2008), in his research confirmed that more than 60 percent of Apple growers in West Azerbaijan sell their products through intermediaries. According to Najafi (2003), cooperatives by sustaining the farmer income and eliminating the role of intermediaries can help to the rural welfare. The share of marketing cooperatives than total trading in Cyprus and Kuwait were respectively 35 and 80 percent (Alizadeh, 2003). The results of this research can draw an approach for related organizations to design and implement suitable and effective strategies enhancing benefits for both producers and consumers and finally help to sustainable rural and agricultural development.

2. Literature Review

2.1 Agricultural Marketing

The new concept of marketing was considered since 1960 and the focus shifted from the product to the customer In the past, persuade the potential customers to purchase the product was the Instrument to achieve greater profitability, but in new Paradigm, all elements of the marketing mix (4P) are constituted the instruments to achieve this goal. These elements are: product, price, persuade, channel and location of distribution (Keegan, 2001). Boluriyan Tehrani (2001) believed that the elements of marketing mix are: Product, Place Distribution, Price, Packaging, Public Relations, People, Power and Promotion. Agricultural marketing is a form of marketing that encompasses all goods and services related to the field of agriculture. All these products directly or indirectly support the effort to produce and deliver agricultural products from the farm to the consumer (wiseGEEK, 2013). Sedaghat (2000), in his research about the problems of pistachio marketing recognized that the pistachio marketing is ineffective. Ashrafi et al. (2005) revealed that the share of intermediaries is very high in agricultural trades while Mehdipour et al. (2005), emphasizes on high rate of agricultural marketing margin in Iran. Rinarts et al. (2005) and Dong (2007), believed that Lack of effective communication between the producer and the consumer can enhance rate of agricultural marketing margin. Mutual effective relation between the producer and the consumer has mentioned in Mizuno et al. …

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