FARMERS’ INCOME RISKS AND MARKETING CHANNEL CHOICES: CASE OF DATE PALM PROCESSING IN BISKRA, ALGERIA

Abstract

This article aims at analyzing Algerian farmers’ choices of marketing channels in the date-palm supply chain. Five main marketing channels were investigated: local market, intermediaries, conditioning structure, processors contracting and complete integration. Primary data collected from a sample of 118 date farmers through a field survey in Biskra region. Beside some basic statistical tools, a multinomial discrete choice model was used to analyze and evaluate the major factors affecting marketing channel choices. From the main results of this study, it was concluded that downstream vertical integration practices are lead by income-related risks minimization, and the upstream vertical integration is favorable for further downstream vertical integration. The research would provide valuable information about the date palm producer’s marketing decision-making process and thus would contribute to improving the efficiency and effectiveness of dates industry in Algeria.