Int. J. Value Chain Management, Vol. 10, No. 2, 2019 123
Copyright © 2019 Inderscience Enterprises Ltd.
Factors influencing the choice of marketing channels:
evidence from dairy farmers in Thailand
Thitiya Jitmun and John K.M. Kuwornu*
Department of Food, Agriculture and Bioresources,
School of Environment, Resources and Development,
Asian Institute of Technology, Thailand
Email: st118390@ait.asia
Email: jkuwornu@gmail.com
Email: jkuwornu@ait.asia
*Corresponding author
Abstract: This study assessed the factors influencing marketing channel choice
of dairy farmers in Thailand using primary data obtained from 385 randomly
selected dairy farmers in central and north-eastern regions of Thailand.
Two types of farmers were surveyed: members of dairy cooperatives (DCs) and
members of private organisations (POs) representing the two key marketing
channels. Descriptive statistics were used to identify the socio-economic
characteristics of farmers, and a binary probit regression model was used to
examine the factors influencing farmers’ decision regarding the choice of
marketing channels. The study revealed that dairy farming experience, the
number of years of membership in the milk collecting centres (MCCs), distance
to the MCCs, milk price, payment period, access to market information,
advisory service, credit service and farm input service had positive influence
whereas marketing experience had negative influence on the choice of selling
to the DCs. The recommendations are presented.
Keywords: binary probit regression; dairy cooperatives; smallholder farmers;
milk marketing channels; Thailand.
Reference to this paper should be made as follows: Jitmun, T. and
Kuwornu, J.K.M. (2019) ‘Factors influencing the choice of marketing
channels: evidence from dairy farmers in Thailand’, Int. J. Value Chain
Management, Vol. 10, No. 2, pp.123–140.
Biographical notes: Thitiya Jitmun was a graduate student in Agribusiness
Management in the Department of Food, Agriculture and Bioresources at Asian
Institute of Technology, Thailand, and is currently a Senior Officer at
Cooperative Promotion Department of Ministry of Agriculture and
Cooperatives, Thailand. Her areas of work interest are supply chain
management, cooperative organisation and networks, business development,
agro-industrial development, trade policies, global issues and agribusiness
management.
John K.M. Kuwornu is an Associate Professor of Agribusiness Management
at the Asian Institute of Technology, Thailand. His areas of teaching and
research include agricultural marketing and trade, agricultural development,
agricultural policy, marketing channels, consumer behaviour, supply chain
management, commodity futures markets, econometrics, quantitative methods,
climate change, agrobiodiversity and stock markets.