Int. J. Value Chain Management, Vol. 8, No. 4, 2017 307
Copyright © 2017 Inderscience Enterprises Ltd.
Assessment of bargaining power, market risk and
coordination costs in the Thailand cassava marketing
channel
John K.M. Kuwornu
School of Environment, Resources and Development,
Asian Institute of Technology,
Thailand
Email: jkuwornu@gmail.com
Shahab E. Saqib*
Regional and Rural Development Planning,
Asian Institute of Technology,
Thailand
and
Economics Faculty,
Higher Education Department,
Khyber Pakhtunkhwa, Pakistan
Email: shahabmomand@gmail.com
*Corresponding author
Abstract: This paper examined the balance of bargaining power, market risks
and coordination costs among producers and wholesalers in the Thailand
cassava marketing channel using annual data spanning 1980–2007. The results
revealed that cassava producers were exceedingly risk averse and that there was
bilateral bargaining power between the producers and wholesalers. The
variability in profit for the wholesalers was higher than that of producers. The
coordination cost generally showed positive linear trend over the years and this
demonstrates the existence of information asymmetry in the marketing channel.
The policy recommendations are presented.
Keywords: bargaining power; market risk; coordination cost; cassava;
Thailand.
Reference to this paper should be made as follows: Kuwornu, J.K.M. and
Saqib, S.E. (2017) ‘Assessment of bargaining power, market risk and
coordination costs in the Thailand cassava marketing channel’, Int. J. Value
Chain Management, Vol. 8, No. 4, pp.307–324.
Biographical notes: 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.