Marketing Channel Choice and Marketing Timing of Peri-urban Vegetable Growers in Vietnam

Agriculture is an important sector in the peri-urban area of Hanoi. It supplies 62 to 80% of vegetable consumption, of which 28% comes from Dong Anh district, which borders Hanoi City. Growing vegetables is an important income source for the farmers in Dong Anh as it contributes about 30% to their family earnings. Marketing channel choice and marketing timing affects farmers? profit by the obtained output price and the necessary (transaction) costs. This study focuses mainly on these factors? impact on output price. The influence of marketing channel choice and marketing timing on the output price has been analysed by performing One Way ANOVA and Post Hoc Bonferroni Tests with data of 63 households in Dong Anh collected in 2003 and 2004 by the VEGSYS project. The three most important vegetables in the area were selected: kohlrabi (Brassica oleracea), wrapped heart mustard (Brassica juncea var. rugosa), and wax gourd (Cucurbita hispida). To analyse which household characteristics influence the choice of marketing channel and marketing timing, T-tests and logistical regressions have been performed, next to qualitative interviews with farmers and traders. Output prices are significantly different between marketing channels. Farmers receive significantly higher kohlrabi and wrapped heart mustard prices from the farm gate collector than when they sell it at the local market. Farmers receive the highest wax gourd price at the Hanoi wholesale market, which requires good quality contrary to the local market. Farmers with high opportunity costs sell to the collector or at the local market. Farmers with large quantities will sell to the collector or at the Hanoi wholesale market. Timing of marketing also influences output price. Vegetables sold in the early season receive significantly higher prices than in the rest of the year. The profit however, is often not higher in the early season due to higher labour and capital costs. Farmers selling in the early season have a significantly higher education level than those selling in regular season