Study of the Marketing System for Organic Rice and Chamomile in Egypt
The marketing process of the various commodities is one of the most important processes that integrate vertically with the production processes. As the production processes in all its aspects are all that concern the product, the marketing process occupies both the producer and the consumer because of its direct influence in determining the prices of producers and consumers of the commodity. As well as their indirect impact on maintaining the characteristics of the goods’ produced. Despite the health and environmental benefits of organic products, they are characterized by relatively high prices and high marketing margins. This makes the demand relatively low compared to conventional goods, as well as restricting them to certain categories of the society that are aware of the usefulness of their use and their ability to purchase them.
The research aims to study the marketing system of organic rice crop in field crops and the organic chamomile in medicinal and aromatic plants, also to identify their main marketing problems so that the marketing efficiency can be achieved in all stages, along with the other product services performed to reach the consumers in reasonable prices, leading to better product spread and more demand. In addition, spreading awareness to the problems and marketing obstacles facing the adoption of organic farming method and proposing appropriate solutions for more expansion. The study found some important results:
• The share of farms decreased where it was estimated by LE 49.14% in case of export abroad and 34.4% in case of internal marketing of the organic rice crop. In addition, the chamomile crop was estimated to decrease by 55.13% of the factory pound.
• Lower marketing efficiency in case of using marketing margins due to the large value of margins without proper corresponding marketing services, where it was estimated by about 27.78%, 35.87% for both rice crops and organic chamomile, respectively. This is shown in case of using low marketing costs for calculating marketing efficiency, this shows the exploitation of traders to producers of organic agriculture, where estimated by about 87.26%, 77.65 each, respectively.
The study presented some suggestions to address the marketing problems that hinder the spread of organic agriculture:
To reduce the prices of organic products by; increasing production and productivity, reducing production costs, encouraging the establishment of agricultural cooperatives or a consortium of organic agriculture producers, spreading consumer awareness among citizens, informing them of the advantages of using organic agricultural products, reducing registration and inspection fees, encouraging the establishment of specialized local markets for organic crops and products.
Keywords - Marketing System, Marketing Efficiency, Marketing Margins, Organic Agriculture.