The impact of farm/farmer’s characteristics on marketing channel selection by sheep farmers
in Cornwall in U.K
C.A. Tsourgiannis2, L. Tsourgiannis1, J. Eddison2 and A. Errington1
University of Plymouth, School of Geography, Newton Abbot TQ12 6NQ, UK. Email:ctsourgiannis@plymouth.ac.uk
2
University of Plymouth, School of Biological Sciences, Newton Abbot TQ12 6NQ, UK.
1
Introduction Little is known about the strategic management process of farmers and particularly about the factors and
the farmers’ characteristics that influence them to choose a particular strategic alternative. Some studies have attempted
to identify the characteristics of farmers using particular channels. Distribution risk and transaction cost are some
factors that influcence marketing decision making (Royer 1995, Hobbs 1996). This paper examines which farm and
farmer’s characteristics affect the choice of marketing channel by sheep producers in the county of Cornwall in UK.
Materials and methods An eight page questionnaire was developed in a postal survey to be conducted aiming to
identify the marketing channels that were used by farmers, the characteristics of their farms and the farmers themselves
as well as the factors that influence them to adopt a particular marketing channel. The questionnaire was piloted in
spring of 2003 in 26 sheep farmers operated in Cornwall. The main survey conducted in the summer of 2003 in a
sample of 240 sheep farmers in the County of Cornwall in U.K. The effective response rate was 17.5%. The sample for
the pilot survey was derived randomly from membership lists of the NFU South West Office while the main survey was
conducted on other NFU members. Those lists included 266 sheep farmers operating in the County of Cornwall. The
relationship between the factors affecting the choice of marketing channel and the selection of a particular marketing
outlet, was assessed through the Kruskal-Wallis non parametric test. The one way chi-square analysis was employed to
investigate the association between farm’s and farmer’s characteristics and the selection of each identified marketing
channel.
Results The results of the survey identified five categories of marketing channels that are presented in Figure 1. The
chi – square analysis indicated a significant association between direct sales to abattoir and characteristics such as
holding responsible position in livestock marketing scheme (χ2 =8.333, df=1, P<0.01), holding responsible position in
farming organizations (χ2 =8.333, df=1, P<0.01), distance from marketing channels (χ2 =8.333, df=1, P<0.01) and
previous off-farm experience (χ2 =5.333, df=1, P<0.05). A significant association was also found between sales to more
than one marketing channel and holding responsible positions in farming organizations (χ2 =10.889, df=1, P<0.01),
holding responsible position with a non-farm business that farmers own (χ2 =14.222, df=1, P<0.001), farm income (χ2
=6.333, df=1, P<0.05), financial performance (χ2 =12.333, df=1, P<0.05), distance from marketing channels (χ2 =14,222
df=1, P<0.001), livestock price (χ2 =10.333, df=2, P<0.01), area leased from other farmers (χ2 =12.333, df=2, P<0.01),
livestock quota leased from other farmers (χ2 =10.889, df=1, P<0.01), non farm related activities (χ2 =16.333, df=2,
P<0.001) and previous off farm experience (χ2 =5.556, df=1, P<0.05). It was not identified any significant association
between the rest marketing channels and any of the examined farm and farmers characteristics. Through the KruskalWallis non parametric one way ANOVA test a significant relationship was found out (Figure 2) between factors such as
access to more buyers (P<0.05), ability to withdraw sample (P<0.05), ease of parking and unloading vehicles (P<0.05)
and marketing channel selection.
45.0%
30.0%
15.0%
7.5%
Livestock
Auction Markets
2.5%
Electronic
Auction
Direct to
Abattoir
Marketing Channels
Direct to
Sales to more
Abattoir via
than one
Group Marketing
marketing
Scheme
channel (Multi
Channel)
% Farmers using marketing channel
Figure 1: Marketing channel selection and utilisation
Average rank
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
35
30
25
20
15
10
5
0
Access to more buyers
Ability to withdraw
livestock
Easy Parking and
unloading vehicles
Factors affecting marketing Channel selection
Livestock Auction Markets
Electronic Auction
Direct to Abattoir
Direct to Abattoir via Group Marketing Scheme
Sales to more than one marketing channel (Multi Channel)
Figure 2: Factors affecting marketing channel choice
Conclusions The present study demonstrate that factors such as access to more buyers, ability of the farmer to
withdraw his livestock and easy parking and unloading vehicles influence the sheep farmers in Cornwall to adopt a
particular marketing outlet. Also many farm and farmer’s characteristics such as distance from marketing channel,
previous off farm experience, financial performance found to be related to the marketing channel selection by these
farmers.
References
Hobbs, J. E. 1996. A transaction cost approach to supply chain management. Supply Chain Management. 1 (2), 15-27
Royer, J. S. 1995. Industry Note - Potential for cooperative involvement in vertical coordination and value - added
activities. Agribusiness. 11 (5), 473-481
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