Economic Efficiency of Olive Oil Marketing at the Producers’ Level in the Coastal Region of Syria

Ghasan Baddour (1)*, Gahasn Yacoub (1) and  Mahmoua Alio(1)

(1) Dep. Agricultural Economics,Fac. Agric, Tishreen Univ., Lattakia, Syria.

(*Corresponding author: Ghasan Baddour E-mail:

Received: 3/04/2020                                   Accepted: 11/05/2020


The research aimed to study the marketing chain of olive oil and evaluating its effectiveness at the producer’s level, using quantitative and descriptive analysis methods, and this based on preliminary data collected in 2018 from a regular stratified sample of 350 farmers distributed in Lattakia and Tartous villages, according to their contribution to the total olive oil production. The results showed that the marketing options available to farmers focused on six marketing episodes, the most important of which was the wholesaler, the olive oil presses and the consumer, which demanded about 36.7%, 18.9% and 18.5% of the total quantities offered by the producers. The demand for the quality types of oil presented by the producers differed between these episodes, where the demand for the extra virgin oil was distributed in all these marketing episodes, and focused in the wholesalers’ one by 30.4%. While the demand for good olive oil was distributed in five ones and concentrated in the wholesalers and olive oil presses by 43.9% and 31% in each, respectively.  As for ordinary oil, it was limited to four episodes, and focused on both of wholesalers and consumers, at 37.2% and 30.4% each, respectively.  This was in light of the demand of companies and exporters focusing on extra and good olive oil by 100% and 82.7% of its total purchases of olive oil, respectively. In general, marketing costs decreased at the level of producers, estimated at about 78.8 SP / kg, as they constituted only about 7.5% of the total costs, and were mainly concentrated in packing costs by (50.9%), while the rest was distributed between storage and transportation costs by 26.6% And 22.5% each. In parallel, the producers were able to achieve a net profit of about 19% on average, and this indicator has increased to reach its maximum limit in the case of selling to exporters and companies by an value of 681.4 SP / kg and 570.3 SP / kg each, respectively. While the producers exposed to a net loss in the case of selling to presses estimated at -19 SP / kg. In the same context, the marketing efficiency increased according to the cost index, reaching 92.5% at the total sample level. While this efficiency decreased according to the sales value index, estimated at only 16.1%, its  minimum value was in the case of selling to presses estimated at -1.9% only, while its maximum value was estimated at 38.5% and 34.5% in the case of selling to the exporters and companies respectively. In general, the elasticity of the supply price at the producers level increased by about 5, which indicates the ability of producers to control the quantities offered, in light of expectations of an increase in selling prices in subsequent periods.

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