Intermediation Choice for Tomato Producers in Turkey

Turkey, due to its geographic location and consumption habits, has always been an important producer of fresh fruits and vegetables. However, agriculture is dominated by small and medium sized holdings in Turkey like in many developing countries. Small capacities and also limited technology hinders developing production and creates marketing problems for producers. This study aims to bring up to date the marketing channel choice made by producers between different types of intermediaries. Merchants and wholesale market agents are the main actors in the market which can be distinguished according to their possession on the product and compensation after the exchange. Their functions are examined under the transaction cost and agency theories and analyzed by an econometric analysis.