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Research Journal of Economics & Business Studies - RJEBS - The ...

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lack <strong>of</strong> capital. <strong>The</strong> local farmer organizations lack very basic facilities like storage and transport. Due<br />

to these reasons they are mostly confined their activities within the Jaffna district. This situation has<br />

given provision to the private hands and middlemen to exploit the red onion market in Jaffna<br />

peninsula. To overcome this the farmer organization or cooperatives has to be strengthen.<br />

Conclusions and Recommendations<br />

‘Knowing the market price’ and ‘investment in future’ are encouraging the market participation<br />

<strong>of</strong> the farmer. In contrast ‘last year investment’ and ‘Member in a producer group’ are discouraging<br />

red onion producers to participate in the market. From this the research concludes that the availability<br />

<strong>of</strong> market information vastly deciding the choice <strong>of</strong> the marketing channels. Hence it is important to<br />

both government and non government sectors to take effort in disseminating the market information to<br />

the red onion farmers is expected to increase the farmers share via choosing a most pr<strong>of</strong>itable channel.<br />

Moreover if any <strong>of</strong> the non pr<strong>of</strong>iteering organization could come forward to perform the transport<br />

function on behalf <strong>of</strong> the farmers is expected to increase the farmers share tremendously. Organizing<br />

the red onion farmer societies or organizations is expected to increase the bargaining power<br />

collectively on behalf <strong>of</strong> the individual farmers. This will intern expect to help the farmers to choose<br />

the most suitable and pr<strong>of</strong>itable marketing channel.<br />

REFERENCE<br />

Boger, S. (2001), Quality and contractual choice: a transaction cost approach to the Polish hog market,<br />

European Review <strong>of</strong> Agricultural <strong>Economics</strong> 28: 241-261.<br />

Gow, H.R., & Swinnen, J.F.M. (1998), Up- and down-stream restructuring, foreign direct investment<br />

and hold-ups in agricultural transition, European Review <strong>of</strong> Agricultural <strong>Economics</strong> 24: 331-350.<br />

King, R. P. (1992), Management and Financing <strong>of</strong> Vertical Coordination: An Overview, American<br />

<strong>Journal</strong> <strong>of</strong> Agricultural <strong>Economics</strong>, 74 (5) (December): 1217-1218.<br />

Den Ouden, M., Dijkhuizen, A.A., Huirne, R.B.M., & Zuurbier, P.J. P. (1996), Vertical<br />

Cooperation in Agricultural Production-Marketing Chains, with Special Reference<br />

to Product Differentiation in Pork. Agribusiness, 12 (3) 277-290.<br />

Peterson, H.C. & Wysocki, A. (1997), <strong>The</strong> Vertical Coordination Continuum and the<br />

Determinants <strong>of</strong> Firm-Level Coordination Strategy, Michigan State University Staff Paper No. 97-64,<br />

1997.<br />

Poole, N.D., Del Campo Gomis, F.J., Igual, J.F.J. and Giménez, F.V. (1998), Formal<br />

contracts in fresh produce markets. Food Policy, 23, 131-142.<br />

Weleschuk, I.T. and Kerr, W.A. (1995), <strong>The</strong> Sharing <strong>of</strong> Risks and Returns in Prairie<br />

Special Crops: A Transaction Cost Approach, Canadian <strong>Journal</strong> <strong>of</strong> Agricultural<br />

<strong>Economics</strong> 43: 237-258.<br />

Ministry <strong>of</strong> Agriculture, Animal Industry and Fisheries (MAAIF) and Ministry <strong>of</strong> Finance,<br />

Planning and Economic Development (MFEPD), 2000, Plan for Modernization <strong>of</strong><br />

Agriculture: Eradicating Poverty in Uganda. Final draft, April 2000, Government <strong>of</strong> the<br />

Republic <strong>of</strong> Uganda, 32-40.<br />

www.theinternationaljournal.org > <strong>RJEBS</strong>: Volume: 02, Number: 06, April-2013 Page 50

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