Marketing practices of fruit and vegetable processing industries in Thrissur district

Abstract

The study entitled "Marketing Practices of Fruit and Vegetable Processing Industries in Thrissur District" was undertaken to examine the practices in procurement of inputs, selection of product mix and cost and to examine the marketing efficiency of the fruit and vegetable processing industries. Fruit and vegetable processing units, falling respectively in the classes of ‘oldest unit in the district', ‘excellent unit in the district’, ‘co-operative form of organisation’, and ‘a household

rural unit’ were selected from the district. Farmers

intermediaries in the procurement of raw materials, intermediates in the distribution network of processed products and consumers were selected randomly for gathering primary data. The data was collected during the period 1993-1995. Simple averages, percentages, tables, non-paramatric test and direct reporting comprised the methodology. The main raw materials used by the processing industry was fruits and vegetables collected from local production centres. However, raw materials were also procured from out-of-state production centres when insufficiency was felt and to improve the product range. The number of channels and intermediates in the procurement process was lengthy, but were performing certain critical functions at times. So the study suggests a revised model which

combines the positive aspects of each channel and also provides satisfaction to the farmers, functionary and processing units. The product mix of the oldest unit was the highest while that of the rural household unit was the lowest. It was observed that when product mix was higher, price of products also went up. The marketing efficiency of the distribution network analysed through functional, price spread and consumer response analysis revealed that channel involving dealers was the most effective channel. Finally, a new model, from procurement of raw materials to distribution of procesed items, is suggested for improving the performance of processing industries.