Agricultural and Rural Economics

Agricultural and Rural Economics

Investigating the Global Market Structure and Prioritizing the Target Markets for Exporting Agricultural Products of Zanjan Province of Iran

Document Type : Original Article

Authors
1 Assistant professor. Zanjan Agricultural and Natural Resources Research and Education Center
2 Assistant Professor of Agricultural Economics, Agricultural Planning, Economic and Rural Development Research Institute (APERDRI). Tehran. Iran
Abstract
 
Introduction: The first step in exporting is to identify the target market and clarify customer needs. Choosing the right target market is also the first step for a successful marketing strategy. When selecting a target market, it is necessary to take into account the marketing mix and consumer preferences of the destination country. By identifying the target market, the producer can focus its marketing, sales, research and decision-making activities optimally. It is important to note that export marketing does not simply mean identifying buyers or importers from the destination country and encouraging them to place orders; rather, it is the correct implementation of the process developed in the form of a marketing strategy in order to achieve success in the international market. Market structure represents the organizational characteristics of the market and can be used to determine the relationships between market components. The market structure lies between the two well-known situations of perfect competition and perfect monopoly. Two factors of fundamental importance in the structure between competition and monopoly are the number of sellers and their size.
Materials and Methods: This aimed at investigating the structure of world markets and determining the most suitable target markets for the export products of Zanjan province in Iran, including raisins, apples, apricots, onions, potatoes, tomatoes and garlic during the period 2015-2019. In order to examine the structure of the markets, concentration ratios and Herfindahl-Hirschman indices were calculated and to prioritize the target markets, the screening method was used. For this purpose, time series data on domestic production, quantity and export value of the exportable products to importing countries were collected and analyzed. Therefore, the concentration ratio (CR) and Herfindahl-Hirschman index (HHI) were calculated to examine the structure of the markets as well as the screening methods were utilized to prioritize the target markets.
Results and Discussion: The study results showed that the market structures for agricultural products were different from each other and the export priority for countries was also diverse. Therefore, a list of priority target markets was provided based on the type of exportable products. Calculation of the Herfindahl-Hirschman Index (HHI) showed that the international markets for raisins, apples, potatoes and onions were subject to monopolistic competition, while the global markets for apricots and tomatoes were a loose oligopoly and a dominant firm for garlic.
Conclusion and Suggestions: According to the study findings, it is suggested that by benefiting from modern marketing strategies, identifying the taste and health standards of the target markets, the competitiveness of the export products of the province should be strengthened and the necessary measures should be taken to gain a greater share of the international markets.

 
Keywords

  • Amjadi, A., Mohammadzadeh, R., & Barikani, E. (2010). Determining target market of iran's pistachio and date export using export demand model and screening method. Agricultural Economics and Development, 18(2), 193-220. DOI: 10.30490/aead.2010.58809. [In Persian]
  • Asiabani, N., Rafiee, H., Aminizadeh, M., & Mehrparvar Hosseini, E. (2020). Determining the structure of saffron target markets and analyzing its impact on Iranian exports. Saffron Agronomy and Technology, 8(3), 421-426. DOI: 10.22048/jsat.2020.217710.1379. [In Persian]
  • Cao, T. T., & Nha, H. T. (2020). Analysis of export market structure for Acacia wooden furniture in Vietnam. Ho Chi Minh City Open University Journal of Science, 10(2), 27-41. DOI: 10.46223/HCMCOUJS.econ.en.10.2.575.2020.
  • Chizari, A. H., Riahi, A., & Aminizadeh, M. (2013). Prioritization of target markets for raisins of major global exporters (with the approach of identifying Iran's competitive potential in these markets). Agricultural Economics, 8(4), 59-88. [In Persian]
  • Cooper, R. G. (2001). Winning at new products: accelerating the process from idea to launch. Third Edition, Perseus.
  • Dodo, F., & Umar, S. (2015). Analysis of structure, conduct and performance of beef marketing in Katsina State, Nigeria. Global Educational Research Journal, 3(11), 370-375.
  • FAO (2021). Area, production of Viet Nam F&V and exports to the EU exports (Appendix 7). In: Evaluation report: Final evaluation of the systematic mechanism for safer trade project. Independent Evaluation Unit. Food and Agriculture Organization (FAO). Retrieved at 30 September, 2021. Available at: http://www.fao.org/faostat/en/#home.
  • Garba, N. (2019). Structure of egg marketing in Katsina Metropolis, Katsina State, Nigeria. Journal of Environmental & Agricultural Sciences, 20, 45-50.
  • Herfindahl, O. C. (1959). A general evaluation of competition in the copper industry, copper costs and prices. 1870-1957. Hohns Hopkins Press, Baltimore.
  • Hosseini, S. S., Kavousi Kalashami, M., & Darijani, A. (2008). Investigating the comparative advantage and prioritization of target markets for the export of Iranian caviar. Journal of Agricultural Sciences and Natural Resources, 15(3), 1-8. [In Persian]
  • Kazempour, A., Rafiee, H., Noroozi, H., zarer, S., Yousefzadeh, L., & Kaboudtabar, M. (2022). Prioritization of Iranian tomato target markets based on market competition indicators. Journal of Agricultural Economics and Development, 36(1), 49-65. DOI: 10.22067/jead.2022.72231.1075. [In Persian]
  • Khodaverdizadeh, M., & Mohammadi, S. (2017). Comparative advantages and analysis of international market structure of medicinal plants: case study of anise, badin, fennel and coriander. Agricultural Economics Research, 9(34), 153-174. DOR: 20.1001.1.20086407.1396.9.34.7.4. [In Persian]
  • Kotler, P., & Armstrong, G. (2016). Principles of marketing. 17th Edition, Pearson Education limited.
  • Maddala, G. C., Dobson, S., & Millen, E. (1995). Microeconomics, the regulation of monopoly. McGraw Hill Book Company Press.
  • Mahmoudi, M., Roohi, N., & Sabouhi Sabouni, M. (2018). Determination of the most appropriate target market for export raisin of Iran using fuzzy analytic hierarchy process. Agricultural Economics and Development, 26(101), 103-124. DOI: 10.30490/aead.2018.65201. [In Persian]
  • Majidian, M., & Dourandish, A. (2024). Prioritizing Iran's saffron target markets based on market competition indices. Journal of Agricultural Economics and Development, 38(2), 177-194. DOI: 10.22067/jead.2024.87254.1258. Available at https://jead.um.ac.ir/article_45252_17bf83a2e0d723ca12fba758b4f84ba1.pdf.
  • Mehrabi Boshrabadi, H., & Neshat, A. (2015). Investigation of effective factors on Iran’s comparative advantage in pistachio export and ranking of its target markets. Iranian Journal of Trade Studies14(55), 213-233. DOR: 20.1001.1.17350794.1389.14.55.7.8. [In Persian]
  • Mirbagheri, S., Rafiee, H., & Akbarpour, H. (2019). Market structure analysis and export pattern of Iranian saffron. Iranian Journal of Medicinal and Aromatic Plants Research, 35(5), 802-818. DOI: 10.22092/ijmapr.2019.124957.2479. [In Persian]
  • Mojaverian, S. M., Ahmadi Kaliji, S., & Aminravan, M. (2016). Determination of medical plant export target markets in Iran. Iranian Journal of Agricultural Economics and Development Research, 46(4), 729-737. DOI: 10.22059/ijaedr.2016.58028 [In Persian]
  • Piri, M., Mohammad-Rezaei, R., & Karbasi, A. (2010). Investigating the market structure and analyzing the target markets of Iranian apricots. Business Reviews, 40, 39-52. [In Persian]
  • Raheli, H. (2018). Srudy of comparative advantage and target markets for agricultural exports of East Azarbayjan province. Agricultural Economics Research, 9(36), 39-66. DOR: 20.1001.1.20086407.1396.9.36.3.4. [In Persian]
  • Rahmani, R. (2020). Study of broiler market structure at the producer and wholesale levels: a case study of Fars province. Agricultural Economics Research12(46), 211-234. [In Persian]
  • Rasekh Jahromi, E., & noraniazad, S. (2021). Non-parametric measuring of market structure and comparative advantage of Iran's medicinal plants export and its main trading partners. Journal of Industrial Economics Researches, 5(16), 35-46. DOI: 10.30473/indeco.2021.7660. [In Persian]
  • Shankaei, R., Aminizadeh, M., Riahi, A., & Talebian Kermani, T. (2014). Examining export market structure and target markets of Iranian raisins. The 9th Biennial Conference on Agricultural Economics of Iran. May 15-16, Tehran, Iran. [In Persian]
  • Yuzaria, D., & Rias, M.I. (2017). Market Structure of Beef Cattle Business in Payakumbuh West Sumatera. Journal of Advanced Agricultural Technologies, 4(4): 324-330. DOI: 10.18178/joaat.4.4.324-330
  • Zare, I. (2008). Examining the structure of the world market and the export market of Iranian almonds. Research and Construction in Agriculture and Horticulture, 78, 1-10. [In Persian]