Examining the financial relationships between producers and commission agents in the greenhouse vegetable farming industry in Turkey

KARAMAN S., Yigit F.

BRITISH FOOD JOURNAL, vol.124, no.1, pp.366-382, 2021 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 124 Issue: 1
  • Publication Date: 2021
  • Doi Number: 10.1108/bfj-03-2021-0235
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, CAB Abstracts, Communication Abstracts, Food Science & Technology Abstracts, Hospitality & Tourism Complete, Index Islamicus, INSPEC, Metadex, Veterinary Science Database, Civil Engineering Abstracts
  • Page Numbers: pp.366-382
  • Keywords: Greenhouse, Vegetable, Commission agents, Advance, Wholesale, Logistic regression, INTERMEDIARIES, FARMERS, FRUIT, TRUST
  • Akdeniz University Affiliated: Yes


Purpose This paper is intended to investigate the economic, organizational and social factors affecting the receipt of advance payment by greenhouse vegetable producers from commission agents operating in the wholesale market. Design/methodology/approach The data were gathered through questionnaire forms developed for this specific purpose through face-to-face interviews with 180 producers growing greenhouse vegetables in the central district and Serik, Antalya in the Western Mediterranean Region of Turkey. A logistic regression model was employed to analyse the factors affecting the likelihood of greenhouse vegetable growers getting advance from commission agents. Findings A good financial status of enterprises producing greenhouse vegetables and the fact that their production input needs are met by cooperatives reduce their dependence on commission agents, thereby increasing their bargaining power when selling their products. Since producers can readily meet their need for the capital required for the vegetable production process from commission agents, they do not prefer to borrow from lending institutions making agricultural loans with requirements such as collateral. The fact that greenhouse vegetable farmers receive technical and market information and advice from commission agents strengthens their relationship with them. Originality/value It is the first study that evaluates in detail the financial aspect of the relationships between producers and commission agents in the greenhouse vegetables wholesale market. It contributes significantly to agricultural policymakers regarding the functioning of the greenhouse vegetable market, and in particular, the regulations on agricultural loans for production processes.