Agricultural marketing in Saudi Arabia: Existing, difficulties

and solutions

Dr. Safar H. Al-KahtaniDept. of Agricultural Economics

College of Food and Agriculture Science

King Saud University

Saudi Arabia

Agricultural marketing in Saudi Arabia:   Existing, difficulties and solutions

-Introduction

-Research methodology

-Results

Introduction

• The structural changes that have occurred in agriculture of Saudi Arabia increased the relative importance of vegetables and fruit products at production and marketing,

• Reaching the planted area of vegetables in Saudi Arabia about 106 thousand hectares annually, while the area planted with fruit about 195 thousand hectares annually, in the average for the period 1999-2004,

• The Kingdom produced about 2.127 million tons of vegetables and about 1.259 million tons of fruit in the average period.

• The markets of Saudi Arabia is open to global markets, interact with export and import activities in the framework of the trade policies of Saudi Arabia, in the light of controls and conditions and obligations of the Kingdom joining the World Trade Organization and regional and international obligations.

The Importance of this study was seeking to respond to a series of fundamental questions that can be identified as

follows:

1. Is marketing margin of vegetables and fruits high?

2. If high marketing margin, what is the stage or the organization responsible for the high marketing margin in the marketing system of vegetables and fruits?

3. What are the ways and means that can be followed in order to reduce the marketing costs of vegetables and fruits?

4. Is it possible to improve the quality of products and marketing services that already exist, and at what cost?

5. Is it possible to improve the performance of equipment , materials, methods and approaches to marketing-based system, is it possible to improve the level of marketing technical practice?

6. What are the problems and impediments to the efficiency of the marketing, and what are the cost to improve the performance of existing marketing techniques?

• Is it possible to find some pictures of coordination and integration in vegetables and fruits marketing channels so as to facilitate the marketing operations and raise efficiency of marketing?

• Is there a marketing information that would allow good performance of the marketing system?

• What are empowered to provide efficient information system that improves the marketing price efficiency?

•   Is there a system for the marketing of vegetables and fruits in the Kingdom market environment suitable to prevent monopoly, fraud and guarantee the rights and facilitate dealings and protect the just interests of all parties to the marketing?

•   What are the appropriate procedures and regulations to improve the regulatory environment and infrastructure for the marketing of vegetables and fruits?

•   What is the expected return for producers when improvements variables related to the improvement of efficiency process and price and market environment in the marketing of vegetables and fruits?

Research Methodology

• Research depends on both descriptive and analytical methods through reliance on the secondary data published in the official organization, and the preliminary data will be gathered through field studies on samples representative of the community of producers , marketing organization and traders from different parts of the Kingdom.

• The research interest is to estimate each of the marketing profit , marketing margin , structure cost , assess the spoilage of products in the marketing stages, and shares of producers of consumer payments, as well as shares of the various organization and functions, including marketing, and the factors responsible for weak marketing efficiency for all commodities studied at all levels, agencies, and marketing channels of vegetables and fruits products,

• The study and analysis of the factors that can be upgraded to all the technical services and marketing functions, identify ways to move from the current situation to the optimal situation, to raise the efficiency of the marketing in the context of accurate scientific knowledge in all its aspects and variables and inclined, and then to define the role of private and government organization in improving the efficiency of the current marketing and determine the size of investments required for this improvement.

The research will focus on the relevant variables and efficient marketing of the products studied. And it

could limit the study variables as follows:

• Marketing margins and its distribution between marketing cost and profit according to the various marketing stages.

• Loss and damage in various vegetables and fruit products. • Price level of vegetables and fruit. • Marketing information. • Marketing risk. • Financing of marketing operations and investment returns in

marketing activities. • Market structure variables of vegetables and fruit products and

also for marketing services conduct. • Marketing devices conduct related to vegetables and fruit

marketing in the Kingdom.

• This study focused on products that represent various regions of the Kingdom of both producers and various marketing organization of the main products of vegetables and fruits (potato, tomato, cucumber, onions, melons, honey dew, dates, oranges, grapes, other fruit).

• The study covered 12 cities represent the five regions as follows: 1-Jeddah, Medina: The western region. 2-Riyadh, Al-Kharj, Al Qassim: The central region. 3-Dammam, Ahsa: The eastern region. 4-Ha'il, Jawf, Tabouk: The northern region. 5-Khamis Mushayt, Jizan: The southern region.

• The sample size was 311 form questionnaire distributed as follows: 6 agricultural companies. 90 farm producers. 44 farm to palm growers. 56 dealer wholesale and importer. 87 retailer. 12 wholesale market. 10 forms of transport companies. 12 form of cold stores.

Marketing Problems

Research results

organization – 4 – 5ع

The agricultural marketing status and the general market features of the vegetables and fruit in the Kingdom

Market. Efficiency analysis

price levels

Mrkt. margin

Mrkt. Equli. And Integ. Evaluation

templespatialFiscal:

Storage

movingExchange:

Selling

buying

Information

finance

Marketing Services

Proposals to improve the efficiency of systems marketing of vegetables, fruits and making appropriate mechanisms for application

Vegetables and fruit marketing system

The agricultural marketing status and the general features of the markets of vegetables and fruit in the Kingdom

• Limited equipments of most the current market for vegetables and fruit, as most of the markets not surrounded by fence for ease of control, and the lack of regular or cold warehouse for storage, and there is no weight gates of weight inside and outside of products, and most of store shops are not conditioned and, in addition to the lack of presence parks to trucks and cold stores in most markets.

• Weak market regulation, as there is no mechanism to record incoming and outgoing quantities of vegetables and fruit, the lack of effective control over the functioning of auctions in all markets, in some cases allow for individuals to combine work as auctioneers and retailers in the same market, the spread of the phenomenon of indiscriminate selling without a license within the market, the difficulty of monitoring Saudization, and the high rents in some market stores.

• Monopoly control auctioneers on the market through controlling the price award in the auctions, to the disadvantage of farmers.

• There were some wrong practices by the retailers (the owners Alambasit) through competitive relationship turning them to a cooperative relationship with respect to serving joint agreement not to maneuver in the auction and at the expense of producers.

• The low number of practitioners in auction and the disappearance of farmers during the bid.

• Increased supply in the market, especially in the peak seasons of production, export competition and non-effective application of the agricultural calendar.

• Differing views dealers in the market on the application of the Saudization in the market among agreed to the application to provide an opportunity for citizens to work and increase their income, and opponents on the basis that Saudization led to a lack of activity, dealings in the market.

Marketing problems

• Marketing problems from the viewpoint of producers of vegetables and fruit .

• Marketing problems from the viewpoint of the farmers palm.

• Marketing problems from the viewpoint of wholesalers and importers.

• Marketing problems from the viewpoint of retailers.• The most important problems facing the marketing of

agricultural products contributing companies.

Marketing problems from the viewpoint of vegetables and fruit producers and their relative importance in the Kingdom in 2005

20.6

17.3

13.6

12.1

8.4

6.5

6.1

4.7

3.7

2.3

2.3

1.9

0.5

Labor problems

High price risk

unorganized whole market

Imoprt competiton

High production cost

Production surplus

Auction problems

Lack of marketing services

High natural hazard

High marketing cost

Shortcoming of mkt. institution

Lack of mkt. supervision

Inability to finance product

العربية المملكة في الزراعي السعودية: التسويقوالحلول والصعوبات الواقع

س – 5 – 4ع

Marketing problems from the viewpoint of dates producers and their relative importance in the Kingdom in 2005

19.8

15.4

8.8

8.8

8.8

6.6

6.6

6.6

6.6

5.5

4.4

1.1

1.1

High price risk

unorganizing wholesale markets

Production surplus

Auctions problems

Shortcomings of institutions

Lack of supervision

High natural hazards

Labor problems

Lack of marketing services

High production costs

Competition importer

High marketing costs

Inability to financial products

Marketing problems from the viewpoint of whole market trader , importers , and their relative importance in the Kingdom in 2005

27.1

17.7

10.4

8.3

7.3

6.3

5.2

5.2

4.2

3.1

2.1

2.1

1

Unorgnized whole market

Labor problems

High marketing cost

High price risk

Lack of mkt. services

Production surplus

Lack of supervision

Import competition

Inability to finance products

High production cost

High natural hazard

Auction problems

Lack of mkt. institution

العربية المملكة في الزراعي السعودية: التسويقوالحلول والصعوبات الواقع

س – 5 – 4ع

Marketing problems from the viewpoint of retailer and their relative importance in the Kingdom in 2005

19.9

18.6

13.5

12.2

7.7

7.1

6.4

5.8

2.6

2.6

2.6

1.3

Unorganized whole market

High price risk

High natural hazard

Labor problems

Auction problems

Lack of mkt. services

High marketing cost

Production surplus

Lack of supervision

Lack of mkt. institution

Inabiltiy to finance products

Import competition

العربية المملكة في الزراعي السعودية: التسويقوالحلول والصعوبات الواقع

س – 5 – 4ع

The most important problems facing the marketing of agricultural products contributing companies

• Auctioneers control of the central markets of vegetables and fruit and their influence on the mechanisms of supply and demand, which is determined by the market price and therefore the negative impact on the levels of sales prices obtained by the companies.

• Compete with imported products.

• The absence of institutions that organized production in particular seasons, and in a similar synchronized supply of agricultural products both locally and from neighboring countries.

• Lack of coordination among the agricultural companies, despite their agreement on the composition of the Saudi agricultural.

• The problem of providing labors which impact negatively on the efficiency of production and marketing.

• High production costs.

• Lack of commitment by some customers and factories contracts result of access to lower prices in the market.

Marketing systems efficiency of vegetables and fruits can be analyzed through answering questions on the following

subparagraph:

• Is marketing margin of the products of vegetables and fruit under study high?

• If marketing margin is high, what stage or organization is responsible for high marketing margin?

• What is the quality of marketing services in the marketing of products, vegetables and fruit under study? What level of technical used in the performance of such services? Is it appropriate?

• How integration or coordination or balance in marketing systems of vegetables and fruit in terms of place and time and form?

• What is the level of concentration or relative balance in marketing systems of vegetables and fruits?

• Are marketing environment of vegetables and fruits in the Kingdom appropriate to reduce the monopoly and achieve stability, efficiency equity and growth?

العربية المملكة في الزراعي السعودية: التسويقوالحلول والصعوبات الواقع

س – 5 – 4ع

The former questions Could be answered by Beginning with an analysis of price levels and marketing margins , Then evaluate the of markets equilibrium and integration of vegetables and fruit.

Price levels

Marketing margins

Marketing equilibrium

Marketing efficiency analysis

Mkt. equilib. &integ.

evaluation

Marketing integration

Marketing systems efficiency analysis:

•   Through study and analysis at the price of vegetables and fruit have been learned:

• Lower prices of imported products that compete the domestic products during the months of calendar-as in the case of tomatoes and onions-as well as lower wholesale and retail prices of crops produced locally during the calendar application, and this could be interpreted to increase domestic production, and sometimes increase the quantity of imports during the calendar-as in the case of watermelons - This reflects the problem of competition importer and the actual implementation of the problems calendar.

• Rates drop in wholesale prices larger than the decline in the rates of retail prices of all vegetable and fruit for domestic and imported, and coefficient values for the difference in real retail prices at the level of the Kingdom of all vegetable crops and fruits imported and local-except onions imported is less than the valuable factor for the difference at wholesale prices, or retailers prices were more stable, which means that vegetable and fruit farmers suffering from the highest price risks.

• Wholesale and retail prices of vegetables and fruits imported relatively higher than those of local vegetables and fruits as well as the margin between the wholesale and retail for imported onions only, but for the margin was equal to the margin of the local potato and less than local tomato, and for the wholesale and retail fruit prices for imports were higher than those of local. The margin was the highest values of the local except Apricot.

• Coefficient difference values of retail real price less than the difference coefficient values of the margin between the wholesale and retail, for all crops of vegetables and fruit. This reflects that much of the instability in prices is absorbed by intermediaries more from the consumer. It should be noted that this result is supported by Tweeten (1979) where he the marketing sector serve as shocks absorb in developing countries in the short term, but in the long term the high prices at the farm gate are charged to the consumer in full.

Marketing margin and marketing cost structure based on field data derived from all parties of marketing products regulations answers the

weakness of the efficiency of marketing systems where possible to draw the following:

• The marketing margin between the farm price and retail price 0.97, 1.27, 0.84, 0.80, 0.92 and 0.90 Riyal/ kg of tomato, cucumber, potatoes, onions, melons and honey dew, respectively.

• Descent represented 20.0% to 25.0% of the marketing margin between the farm and wholesale price while 75.0% to 80.0% between the price of wholesale and retail, for various crops.

• Farm share of the retail price at the level of parts of the Kingdom was 52.45%, 51.50%, 47.80%, 45.60%, 44.24% and 50.28% for the same crops respectively.

• Marketing margin between the farm and retail price of the dates was 14.13, 6.88, 2.86, 2.68, 1.55 and 2.55 Riyal / kg of varieties diabetes, Albrahi, Asalj, Nbot Seif, and Almnevi Alrothen respectively.

• The bulk of the marketing margin between the wholesale and retail price of the various kinds of dates (more than 80.0% on average).

• The share of the retail price farms 40.60%, 50.10%, 56.00%, 57.50%, 74.20% and 63.60% لsame items dates respectively.

• Marketing and high margin decline in the share of farm crops vegetable crops compared to the relatively dates although the share of farms generally is not low does not give a clear reference to the inefficiency of the marketing of vegetable crops and dates in the Kingdom.

• Included marketing costs for vegetables and fruit crops for local sorting and grading and packing on the farm, transportation costs from the farm to the wholesale market, and transport costs of the wholesale market for retail location and the costs of sorting and grading the retail level and other costs borne by the retailer-include rent, and depreciation and higher energy-cost items marketing of vegetables and fruit crops represented costs borne by the retailer, the cost of sorting and grading the retail level and the cost of sorting and grading and packing on the farm, and storage costs for the crops dates.

• Total marketing costs level over the Kingdom hit 0.53, 0.51, 0.54, 0.53, 0.51, 0.55 and 1.23 Riyal / kg of tomato crops, cucumber, potatoes, onions, melons, cantaloupe, dates respectively.

• The proportion of total marketing costs of marketing margin on the total level of the Kingdom was 54.6%, 44.0%, 64.3%, 66.3%, 55.4%, 57.3% and 24.1% for the same crops mentioned respectively.

• Results indicate that a large part of the margin goes to marketing profits wholesalers, brokers and retailers for crops dates, which may indicate the weakness of the efficiency of the marketing of crops dates in the Kingdom.

• Included marketing costs for imported vegetables and fruit crops transportation costs from wholesale market to retail location, refrigerated transport costs, the cost of sorting and grading and re-packing, refrigerated storage costs ,and the costs incurred by the retailer.

• The highest cost items represented costs borne by the retailer, the cost of sorting and grading and re-packaging and refrigerated transport costs.

• Marketing costs total vegetable and fruit crops at the level of imported parts of the Kingdom were 0.45, 0.34, 0.33, 0.48 and 0.57 Riyal / kg of crops tomatoes, potatoes, onions, oranges, grapes, respectively.

• Total marketing costs as a proportion of total marketing margin of vegetables and fruit crops at the level of imported parts of the Kingdom were 60.8%, 56.7%, 57.9%, 39.3% and 32.0% for the same crops mentioned respectively.

• Results indicate that a large part of the marketing margin for fruit crops (oranges, grapes) goes to wholesalers, brokers and retailers, which may refer to the weakness of the efficiency of the marketing of imported fruit crops in the Kingdom.

Price relations and integration between the markets of vegetables and fruit

• Within the framework of analysis of the relations between price and integration markets vegetables and fruit crops could arrange vegetables according to the percentage of the markets that have shown the existence of relations between price as follows:   Imported potatoes, Cantaloupe, potatoes local, local tomatoes, melons, option, local onions, tomatoes imported Finally onion importer. In terms of the presence of a perfect integration between the markets of imported potatoes came to the fore, followed by tomatoes and potatoes imported and local Melon and onion and then the local option. It notes the absence of a full integration between any of the local markets tomatoes and onions imported melons. As for the fruit crops can be arranged in accordance with the moral relations between the market price, it comes Apricot crop importer in the order followed by grapes imported surges diabetes and then imported oranges and dates sorts of salvation then classified Albrahi. It notes the lack of full integration in any of the markets Apricot importer and dates and the type of diabetes type Albrahi. It also notes the existence of a perfect integration in the five pairs of markets oranges imported couple of markets dates classified salvation, and one pair of imported grape markets.

• This can be explained non-integration of markets to the lack of full information, where information plays a key role in the disposal of non Altoaznet differences in prices between markets through intermediaries. Besides the absence of market information will lead to a deviation from the equilibrium prices in the long term and thereby decreasing the likelihood of the presence of integration between these markets. It should be noted that the flow of information is not necessarily to be through direct contact between market participants, it may be through communication networks remotely as trade in the shares, since the reliance solely on the direct contact between sellers and buyers market gives a specific geographic location. Also, the efficiency of the transport plays a key role in the integration of markets, in addition to the high cost of transportation leads to a lack of utilization of the comparative advantages in production in various regions, as well as the value of agricultural products unit weight less than their counterparts in industrial products. Here are highlights the importance of manufacturing to increase integration between markets. The greater the degree of risk and cost associated with trade and exchange of a commodity market, the fewer opportunities there complementarities.   Finally, the existence of a state of full competition in one or both markets leads to a lack of integration of markets.

The study and analysis of the spatial and temporal dimension of vegetable markets

• Through study and analysis of temporal dimension to vegetable markets under study could draw: Despite the increased supply of local potatoes to meet consumer needs during periods period November-January and April-June imports large quantities of potatoes. This, of course, leads to lower prices for potatoes to unacceptable levels to producers, and raises questions about inadequate storage timetable for achieving economic balance in the presentation of potatoes. Potatoes produced in all parts of the Kingdom, but most of its production is concentrated in the central region (49%) and North (50%), and give the central region during production periods, ranging from the first of November till January (61%), extending the second during April and May (39 %). The North is produced during the period November-January (60%), a monthly in May and June (40%). Shows Gini coefficient calculated (0.778) on the concentration of productive disproportionate with the population distributions. Shape problems potato producers in the region of Central and Northern how to manage supply, and how to find some kind of balance of the time during the post of storage. The national production of onions about 38% of consumption needs, and continues to import onions is most importantly to meet the needs of the market (62%) in terms of quantity and quality.

• Beyond the monthly supply of potatoes (domestic and imported) average monthly requirements during the period from February until the end of May, ranging from a low of 3.6 tons in May, a maximum of 25 thousand tons in the month of April. Local onion concentrated in the northern region (47%), Central (45%), and give the central region produced gradually over six months (February-June), while production is limited to the northern region only three months (February-April). The region is the central and northern regions are supplying other regions of onions local needs, especially in the period from March to June for the region of Central and February to April for the northern region. Despite the existence of a permanent presentation of local tomatoes throughout the year almost, except that the height of this presentation is concentrated in the months of October, November, December and June and July rates 9.09%, 16.50%, 14.03%, 9.88%, 9. 65% respectively. The fluctuations in the presentation of tomatoes and the difficulty of storing one of the most prominent features that hinder efficient distribution schedule them.

• Different regions of the periods surpluses on productivity needs and according to months, in the period January-February is the eastern region is the supply of other regions, and in the period June-August and October are the central region is the only area of supply, either in the month of November each of the participating central region The North and South to supply other regions. The central region is considered the most important sources of supply option in the Kingdom (44%) followed by the southern region (21%) and North (14%) and East (13%) and finally the West (8%). The central region is the northern region as well as areas of supply option for other regions throughout the year except almost monthly in April and October. The months of June and July monthly peak production Cantaloupe melons and exhibiting them about 88% of the production of melons and about 96% of the Melon. Concentrated melon production in the region and the North Central (66.4%, 93%, respectively), followed by the Northern region (30% and 3% respectively) are the main areas of supply for other regions.

Supply and store area

Demand area

Central region Northern region Import (ton)

Total demand (ton)

Nov-Jan Apr-Jun Nov-Jan Apr-Jun

Central region

July 6359 0 0 0 6359August 6359 0 0 0 6359September 6294 0 0 0 65 6294October 6359 0 0 0 6359February 0 12063 0 )36( )36( 12063March 0 12063 0 )36( )36( 12063

Western region

Apr-Jun )61( 0 20775 0 20775July )61( 0 6461 0 721 7182August )61( 0 4453 0 2729 7182September )61( 0 5333 0 1849 7182October )61( 0 169 0 7013 7182Nov-Jan 0 0 0 40319 0 40319February 0 0 0 13444 0 13444March 0 0 0 13624 0 13624

Eastern region

Apr-Jun 9264 0 0 0 0 9264Jul-Oct 13204 0 0 0 0 13204Nov-Jan 0 17714 0 )37( )37( 17714Feb-Mar 0 12525 0 )37( )37( 12525

Northern region

Jul-Oct )130( 0 7308 0 0 7308Feb-Mar )94( 0 6931 0 0 6931

Southern region

Apr-Jun 36 0 9155 0 798 9954Jul-Aug 36 0 7214 0 0 7214September 36 0 0 0 3607 3607October 0 0 3607 0 0 3607

Southern region

Nov-Jan 0 12606 0 5588 1989 20184February 0 0 0 6397 0 6397March 0 0 0 6459 84 6543

Equilibrium market (spatial and temporal) of potato among Saudi's region

Supply and store area

Demand area

Central region

Eastern region

Northern region

Southern region

Imports (ton)

January

Central region - 1484 - - 286

Western region - )102( - - 5087

Northern region - )151( - - 2462

Southern region - )59( - - 591

February

Central region - 181 - )88( (81)

Western region - 2187 - 375 7003

Northern region - )49( - )100( 1972

March

Western region 1943 3472 - 1580 1706

Northern region )68( (49) )100( 1362

Equilibrium market (spatial and temporal) of tomato among Saudi's region

Transfer vegetables and fruit• Through the study of the transfer of vegetables and fruit during the

stages of marketing found:

• Depends about 82% of the producers on the means of transport owned them in the transfer of their products to wholesale markets. The capacity of onions available about 37 tons of farm and about 75 kilograms of dunums.

• The average investment per farm in providing transportation means about 133 thousand riyals.

• The movement of farm products to wholesale markets shipments consecutive numbering in the average shipment during the 1530 season one, and the average amount transferred about 822 tons, and the average mileage of one farm about 17 thousand meters during a single season and needs of each product tons of vegetables to leap distance $ 209 km on average, which leads to higher transportation costs.

• The small farms are the most intensive use of the means of transport compared to their size, and the farm more specialized in the production of vegetables and fruits more intensive use of the means of transport least specialty.

Transfer vegetables and fruit• The producers of dates has transfer capacity higher than the others, where

the average transport capacity available to the farm about 92 tons of dates on average, and the movement dates farms produced waves of up to 36 payment, depending on the items and the dates of collection.

• Owns wholesalers of auto-cooled small, medium and large 2.5, 2.5 and 3.6 in the average car, and cars refrigerated small, medium and large 2.4, 1.8 and 8.1 in the average car. The wholesalers who engage in activities import more categories of intermediaries are equipped means of transport, especially large and refrigerated. The use of such intermediaries such means in the transfer products to the shops or stores, as well as the central market of shops or stores to their customers, and notes that the auctioneers are more categories of traders contribute to the transfer of products to market and cost less than other groups (56 riyals / tonne), but traders understand more brokers sentence contribute to the delivery of vegetables and fruit wholesale markets central to the places referred to the retail level. The role of auctioneers in transport activity in the front or rear direction in the channel marketing at small distances.

• Retailers rely usually on the means of transport available in a simple wholesale markets, and owns some wholesalers and special shops with private car transfer half of a small amount not exceeding 29 thousand riyals.

• Despite the existence of a specialized transport companies and has potential transfer of refrigerated and non-refrigerated great, but that its role in transporting vegetables and fruits limited (21 tons per year) not to exceed 10% of the volume of activity, usually carrying vegetables and fruit imported from Jordan, Lebanon, Syria and Turkey Egypt, Kuwait, the United Emirates, Bahrain, Qatar and South Africa as it begins operation of the border points of the Kingdom is the case of Ammar and modern Jeddah Islamic Port and Mina boy and Dammam.

• Carriers usually transported vegetables and fruit in refrigerated trucks load of 20 tons, or in non-refrigerated trucks load of 10 tons, according to the products transported, and transportation costs vary according to distance and the nature of the commodity transported.

• There are many technical problems, administrative and economic barriers efficient transfer of vegetables and fruit through specialized carriers.

The vegetables and fruit storage services

• Through study and analysis service of storage vegetables and fruit found the following:

• Vegetables and fruit do not be stored in the traditional farms , where directly transfer to the market after collection, and finds many of the farmers need to provide regular and refrigerated warehouses at the farm level through marketing loans.

• Has 59% of the producers of dates warehouses for storage on the farm for up to five months.

• The mediators sentence are the largest groups interested in the function of storing vegetables and fruit as normally have their warehouses and refrigerated normal average area of 215 m 2 and 2 in 1239 at an average cost of 119 A and 3.214 million riyals respectively, as well as the availability of machines and download the necessary loading.

• The approximately 68% of the mediators sentence disposing vegetables and fruit products directly without storage.

• Refrigerator limited role in the storage of vegetables and fruits, especially local and confined to store seed potatoes imported products are mostly on the activities of most refrigerators, especially oranges, grapes imported as well as other fruits such as apples, bananas, pears and others.

• Some refrigerators used in storage for the benefit of their owners are leasing to others in addition to storage for the benefit of the owner.

Information-risk funding• The risk affecting economic activity marketing for producers, wholesalers and

retailers, the actual proportion ranged Kingdom or the possibility that some producers to sell their products at prices less than their counterparts prevailing in the market at a 95% confidence between a minimum 56.2% 57.4% ceiling. Also present wholesalers and importers to market risks, which suffered a number of losses amounted to wholesalers accounted for 75%, due to weak demand and rising wages and low productivity employment and the difficulty of obtaining financing, in addition to price and natural risk.

• The marketing information deficient and inconsistencies in data from different quarters therefore focused development plans seventh and eighth creation of a detailed data on the economic and social aspects in different regions.

• The finance marketing of factors stimulating activity of marketing for producers, wholesalers and retailers. It was found that different regions of producers wishing to obtain loans to purchase and transport means and the establishment of warehouses and sorting and grading machines. The retailers rely on their marketing on self-financing, while the percentage of loans to capital investor for 17.7%.

Proposals to improve the efficiency of marketing systems of vegetables and fruits and making appropriate mechanisms

for application

• Practical solutions to raise the efficiency of marketing vegetables and fruit

The application of the mechanisms proposed solutions to raise the efficiency of the marketing of vegetables and fruits

• The organization of production and supply in the market • Improving the infrastructure of the central markets • Performance management market

Preparation and processing of marketing • Providing information and data market • Organization of Saudization, rehabilitation and training of national

employment •   Activating the role of agricultural cooperatives in the area of

agricultural marketing • Take advantage of the WTO provisions

• In the light of the findings of the study could suggest some practical solutions that will contribute to improve the marketing efficiency of vegetables and fruit in the Kingdom, in line with local materials available and consumer needs of local and global variables, as follows:

• The organization of production in the regions and supply in the market to find some kind of balance and spatial and temporal price between markets.

• Attention to the preparation, processing and marketing in the fields of production, including sorting and grading, packaging, refrigeration and storage first and then ship the products to the market.

• Improving the infrastructure of the central markets of vegetables and fruit or the creation of new markets.

• The organization dealing in the market, and activate the role of the municipalities and monitoring auctions.

• Provide data and market information through a database and integrated market information and accurate serves all parties to the process marketing.

• Ization organize agricultural labor productivity and marketing with the rehabilitation and training of national employment.

• Support and encourage agricultural cooperative societies and activate its role to raise the efficiency of agricultural marketing through market coordination and market equilibrium temporal, spatial and formal and benefit savings capacity of marketing services.

• Take advantage of the provisions of the World Trade Organization, and negotiations for the accession of the Kingdom of the organization to upgrade marketing of vegetables and fruits.

Thank you,,, May peace and God's mercy and

blessings