Cherry Marketing System in Gilgit District Northern Areas of Pakistan

This study was conducted in district Gilgit during 2007. Forty-nine cherry producers, twenty-five wholesalers and thirty retailers were interviewed. The study was focused to identify the agencies involved and the channels used in the marketing of cherry and also to calculate the gross marketing margins and price spread of all the intermediaries involved in various marketing channels. Four marketing channels: (I) producers-retailersconsumers; (II) producers-contractors-wholesalers-retailers-consumers; (III) producers-wholesalers-retailersconsumers and (IV) producers-consumers were identified. Channel II was the major route for cherry’s trade as more than 50% of the farmers sell their produce through this channel. Similarly, 29% farmers followed channel III for selling their produce whereas channels I and II attracted 12% and 4% producers, respectively. The gross marketing margin was estimated at Rs.116/Kg for wholesalers and Rs.8/Kg and Rs.55/Kg for local and Islamabad retailers respectively. The price spread was estimated at Rs.121/Kg for channel III and Rs.8/Kg for route I. Contractors were the main source of price information as pointed out by 49% of the cherry producers. It was found that 92% farmers did not practice grading while only 12% practiced packing using wooden crates and cartons as a packaging material. Most of the wholesalers (73%) practiced grading while all the wholesalers packed their produce before selling to other agencies. The regression analyses of marketing margin over quantity marketed by the retailers show that larger retailers have no market power to exploit the buyers or sellers or both. The major problems faced by cherry growers include post harvest losses due to perishablity of fruit; road blockage; lack of sufficient cold storage facilities; lack of market and transportation etc. A two tier market is recommended with collection and packing of fresh cherry in the first tier and canning and processing in the second tier.