The impact of the dominance of the milk collection channel on the efficiency of quality-based pricing strategies in marketing cow's milk in Latakia Governorate.

Abstract

This study aimed to determine the reality of milk production, collection, and marketing mechanisms in Latakia Governorate, in addition to analyzing pricing strategies. To achieve this, a descriptive, analytical, and quantitative approach was employed by distributing questionnaires to cow breeders, marketers, and milk processing workshop owners. The results showed that 50% of cow breeders practice this profession as a secondary job to ensure a stable income for their families. Milk is marketed through multiple channels, the most significant being the milk collector and transporter who controls the pricing mechanism, which constitutes a major obstacle to adopting value/quality-based pricing compared to other channels. However, the collector's dominance is not the sole reason for the failure of quality-based pricing, but rather a compounding factor in the problem. Therefore, the milk pricing process must ensure the achievement of the goals of both producers and consumers.

The study revealed that the average daily milk production per cow reaches 20 kg of milk, with an average lactation period of 275 days. It was found that feed is the highest production cost, representing a major challenge for farmers.

Despite a limited profit margin, farmers face significant challenges, most notably the high and unstable prices of feed. It was also noted that only 55% of marketers analyze the fat content of the milk, indicating a weakness in quality control.