Journal of Agricultural Economics and Rural Development

JAERD

Vol. 3(2), pp. 122-130, September, 2016. www.premierpublishers.org, ISSN: 21670477

Research Article

Marketing cost structure of dates in Saudi Arabia: an

analytical perspective
Sobhy M. Ismaiel1, Ahmed M. Al-Abdulkader2*, Safar H. Al-Kahtani3, Ali I. Saad4, Yosef A.
AlAmri5
1,3,4,5

King Saud University, College of Agricultural Sciences, Department of Agriculture Economics, Riyadh-Saudi Arabia
King Abdulaziz City for Science and Technology, National Plan for Science, Technology and Innovation, Riyadh-Saudi
Arabia
2*

Saudi Arabia is among the leading nations worldwide in date production and market share. This
study aims to quantify date marketing cost structure in Saudi Arabia and to identify factors
causing variations among cost items using descriptive statistical analysis, ultimately, enhancing
the comparative advantage of the Saudi dates in the world market. The study relied on primary
data collected randomly from major date market regions in Saudi Arabia, namely, Al-Madinah AlMunawara, Riyadh, Al-Qassim, and Al-Hasa. Results showed that average date retailing cost was
almost double that of date wholesaling cost (SR 8597/ton and 4236/ton, respectively). In general
terms, labor costs and storage costs were the major items among date marketing costs. They
represented about 44.5% and 31.4% of the average marketing cost, respectively. Results
showed, also, some significant variations among average date marketing cost items due to type
of marketing channels, regional factor, educational level of date dealers/managers, level of
specialty in date merchandizing, and types of other activities carried out by date dealers beside
date marketing activity. The study concluded by pointing out the potential to reduce average
date marketing cost in Saudi Arabia, ultimately, the potential to enhance the comparative
advantage of Saudi dates in the world market.
Keywords: Cost variations, date marketing, marketing facilities, marketing services, comparative advantage.

INTRODUCTION
Date sector has a special standing in the socio-economic
structure in Saudi Arabia. The international perspective
showed that Saudi Arabia occupies the second rank of
market share and third rank in the production of dates in
the world, equivalent to about 10% and 15%,
respectively, in 2013 (FAO, 2015). Sukkari, Khalas, Ajwa,
Segae are among the famous date varieties in Saudi
Arabia.
Date marketing margins seem to be very high in Saudi
date marketing systems, as they contains marketing
costs and marketing profits of date dealers. Date dealers
always suffer from increasing date marketing cost due to
the high costs of provided marketing facilities and
services.
The
marketing
cost
structure
includes expenses associated with administrative and

technical labors, transferring dates to a customer, storing

dates in warehouses pending delivery, sorting, grading,
packaging dates, promoting dates being sold, and
the distribution of
dates to points of wholesaling
and
retailing all over the country and to the neighboring
countries.

*Corresponding Author: Ahmed M. Al-Abdulkader, King

Abdulaziz City for Science and Technology, National Plan
for Science, Technology and Innovation, Riyadh-Saudi
Arabia.akader@kacst.edu.sa, Tel +966114814699, Fax
+966114814693

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

Ismaiel et al.

123

A quite number of economic studies have addressed

production and marketing cost of dates. (Al-Abdulkader,
2006) estimated the total production costs of the date
processing industry in Saudi Arabia using the weighted
least square method, based on which, the optimum
production level of the date processing industry and the
profit maximizing production level were estimated and
compared with the actual average production of the
sampled date factories. (Al-Kahtani, et al., 2007) carried
out a full and integrated study that addressed agricultural
marketing problems in Saudi Arabia from the
perspectives of producers, and focused on specific
issues concerning marketing efficiencies including price
levels, marketing margins, evaluation of market
integration, and equilibrium in time and place dimensions.
In addition, he analyzed date marketing, in terms of
dimensions, marketing risks and information. (Al- Duwais,
et al., 2008) analyzed the main factors affecting the
structure and performance of the retail date market in
Riyadh city of Saudi Arabia, and showed that the
structure of the retail date market was in general closer to
full competition, where the values of the Gini coefficient
for concentration, as well as the HerfindahlHirschman
values were relatively low. Marketing margin, cost and
net profit varied among outlets. The main solutions
proposed to overcome the problems of the date trade
were to increase consumers publicity, increase
manpower recruitment and training. Khushk et al. (2009)
described the structure and operation of dates marketing
system, in Sindh province in Pakistan and quantified
marketing margins of producers and other market
intermediaries. Akhtar et al., (2009) examined the global
competitiveness of Pakistani dates using the revealed
comparative advantage, and found that Pakistan had a
global competitive advantage in date exports. (Ismaiel, et
al., 2009) estimated the long-run cost function of Sukkari
dates and utilized indicators to understand the production
performance of Sukkari dates in Al-Qassim region of
Saudi Arabia using multiple regression analysis. The
economic farm size of Sukkari dates, cost elasticity, and
long run supply function of the dates were then specified.
(Al-Kahtani, 2011) studied the possibility of utilizing new
technologies in information, communication, and
electronic trade systems through the development of
standards and specifications for the quality of the most
important varieties of Saudi dates in the local and global
markets. Using such techniques leads to increase
efficiency and effectiveness, reduces the costs of
providing products, and increases the size of the date
market. He also identified the reality of customary norms
among parties of dates marketing, as well as the
difficulties and obstacles facing the application of e-trade
systems in Saudi Arabia. Benziouche (2014) estimated
the economic function of factors affecting the date
marketing margin, and diagnosed the situation of export
of dates in Algeria through an analysis of trends in
quantity and value, and their structures by variety and

destinations. Ben-Amoret et al., (2015) highlighted the

highly important trade position of Tunisia compared to the
Mediterranean countries, and the decline in this
comparative advantage in the recent years due to
declining competitiveness indices. Al-Abdulkader et al.,
(2016) estimated the marketing efficiency of dates at
different marketing channels in Saudi Arabia, and pointed
out the advantage of improving date marketing efficiency
in achieving an additional 30% of value added to traders
and the national economy of Saudi Arabia, equivalent to
about 6.88 billion SR annually.
This study aims to achieve the following two main
objectives, so as, the potential to enhance the
comparative advantage of the Saudi dates in the world
market:
1.Quantify date marketing cost structure in Saudi Arabia.
2.Identify factors causing variations among date
marketing cost structure in Saudi Arabia.
This study aims, also, to verify the following hypothesis:
1.Most of date marketing costs are incurred in retailing
rather than other marketing outlets.
2.Labor costs and storage costs are the main items of
date marketing cost structure in Saudi Arabia.
3.The relative importance of date storage cost is much
higher in retailing compared to wholesaling.

MATERIAL AND METHODS

The study relied on primary data collected randomly from
298 date dealers representing major date market regions
in Saudi Arabia, namely, Al-Madinah Al-Munawara,
Riyadh, Al-Qassim, and Al-Hasa. The sample
represented all types of date dealers in various date
marketing channels, including, wholesaling, retailing,
wholesaling and retailing, wholesaling, retailing, and
exporting, and exporting. Descriptive statistical analysis
(analysis of variance, correlation analysis, F-test and Ttest, etc.) was utilized to analyze the collected primary
data and to identify the main factors causing variation in
marketing cost structure of dates in Saudi Arabia, namely,
type of marketing channels, regional factor, educational
level of the date dealers/managers, level of specialty in
date merchandizing, and types of other activities carried
out by date dealers beside date marketing activity.
RESULTS AND DISCUSSIONS
Basic Characteristics of Study Sample
The study regions represented in the study sample were
in line with major date market regions in Saudi Arabia.
The study sample contained all trade types, where
retailing, wholesaling and retailing, wholesaling, and
others represented about 43%, 35.6%, 15.8%, and 5.6%
of the total study sample, respectively. About 33.9% of
the study sample had done business in Al-Madinah

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

J. Agric. Econ. Rural Devel.

124

Table 1. Average Costs of Date Marketing Services/Facilities in Saudi Arabia (SR/ton).

Labor
Transportation
Storage
Sorting,
packaging
Others
Total average

SR
3064.7
789.7
3393.1

%
35.7
9.2
39.5

SR
1681.2
492.2
1173.1

%
39.7
11.6
27.7

SR
1758.5
559.8
1682.8

%
35.2
11.2
33.7

Retailing,
wholesaling,
and exporting
SR
%
691.6
32.6
232.0
10.9
699.9
33.0

534.7

6.2

416.3

9.8

392.1

7.9

248.8

11.7

464.4

6.2

815.2
8597.4

9.5
100

473.1
4235.9

11.2
100

596.2
4989.4

11.9
100

248.5
2120.8

11.7
100

668.2
7444.6

9.0
100

Retailing

Marketing
Services/facilities

grading,

Wholesaling

Retailing
wholesaling

and

All
outlets

marketing

SR
3313.3
663.9
2334.8

%
44.5
8.9
31.4

Source: Al-Abdulkader, et al. (2015)

Al-Munawara, which is the most important date marketing

region for Saudi dates and combines all types of dealers
(retailers, wholesalers, and exporters). Al-Madinah AlMunawara region procures dates from all varieties and
locations all over Saudi Arabia. The procured dates are,
then,
marketed for national and international date
consumers. Most of Date middlemen sample were
specialized only in date marketing (72.5%). While most of
non-specialized dates merchants (about 87% of them)
practiced agricultural marketing activities. A very limited
portion of date dealers were highly educated (about
8.1%) while more than 90% of them were secondary
educated or lower.
Date Marketing Cost Structure
Date marketing cost structure is based on five main
marketing functions, including: transportation and
distribution, grading and backing, cold and non-cold
storage,
administrative
and
technical
labors,
requirements for advertising, financing, and commission
in buying and selling dates. Table (1) presents the
magnitude and relative importance of such figures of
marketing cost structure in Saudi Arabia and the variation
according to the extent of business expansion of dealer
activity whether specialized in retailing, wholesaling or
mixing them with other marketing activities such as
exporting. It is obvious from the figures shown in Table (1)
that average retailing cost of dates was almost double
that of date wholesaling cost (SR 8597/ton and SR
4236/ton respectively). In general terms, labor costs and
storage costs were the major items among date
marketing costs. They represented about 44.5% and
31.4% of average marketing cost, respectively. Storage
cost represented a higher percentage in retailing, than
wholesaling (39.47%, and 27.7%, respectively), while
labor cost represented a higher percentage at
wholesaling level than that of retailing (39.7% and
35.65%, respectively).
Date Marketing Services and Facilities
To recognize existing marketing services and facilities
available for date marketing outlets involved in the study

sample. Table (2) shows that wholesalers have more date

marketing facilities than retailers do. An average retailer
employs two administrators and three technical labors.
2
Retailers have an average area of about 200 m available
2
for grading dates, about 81 m for non-cold storage and
2
42 m for cold storage. Retailers usually store about 68
tons of dates annually. Date retailers usually have one to
two trucks for their own business. Wholesaling units in
the study sample employ more administrators and
technical labors than retailing units (three and six,
respectively). They also have more area available for
2
grading dates, for non-cold storage and 119 m for cold
2
2
storage (about 220 m and about 185 m , respectively).
Date wholesaling units own more trucks than that of
retailing units because the scale of their business is
about double that of the retailing dealing business. Date
wholesaling total investments is about SR 535,000, while
retailing investments is only about SR 353,000.
Date marketing units in Saudi Arabia do not necessarily
own all of the date marketing facilities that they use due
to the seasonality of date marketing practices. Therefore,
in many cases they purchase some marketing services
such as preparation, cold storage, non-cold storage
from other marketing service institutions. Retailing units
always need an average of about 64 tons of purchased
dates to be prepared for retailing by other marketing
services providers. They, also, store about 254 tons of
dates in cold storage owned by others in the marketing
system. Moreover, they usually rent non-cold storing
capacity of about 100 tons of dates per annum. It is clear
that wholesaler need to rent fewer storage facilities as
they own their own facilities. However, they need labors
from other marketing institutions to prepare their dates;
these are usually seasonal workers during the harvesting
season, especially for date farms. It is quite clear from
the results of the one-way analysis of variance of
available marketing facilities that wholesalers (especially
those who practice retailing and exporting activities on
the same time) have significantly more technical labors,
grading areas, cold and non-cold storing areas, trucks,
and consequently total investments in marketing facilities
than all of the other types of date marketing units who
concentrate their marketing activities on wholesaling

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

Ismaiel et al.

125

Table 2. Average Marketing Services/Facilities (Owned and Rented) Per Date Dealer in Saudi Arabia

Marketing services/facilities

Units

Retailing

Wholesaling

Retailing
wholesaling

Administrative labors

No.

2.5

Technical labors

No.

3.2

Grading area

Non-cold stores

Cold stores

Retailing, wholesaling,
and exporting

All
Dealers

1.26

2.5

1.85

6.4

1.92

11.4

3.82

199.2

220.3

89.96

932.44

194.50

80.8

185.4

77.96

340.67

118.43

41.8

118.8

85.00

574.63

94.72

Storing capacity for dates

tons

68.1

165.6

3430.99

1085.88

1365.5

Trucks

No.

1.5

2.02

1.4

3.3

1.6

Total invested capital

000SR

352,9

534,9

326,6

1,281,1

438,5

Preparation through others

tons

63.5

289.1

87.3

248.0

140.8

tons

253.7

91.7

25.1

2040.0

306.6

tons

100.2

60.0

35.8

2275.0

352.5

Cold
storage
through
others
Non-cold storage through
others

and

Source: Al-Abdulkader, et al. (2015)

Table 3. One-Way Analysis of Variance Showing the Impact of Marketing Channel Type on Date Marketing Cost Structure in Saudi Arabia
(SR/ton)

Marketing
services/facilities

Labor

Transportation

Storage

Sorting, grading packaging

Others

Type

No.

Wholesaling
47
Retailing
128
Retailing, wholesaling 104
Retailing,
8
wholesaling, exporting
Wholesaling
47
Retailing
127
Retailing, wholesaling 105
Retailing,
9
wholesaling, exporting
Wholesaling
46
Retailing
126
Retailing, wholesaling 98
Retailing,
9
wholesaling, exporting
Wholesaling
46
Retailing
124
Retailing, wholesaling 104
Retailing,
7
wholesaling, exporting
Wholesaling
46
Retailing
127
Retailing, wholesaling 98
Retailing,
9
wholesaling, exporting

Mean

Std. Deviation F-test Sig. level Interpretation

1681.16
3064.80
1758.53

1947.45
2450.68
1859.68

691.51

773.89

492.21
789.74
559.82

665.12
1293.19
942.42

231.99

51.23

1173.06
3393.11
1682.81

1868.40
5412.16
3372.81

699.94

667.69

416.25
534.70
392.15

440.32
702.33
404.53

248.81

129.14

473.09
815.24
596.16

641.78
1058.61
831.87

248.47

123.69

10.47 0.000**

Retailing versus all

1.77

0.153

5.00

0.002**

Retailing versus all

1.67

0.173

2.67

0.048*

Retailing
versus
retailing, wholesalers,
exporting

Source: Al-Abdulkader, et al. (2015)

+means followed with same letter do not differ significantly using Duncans test.
*Significant at 0,05 significance level
**Significant at 0,01 significance level
Marketing cost structure of dates in Saudi Arabia: an analytical perspective

J. Agric. Econ. Rural Devel.

126

Table 4. One-Way Analysis of Variance Showing the Impact of Study Regions on Average Date Marketing Cost Structure in Saudi Arabia
(SR/ton)

Marketing
services/facilities

Labor

Transportation

Storage

Sorting,
packaging

Others

grading,

Study regions
Riyadh
Al-Madinah
Munawara
Al-Hasa
Al-Qassim
Riyadh
Al-Madinah
Munawara
Al-Hasa
Al-Qassim
Riyadh
Al-Madinah
Munawara
Al-Hasa
Al-Qassim
Riyadh
Al-Madinah
Munawara
Al-Hasa
Al-Qassim
Riyadh
Al-Madinah
Munawara
Al-Hasa
Al-Qassim

Al-

Al-

Al-

Al-

Al-

No.

Mean

Std. deviation

72

2275.5

2609.8

97

2362.5

2400.6

48
73
73

2466.4
2184.4
a
1001.8

2209.1
1699.3
2062.5

100

452.8

49
73
67

722.4
b
575.8
2915.5

757.4
658.8
7853.1

96

2290.9

2424.0

49
73
68

2236.9
1925.5
a
596.8

2087.7
2200.7
881.0

98

329.6

45
73
68

564.2
460.3
a
873.3

97

511.1

48
70

859.5
b
555.6

466.3

498.4

450.8
350.1
1553.2

561.7

694.4
461.4

F-test

Sig. level

Interpretation

0.17

0.915

3.4

0.018*

Riyadh versus
Madinah
Munawara and
Qassim

0.64

0.589

3.4

0.018*

Riyadh and Al-Hasa

versus Al-Madinah AlMunawara

0.024*

Riyadh and Al-Hasa

versus Al-Madinah AlMunawara and AlQassim

3.2

AlAlAl-

Source: Al-Abdulkader, et al. (2015)

+means followed with same letter do not differ significantly using Duncans test.*Significant at 0.05 significance level

and/or retailing and/or exporting.

Main Factors Affecting Date Marketing Cost Structure
Many factors are expected to cause significant variations
in date marketing cost structure, among which are type of
marketing channels, regional factor, educational level of
marketing dealers/managers, level of specialty in date
merchandizing, types of other activities carried out by
date dealers beside date marketing activity.
Type of marketing channels
In terms of average marketing cost per ton, it is clear
from Table (3) that labor cost, storage cost, and other
costs apart from transportation and storing/grading costs
were the main items causing significant variations
between different marketing outlets in Saudi Arabia. This
was, of course, due to the nature of the time and spatial
dimensions in retailing as retailing has more extended
space and time elements.
The major two cost items of date marketing in Saudi
Arabia (labor and storage cost) varied significantly among

retailing units and wholesaling units. The average retiling

storage cost (SR 3393.11/ton) was significantly higher
than that of wholesaling (SR1173.06/ton). In addition, the
average retailing labor cost (SR 3064.80/ton) was
significantly higher than that of wholesaling (SR
1681.16/ton).
Regional factor
Average date marketing costs at major date market
regions in Saudi Arabia are presented in table (4). The
highest average marketing cost was observed in Riyadh
region with about SR 7662.9/ton, while, the lowest
average marketing cost was observed at Al-Qassim
region with about SR 5701.6/ton. Significant variations at
(5%) significance level were observed in Riyadh region
versus the other study regions for transportation cost
item, and were observed in Riyadh and Al-Hasa regions
versus the other study regions in sorting, grading,
packaging, and other marketing services. Cold and noncold storage facilities were the most costly items of the
marketing cost structure in Riyadh region at about SR
2915.5 /ton, which should attract interest to find out why.
While,
the
minimum

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

Ismaiel et al.

127

Table 5. One-Way Analysis of Variance Showing the Impact of Educational Level of the Dealer on Average Date Marketing Cost Structure in
Saudi Arabia (SR/ ton)

Marketing
services/facilities

Labor

Transportation

Storage

Sorting,
packaging

grading

Others

Level
education
Lower
secondary
education
Secondary
education
Higher
education
Lower
secondary
education
Secondary
education
Higher
education
Lower
secondary
education
Secondary
education
Higher
education
Lower
secondary
education
Secondary
education
Higher
education
Lower
secondary
education
Secondary
education
Higher
education

of

No.

Mean

Std. deviation

146

2041

2220.6

117

2568

2247.7

23

2323

2262.4

149

575

907.7

118

779

1313.9

24

346

228.9

141

1866

F-test

Sig. level

Interpretation

1.81

0.165

2.21

0.111

2.72

0.049*

1.59

0.205

0.042*

Secondary education
versus lower than
secondary education
and higher education

than

than

than

2583.7

117

3028

5944.4

24

1613

1942.2

146

430

576.0

113

509

584.3

21

288

149.6

144

589

112

820

1103.5

24

390

251.3

Secondary education
versus lower than
secondary education
and higher education

than

than

814.2
3.20

Source: Al-Abdulkader, et al. (2015)

+means followed with same letter do not differ significantly using Duncans test.
*Significant at 0,05 significance level

average marketing costs were observed in Al-Qassim

region with about SR 1925.5 /ton. This benefit must be
taken advantage of in other regions to reduce the
average marketing costs and increase marketing
margins.

showed significant differences at 5% significance level,

with secondary educated dealers/managers facing higher
costs compared to higher educated dealers/managers
and less-than-secondary educated dealers/managers.

Educational
level
dealers/managers

Speciality in date merchandising

of

date

marketing

Table (5) presents analysis of variance to investigate the

effect of date marketing dealer/manager educational level
on the date marketing cost structure in Saudi Arabia. The
results indicated that secondary school education date
dealers/managers faced the highest average marketing
cost at about SR 7703.6/ton compared to about SR
5499.7/ton and about SR 4959.2/ton for lower the
secondary school education and higher education
dealers, respectively. Storage costs and other cost items

Table (6) shows the impact of specialty in date

merchandising on the average date marketing cost
structure in Saudi Arabia. The results indicated that
specialized date dealers incurred higher average
marketing costs in the short run at about SR 7296.3/ton
compared to the non-specialized dealers at about SR
5916.3/ton. Also, results showed that there were
insignificant differences among all date marketing cost
structure items but that of sorting, grading packaging
according to specialty in date merchandising.

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

J. Agric. Econ. Rural Devel.

128

Table 6. T-test Showing the Impact of Specialty in Date Merchandising on Date Marketing Cost Structure in Saudi Arabia (SR/ton)

Marketing services/facilities
Labor
Transportation
Storage
Sorting, grading packaging
Others

Type

No.

Mean

Non-specialized
Specialized
Non-specialized
Specialized
Non-specialized
Specialized
Non-specialized
Specialized
Non-specialized
Specialized

180
110
180
115
175
110
175
109
176
107

2133.2
2607.9
595.0
771.7
2193.6
2559.6
400.6
566.7
593.9
790.4

Std.
deviation
2206.5
2326.4
1211.9
1088.3
4211.0
4417.8
505.9
686.6
877.8
970.1

T-test

Sig. level

-1.74

0.083

-1.27

0.205

-0.70

0.484

-2.34

0.02*

-1.75

0.081

Source: Al-Abdulkader, et al. (2015)

*Significant at 0.05 significance level

Table 7. T-test Showing the Impact of Engaging in Other Activity on Date Marketing Costs Structure in Saudi Arabia (SR/ton)

Marketing
services/facilities
Labor
Transportation
Storage
Sorting, grading, packaging
Others

Type

No

Mean

Std. deviation

Agricultural
Commercial
Agricultural
Commercial
Agricultural
Commercial
Agricultural
Commercial
Agricultural
Commercial

68
11
70
11
67
11
66
9
67
11

2682.0
2270.1
741.1
476.2
2884.8
2678.8
604.5
358.1
724.7
763.7

2390.6
2208.5
1237.7
401.6
5071.7
2550.6
807.0
213.6
997.2
665.3

T-test

Sig. level

0.54

0.594

0.70

0.485

0.13

0.896

2.02

0.049*

-0.12

0.901

Source: Al-Abdulkader, et al. (2015)

*Significant at 0,05 significance level

Type of other activity beside date marketing activities

Table (7) shows the impact of engagement of date
dealers in other activities besides date marketing activity.
Results indicated that dealers engaged in agricultural
activities besides date marketing activity incurred higher
average marketing costs in the short run at about SR
7637.1/ton compared to dealers engaged in commercial
(non-agricultural) activities at about SR 6546.9/ton. Also,
results indicated in significant variations among all cost
items but that of sorting, grading packaging according to
the type of other activity besides date marketing at 5%
significance level.
CONCLUSIONS AND RECOMENDATIONS
Average date marketing cost structure was quantified and
analyzed on a basis of some main factors affecting the
cost structure of date marketing in Saudi Arabia,
ultimately, enhancing the comparative advantage of the
Saudi dates in the world market. Results showed that
average date retailing cost was almost double that of
date wholesaling marketing cost. Labor costs and storage
costs were the major items among date marketing costs
in Saudi Arabia. Results showed, also, some significant
variations among average date marketing cost items due

to type of marketing channels, regional factor,

educational level of the date dealers/managers, level of
specialty in date merchandizing, types of other activities
carried out by date dealers beside date marketing activity.
According to these results, the followings are
recommendations to reduce the average date marketing
cost and, thus, to enhance the comparative advantage of
Saudi dates in the world market.
1.Building robust infrastructure (e-commerce, efficient
marketing services/facilities, strengthen agricultural
cooperative associations, establishing an accurate
marketing databases).
2.Setting rules and regulations (standards and
metrologies, monitoring systems, quality assurance, ecommerce
regulations
and
standards,
quality
trademarks).
3.Insuring financial resources (venture capital) to finance
date marketing entrepreneurs.
4.Enhancing manpower capacity (youth incubators,
minimum wage, enhance capacity of national manpower
to improve marketing efficiency).
5.Raising public awareness and promoting culture of
citizenship
(health
and
nutrition
awareness,
advertisement campaigns, and exhibitions and food
fairs).

Marketing cost structure of dates in Saudi Arabia: an analytical perspective

Ismaiel et al.

129

6.Adopting marketing policies to minimize the input costs

required for different date marketing functions.
7.Promoting further studies concerning date marketing
system, which include date production, consumption,
processing and manufacturing, internal and external
trade, cost, profit margins, verities and quality..
Acknowledgment
The study team is very grateful to King Abdulaziz City for
Science and Technology (www.kacst.edu.sa) of Saudi
Arabia for its financial support and on-going
encouragement. This work was funded through the
Strategic Technology Program the National Plan for
Science,
Technology,
and
Innovation
(http://maarifah.kacst.edu.sa) grant # 600-32.

FAO. Food and Agriculture Organization of the United

Nations. www.fao.org. Accessed January 01 2015.
Ismaiel S, Al-Dwais A, Elaiwy M (2009). The use of cost
function to estimate production efficiency measures for
Sukkari dates in Qassim region. The bulletin of the
Society of Saudi Agricultural Sciences. 8 (1): 28-39.
Khushk AM, Memon A, Aujla KM (2009). Marketing
channels and margins of dates in Sindh,
Pakistan. Journal of Agricultural Research. 47(3): 293308.
Accepted 14 July, 2016.
Citation: Ismaiel SM, Al-Abdulkader AM, Al-Kahtani SH,
Saad AI, Al Amri YA (2016). Marketing cost structure of
dates in Saudi Arabia: an analytical perspective. Journal
of Agricultural Economics and Rural Development, 3(2):
122-129.

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Marketing cost structure of dates in Saudi Arabia: an analytical perspective