International Journal of Business and Management Invention

ISSN (Online): 2319 8028, ISSN (Print): 2319 801X

www.ijbmi.org || Volume 6 Issue 1 || January. 2017 || PP48-54

Marketing Efficiency of Agriculture Produce in Saudi Arabia: A

Study of Hotat Region
Mohammad Tariq Intezar
(College of Business Administration, Prince Sattam bin Abdul Aziz University, Saudi Arabia)

ABSTRACT :This paper attempts to analyse marketingefficiency of agricultural produce in Hotatregion of

SaudiArabia. The studydesigned, methodology for data collection, and data analyses .The studybased on
primary and secondary data sources such as Ministry of Agriculture, Ministry of Planning, SADAD, FAO other
sources from publications and relatedwebsite.Primary data werecollectedthrougha questionnaire interview of a
simple randomsample of 350. The use of percentages, mean, and standard deviation, correlation and t-test and
multiple regressionanalysis of evolvingsearch data usingstatisticalanalysis software SPSS.Theresultsshowed the
diversity and multiplicity of areas that made the SaudiArabian agricultural agenciesmakeeasyprocedures for
agricultural marketing projectscovering 14 areas.Thestudy analyse the marketing efficiency of the smallregion
in the Kingdom. Vegetablesmarkets of this area found to beeffecientbased on the studyfindings. Local
marketsneed to beencouraged by Ministry of Agriculture, KSA.to educate the farmers and update marketing
activitiesmay help to improve marketing efficiency in the region.Effective marketing of agriculture products in
the Hotatregionthereis urgent need to organizevegetables and fruits festivals on regular basis Local
governmentneed to pay attention to the givenrecommendations in the studywillgive positive impact in the
marketing efficiency of the region.
Keywords: Marketing efficiency, Agriculture products, Saudi Arabia, Hotat Region.

I. INTRODUCTION
Agriculture is not environmentally ideal for the Kingdom of Saudi Arabia yet agricultural sector
receives great importance. The state has been making concerted efforts through its five-year development plans
to develop its agriculture to ensure food security. Due to the supportive and encouraging policies of the
government, and able guidance from the extension service, farmers were able to enhance agricultural production
and achieve self-.sufficiency.Its borders are Al-Kharj and Al-Hareeq governorates from the north, Al-Aflaj
governorate from the south, Al-Kharj and Al-Aflaj governorates from the east, and Al-Hareeq governorate from
the west. Its area is 7350 square kilometers and its population is 43300 people. Literature indicates the Hota has
potential to produce and export its products such as wheat, dates, watermelon, poultry and fresh eggs and milk.
The kingdom also produces some cereals like: wheat, sorghum, barley and millet in the regions rich in water
resources. Tomatoes, watermelons, eggplants, potatoes, cucumbers and onions are also grown. Encouraging
response on the production of Date-palm, citrus and grapes has been experienced. Agricultural endeavours aim
at moving towards achieving export markets.. However, in order to produce more food for the increasing
population, the country realized its agricultural potential but at the cost of overexploitation of its natural
resources.

1.1 Methodology
In order to effectively address the study objectives, we propose a study that integrates descriptive
analysis and both qualitative, quantitative methodologies. The study design, methodology for data collection,
and data analysis procedure. The present study based on primary as well as secondary data. Primary data are
collected through questionnaire, which are administered at different respondents while secondary data are
collected mainly from various sources such as official resources as Ministry of Agriculture, Ministry of
Planning, SADAD, FAO, Centre Department of Statistics and Foreign Trade and other sources from review
references, publications and related websites.

1.2 Literature Review

Ayana (2003) analyzed agriculture has both direct and indirect effects on the quality of surface water
and groundwater and is among the leading causes of water quality degradation, mainly as aresult of the
excessive use of agrochemicals. The concentrations of most of the elements and total dissolved solids, as well as
the pH and electrical conductivity values, met the water quality requirements for domestic, agricultural,
livestock and aquatic ecosystem uses. The outcome of this work links the concentrations of physicochemical
variables to land use, agricultural practice and local geomorphology. Seasonal patterns in the concentration of

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

physicochemical variables occur, as land use, rainfall and farming activities change seasonally, and these
concentrations therefore be determined periodically.
Abdullah (2003) analyzed the study Farmers Awareness of the Importance of Organic farming as
Sustainable Agriculture in Qassim Region, Kingdom of Saudi Arabia. This study aimed to identify the degree of
awareness of the farmers on the importance of organic farming as the part of sustainable agriculture
development in Qassim, Saudi Arabia, The study explored the nature of the relationship between the
independent variable. This study was conducted on the sample of (193) fanners (participants) representing all
farmers of the study area. The preliminary data werecollected by using the statistical analysis and to make the
data more meaningful, percentages, regression (stepwise) were used. The study revealed that about three-
quarters (75.6%) the farmers/ respondents were with low to medium perception on the importance of organic
farming.

II. DATA AND EMPIRICAL RESULT

Agriculture has evolved significantly in recent years, with the agriculture sector in Saudi Arabia
development advancement increasingly high agricultural GDP of $ 990 million in 1970 to $ 38.3 billion
incurrent prices for this year and an annual growth rate of 11% during that period to make its contribution to the
GDP is 5.1%. This area is suitable for cultivation, Kingdom of 48.9 million hectares constitute 22.7% of the
total area of the Kingdom, while the area of arable land reclamation 3.8 million hectares. Total crop production
for year 2012 produced 97 million tons from 24 million tons of grains. Including wheat 19.86 million tons and
barley, sorghum and Sesame, as well as vegetables with production of 27 million tonnes (of 5 million tons of
tomatoes, melons, 3.64 million tons), potatoes, cucumbers, melons, and total production of fruits, including
dates of 16 million tons, and production of green feed 30 million tonnes in 2011.

Parameters for Evaluation

S.N Marketing relatedissues
1 Is the marketing process of crops is difficult and complex?
2 Are the market prices of crops are sufficient?
3 Are pesticides and fertilizers are properly used by the farmers?
5 Are sufficient employees are working in your fields?
6 Do you think training to farmers provided by the Ministry of Agriculture?
7 Do you think agricultureand marketing related research in Universities and institutions are sufficient for marketers?
Agriculture Development Fund
8 Conditions required by the agricultural development fund suitable to the citizens of the Country in getting
Agriculture loan.
11 Rate the suitability of Agriculture Fund Policy on lending practices followed.
12 Do you feel the procedure to apply for a loan the fund is very complicated?
13 Are you satisfied about Agriculture marketing loans from the fund?
14 Do you think the information provided by agricultural fund is sufficient?
15 You can access all information that you want from the agricultural fund easily.
16 Do you find it easy in the online payment procedures followed by Agriculture Development Fund?

III. RESULTS AND DISCUSSIONS

Q1
Q1
50

Frequency Percent 40
39
strongly disagree 2 11.1
30

dis agree 2 11.1 28

20
f air 2 11.1
agree 5 27.8 10
P e rc en t

11 11 11

strongly agree 7 38.9 0

s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q1

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

Q2
Q2
30

28
Frequency Percent
strongly disagree 2 11.1 20
22 22

dis agree 4 22.2 17

fair 4 22.2 10 11

agree 5 27.8

P e rc en t
strongly agree 3 16.7 0

s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q2

Q3
Q3
40

Frequency Percent
33

strongly disagree 6 33.3 30

28

dis agree 3 16.7 20

fair 5 27.8 17

10 11 11
agree 2 11.1
P e rc en t

strongly agree 2 11.1 0

s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q3

Q5

Q5
Frequenc y Percent 50

s trongly dis agree 1 5.6 40

39

dis agree 3 16.7 30

28

f air 5 27.8 20

17
agree 7 38.9 10
Perc ent

11

s trongly agree 2 11.1 0

6

s tro n gl y di sa g re e fa ir s tro n gl y ag re e

Total 18 100.0 d is ag re e a gree

Q5

Q6
30

28

Q6
22
20

Frequenc y Percent 17 17 17

s trongly dis agree 3 16.7

dis agree 3 16.7 10

f air 4 22.2
P e rc en t

agree 3 16.7 0

s trongl y di sagree fair s trongl y agree

s trongly agree 5 27.8
dis agree agree

Total 18 100.0
Q6

Q7
60
Q7
50
50

Frequency Percent 40

strongly disagree 1 5.6

30

dis agree 1 5.6 28

20

f air 9 50.0
P e rc en t

10
agree 5 27.8 11

6 6
0
strongly agree 2 11.1 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q7

Q8
Q8
60

Frequenc y Percent
50

s trongly dis agree 1 5.6 50

40

dis agree 1 5.6

30

f air 3 16.7
20 22

agree 9 50.0 17
Perc ent

10

s trongly agree 4 22.2 0

6 6

s tro n gl y di sa g re e fa ir s tro n gl y ag re e

Total 18 100.0
d is ag re e a gree

Q8

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

Q11
Q11
50

Frequenc y Percent
s trongly dis agree 4 22.2 40
39

dis agree 3 16.7 30

f air 7 38.9 20 22

17

agree 2 11.1 10

Perc ent
11 11

s trongly agree 2 11.1 0

s tro n gl y di sa g re e fa ir s tro n gl y ag re e

Total 18 100.0
d is ag re e a gree

Q11

Q12
Q12 40

33
30
Frequency Percent
28

strongly disagree 3 16.7

20

dis agree 2 11.1

17

f air 6 33.3 10 11 11

Pe rc en t
agree 2 11.1
0
strongly agree 5 27.8 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q12

Q13
30

Q13 28 28

22
Frequenc y Percent 20

s trongly dis agree 1 5.6 17

dis agree 4 22.2

10

f air 5 27.8
P e rc en t

6
agree 5 27.8
0

s trongly agree 3 16.7 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q13

Q14
30

28 28
Q14

20
Frequency Percent
strongly disagree 3 16.7 17 17

dis agree 2 11.1 10 11

f air 5 27.8
P e r c en t

agree 5 27.8
0

strongly agree 3 16.7 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q14

Q15
40

Q15
33
30

28
Frequenc y Percent
22
s trongly dis agree 2 11.1 20

dis agree 1 5.6

10 11
f air 5 27.8
P e rc en t

agree 6 33.3 6

s trongly agree 4 22.2 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q15

Q16
40

Q16
33
30

Frequency Percent
strongly disagree 2 11.1 20 22

dis agree 3 16.7 17 17

f air 4 22.2 10 11
P e rc en t

agree 6 33.3
0

strongly agree 3 16.7 s trongl y di sagree fair s trongl y agree

dis agree agree

Total 18 100.0
Q16

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

SUMMARY STATISTICS
Rank Commodity Production (Int $1000) Production (MT)
1 Meat indigenous, chicken 815145 572270
2 Milk, whole fresh cow 546107 1750000
3 Dates 536239 1050000
4 Tomatoes 194021 525000
5 Eggs, hen, in shell 182466 220000
6 Wheat 168827 780000
7 Fruit, fresh nes 145024 415500
8 Meat indigenous, cattle 134212 49683
9 Vegetables, fresh nes 117776 625000
10 Meat indigenous, sheep 112070 41160
11 Grapes 85743 150000
12 Potatoes 68491 450000
13 Meat indigenous, camel 47263 22552
14 Cucumbers and gherkins 45666 230000
15 Fruit, citrus nes 45205 100000
16 Watermelons 42150 370000
17 Sorghum 40457 265000
18 Melons, other (inc.cantaloupes) 36818 200000
19 Milk, whole fresh camel 34097 100000
20 Okra 32934 51500
Source: Authors Calculations
Saudi Arabia has paid great attention to the agricultural and livestock sector in recognition of the vital
role played by the sector in the sustainable economic development. The GDP during 2012 about 40.1 billion to
its contribution to the non-petroleum sector by 6.4 per cent and GDP of 2.8 per cent in the share of the
agriculture and fishing sector of bank credit granted to economic activities in the Kingdom in 2012 about 7.4
billion which represents 1.6 total credit granted to all economic activities.
Despite the lack of water in the vast desert of Saudi Arabia and some experts considered unsuitable for
agriculture but the determination to experience, a unique agricultural development delivers it to where it is now
a large agricultural Renaissance.

Source: FAO-Report 2014

Economists and observers were unanimous in agricultural organizations on Saudi Arabia's experience
in agriculture, a unique experience for every ambitious thereby achieving success beyond the goal and
sidestepped to export abroad for many crops and agricultural and animal products.

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

Table: Agriculture activities of Hotat region-Income Statement

Source: Authors Calculations

Data were collected through a questionnaire interview of a simple random sample of 350. Theuse of
percentages, mean, and standard deviation, correlation and test (t), and multiple regression analysis of evolving
search data using statistical analysis software SPSS.The results showed the diversity and multiplicity of areas
that made the Saudi Arabian agricultural Bank medium-term loans for agricultural marketing projects covering
14 areas, the areas most field crops, Palm, vegetables, breeding and fattening of sheep by 46.6%, 46.0%, 32.3%
and 22.6% respectively. as it turns out that for agricultural marketing loans in effect greater degrees of
agricultural entrepreneurs in knowledge All the areas where loans were granted, and test (t) marital data morale
difference in average degrees of knowledge entrepreneurs before and after getting loans at the level of moral
0.01. as demonstrated by the results of the trends of agricultural entrepreneurs about agricultural loans to some
extent, with the overall average trends entrepreneurs 3.51, andHarav normative 0.83. As it turns out that the
majority of agricultural entrepreneurs (95.7%) Neutral attitudes are positive. As a relational function, moral
relationships between the number of people employed in agriculture from family, and the total area and from the
farm, the number of agricultural activities and annual income as independent variables and the direction of
entrepreneurs about agricultural marketing activities as a dependent variable.
The researchers adopted a questionnaire interview as a means of collecting the data for this
research, with the design of the first questionnaires for farmers and agricultural workers belonged to the
second pilot, and stratified random sample was selected; with 406 farmers represent (3.30%) Overall size.
All employees were also selected pilot's 127 112 of them responded by 88.3%, and use both percentages
and arithmetic test (t- test), and multiple regression analysis in progress the study. following is a summary
of the main results: agreed Both agricultural workers and farmers should provide farmers with guidance
publications, and technical problems facing farmers, and agrarian laws, conducting field trips to farms,
giving licenses to drill wells are the most engaging and occupied the top five of their respective angles. The
least exercise activities from the perspective of both agricultural workers and farmers the local rural
leadership selection, administration of field guides, and training rural leaders. As for the extent to which
farmers and extension services, shows that the implementation of laws and technical supervision specialized
projects and provide farmers with guidance publications, and conduct field trips to farms, the most useful.
The majority of workers (71.4%) Under the age of 40 years, average age 36 years, the majority (98.2%)
Saudi Arabians, and with a high level of education (50.9%) Their level of education and University
graduate, only 9.8% only specialize in agricultural extension, more than 70% of them are urban origins with
long experience in farming and agricultural extension work. They suggested changing the organizational
structure of your extension.The study recommended the need to review the organizational structure of the
agricultural extension service, agricultural activities and focus on the important task of identifying technical
problems facing farmers and transfer of research, planning, implementation and evaluation of pilot
programs, and leadership selection and development of rural.

IV. CONCLUSION
The study analyse the marketing efficiency of the small region in the kingdom. Vegetables markets of
this area found to be effecient based on the study findings. It is recommended in the study the daily local market
need to be encouraged by Ministry of Agriculture, KSA. should encourage to educate the farmers,to update
marketing activities,develop infrastructure facilities may help to improve marketing efficiency in the region.
More effective marketing of agriculture products in the Hotat region there is need to organize vegetables and

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 Marketing efficiency of agriculture produce in Saudi Arabia: A study of Hotat Region

fruits festivals on regular basis ,make easy procedures for agriculture labour contracts.Hence, local government
need to pay attention to the given recommendations in the study will give positive impact in the marketing
efficiency of the region. .

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