Marketing Cost Structure of Dates in Saudi Arabia: An Analytical Perspective

Abstract

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 Al-Munawara, 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