A Study of Market Efficiency and Trade Profitability in Iran's Pistachio Domestic Market

 In this study, a sample of 302 farmers and a sample of 227 traders from Kerman and Fars provinces were interviewed during 2006 and 2007 and pistachio marketing channels were investigated. For calculating and analyzing market margins, Charles and Gray method was used. Also, Shepherd method was applied for determining of market efficiency. The results indicated that pistachio is sold in spot prices, just after harvesting, because of financial and technical problems, needs for liquidity and distrust conditions. These factors, also, resulted in abundance of direct relationship between farmers and exports, despite of higher profit existed. Comparing marketing margins and costs showed that pistachio trading is profitable and there is high economic rent in exporting markets. Thus, marketing efficiency is low in pistachio market. Detailed investigations showed that economic rent in pistachio market is not as a result of trading but it is because of financial limitation and returns to the owner of credit resources. Finally, for enhancing pistachio market efficiency, it was proposed to establish terminals for pistachio processing and common storages, to reform financial markets, to increase trust among market agents, to make pistachio exporting perfect and to differentiate between commodity and financial markets.