The Role of Producer and Consumer Support Policies in the Marketing Margins of the Chicken Market in Iran

The inefficiency of the agricultural product marketing system and the significant gap between producer prices and consumer payments are the major problems of the agricultural sector in most developing countries, which illustrates the need to achieve an optimal production situation and to reduce marketing margins by developing appropriate support policies for the agricultural sector. Therefore, in this article, the effect of consumer and producer protection policies on the marketing margin of chicken meat in Iran using the VECM model in the period 2002-2018 has been studied. According to the results, both indicators have a positive and significant effect on the marketing margin of chicken meat in the country, so that for one percent increase in consumer and producer support, the marketing margin of the product will increase by 23.75 and 19.92 units, respectively. In fact, not only these supports will not reduce the marketing margin of chicken meat in the country, but they will also increase the price margin and market inefficiency of this product. Accordingly, it is suggested that before implementing any policy, including pricing and budget support policies, the effects of these policies should be evaluated and with careful and purposeful planning, support should be designed in line with the goals of agricultural development programs.