The Role of Agricultural E-Marketplace in Public Organizations

Abstract

The main inputs used in agriculture include biological products, chemical substances, technological systems as well as human and material factors. In general, pressure on the input side exerted by traders’ accounts for an extra profit of about 15-20% at the expense of the producers’ potential profit of a similar size. On the other hand, the annual agricultural support schemes are mostly utilized by the purchasers of produced goods due to depressed purchase prices. The establishment of an electronic marketplace and innovation space on the input side may bring about a major breakthrough in this situation improving purchase conditions in agriculture offering an opportunity to expend production through improving profitability. The objective of this research is to develop a concept for an innovative online marketplace which establish competition situation among input providers, enlarge supply side and discontinue inflexible trade structures. The present study intends to demonstrate the role that this type of new electronic marketplace may play in the life and operation of public organizations.