Folks have sometimes asked me about the meaning of marketing efficiency. I think this is a concise definition in the agricultural context:
"The farm-retail price spread, a widely used indicator of marketing efficiency, is the difference between the price producers receive and the price consumers pay for the equivalent amount of a particular commodity. When markets are functioning properly, adjustments in prices are quickly reflected through the distribution system from the farm gate to the retail level, resulting in a farm-retail price spread that closely represents the costs of marketing services." bold added
Tropp, Debra, Skully, David, Link, John, Malaga, Jaime, 2002. Mexico's changing marketing system for fresh produce: emerging markets, practices, trends, and issues. United States Department of Agriculture, Agricultural Marketing Service.
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