The current study attempted to investigate the grapes marketing channels and its challenges in west Azerbaijan province, Iran. The study area is famous for different types of grape and with 250000 ha, ranked seventh in the country and plays a significant role in case of province economy as well as employment. Statistical populations of the study are producers, wholesalers and retailers of grapes in west Azerbaijan province. Data were collected for the agricultural year 2009-10. Questionnaire used to collect data. The number of sample which selected to the study for producer, wholesalers and retailers are 200, 30 and 70 respectively. The systematic random sampling method used to select sample and collect necessary data. The price per kg varied between 200 to 700 Toman, which show high variation. Labor cost reported as the major cost in the study area in grape production at all steps. And again results showed factors such as lack of market clarity, proper packing system and stock, high risk of price, lack of proper role and regulation in the wholesale market and knowledge of new markets are the major challenges in front of grapes market in the study area. The results showed, the highest market margins belong to Sturm and the lowest goes to fresh grape. The highest and lowest farm price belongs to Aftabi - Raisin and fresh grape. Marketing cost coefficient and marketing efficiency calculated for fresh grape and its by-products and the results showed, the highest and lowest marketing cost coefficient belong to sour grape and Aftabi-Raisin respectively. The calculated marketing return showed Aftai-Raisin raked highest and fresh grape lowest. The share of marketing factors’ share of consumer price calculated and the results showed in the case of producer Aftabi-Raising, Wholesaler sour grape and retailer sturm ranked highest. The results of study showed the lowest technical, price and total market inefficiency belong to sturm and the highest goes to fresh grape.
