Market liberalisation, vertical integration and price behaviour in Tanzania’s coffee auction
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Date
2001
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell Publishers
Abstract
Whether market liberalisation can promote agricultural development in
Africa depends on how well existing institutions can facilitate trade by
private agents. This article assesses the performance of the Tanzania coffee
marketing system after liberalisation and the emergence of private,
vertically integrated exporters (VIEs).
Increasing producer prices,
declining marketing margins, and the continued provision of a useful
auction for coffee that is delivered by traders who are not VIEs all suggest
a degree of success for liberalisation. The presence of VIEs seems to have
provided investment to reduce marketing costs, whilst a sufficient number of
competing firms has limited non-competitive behaviour in the market for
coffee that is traded at the auction by non-VIEs.
Description
Journal article
Keywords
Market liberalisation