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Preserving vertical co-ordination in the West African cotton sector

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Author Info
Catherine ARAUJO BONJEAN () (Centre d'Etudes et de Recherches sur le Développement International)
Jean-Louis COMBES () (Centre d'Etudes et de Recherches sur le Développement International)
Patrick PLANE () (Centre d'Etudes et de Recherches sur le Développement International)

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Abstract

In this paper, we defend the idea that in the African context, non-market co-operation between farmers and ginning companies outperforms market transactions. In the absence of a reliable legal mechanism, market liberalization threatens the sustainability of contractual agreements between farmers and cotton companies. We present alternatives to the full market competition option and to the public monopoly organization that allow the production contract to be preserved. Special attention is paid to the case of Burkina Faso where efficiency gains have been obtained thanks to the strengthening of farmers' organizations and their financial participation in the cotton company.

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File URL: http://publi.cerdi.org/ed/2003/2003.03.pdf
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Publisher Info
Paper provided by CERDI in its series Working Papers with number 200303.

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Length: 21
Date of creation: 2003
Date of revision:
Handle: RePEc:cdi:wpaper:196

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Related research
Keywords: Contract farming &; #8211; Cotton &; #8211; West Africa &; #8211; markets failure &; #8211; yardstick competition; zoning &; #8211;

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This page was last updated on 2009-12-22.


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