Equilibrium Farm Gate Price in the Case of Two Successive Markets with Fixed Supply

Abstract:     
This study aims to describe the evolution of the organizational structure of raw agricultural products in West African countries (the supply may be regarded as fixed) using microeconomic models to assess the evolution of the farm gate price; and focusing on the impact of the vertical integration of some firms on the producer price. This paper thus shows that the evolution of the commercial organizational structure of agricultural products has led to a gradual improvement in the producer price. It also shows that whatever the degree of vertical integration on these markets, it has a positive impact on the farm gate price.

Keywords: successive markets, vertical integration, agricultural products, farm gate price, West Africa

JEL Classification: L22, L42, Q12, Q13

working papers series