Abstract

International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.

Submitted: May 12, 2004 · Accepted: July 27, 2005 · Published: September 7, 2005

Recommended Citation

Makdissi, Paul and Wodon, Quentin (2005) "The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies," Journal of Agricultural & Food Industrial Organization: Vol. 3 : Iss. 2, Article 7.
Available at: http://www.bepress.com/jafio/vol3/iss2/art7