Market liberation, vertical integration and price behaviour in Tanzania's coffee auction

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)205-222
Number of pages18
JournalDevelopment Policy Review
Volume19
Issue number2
DOIs
StatePublished - 2001

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Management, Monitoring, Policy and Law

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