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Production Contract Performance In Tomato Processing Industry: Analysis Of Algerian Case

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  • Benmehaia, Amine Mohamed
  • Brabez, Fatima
  • Benharrath, Oualid

Abstract

This paper analyses empirically the processing tomato market and contracting practice in Algeria. We use extensive data on production outcomes for processing tomato growers (including 3758 coordinated grower-processor contracts) to examine the performance of grower-processor contracts. The aim of this study is to characterize the empirical relevance and regularities in tomato processor-grower provision contract. Results indicate that technology differences and regional specificity affect significantly the contract performance (fulfillment) of tomato processor-grower contract. Some policy implications are derived from this study in order to highlight the main considerations to be taken into account by the involved regulatory office.

Suggested Citation

  • Benmehaia, Amine Mohamed & Brabez, Fatima & Benharrath, Oualid, 2017. "Production Contract Performance In Tomato Processing Industry: Analysis Of Algerian Case," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(2), April.
    • Handle: RePEc:ags:ijfaec:266474
    DOI: 10.22004/ag.econ.266474
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    References listed on IDEAS

    as
    1. Guo, Hongdong & Jolly, Robert W., 2008. "Contractual arrangements and enforcement in transition agriculture: Theory and evidence from China," Food Policy, Elsevier, vol. 33(6), pages 570-575, December.
    2. Rachael E. Goodhue & Sandeep Mohapatra & Gordon C. Rausser, 2010. "Interactions Between Incentive Instruments: Contracts and Quality in Processing Tomatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1283-1293.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Brent Hueth & Ethan Ligon, 2002. "Estimation of an efficient tomato contract," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(2), pages 237-253, June.
    5. Monteiro, Guilherme Fowler A. & Saes, Maria Sylvia Macchione & Caleman, Silvia Morales de Queiroz & Zylbersztajn, Décio, 2012. "The Role of Empirical Research in the Study of Complex Forms of Governance in Agroindustrial Systems," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 50(4), pages 1-16, December.
    6. Dileep, B.K. & Grover, R.K. & Rai, K.N., 2002. "Contract Farming in Tomato: An Economic Analysis," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 57(2), June.
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