Do state-subsidized contractual arrangements improve farmers' income? Empirical evidence from Algeria

Sami Assassi () and Guillaume Soullier ()
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Sami Assassi: Ecole Nationale Supérieure Agronomique d'Alger
Guillaume Soullier: UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier

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Abstract: To modernize agricultural value chains, some governments subsidize contract prices paid to farmers by private firms to encourage them to adopt contract farming. The impact of price-subsidized contracts on farmers' incomes has not yet been evaluated. To help fill this gap, we evaluated the impact of a contractual arrangement with a subsidized sales price implemented by a tomato cannery in Algeria. Our results showed that the arrangement increased profits by securing outlets and sales prices. The success of the Algerian intervention lies in generating a price premium and in combining public financial capacity and private governance of the contractual scheme.

Keywords: Algérie; agriculture contractuelle; intervention de l'état; revenu de l'exploitation; chaîne de valeur; subvention; Contract farming; Subsidy; Impact; Tomato; Value chain; Algeria; Agriculture contractuelle; Subvention; Tomate; Filière; Chaine de valeur (search for similar items in EconPapers)
Date: 2024
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Published in Revue canadienne d'études du développement / Canadian Journal of Development Studies, 2024, 45 (1), pp.62-86. ⟨10.1080/02255189.2023.2212895⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05180646

DOI: 10.1080/02255189.2023.2212895

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