EQUILIBRIUM FARM GATE PRICE IN THE CASE OF TWO SUCCESSIVE MARKETS WITH FIXED SUPPLY

This study aims to describe the evolution of the organisational structure of raw agricultural product markets 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 shows that the evolution of the commercial organisational 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. However, even if vertical integration also improves the price of agricultural input on the intermediary market, the intermediary firms undergo a deteriorating situation.