The Empirical Factors Determining Vertical Integration in Algerian Food Manufacturing Sector

This paper examines the empirical factors determining vertical integration in the food manufacturing industry in Algeria. In this research, we focus on the effects of food industry structure, transaction costs, and several market conditions. We use data for the period of 16 years (2000- 2015) to estimate a linear regression model. Through an econometric analysis, three vertical integration measures are utilized to examine the determinants of vertical integration in food manufacturing industry. Empirical results support that there are variations in terms of the effects of industry structure and market conditions, whereas the transaction costs involved in the food industry coordination seems to have a significant effect on vertical integration trends

An Empirical Analysis of Vertical Integration Determinants among Peasant Farmers in Northern Algeria

This study aims to analyze the determinants of vertical integration (ownership and contract-ing) among peasant farmers in Northern Algeria. The choice of asset control is between ownership and a simple contracting. Thus, the integration of vertical stages of agricultural produc-tion leads to higher gross margins, influencesthe choice of marketing and supply channels, and improves market participation of farmers. Three different regression models were used to determine the likelihood of a peasant household to integrate vertically (and horizontally) in its enterprise. Data were collected from 635 smallholder farmers in Northern Algeria. Farm structure, farm size, farmers' age, farmers’ level of education, seasonality, and geographical location were assumed to be the key factors in accounting for a household’s likelihood to ver-tically integrate in its farming enterprise. These key factors affect the household’s likelihood of horizontal integration. The study, then, carries the implication that policy-makers should develop increased awareness of farm structure, its scale, seasonal and spatial nature of agricultural production, as well as of some farmers’social characteristics in order to be able to improve the agricultural productivity

The Socioeconomic Determinants Of Asset Control Choices In Algerian Agriculture

This study aims to investigate the effect of main socioeconomic factors of technology adoption, with special reference to the role of assets specificity in farm management. The contribution of this study is largely empirical by testing some hypotheses in Algerian context. We investigate the determinants of technology asset control choices in the agricultural production in order to conclude on the constraints of farm extent and its implications for farm management and economic efficiency. Our main results assert that the technology asset control choice is determined by the farm size, organizational form, human capital, social status, and geographical location. These findings corroborate the existing theories and generate some empirical implications, leading to propose some directions for future research

An exploration of agro-food chain distributive, procedural and interactional fairness in food products

Fairness and ethical values in agro-food chain lay at the center of the current debate on agro-food chain sustainability. The food labels may contain elements focused on agro-food chain management fairness practices. The objective of the present study is to explore what types of fairness agro-food companies value in the food products they commercialize, and if the characteristics of agro-food companies have a relationship with the type of fairness valued. The research study collected 226 commercialized food products containing information on the agro-food chain fairness practices companies adopted to produce the food products. Data elaboration included a cluster analysis to identify groups of fair products, and a multinomial logistic regression to explore the relationship between the identified clusters and fairness types, organic, nutritional and functional claims, and price. Results support that fairness-oriented products provide information on different types of fairness that is distributive, procedural, and interactional. Some products provide economic information on the distribution of price between upstream and downstream actors. Other products focus on procedural and interactional fairness practices, such as dignity, respect and transparent relationship in agro-food chain; technologies used in the production and distribution of the product; and ethical certifications that companies hold. Fairness-oriented information differ depending both on the type of chain actor commercializing the product, and on the type of brand, that is whether commercial brand or private label. The main conclusion is that companies convey fairness-related information to consumers differently according to company’s role in the agro-food chain. Yet, there is need to exploit further the potential role of fairness practices in defining effective business strategies to contribute to higher equity and sustainability in the agro-food system

Analyse de la réponse de l’offre agrégée face à la volatilité des prix des produits agricoles en Algérie : Cas de la filière pomme de terre

Cet article examine empiriquement la réponse de l'offre agrégée des producteurs de pomme de terre au cours de la période  1966-2018. Nous allons donc (i) vérifier l’existence d’une relation d'équilibre à long terme entre l’offre agricole et les prix des produits agricoles, et (ii) analyser la réactivité de l'offre de ce produit face à des incitations économiques (changement des prix). Pour ce faire, l'analyse de cointégration et le modèle de correction d'erreurs sont utilisés. À long terme, les résultats montrent des élasticités, statistiquement significatives et généralement faibles, entre la surface cultivée et le prix à la production de la pomme terre. Par ailleurs, les élasticités à court terme sont encore plus faibles. Les résultats du modèle de correction d'erreurs ont confirmé une relative réactivité positive aux prix, avec des vitesses d'ajustement lentes surtout dans la dernière décennie. Ce résultat indique que la production de pomme de terre est aussi influencée par d’autres facteurs que le prix. La relative nonpertinence de la réponse d'offre présumée pour la production de pomme de terre, après l’instauration de dispositif Syrpalac, suggère qu’une attention particulière doit être vouée à cette filière afin de contrôler les facteurs qui influent sur la production.   English Title: Analysis of aggregate supply response to agricultural prices volatily in Algeria: Case of potato sector This article examines empirically the aggregate supply response of potato growers over the period 1966-2018. We will therefore (i) verify the existence of a long-term equilibrium relationship between agricultural supply and agricultural commodity prices, and (ii) to analyze the responsiveness of the product's supply in the face of economic incentives (price changes). In doing this, cointegration analysis and error correction model will be used. In the long term, the results show statistically significant and generally low elasticities between the agricultural output and the producers’ price of potatoes. Besides, short-term elasticities are even lower. The results of the error correction model confirmed a positive relative reactivity to prices with slow adjustment speeds especially in the last decade. This result indicates that potato production is also influenced by factors other than price. The irrelevance of the  presumed supply response for potato production after establishing the Syrpalac dispositive suggests that special attention must be paid to this sector in order to control the factors that influence production. &nbsp

Proceedings: 3rd International Conference on Food and Agricultural Economics: A PANEL DATA ANALYSIS OF ALGERIAN FOOD EXPORTS: A GRAVITY MODEL APPROACH

In this paper, a gravity model approach was employed to analyze the major factors that influence Algerian food exports to the entire trading partners (98 countries) for the period 2001-2017. In accordance with the panel data analysis with WLS regression method, more consistent results were obtained. The results indicate that there is an increased propensity for food exports. Besides, the main factors to Algerian food exports are partner countries' growth, domestic demand and the common culture and border. All these factors affect the country's exports positively. Transportation costs, proxied by distance, have negative andsignificant effect on Algerian food exports. Results allow us to reveal the countryspecific effects through a ranking and shows that neighboring countries are in the top 10 list. Nevertheless, the existence of trade agreement has a significant negative effect which reflects the fact that trade gains from the trade agreements have been minimal for Algerian food exports

Vertical Relationships and Food Supply Chain Coordination: The Case of Processing Tomato Sector in Algeria

This paper analyzes the vertical relationship between growers and processors in the Algerian tomato processing industry. We use extensive data on production contract outcomes for processing tomato growers (including 3,740 coordinated contracts) to examine the performance of grower-processor vertical contracts. The results indicate that the tomato grower-processor vertical relationship undergoes some deficiencies resulted in social welfare losses and lower level in contractual performance. From the side of processors, the industry has an oligopsonic structure (with CR4: 57%). From the side of tomato growers, the results indicate a relatively higher contractual default (with 53% in average). These findings suggest that public policy should pay more attention for the performances levels of the used vertical coordination mechanism in order to provide more incentive instruments and by leveraging vertical contract for tomato growers’ benefit

An Empirical Analysis of Vertical Integration Determinants among Peasant Farmers in Northern Algeria

This study aims to analyze the determinants of vertical integration (ownership and contracting) among peasant farmers in Northern Algeria. The choice of asset control is between ownership and a simple contracting. Thus, the integration of vertical stages of agricultural production leads to higher gross margins, influences the choice of marketing and supply channels, and improves market participation of farmers. Three different regression models were used to determine the likelihood of a peasant household to integrate vertically (and horizontally) in its enterprise. Data were collected from 635 smallholder farmers in Northern Algeria. Farm structure, farm size, farmers' age, farmers’ level of education, seasonality, and geographical location were assumed to be the key factors in accounting for a household’s likelihood to vertically integrate in its farming enterprise. These key factors affect the household’s likelihood of horizontal integration. The study, then, carries the implication that policy-makers should develop increased awareness of farm structure, its scale, seasonal and spatial nature of agricultural production, as well as of some farmers’ social characteristics in order to be able to improve the agricultural productivity

THE SOCIOECONOMIC DETERMINANTS OF ASSET CONTROL CHOICES IN ALGERIAN AGRICULTURE

This study aims to investigate the effect of main socioeconomic factors of technology adoption, with special reference to the role of assets specificity in farm management. The contribution of this study is largely empirical by testing some hypotheses in Algerian context. We investigate the determinants of technology asset control choices in the agricultural production in order to conclude on the constraints of farm extent and its implications for farm management and economic efficiency. Our main results assert that the technology asset control choice is determined by the farm size, organizational form, human capital, social status, and geographical location. These findings corroborate the existing theories and generate some empirical implications, leading to propose some directions for future research

Statistical assessment of rainfall variability and trends in northeastern Algeria

In the present study, time series for annual, monthly rainfall and number of rainy days per year were analysed to quantify spatial variability and temporal trends for 22 rainfall stations distributed in northeastern Algeria for the period 1978–2010. The Mann–Kendall test and the Sen’s slope estimator were applied to assess the significance and magnitude of the trend. The results showed that precipitation decreases spatially from North to South and from East to West. The application of the Mann–Kendall test (for 0.05% threshold) to the time series data showed that for annual precipitation, no station showed statistically significant trends, unlike the number of rainy days, where there was a significant negative trend in four stations (Jijel, Constantine, Oum El Bouaghi and Tébessa). For the monthly time series, significant positive trends were observed during the months of September in the coastal stations and July for the plateaus and southern Saharan Atlas stations, while significant negative trends were recorded during the months of February and March for the stations of the extreme East in the study area. These results revealed that for the period analysed, there was no significant climate change in northeastern Algeria but there is a seasonal delay having important agroecological implications