Preserving vertical co-ordination in the West African cotton sector

Abstract

In this paper, we defend the idea that in the African context, non-market co-operation between farmers and ginning companies outperforms market transactions. In the absence of a reliable legal mechanism, market liberalization threatens the sustainability of contractual agreements between farmers and cotton companies. We present alternatives to the full market competition option and to the public monopoly organization that allow the production contract to be preserved. Special attention is paid to the case of Burkina Faso where efficiency gains have been obtained thanks to the strengthening of farmers' organizations and their financial participation in the cotton company.yardstick competition, zoning –, markets failure –, Contract farming –, West Africa –, Cotton –