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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.

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