The performance analysis of the industrial tomato sector in Algeria: On the consequences of unfair prices

Abstract

The aim of this study is to examine the structure of Algeria's industrial tomato sector, drawing lessons and highlighting the associated challenges. The study relies on comprehensive data, encompassing a substantial number of observations (up to 9 127) from the production and processing segments of the supply chain. The main findings reveal significant concentration within the processing segment (with a concentration index of 0.87 in 2021), indicating an oligopolistic market structure with limited competitive dynamics. Furthermore, the production segment displays a concerning trend of disengagement among producers, with a significant decline in their participation in the contracting process in recent years. The study also highlights weak contractual performance in the vertical relationship between the two segments, primarily due to unfair pricing practices. These findings collectively indicate an alarming situation for the entire sector. Consequently, this study provides some implications for public policy, suggesting the need for updated measures to address the current challenges.