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)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(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.

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.

In Algeria, the management of water based on a strategy of supply and subsidies continues to be applied even as the resource becomes increasingly scarce. The demand for water in Algeria continues to grow, creating an imbalance between the available water resources and uses. In this context, the state has progressively implemented irrigation water management policies, including pricing, which aims to manage demand while reducing the water price subsidy. In this article we will study the effectiveness of some water management instruments implemented in the large irrigation perimeters and offer some perspectives to improve the management of the demand for irrigation water. To do so, we investigate the effect of different water pricing and irrigation quota scenarios on changing farmers' behaviour in terms of irrigation water demand. We developed a positive mathematical programming model based on farmers' surveys and typology in a public irrigated scheme (Jijel–Taher located in northern Algeria). Two types of scenarios were simulated, including: (i) increasing volumetric prices of irrigation water in the studied irrigated areas; (ii) decreasing water quota scenarios allocated to the farmers. As expected, results show that increasing water prices may lead to a decreasing demand for irrigation water. However, this decrease in water demand only became significant at very high prices. We also found that a price of 12.5 DZD m‾3 (about 0.11 US$ m‾3), corresponding to the government production cost of water, can easily be implemented in the study area without substantial effects on farmers' gross margin. Then, water pricing does not represent a water demand management tool, but rather a tool to finance management infrastructures. Simulations also show that decreasing water quotas may lead to a decrease of irrigated areas, change in cropping patterns, and to a significant loss of farmers' gross margins for quotas below 2600 m3 ha‾¹. © 2019 John Wiley & Sons, Ltd.

In 2008, public authorities in Algeria created the “Syrpalac” mechanism in order to reduce price fluctuation of consumption potatoes. The mechanism calls private storage operators for the constitution of the stocks of regulation. It is a voluntary policy, whose success is depending on the effective implication of these storage operators. Our research consists on identifying factors that determine the implication of the storage operators to Syrpalac. Our results show that these factors are the perception of financial incentive, the profit margin, the diversification of the storage operators, the production area, the volumes and the mode of storage. They suggest that policy improvements are possible, which will help the regulatory authority.

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Cette étude a pour objectif de mesurer le niveau d’intégration agriculture-élevage bovin lait au sein des différents systèmes de culture dans la plaine de la Mitidja. Un premier travail de terrain a été effectué en 2014 dans la wilaya de Blida (Mitidja-centre) auprés de 75 éleveurs de bovins laitiers pour caractériser les types d’intégration par le biais des flux échangés entre l’élevage bovin laitier et les autres cultures des exploitations. En second lieu, une enquête plus approfondie auprès de 30 éleveurs a été réalisée en 2017, pour calculer le niveau d‘intégration selon la contribution de chaque catégorie d’aliment dans les apports alimentaires fournis au bétail. Nous montrons que l’élevage bovin est très intégré au marché international avec un taux de 45%, par le recours aux aliments concentrés. L’intégration de l’élevage aux ressources fourragères produites au sein des exploitations laitières représente 29% des apports. Ce faible niveau d’intégration est expliqué par les difficultés d’accès aux ressources (terre et eau) pour produire des fourrages verts au sein des exploitations laitières, qui sont concurrencées par le maraichage et l’arboriculture. L’intégration de voisinage par le biais du fauchage des herbes spontanées, le pâturage sur les jachères et les chaumes des céréales et la distribution des sous-produits des cultures maraichères est faible. Elle est de 16% du total des apports. L’intégration de l’élevage au marché national pour l’achat des aliments grossiers représente 10% des apports. The aim of this study work is to measure the level of integration between crop and dairy farming in the various farming systems in the Mitidja plain. A field research was carried out in 2014 in the wilaya of Blida (Central Mitidja) among 75 dairy cattle farmers in a first passage. This first step aims to characterize the types of integration through the flows exchanged between crops and livestock systems. In the second step, a further investigation was carried out with 30 farmers, in 2017, to calculate the level of integration according to the contribution of each feedstuff in livestock feed intake. The results show that cattle farming is more integrated into the world market at a rate of 45% through imported concentrate. On the other hand, the integration of livestock with fodder resources, produced on dairy farms, represents 29% of feed intakes. This low level of integration can be explained by the difficulties of access to the resources (land and water) to produce green fodder on dairy farms, which are competing with more profitable crops, mainly orchards. Neighbourhood integration through the mowing of spontaneous grass, grazing on fallow land and cereal stubble and the distribution of by-products from grain crops is weak (16% of the total intake). The integration of livestock within the national market through the purchase of hay and straw accounts for 10% of total intake.