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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The future of Africa's raw material marketing boards: will local factories make some of them redundant?
Authors:Dijkstra, T.ISNI
Laan, H.L. van derISNI
Periodical:Journal of International Food & Agribusiness Marketing
Geographic terms:Africa
Subjects:marketing boards
agricultural products
Abstract:This article examines the marketing boards engaged in the buying and selling of raw materials for industry: raw material marketing boards (RMBs). Formerly, the RMBs of tropical Africa had to export their raw materials to the industrial countries, but since about 1960 they have sold increasing quantities of for instance cotton, oil seeds and tobacco to local factories. After an exploration of RMBs and local factories in tropical Africa (North Africa and the Republic of South Africa are excluded), the authors discuss the three successive transitions which take place in the life history of an RMB, paying attention to both macro and microeconomic factors. One transition takes place when an RMB delivers its first consignment to a new local factory. Another transition takes place when the capacity of the local factories and hence their demand for raw materials equals or exceeds the supply of the RMB. The last transition is the one which leads to the RMB's abolition. An examination of the problems facing RMBs (liquidity crises, fluctuations in volumes of supply and demand of raw materials, the effects of price formation) leads the authors to the question of whether these problems justify a recommendation to close down these boards. Two case studies are presented: Nigeria, where all marketing boards were abolished in 1986, and the cotton marketing board in Kenya. The authors conclude that there is a lack of understanding of the complexities of the marketing chains involved, and African Governments should be cautious with proposals to abolish RMBs. Bibliogr., notes, ref., sum.