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© 1995 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Reform of the Moroccan sugar industry: Market deregulation and imperfect competition

SOPHIE THOYER*,

ENSAM, Montpellier, France

Sophie Thoyer, Department of Agricultural Economy, ENSAM, 2 place Viala, 34030 Montpellier Cedex 1, France

Summary

The planned reform of the Moroccan sugar industry is critically assessed, concentrating on the two main links in the marketing chain. In the negotiation process between sugar crop producers and milling units, the removal of the fixed national price for sugarbeet and sugar cane is likely to lead to monopsony situations, whereas regional supply curves and initial market structures suggest that the reform process may favour the emergence of a private sugar monopoly. The paper demonstrates that the conditions for perfect competition are rarely met in the food sector and it re-emphasises the need for state intervention and institutional regulation.

Keywords: sugar, Morocco, market deregulation, monopsony, derived demand, monopoly


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