“Excessive” profits of fruit and vegetables traders in Algeria: a reality or an unfounded prejudice? The case of early tomato from Biskra
Les profits « excessifs » des commerçants de fruits et légumes en Algérie : réalité ou préjugé infondé ? Le cas de la tomate primeur à Biskra
Résumé
In developing countries, farmers depend on a complex network of private intermediaries to sell their products. Hence, these intermediates are often accused of making excessive profits. It is the case in Algeria, where farmers and consumers spread this message. Is it a reality or an unfounded prejudice? To answer this question, this study focuses on the early tomato sector in the region of El Ghrous (Biskra, in Algerian Sahara). First, the endogenous and exogenous factors determining the price formation are identified. Second, the distribution of added value along the chain is analyzed. Through the calculation of payback period and the comparison of participants’ margin rates, we show that intermediates do not make profits at farmers’ expense and that the El Ghrous wholesale market is efficient.