Small Farm Maize Marketing: A Case Study from Northern Vera Cruz, Mexico

Abstract

"The findings of the study indicate that the local rural maize marketing system is operating reasonably well even though a level of monopsonistic practice exists. Comparison of the results from an econometric analysis of the variation in producer prices with marketing costs showed that prices vary rather systematically with differences in processing costs and levels of maize moisture content. Price differentials slightly greater than transportation costs were encountered as the distance from the central market increased. The results of the marketing margin analysis suggest that large monopsonistic profits are not characteristic of the local maize markets. This absence of large profits is consistent with the market conditions analyzed within the market structure and conduct paradigm."