Supply Management Options

Alfred Maizels, Robert Bacon and George Mavrotas


Published in print July 1997 | ISBN: 9780198233381
Published online October 2011 | e-ISBN: 9780191678981 | DOI:

Series: UNU/WIDER Studies in Development Economics

Supply Management Options

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In terms of markets for both primary commodities and manufactured goods, a structural surplus in the world market — or one that has resulted from the faster expansion rate of productive capacity and production compared to consumption — is reflected through depressed price levels. Governments in developed countries use a series mechanisms of supply management for supporting producing incomes above the minimum in temperate-zone agriculture, steel, shipbuilding, and textile industries. Surpluses in primary commodity markets of export are generally found to reflect a part of a longer economic cycle, specifically for tree crops and their long gestation period. This chapter looks into a supply management approach for beverage crops that aims to benefit not only the producing countries through foreign exchange earnings, but also developed consuming countries as well through reducing price fluctuations.

Keywords: price fluctuations; foreign exchange earnings; structural surplus; production; consumption; price level; price fluctuation; supply management

Chapter.  3394 words. 

Subjects: Economic Development and Growth

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