West African Trade: A Study of Competition, Oligopoly and Monopoly in a Changing Economy

By P. T. Bauer | Go to book overview

CHAPTER 23
THE PRICE POLICIES OF THE MARKETING BOARDS (II)

The price policies of the marketing boards were described in Chapter 22; the principal implications and results of these policies are examined in this chapter.


1. DESTABILIZATION OF INCOMES OF PRODUCERS AND OF INTER-SEASONAL PRICES

In 1948-9 the Gold Coast Cocoa Marketing Board made the trifling 'loss' of £100,000 which was a fraction of 1 % of its accumulated surpluses or of its annual turnover. Following this very small draft on its reserves the Board reduced the producer prices by 30% and in the following year made the huge surplus of £18 m. This was only one instance of the insistence of the marketing boards on the accumulation of surpluses.

The desire to secure surpluses, coupled with a disregard of the difference between changes in producer prices and in producer incomes, have brought about a destabilization of incomes1 of cocoa producers and probably also of groundnut producers. As a result of the price policies of the Cocoa Boards the incomes of cocoa producers have not only been greatly reduced but they have fluctuated more violently over these years than if the crops had been paid for at full market value.

This can be seen from Table 24, in which actual incomes refer to producer prices multiplied by tonnages purchased, and potential incomes refer to annual incomes plus the annual surpluses. The figures are shown both in absolute terms and as percentages of 1947-8, the first year of the operation of the Cocoa Boards. It will be seen that the actual fluctuations were far greater than they would have been if the total net proceeds had been paid out. In short, the payment of world prices to cocoa producers would have secured a greater stability of producers' incomes at a much higher level.

It is not possible to prepare a similar table for the other major crops. The other boards have not been in existence for a sufficiently long period for construction of such a series. Moreover, prices have been kept at low absolute levels, and such price policies have rendered easy the

____________________
1
Strictly speaking destabilization of proceeds. Where producers incurred any fixed costs the fluctuations in their incomes must have been even more marked than the variations in proceeds. In this section reference to incomes refers to sales proceeds. The conclusions apply a fortiori to incomes.

-300-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
West African Trade: A Study of Competition, Oligopoly and Monopoly in a Changing Economy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 450

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.