ABSTRACT
This chapter focuses on the nature of the imperfections in the market structure for food producers and the implications for adjustments in the context of efficiency and equity. A strong linkage exists between marketing and production decisions in the world food industry. Market imperfections probably exist to a much greater degree in the agricultural sector in underdeveloped countries than in developed countries. The producer must plan to set up his own marketing arrangement or look to some outside entity to do the job. A large amount of feasibility research is in order to provide a sound basis for decision making on cooperatives as a prime market outlet for the small-scale producer. The small-scale producers rarely have concentrated market power that can be directed towards reflecting their aim in the political sphere. The most important objective of small-scale marketers is to be able to fit into the appropriate system of market structure and infrastructure to attain efficiency goals.
