what can we learn from the adm global price conspiracies?

49 Pages·1998·0.22 MB·English

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?SEICARIPS NEOCC ILRAPB OMLDGA
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Structural Realignments in Food and Agricultural Markets: A Case Study Approach,” Park City Utah, August
1998
Purdue University is committed to the policy that all persons shall have equal access to its programs and
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public assistance status, veteran status, or sexual orientation.
E HMTO RNFRA E ELNW ATCAHW
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ADM was ta eht retnec fo owt egral labolg gnixif-ecirp .seicaripsnoc sreyuBrew e
.setatS detinU eht ni noillim o873$ ot 611$ degrahcrev tekraM erutcurts dna etaroproctnemeganam
s ytht oebr esweigetar tlsag e’lstnadnef edd nsanoituceso rlpanimi re.c hsTletr aecse hdtetatilic aefl
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fe eht trub ,gnirutcurtse stinemecrof nleag ellanoit ahnt iswletr alcabo lggnidneherp p fasosenevitcef
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sisylan aerafle w,.o Cdnaldi Msleina Drehcr A,edar tlanoitanretn i,enisyl
thgirypoC © yb nhoJ ..MronnoC .l dlseAtvhrgeis resrreda eyRm m eiskteaaimbpro ecfvo tsniehm turcoofd-non
commercia l sesoprup yb yna ,snaem dedivorp taht siht thgirypoc eciton sraeppa no lla hcus .seipoc ehTweiv s
yeht ,nwo s’rohtua eht era reepap siht ni desserpx les ny out r t orsoyfcaw n o pedaeoinhtvotpser ryolcirasse ctoeodnn
devlov nnii eht wa l dseebnsiiareccrseehd
i
eniltuO
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
di ccAirt ir Cotfekr aeMhT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Structure of Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ycaripsno CgnixiF-ecir PehT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
seni Ftsurtitn AlanimirC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
stnemelt ttesSurti tentAavirP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
stce fefdE alraTnoitanretnI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Corporate Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
gnirutcur tysretRsudnI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
snoisulcnoC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
secnerefeR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
xidneppA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
ii
noitcudortnI
rf seiduts esac yrtsudni eviTsnetxe fo tnempoleved eh lacirip mtesr ie fhs taswdroc etrru omco
o lairtsudni dellac scimonoce fo hcnmarb wen eht yb dezilitu dohte ylra eeh tn igninnig e .Bnoitazinagr
193 0s, s t dnre eigyodea ftuhrsi t tutr,s,oshennci tv oinmd dsleorrnar naeaMeovhbcrtmeaoaHhC e
usefulness o f e hgetnriugtrceumret S- tcudno Ce c-na m) rPmoCgfSir(deaPr a gpynbitiolphxte e
typically ex evisnet truoc sdrocer detareneg yb rojam laredef tsurtitna .sesac tsoM fo esehtlrae y
itseuq htiw tlaed seiduits yrtsudn floarev es,sas05 9d 1 ie. m hsytrBegr ernmooitazilopon ofsmono
etrew sesac eseh tnemtnahcnes iedlbaredisn o,cstsimono c O efInooitaren edgnoc ees h ytdbetisiv er
had s te ni esuaceb eht rof-depoh snoitazilareneg morf yrtsudni-ssorc snosirapmoc erewon t
ireenoip )1591( s’niaBf .gnimochtro dfooh tdeemrref etr sp eoehmmta cne obgonsit sleatcitsit agtns
esac elihW .OI ni sisyelana laciripm doetd ny ee,thetrutar e emt OhoidItrlefraeppa srie dvseenid uts
bniatrec rof devreser e ,spihsnoital erroivaheb-erutcur tfssonoitanalp xsheac ussnoitacilp pwaorran
.seidu tcsimonoce-lag ed ln,asecitca repda rytrtsud nfniooitulo veeht

I detec t a ecnegruser fo tseretni ni esac seiduts ni eht dim s0991 gnoma laciripmeI O
economists. ,yl tsria hPdtner tyam eb eud o tlas ieah rtfpop ases reenhlt uffoelsaur uethctejnoc -
noitairav )OIEN( seiduts taht desirpmoc a laitnatsbus erahs fo eht laciripme OI krow fo ehttal e
1aorppa OIEN ehT .s089 ec inrepew t pe eabth g atsnhditoh t PeenCmcoSna vdndeaatneser phecr
si )xednI renreL ehat( stsoc cimonoce dn .stup t dusnoeac idrepvre smb oodreftami tyslesuonego dne
aht si seiduts hcus fo egatn avdasid enO t r eehhc trtas euesmseorpmi earutcu rrtos edom fotcudnoc
o ledom eht n iroirp a nac eno ,dne eht nI“ . deyehbttar e pndsaeeiggvre serbheotht e e htrewoubns
,emag si a ecneuqesnoc fo eht desopmi airoirp ,erutcurts ro smets morf tnemerusaem rosim -
lno nac sledom OIEN .)44:6991 nosrednA dna mazzA( ”,smelbosrp noitacificep neewte bhsiugnitsi dy
ind seirtsu sg mn edri ;tsnik s s aoafad leethhtey ehcett- s fodtisefoi dorcophttmpimtnoroenpcdi e
.sgnitt eyscilop-noititepm olcacitca rnlpiufe st uoe nrsau hd tn,ap atgsoc-eci re phfstotnanimreted
Aewener eht rof nosaer rehton fyodu tlsairetsig aem h stsieidu tess ancev iggni enboitnet tda
ttuS ni nevig seirttsudni doof eh sengi angon te,tnuoSiti dr Pae.Cr ikSt )lo ee1rok h9abist9eL’1n(o
a lanoitces -nsossoirrcapmoc fo yrtsudni seirotsih ni redro ot mrifnoc a deniatniamsisehtopyh .
However, si hecio hsc efiort sdun dadnoiht enm ofsoir aspamwo ceyrl otdmceidritusg ybamrof l
theory. S vi te eyalrr l tpeise e s oimtpisask t’httaasueiffntn xen iloaoiaferiedrtwuogsutqatucs e
.rog ilracig od lnsaecruos
The purp eso fo sih trepap si o ttn ensoe irwtpeanm rnoofni eht dl rcoiwrt idycirctasudni ,
focusing no eht doirep gnirud hcihw eht ruof tseg rsarlerutcafunam evah dettimda ot gnixifht e
pro s’tcud ecirp .ediwdlrow nI ,ralucitrap I epoh ot ward a rebmun snossel morf eht ydutsof r
structure-conduct ,spihsnoitaler remusnoc eraflew ,stcapmi etaroproc ,noitazinagro dna ht e
ssenevitceffe nsoetartnecn oycdu tssi hetl i. hrWoivah eebvisull ogcnirret e ndti cnAamre heS hfto
scaw MDA ,dica cirti .enis yfsloeci re phx tioyftcaripsn oscuoenaropmet n froaoectn ee chtotas la
onnoC( dehsilbup yltnTecer saw esac enisyl eh .es atcnese re phr tolfe d seoaavmr elsl id wn)a79 9r1
.dic acirti cdn aenisy lneewte beda me blli wsnosirapmo ctneuqerF
1
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Citric acid si na ,tneludica a ssalc fo sevitidda taht evres lareves :snoitcnufnoitazilirets ,
b iretca .slev edli c fanooitazidradna tds n,atnemecnah nreova l,fnoitax irfova l,fnoitaziliba tlsacigolo
Acidulents yam eb yllacimehc detcartxe morf elbategev ,rettam ,dezisehtnys ro decudorporf m
ixorppA .noitatnsemref yb sehcrat ded desa rtaneludi chaceto i rbcoitehtn yls l fasodriht-o wytletam
to foods an d ,segareveb dna tsom fo eht redniamer ni.stnegreted 1 hguohtlA ereht eranam y
amuf ,cilam ,cirohapsohp( stneludic snertaronhofut m odccii ccr,aat)is cr ,edchni tat,ocearla t,rcaitr
80 percent of eht eulav fo eht .S.U tekram rof .stneludica nI emos ,stcudorp tnereffid sdniko f
acidulent are s .s m s r mueoyrohfrorT dfdd yir h u or n .qd ecadeii shilllcn itrobaiitsaeitCutitsbu s
co tsisn , e s tr .rtcae mdolirhfui artt oicdsti odsai icisu, cca qes atditie olLaxmpo riusftmioidcos d
syawlwa era secirp tub ,retaw emos hti yllaren eeg rsamr odfiu q. isLtnelaviuqe-suordyh n nadietouq
eveb ni elbafsu ,edarg-doo doof-n or nolfae de irsatl acsi r.t sidCn il k lfsaodo odfesseco rd pnsaegar
.s eds ou rohsof gaf tsi eoahsrndaradn ayttsi reurp eshtwnegre thse cadsu eslsauirtsudni
nI eht91 ht yrutn edcna ylrae02 ht , ycriurt tndieicc cyal ldsaeaccw iuymdnbeoihrtcpaert g
muiclac 02 ylrae eht nI .gnissecorp surtic fo tcudorp-yb a ,etartic ht snaowitcud odr ipcciar t,iycrut nec
an Italia .t ycdl eaon s lepgsn’fgr oneoyoepn ivmlnsocdIroeaemieWurltdrsWdgIiituWciaacc d
ser cisab ,revewoH .s0291 eht hguorht slevel hgiph yrev ot esir ot secir d(l u nhoaocmrae sulligrepsA
n regi 1 ni eirruC .N.J yb dehsilbup ) detare ne erdg eicwcia r stftioncu osmuaoi pt oadchetlae v7e1r9
erutxim diuqil a nbi nworg dluom eht y ,rez i.fsP ahh tCdiewk re oi.wrn ro dur,nCisat l,aessor cfuos
Inc., a ,nylkoorB weN kroY lacimehc ,ynapmoc ot poleved elacs-egral noitcudorpsdohtem .
laicremmoC .3291 ni nageb noitcudorp ol2onhcet sihT d n,amuigl e,Bynamr e,Gdnalg n oEdtaer pysg
Cni aikavolsohcez stnemevor p,m5i 4 r9.e1k tcfoAtsd e eesshfeatssa lroam gtu eshe tbsi0w 3 e9h1t
puis devlovn nai seAlacs-lla mysn a,ms07 9e1 h. ytsBes aebsocu l fgeo seu hdt nsaniar ttssa eryoire
.seota tto e p,erawovsas s,ascessa lgon mid sicuciar tgincicud oe rrspeewirotcaf
About four shtfif- fo eht dnamed rof cirtic dica si devired morf eht egareveb dnaoof d
s derovalf ylgnorts emos ot dedda si dica cirohpsohp elihW .iseirtsudn derov a sfdii ccairt i,cskni rtdfo
lohocla emos ni dna sknird tfos derovalf irethgil n dsneat adteSt i ensnhU 0it. 7s e9enh1gItare vceib
ht yb dnamed taerg ni erew stlas cirtic ,aeporuE ni retal tib yllatnemnoriv n ne sayartsud ntinegret eed
fr yldneir gy rnb4o%eit6pw odsreag tniec tnsfoioitpmus n do.lcs ruorWohps o rhtopnfemecalpe
.s 0 e 8enth9hiat1trw oen rhargthetw otlashwe m,os s0 r9ena9hie1ty
noit ceu rdfuootrcP uerhtTS
I ,rezifP .ylopoud a saw noitcudorpI .S.U ,s0891 eht n stl acsirt id cndai ccairt idcecudo r.pcn
ni an tu cd iny.ta tac ,in e r nli, annehroilttnid tetcornolrwoaroaCoo erfeaplNnnGlChpiitMuoS s
ndinu o efnb ascnoitat iccihpargoilb ilb1anoitid dda nraep aspi h ntdienoitn esmtcaF
.)a89 9r1o( nx niAfodoCneppA
,daer bt(sa egyni ssud2oht egmnisseco rcpirotsihe r fpnooitazilaicremm omco rtfra pA
”des aybgolonhcetoi bl“ufssecc u faseolpma xteseilr aee h etyb asmi h,t).c t,eecu ays o,sreeb
.yrtsudni
2
lE nLi deretrauqdaeh ,seirotaroba oi h,Onoty ad Dntarahk ls Etndiii ccairt idcecudo rapnaid n,Itrahk
psaw seliM .stnal ndinalrezti w,Sles a fB GorAey amBr ilfacime hncaepor ueEgr ael h ytdberiuq ca
t0891 eh nnamra a,Hyraidisb uysesr ewJ esN’rey a yBdbeldn ash aswtcudo rcpirt i fcgonitek r. asM
na rezifP ,a9891 nI .remieR dn . )e1lba Tt(ekr a.mS .e U hnstiera hysticap alcau qd eahhc areey adB
Total 198 dnn ou, t ios hu5lp dfco3l nnoib2iy ouhamts iowia0lp cw8lna2iopmiatcc u9.dSo.rUp s
(84%) was gnieb .dezilitu fO siht ,noitcudorp a llams tnuoma 71( noillim sdnuop ro %7o f
decudorp yllacitsemod ehT .adanaC ot yltsom ,pdetropxe saw )noitcudor noilli m81 2tuob af oylppu s
pounds d estanwe mygbua 5n 6osidlnlu io d mpfecotirr otdpiimccia dn astl a%s32( fo latotS.U .
.strop xnea hrtegr aslem irtu orefoer hytllacip yetr eswtrop m,is08 9e 1t .ae )lhnytIlppus
Two egral segnahc ni eht .S.U cirtic dica yrtsu ddneirrucco ni .0991 tsri Fdecnuonnai n
Navirp eguh eht ,7891 rebmevo cirt i fcnooitcudo rnpag elbligr ayCnapm oscsenisubir gdaen wyolet
ayddE sti ta dic noill i0m 4t$s otcna ldpetamot uyalhg i eh. h0T9 9 f1gonir pes h nttina lapw o,Ielliv
to build rs ee.we ey y lo 0lll o3nip0tOv m4y tednn diayElrpenifer-n rgoncits isx’elli g t roxateCn e
ic eht retarepo ot deriuqe % 7d1ed dhaci h,wsdnu onpoill i 5 mf5yoticap adcet asr t titana ldpi ccairt
S.U 0t991 gnitsixe o tf ioadneutarge ttsnnlaai itoeuntbb aclipr t.i Sct.sU r. eiy shfttatiIwca p.ac
ah reyaB dna rezifwP .noitarepo gnillim nroc te tnednepe dm nokircfotsd ereefnete eewssah c droutp
suppl ,srei no iatt aadhuettdids ao tr i se.thnstooi ct fcdo ueyldrlloekirncg priraaua gqCegralna d
gnisaercni yticap atcna l opgtnid dda neaci rrpef fso tginirew oyllpra h ystbekr a.mS .eU h fteorahs
.e)l1b a5 T9d,(9n3 1a9,91 19n9i1
rA fo noitisiuqca yb yrtne eht saw yrtsudnTi eht ni egnahc dnoces eh .o Cdnaldi Msleina Drehc
(suJ .)MDA ot nriet n oentoitnet nsi tdiecnuon nMa D,Atna lepllivyd dsE tdiene ploligr aeCrof etb
inte grated cir t.i ncdoiictacudo rp sihT saw ton a t,ae eserisgruparcue sbMDA da hydaerladam e
yrtne otni noitcudorp ,dic acitca l,enisy l:ytiroir pcigetart shgi haslacimeh ccinagr o,deula vhgi hfo
tacilper fo yrotsih a dah MDA dna lligraC ,rmevoeroM .srehto dna ,eninoihte t c sug ’dnhroicerahpeto
plareves rof oiloftro d nsatna lsp’rezi fePriuq c oantoisic esd’M DsA aewsirpr usa sat wa. hsWra ey
techno ygol rather than to enter edovon . 3 dec ntusoungnuA A0991 ddneatelpm onciebmeceD r
roN ,trophtuoS s’rezif1P dedulcni elas eht ,099 s tdi n)ayticap adcnu onpoill i0m0 1t(na lapnilor ahCt
,tnemeerga eht fo trap sA .tnalp dnalerI ,syddiksgniR llam mo rdfi ccairt iMc DlAl e osdteer graezifP
p tucitcennoC ,notiorG dedomtuo st em ietv adhlu oMw DeAm ihtci h yw,bsra eeyer h ot ptru otfnal
alp trophtuoS eht ezinredtom dna dnapxe o s ttia hdtemia lrcez i. fyPticap ascdnu onpoill i0m 8 o1ttn
1989 s r,e gancotsneo itu i ipisrbe eh0sn plep rnbt8tgoallhee1cioiagwv$uetmsiidrhgorp-c irtic s
.)wol edbessucsid(
Teht 0991 rebmeceD ni ,suh ,srecud ocriptse meoe d rdfheottsis nyorctsu ddn iicciar t.i Sc.U
A D detargetnin oynl neo hetmoc enbo odslu orwe y. arBemi en&RnamraaH/rey adB n,alligr a,CM
Udda nI .rerutcafunam .S. eer hmto rsftrop m yidbeifsit ass adwnam e.dS . fUhotfif-e ntouo b,anoiti
large su sreilp pdna a nezo dllam s.seno ehT eerh t esgr reratelru oaeplrmzeinw ufbognuJlesaB ,
3 ysbrevoek a,treilr asera enyeT potential swei vseuroro gdierregg ie rvdtal husotwnar tne
d amhr igfniriuq cea htta hstna lgpnitekr ammo refcnedi vde n,aseitiroht utasurtit nlaared eyfb
deredisn oyclevitca edovon tnemecnuon ncailb usp’ M. DrAegr eem hdtekco lebv adhlu oywrt ne
at ieda m099 1ylra eni blatant e h ytnbe veelbatius nyulevititepm o,csu h,td ntanart nleaitnet op
.s dd3or 9i af9rtdo 1esne-puah1 rtt8dts9ei1xtanlaer
3
Switze ;dnalr aL-nnamffo HehcoR fo ,le s;adBnalreztiwS dna a egral rebmun fo llamssenihC e
uJ .secinapmoc lacimeh srecud otrnpani me,ohrdte yh atrBiewhte g,oe treeh wcdroneRaualznubgn
ni Eu , htcaue ebt,h-scwu oo .slreyrerre meti cu w sldeinesupisr g’dpceterenuanihapisicTlohrC p
yltrap( esuaceb f ostkscooct-sw dodelneaf yl tersaupac e.b )tfsnoeeimdnirsebv uosg esehTerht e
sretropmi detnuocca rof tsomla shtruof-eerht fo .S.U stropmi ni eht ylrae .s0991 todoGlearsI ,
Biocor of ,ylatI dna naisenodnI srecudorp erew ydaets tub rellams secruos fo .stropmi tropmI s
af detnuocc d,, e12n %dk99ot5n a--i a1ant%ne9 2triu9ip8%9poo290n9m b 12i1ufa.soSn.oUc
1994 (T tg un s oiee %bwrmn8aoeuoarwli.gotpvp m eeutt lsaa .bnhcs)aotin1cdoni ital uycMlac .
.des sseeuc gr e e u9dmtn,r o8 aoia5eo s9arruh9htt1tfqt9gi1ibh
noitazilitu ,yticapacD tnalp wen s’lligraC etipse yllaren eeg rtaa h owetso lsclev e tldaeniamer
vel a dehcaer noitazilitU .1991-9891 gnirud — %09 ot 58 c— lamitpo deredisno thg itma h2t9 9 n1lie
h eva d n3a99 1l(ligr adC n)a39 9n1 iM( DhAt o ybsbnoisnap xte u,b29 9 n1sieilpp utshg idtelangis
1995) noos thguorb ssecxe yticapac ot eht .S.U yrtsudni ni .4991-3991 nI s’MDA esac tatsael ,
nitaerc ylsuoicsnoc dna selacs elbissop tsegral ehbt ta stnalp gnidliu dsaehitica pnaocitcud osrspe cgxe
l gno ky sbyirr tnfnooeitpec r eeshpets iyatrica psa sc.ey cgxeEta rettsarop r soeftcroiu tn aeaeefb
.st neabr-tdnleuow

niam eerhTt fo eno saw setatS detinU eh .dl r eodnhw iitcciar t risocef nnoozitcud orp 4 U.S.
,2991-9 8g9n1i ryutdica plaacb odlegtam i dtfrsoieht- etnu o ordboeaftnuo cyctaica pnaocitcudorp
beb retfaereht tu -cir te i vdceiapfho rnu r E.ee)tl 2sb ea6WT9(91- 4 %9ty1 9ub 2p1o onibotalatgs
gnirud asrerutcafunam dic )eh c do,nRrae y,arBeualznubgn ueJg( reatl im u eeqfheo tr,h6t991-9 891
nretseW .smrif nailatI llams ylevitaler owt )aMDA gnirongi( dn d eygtnia crnaopiatcc usd’oer pporuE
fr mo 83 ot %54 fo l tayubtooihlcggau poearh cht,tdoir ehptiw lla esgvrnieifcdundaioperxhpet r
pwen gnidda ro stnal ywbe rygticap adci ccairt i sc. taIni hsC aawe ryalpp ursoj admri h et. hsTe no
emulov eht ;a.a.p %32 gnizama n yltnec el ri.t a n.% Up5t3uo b,ayldip aerr onme vwee rsgtrop xfeo
lla eht esenihC srerutcafunam erew tnemnrevog denwo ro dellortnoc dna rieht stropxerew e
setanidrooc tahwemo 59 9l1it nyurtsud nlianoit atnsegral-dnoc ees hdt aahni h,Csmr eetmu l .o ndvI
wni .S.U eht dessaprus ti neh t laoa htut tqu teosubip atsu’oan i,hsCm re eu ,tlnr aie.vvye rwtosHud
senihC ,9891 nI .)8991( oyadot setatS detinU eht f ,di ccairt isc’dlr oew h ft%o 7e1d asmeinapm oec
up to 28% i n.6991 e ht nTs eoayz i vr iys dftdsanenosi lasaupeppe dahxnanrteii hy Ceeklori n
.noitar esp’oycarips n eoghcntidnatsrednu
ycarips ngonCixiF-ec ierhPT
Four yllaut nserveerutcaf unam cirt i fcsolev etlupt udo nsaeci rep hgtnix i ofyttli udgedaelp
acid in the U , r .edeu nheaya ctlcooc zasRe nrl f, uia:fr,ebp saeMhgsdeyDTnnetaAuotaBJcitnS d
adanaC dna degra hs calwli g.r naoCitagitsev nried nluli te srsaes aecse ht tu,bnoi nnUaepor ueEht
ti tub ,tius noitca-ssalc livic ehat ni tnadnefed a s ,4 2yrauna Jn .Otnemevlovn iyn adeine dyltsafdaet s
ic eht morf dessimsid yllamro1f saw lligraC ,899 gnisivrep uesgd utJru otCcirts i.DS .e U hyetbs alciv
.ocsicna rnF a nSnioit csasa lecht
4labo lf%tgo7s otr maogfnitnuoc csatna leper hd ta,hacire mnAit a,Lnoig ehrtru oAf
.tneiciff ufsl eyslts osm anwoig e er. h )Te2lba Tr(ey a fByolopon osam anwoitcud o. ryPticapac
4
yllagel ton hguohtlA dereggi rntoitcudo rdpica-cirt ioct nyirt n0e9 9s1’lligr as C at,wielbapl uc
the events le g n. iypdcuaa roi tpe shnnt Io ecrrhoat ieory tpte rhs at ’ptwlusel nif5go 5rlaiCmbl .
plant, list secirp rof cirti cdica dah neeb t.ubo lbe/ar1u8g.i0F$ (.)1 no intIapi cfiotna %71etaerg r
suj .bl/37.0$ ot degnulp secirp ,thginrevo yticapac . )e3lba Tm(aer tngsonim otcna lsp’lligr aorCtoi rtp
en niw oT wo lylgnisirpru sadecnuonn alligra C,ylkciu qsleve lnoitazilit uhgi hhcae rdn asremotsu cw
naht rewol %02 naht erom — 0991 yluJ ni ecirp tsil .bl/36.0$ em o,st c .a nrfIa esyuoive rep h ntsieci rp
.bl/stnec 75 ot 35 sa wol sa secirp noitcasnart detroper sreyub y r.t)sn uodint Ic 0 ue9a%ndt9(5iea13rl
sources elbatif oyrlpe rslaalbwig rt aadChetvei leb rezi fdP nraey atBs ohcg ieh h;tseci rwp ohlc utsa
cirp hcus ta yenom gnisol neeb evah llew yam stnalp -cirt is c tffioles tdie hoss taewsnops esr’rezi f.Pse
.snoita rdeipcoa
n eht eb ot devorp 0991 etaL tsr ief hhtguor hytrtsud nei hdt elllig r. asCeci rdpi ccairt i ncriida
two of six rounds g nhi tn,inswi eg as efaeboec ri ecr5sn pait ennr eoctc n syi.ir 1lan9ui9r1b eFI n
t erew snoitaitogen tcartnoc launna sa tsuj ,1991 tsuguA t n re5echto nhaguor hdtehs ulpligr a,Cnig eob
a MDA .bl/37.0$ ot esaercni seci rtps i,l29 9y1raun a. nJyIleviss aspesaerc neise hdtewoll orfey adBn
t depmuj d etla hytraidisb ursemi en&Rnamra asH’rey asB a tweicnats nsii h nt,irevew o;h67. 0 n$oo
lla htiw ,esaercni eht d eslesaerc neici rtpnec -e3r oeme r. hsTke erwu o nfginiwoll osfrell ersoj aem ht
91 yraunaJ ,2991 lirpA :noisseccus kciuq ni ecalp koot R & H yb 93, and October 1993. rebo tmcoOrF
1993 to late 69 9 t1 sssseirrc l eeince tcr airdfrupdetenoodepswapoxoe.mrirmb ipfuoltEd/a58.0$
.lamr otna hrtella mhsc uemr eswtnuocs i”dremots udcerova f,“revoeroM
ehT pihsnoitale rfo dereviled tsil secirp ot . bs.noo.iftca ssneacritrp si tsuj tahw enoluow d
erugiF( tcepxe 7m.r 8o 7eo9 rs 9tt 1efes9 r yr ce1at tr an.wic uctaeei)orirqasvh1lprorie teptlbnoC
nehW .ey c lt inssreuipholWenatl utmsi osdmeltas usjed caticrapr t,n0o9c91 -l s9lne8e ic 9fti1sripl s
tiw detsujda secirp tcartnoc ,2991-0991 ni desaercni xidne pop sAel eassr(etr ae ue hq regofahnatotol
elbaT .)1 snoitc asse ncaiylrrTplaci pdyetyats morf 1 ot 5 stnec rewol naht tsil secirp roirp otna d
ni desopxe saw letrac eht retfa nooS .ycaripsnoc eht gnirud eta len u, J5sd9re9et1yrua btost tergegral
.tsil fo ffo stnuocsid regral dna sremots u)ctcartno cr(egr arlie hgtniv ingag esbrell e,s59 9e1n urJetfA
discounts in t eh tnec-01 .egnar ,teY eht stceffe fo eht s’letrac stniartser no tuptuo deregnilo n
d n6a9 9y1raun atJsa e tllait nd—uesa escgnite elmamr orfet fsahtn olmarev ers osfeci rnpoitcasnart
.er osmhtn olmarev eyslbissop
nees eb nac letrac dica-cirtic eht fo stceffe-ecirp eht fo rotacidni rehtonA seci rt.epo 3lpb S anTi
rof era sreyu beveile rsesahcru pto p .Ssreyu by bderise ds iyrevile detaidemm ineh weda msesahcrup
eht fo erut urfew otglaniy ufnbooit pe ohets oslrey utbcartno cr(ehg iey hbasmeci reprut utfa hktsir
prices). Sp to sreyub netfo era oot llams ot ,tcartnoc ro yeht yam eb tcartnoc sredloh aht t
detamitserednu . s, t sen tecesro r nmre poee eyrys tir epuiresningpbeekeuiaohcivqshtoLneusrorgc s
.gnippo hnsi-ll i,fetunim-ts a fleocneinevn oec hrt oefr osmtn ewc eyaf a opgtnill iewra
Prior t ,)I I tIo o1sp9 es9n c1oe i-ivseer0ti’h rp9atltse9rce yw1eetra(pfrewofahlecgaiahht n
I5991 litnu VI1991 morf ,revewoH .secirp tcartnoc e h,t)ycaripsn olcamr oe f hfrtoetra ulql utfs aelh t(
spot /contract pi hs ns.eoa lciwnaitemratrplfoeon rba nI 8 fo eht , s4r1e terhat utqo pescir psawon t
higher naht eht tcartnoc .ecirp retfA ,II5991 ni yreve retrauq tub ,eno eht tops ecirp denruter otti s
lA .noitisop rehgih yllamron ,eci rnpopu-deer gea h ntgonitae hscrebm ehmt iswmelbo repv ashletr alc
ot reisae si ti tub .y satrmIey utbcartn o,cregr ae lhhtt inwa hstrey ulbanoisac chot it wuecc i eradpih
.ll esswaremots urcalug errie hmto rsft uecci repd ioghtniy retr eswrebm elmetr atca hetb
5
se cet irc.rua1Pgr ittdFnsnoiaCL a fo suordyh ncAirtiC ,dic.A7991-7891
tsiL
85
80
75
Contract
70
65
cents/pound
60
55
ycaripsnoC
50
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
.e1lb axTidnep pd A ne3alb a:TsecruoS
e hfstode eynlpp u’ssht n to3sma etglaniarev oscred rkol ur boe frsatcar t.n sotCni otpsewd iodMterevil esdesahcr ukpl ue brsaeci rtpsiL
.sr e et rgreoa ahfr,utesqvnaoitcas nt an.rab tl.,pos.rfeyub
6
W won e fsoesaerc neici re phtta hI tBe Fhydtbetcell oeccnedi vdeedroc eerp amto rwfonk
i1991 etal n ronno Ce(por unErets edW naacire mhAtr o nNginici rlpetr a fcgoninnig eeb hdtekr am
p e1civ s’MDA .)a8991 ,799 e hhtt irwehteg o,tnosl ieWcnerr e,Tgninif enrr ofecogra hntcinediser
a itc di ccairt i fcdoa e,hx oeCirr adB nsaaerd nlAeahc itMnedise repc ievvituce x fenooitarepo oecv
operations, gsntiitnese rspleari c si h rr efrtta emfuiuetpioowoyetfbma ,rey a:Bslav itrsegr aelerht
Jalznubgnu e hrted nsueit incaepor ud En.aS .sUuoir ansvilet oyhrux unglini t.e eehMc od Rn,areu
c vo t eoystlterc et sesmeinapm orcu oe f hfstoreda e”l,noitaicos sdai ccairt ilcanoitanretn i nf“raoe
pN eht ni secir lau truim enhitart sdoeetre r.ygs eatheTk rnaamepo rnurEet s dennWaacir ehmtAro
secirp tsoob ot sloevel tropxe dna htworg tuptu gnisrubmi e frmoets ydsetacilp m. osAcen ohzt onbi
seinapmoc s amwr igfnitnuoc csasi w;aSdepole v esd aswera hdsengis sraie hetveih c oadteli atfaht
.srotaripsnoc- orcu oe fhydtbeilpp usserug infoitcudo rdpi ccairt iecnima xodeterih
gomoh a fo txetnoc eht ni gnitareTpo saw letrac dica cirtic eh er tho.ptfye lcoxpEog isluoone
lower qual yti tcudorp edam ni drihT dlroW ,seirtnuoc cirtic dica dna sti stlas erewlhgih y
homogenous. . snt oes ahti kacgntd r wiia annahs rhvnraimteeeeItrWhmlnot AeeNsrcenloacS t
C( noitartnecnoc yticapaEc mrif ruof ,denibmoc eporu elba T5(9 9n% 1i4d 7n1a9 9n% 1i2s 8a)w4R
ced tub 1991 ni %48 saw 4RC ,en4ola aciremA htroN nI .) s’lligr a fCeosuac e5b9 9 n1%i 8 o5dtenil
. 59 9h1guor hpdtuesaerc nsitrop mt ied nnsani asgelas
Cargill’s ro el saw .suougibma tI sraeppa taht gnirud 5991-299 1lligraC saw ton narevo t
ednu ot tpmetta ti did rehtien tub ,lpetrac eht ni tnapicitra ru osf t yidbetagits nsieci rrpehg ieh hetnimr
o snarem yb slavi t s eeethb vityaggeta rst’sllig r,atCcepsor t,nedir e.eg dnniIt teucc iervpisser gfga
ibail tsurtitna tuohtiw stiforp yoloponom :sdlrow htob f .ytil 5tu oe brsaet wsnoocitcud osr’ plli g rfaIC
.bl/05.0$ sa detroper yb suomynona edart ,secruos neht s’lligraC selas ta tsil secirp dluowvah e
.stiforp decudni-yloponom 5991-2991 ni noilligm 031$ tuoba detarene ,teY rednu .S.U tsurtitnaswal
taht srebmem letrac riuof eht si t ontoill i0m9 3 f$soegam aedlbe ret hyt a opetlbisnops eyrllag eelra
.)79 9r1onno Cs(rey udbi ccairt isc’lligraC

T e eh sera h)ssela sn(oitcudo rypdae t’ssrebm eem h ytdbelaev e srlietr aec h ftsosenevitceff
aT( teikram SU eht n h,ceale tdtei ilsrea rv’ashrsotaripsno c r-e. ,euol) 1 5hocb4 m9o9tfo9t9r11F
ni ts usjera h’ssrebm edmetpo dlaetr ae ch,tes aecni s .y e olrhtnsotnIi oepgatnec r ygeabnpisaerc
ug a sa noitapmrof s’letrac eht ot roir gnimrifn oscecru o osen reare hetl i. hsWera hesrut u ofetniledi
.el uharc uhst itwnetsisn oyclniatr eec raat asdel aes h,tes adci ccairt iec h nthicaorp psaiht
The cirtic dica letrac dah ot dnetnoc htiw a melborp eht enisyl puorg reven dah otrrow y
,learsI ,ylatI morf stropmi .S.U elballortanocnu yleman ,tuob esenih Cegra le h .Tanih Cyllaiceps edna
industry wa ai ts nt yan de ltu enselsoedaucab cmiaicufsowcr isois epyrdisblortltriaso iiwschepse l
p eseni hdCesaerc neigaruroc ndeeed ndi isdeci r SpdUecudni-letr arcehg ie.h hyTticap ancoitcudo
pmi orts. nI ,9891-8891 esenihC cirtic dica dereviled secirp erew 51 stnec rewol nahtitsemod c
elba iel ryacaripsn ogcnixif-eci r napsitna5picitr aepvit cea hytl nwo atlsurtit n.aS .rUednU
rof all .d e gyrB ar h e ecovsrhoraw e syoeutgba meahdt ylevissap -cirti cn isesaercn igniwollo f
e hgtnir usdtifo ryplopon osmsec xdeeyoj nseretrop moi wtt ulb lda nlaligr a,Cseci rdpica
nrwio ehh ttsnoeobga mealdb e er rhteotlfb a eisrlraotarips nro uc eo,hfrte v.ey wcoaHripsnoc
.stnapicitrapn o fnsoel aes hdt nsaelas
7