Seed ownership and distribution of rents in an IPPM system : cases in Canadian wheat.
Gusta, Michael Lawrence
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The focus of this thesis is to explore the influence of market power possessed by seed input companies on rent distribution in an identity preserved production and marketing system. This thesis develops a theoretical model to estimate rent distribution between participants in an identity preserved production and marketing system under constrained production and the elicitation of a premium from market development activities in the presence of a range of seed ownership structures. The thesis employs an empirical model to examine rent distribution of two varieties involved in the Canadian Wheat Board’s Identity Preserved Contract Program. The theoretical model demonstrates that market development activities for an identity preserved production and marketing program had a diminished impact on farmers when the seed industry possessed a large degree of market power. The finding of the theoretical model were consistent with that of the empirical model, where the price of certified seed for varieties involved in the identity preserved production and marketing program were priced higher than conventional varieties. The difference in price was found to be greater than the premiums offered by the Identity Preserved Contract Program marketing and/or production contracts for Saskatchewan farmers that received average yields and average prices of grain.
DegreeMaster of Agriculture (M.Agr.)
Copyright DateMay 2010
Canadian Wheat Board