Improving Agricultural Market Performance:
Creation and Development of Market Institutions
10
Chapter 1 – Conceptual Framework
The aim of this report is to present an overview of food and agricultural sector market
systems, and how these can influence the overall success of these vital sectors. This Chapter
begins by introducing key concepts, explaining the report’s scope, and establishing a
framework. We introduce the concepts of market systems, market institutions, and the
agricultural and food market, which collectively constitute this report’s key research topic.
Defining markets and market systems forms the point-of-departure for developing the
Conceptual Framework of this study. This Chapter introduces the elements of this Conceptual
Framework, which serves as roadmap for the remaining Chapters of this study. It first defines
general markets and market systems, after which it explores the composition of market
participants and the way market systems function . Next, the agricultural and food
market are discussed by exploring the importance of agricultural and food market systems and
what the drivers are behind the private sector participation and Government intervention in
these agricultural and food market systems. Finally, agricultural and food market institutions
are used as “instruments” to implement, apply, and administer this Government intervention
in agricultural and food markets. The interaction between these elements constitutes this
study’s Conceptual Framework.
Figure 1 – Outlay of the Conceptual Framework
Source: Investment Consulting Associates – ICA (2017)
Market System (1.1)
Agricultural & Food Market (1.2)
Market Intervention
(1.2.2 & 1.2.3)
Agricultural &
Food Market
Institutions
(1.3)