Market imperfections and rural poverty

Abstract

We present the concept of market imperfections and the importance of their elimination in order to achieve productive inclusion in the Brazilian agriculture. Marked differences are observed between large and small producers in terms of affordability when purchasing inputs, which makes it possible for certain groups to market their products at more competitive prices than others. This makes access to technology by the small, non-influential production, virtually impossible. This work characterizes the concept of market imperfections and closely analyzes agricultural cooperatives, as they are the main instrument of public policy to increase the purchasing power of small producers. It is emphasized that purely by market forces, most of them will lose their status as producers, choosing instead to be wage earners or migrate to cities.