Relations among Traders Sample Clauses

Relations among Traders. About a quarter of distributors have an exclusivity contract with a big local company or with the mother company. The exclusivity contracts are related to well specified products. The distributor can use other suppliers provided that the product is not in competition with the one for which there exists an exclusivity contract. For example, the fact of having an exclusivity contract for an insecticide that works by direct contact does not preempt the sale of other companies' insecticides that work by systemic action. To be an exclusive distributor is a good strategy if the product is largely used in a certain region. Otherwise, distributors need to test the product among farmers. This phase of information and extension is one of the most important roles of the mother companies. Table 4.8–Distributors with an exclusivity contract with a local company Xxxx plateaux Vakinan karatra Fianar plateaux Fianar côte Majunga plaines Majunga plateaux Lac Alaotra Total Number of distributors 22 40 20 13 11 10 10 126 Existence of a contract 40,9% 5,0% 50,0% 15,4% 27,3% 30,0% 30,0% 25,4% Without a contract 59,1% 95,0% 50,0% 84,6% 72,7% 70,0% 70,0% 74,6% Source: IFPRI-FOFIFA survey With the exception of Xxxx, the majority of distributors have only one point of sales, that is they do not have branches. To a certain extent, they represent the branches of the big companies, NGOs and development organizations. Table 4.9–Percentage of distributors with one or more branches Retailers and Demi-grossiste Xxxx plateaux Vakinan karatra Fianar plateaux Fianar côte Majung a plaines Majung a plateaux Lac Alaotra Total Number of distributors 22 38 11 13 6 5 10 105 branches 54,5% 7,9% 27,3% 7,7% 33,3% 20,0% 10,0% 21,9% Source: IFPRI-FOFIFA survey
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