In economic literature, agricultural policy instruments for market and price stabilisation are classified in two broad categories: direct instruments and indirect instruments. Having the direct instruments failed, the cap proposals for years 2014-2020 are focusing on the indirect instruments: producer organisations, collective bargaining, interbranch agreements, transparency of the food supply chain, market risk management. Such themes emerged in the recent debate on agricultural policy because of two facts: strong volatility of agricultural prices and a growing disparity between basic prices and consumer prices. Objective of the present work is the evaluation of eight instruments of agricultural policy for improving the food supply chain functioning, with an analysis of potential economical consequences of the various options. The evaluation takes into account both efficiency (expenditure level, simplicity of use of the instruments, compatibility with Wto rules) and effectiveness (market and prices stabilisation, strengthening of producers position in the food supply chain, market transparency). Analysis was conduct referring to economic literature, to empirical evidences coming from sectors that use indirect instruments, and to results of studies produced by public or private organisations.
Keywords: Agricultural policy, food supply chain, cap, market power
Jel Code: Q13, Q18