Small farmers in the Romanian dairy market: Do they have a future?

Agata Pieniadz, Jon Henrich Hanf, Dan Voicilas (), Stefan Wegener and Linde Goetz
Authors registered in the RePEc Author Service: Linde Götz ()

No 52861, 111th Seminar, June 26-27, 2009, Canterbury, UK from European Association of Agricultural Economists

Abstract: This paper investigates various modes of vertical coordination, with the focus on small farm integration in the Romanian dairy chain. It draws on results from a World Bank study based on semi-structured interviews conducted in spring 2009. The findings indicate that large and prosperous dairy chains fortify their chain efficiency by partner selection and provision of sophisticated assistance to relatively larger farmers. On the contrary, many barriers exist for small and medium-sized dairy chains (processors and farmers). The main factors hampering their potential exploitation are restricted access to inputs markets (capital, know-how) as well as poor quality of input service (agricultural service delivery, veterinary issues). The majority of cow's milk in Romania is still delivered by small farmers who have difficulties fulfilling the requirements of the modern procurement systems. However, small farmers are a relatively heterogeneous group. Hence, different development paths can be expected. In addition to working with retail chains via strengthening horizontal integration, another opportunity for small dairy farmers is to occupy a market niche. Nevertheless, some small farmers will have to leave the dairy market.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Pages: 14
Date: 2009-08-20
New Economics Papers: this item is included in nep-agr and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa111:52861

DOI: 10.22004/ag.econ.52861

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