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The role of semi-subsistence farms and corporate farms in the modern supply chain: evidence of Ukrainian dairy industry

Maryna Mykhaylenko and Franziska Schaft

No 94901, 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: This contribution aims to analyze the main factors determining the initiation of vertical coordination between processing enterprises and milk producers in Ukraine. In this regard special attention is paid to the role of uncertainty, asset specificity and resource availability. Furthermore, the impact of vertical coordination on quality improvement, trust development and strategic advantages achieved is analyzed. The survey results indicate that uncertainty is a major driver for the processing level to initiate vertical coordination schemes. Although vertical coordination appears to have positive impacts on both supplier groups, corporate farms tend to benefit more from vertical coordination schemes than semi-subsistence farms.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 14
Date: 2010-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa118:94901

DOI: 10.22004/ag.econ.94901

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