The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations

A major problem in the transition countries of Europe and Central Asia (ECA) during the transition was the breakdown of the relationships of farms with input suppliers and output markets. The simultaneous privatization and restructuring of the farm...

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Bibliographic Details
Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	Washington, DC 2017
Subjects:	ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO LOANS ACCESS TO MARKETS ACCESS TO TECHNICAL ASSISTANCE ADVISORY SERVICES AGRICULTURAL CREDIT AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE ORGANIZATION ALTERNATIVE FINANCING BANK LOAN BANK LOANS BANKRUPTCIES BANKRUPTCY BANKRUPTCY LAWS BARGAINING BARGAINING POWER BARRIERS TO GROWTH BENEFICIAL EFFECTS BUSINESS PLANS CASH ACCOUNTS CASH FLOW CASH RESERVES COLLATERAL COLLATERAL PROBLEMS COMMERCIAL CREDITS COMMODITY CONTRACT ENFORCEMENT CONTRACT LAW CONTRACTUAL RELATIONSHIPS COOPERATIVES COTTON COTTON PRICE COTTON PRICES COTTON PRODUCTION COTTON SECTOR COUNTRY CREDIT CREDIT CONSTRAINTS CREDIT CONTRACT CREDIT PROGRAMS CREDIT TRANSACTION CROP DEBT DEBTS DEFAULT RISK DEFAULTS DEPRESSED PRICES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DIRECT LOANS DOMESTIC BANKS ECONOMIC COOPERATION ECONOMIC REFORMS ECONOMICS EFFICIENCY BENEFITS EMERGING ECONOMIES ENFORCEMENT MECHANISM ENFORCEMENT OF CONTRACTS ENFORCEMENT SYSTEMS ENTERPRISE DEVELOPMENT EQUIPMENT EQUITY ISSUES EXCHANGE RATE EXCHANGE RATE INSTABILITY EXCLUSION EXPLOITATION EXPORT MARKETS FACTOR MARKETS FAIR FAO FARM PRODUCTIVITY FARMER FERTILIZER FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MEANS FOOD INDUSTRY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTORS FRUITS FUTURE CASH FLOWS GENERAL EQUILIBRIUM GLOBALIZATION GOVERNMENT FINANCING GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REVENUE GRAIN GRAINS GUARANTEE PRODUCT GUARANTEED ACCESS HOLDING HOLDINGS HOUSEHOLDS INFLATION INFORMATION SYSTEMS INNOVATION INNOVATIONS INPUT PRICES INSECURE PROPERTY INSTITUTIONAL DEVELOPMENTS INSTRUMENT INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ASSISTANCE INVESTMENT CLIMATE INVESTMENT LOAN INVESTMENT LOANS LACK OF COMPETITION LANDOWNERS LEGAL CONSTRAINTS LEVEL OF INTEREST RATES LIQUIDITY LOAN GUARANTEE LOAN GUARANTEE PROGRAMS LOAN GUARANTEES LOANS FROM BANKS LOCAL BANK LOCAL GOVERNMENTS MACROECONOMIC STABILITY MARKET ACCESS MARKET CONDITIONS MARKET DEVELOPMENT MARKET ECONOMIES MARKET ECONOMY MARKET ENVIRONMENT MARKET INFORMATION MARKET LIBERALIZATION MARKET PRICE MARKET PRICES MARKET REFORM MARKETING MONOPOLIES MONOPOLY MOTIVATION MULTINATIONAL MULTINATIONALS NECESSARY COLLATERAL NONPAYMENTS OBSTACLES TO GROWTH OVEREMPLOYMENT POLICY CREDIBILITY POLICY ENVIRONMENT PREPAYMENT PRICE CONTROLS PRICE UNCERTAINTY PRIVATIZATION PRODUCE PRODUCT QUALITY PRODUCTION ACTIVITIES PRODUCTION CAPACITY PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PROPERTY RIGHTS PROVISION OF CREDIT PUBLIC ENFORCEMENT PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC POLICY PUBLIC-PRIVATE PARTNERSHIPS PURCHASING RENTS REPAYMENT RETAIL RETURN RURAL CREDIT RURAL CREDIT MARKETS SAFETY SAFETY STANDARDS SALES SEED SEED COTTON SEEDS SMALL FARM SMALL FARMERS SMALL FARMS SMALL PRODUCERS SMALLHOLDERS SOURCE OF CREDIT SPOT MARKET SPOT MARKETS SPREAD STATE BANKS STRUCTURAL PROBLEMS SUGAR SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPLY CONTRACTS TAX TAX INCENTIVES TAX REGIME TECHNICAL ASSISTANCE TRADE CREDIT TRADE PROTECTION TRADING TRANSACTION COST TRANSACTION COSTS TRANSITION COUNTRIES TRANSITION COUNTRY TRANSITION ECONOMIES TRANSPARENCY UNION VEGETABLES VILLAGE WAREHOUSE WAREHOUSE RECEIPT WAREHOUSE RECEIPT SYSTEMS WHOLESALERS WORKING CAPITAL YIELDS
Online Access:	http://documents.worldbank.org/curated/en/480561468038085982/The-dynamics-of-vertical-coordination-in-agrifood-chains-in-Eastern-Europe-and-Central-Asia-implications-for-policy-and-World-Bank-operations http://hdl.handle.net/10986/27388

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Summary:	A major problem in the transition countries of Europe and Central Asia (ECA) during the transition was the breakdown of the relationships of farms with input suppliers and output markets. The simultaneous privatization and restructuring of the farms and of the up- and downstream companies in the agrifood chain has caused major disruptions. The result is that many farms and rural households face serious constraints in accessing essential inputs (feed, fertilizer, seeds, capital, etc.) and in selling their products. The problems are worsened by the lack of public institutions necessary to support market-based transactions, such as for enforcing property rights and contractual agreements. The objective of the study is to analyze Vertical Coordination (VC) in agrifood supply chains in ECA and to identify options for improved policies, institutions, and investments which Governments could make, and which the World Bank could support, in order to improve links in the agricultural marketing and processing chain and increase access of farmers to input and output markets. This is especially important in those countries where contractual arrangements are slow to develop. It is also important if farmers are to be lifted out of subsistence farming and into a modern agrifood economy.

The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations

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