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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Format: | Report |
Language: | English en_US |
Published: |
Washington, DC
2017
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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 |
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. |
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