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 farms and of the up- and downstream companies in the agr...

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Main Author: World Bank
Format: Other Rural Study
Language:English
en_US
Published: Washington, DC 2012
Subjects:
ADB
FAO
Online Access:http://documents.worldbank.org/curated/en/2005/06/6869081/dynamics-vertical-coordination-eca-agrifood-chains-implications-policy-bank-operations
http://hdl.handle.net/10986/8806
id okr-10986-8806
recordtype oai_dc
spelling okr-10986-88062021-04-23T14:02:40Z The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations World Bank ACCESS TO MARKETS ADB AFFILIATES AGRIBUSINESS AGRICULTURAL DEVELOPMENT AGRICULTURAL MARKETING AGRICULTURAL PRODUCTION AGRICULTURE ANIMAL FEED ANIMAL PRODUCTS BANK LOAN GUARANTEES BANKRUPTCY BANKRUPTCY LAWS BANKS BARLEY BEET SUGAR BENCHMARK CENTRAL ASIAN COMMODITY CONSOLIDATION CONTRACT ENFORCEMENT CONTRACTUAL ARRANGEMENTS COOPERATIVES CORN COTTON COTTON PRODUCTION COTTON SECTOR CROP CROPS DAIRY PRODUCTION DAIRY PRODUCTS DAIRY SECTOR DEBT DEPRESSED PRICES DEVELOPMENT STRATEGY ECONOMIC COOPERATION ECONOMIC RESEARCH ECONOMICS EGG PRODUCTION EGGS EMPLOYMENT EQUIPMENT EXCESS DEMAND EXTENSION EXTENSION SERVICES FACTORING FAO FARM FARM MANAGEMENT FARM PRODUCTIVITY FARMING FARMS FERTILIZER FINANCIAL INSTITUTIONS FINANCIAL MARKETS FOOD INDUSTRY FOOD PROCESSING FOOD SAFETY FOOD SUPPLY FRUIT VEGETABLES FRUITS GOVERNMENT INTERVENTION GRAIN GRAINS HARVESTS INFLATION INNOVATION INTEGRATION INTEREST RATES INTERNATIONAL MARKETS LIQUIDITY LIVESTOCK LOCAL GOVERNMENTS MACROECONOMIC STABILITY MARKET ACCESS MARKET DEVELOPMENT MARKET ECONOMIES MARKET INFORMATION MONOPOLIES MONOPOLY NONGOVERNMENTAL ORGANIZATIONS POOR HOUSEHOLDS POSITIVE EFFECTS POTATOES POULTRY PRICE CONTROLS PRIVATIZATION PRODUCE PRODUCT QUALITY PRODUCTION ACTIVITIES PRODUCTIVITY GROWTH PROFITABILITY PROPERTY RIGHTS PUBLIC POLICY REORGANIZATION RETAIL RURAL DEVELOPMENT SEED SEED COTTON SEEDS SMALL FARMERS SMALL PRODUCERS SOYBEANS SPOT MARKET SPOT MARKETS SUBSIDIARY SUGAR SUGAR BEETS SUPPLIER SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPLY CONTRACTS TAXATION TECHNICAL ASSISTANCE TRADE POLICIES TRADE POLICY TRANSACTION COSTS TRANSPORT VEGETABLES VETERINARY SERVICES WAREHOUSE WESTERN EUROPE WHEAT WORKING CAPITAL YIELDS 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. In the absence of appropriate public institutions, private contractual initiatives, often from large food and agribusiness companies, are emerging to overcome these obstacles. Large traders, agribusinesses, and food processing companies, often as part of their own restructuring or following foreign investment, start contracting with the farms and rural households and provide basic inputs in return for guaranteed and quality supplies. This process of interlinked contracting, called vertical coordination, is growing rapidly in ECA agriculture and rural areas. This report pinpoints unresolved issues related to efficiency, equity, and government policy. As a part of its analysis, the report identifies options for improved policies, institutions, and investments which Governments could make, and which the World Bank could support, in order to improve links in agricultural marketing and processing chains and increase access of farmers to input and output markets. 2012-06-22T17:12:35Z 2012-06-22T17:12:35Z 2005-06 http://documents.worldbank.org/curated/en/2005/06/6869081/dynamics-vertical-coordination-eca-agrifood-chains-implications-policy-bank-operations http://hdl.handle.net/10986/8806 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Rural Study Economic & Sector Work Europe and Central Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO MARKETS
ADB
AFFILIATES
AGRIBUSINESS
AGRICULTURAL DEVELOPMENT
AGRICULTURAL MARKETING
AGRICULTURAL PRODUCTION
AGRICULTURE
ANIMAL FEED
ANIMAL PRODUCTS
BANK LOAN GUARANTEES
BANKRUPTCY
BANKRUPTCY LAWS
BANKS
BARLEY
BEET SUGAR
BENCHMARK
CENTRAL ASIAN
COMMODITY
CONSOLIDATION
CONTRACT ENFORCEMENT
CONTRACTUAL ARRANGEMENTS
COOPERATIVES
CORN
COTTON
COTTON PRODUCTION
COTTON SECTOR
CROP
CROPS
DAIRY PRODUCTION
DAIRY PRODUCTS
DAIRY SECTOR
DEBT
DEPRESSED PRICES
DEVELOPMENT STRATEGY
ECONOMIC COOPERATION
ECONOMIC RESEARCH
ECONOMICS
EGG PRODUCTION
EGGS
EMPLOYMENT
EQUIPMENT
EXCESS DEMAND
EXTENSION
EXTENSION SERVICES
FACTORING
FAO
FARM
FARM MANAGEMENT
FARM PRODUCTIVITY
FARMING
FARMS
FERTILIZER
FINANCIAL INSTITUTIONS
FINANCIAL MARKETS
FOOD INDUSTRY
FOOD PROCESSING
FOOD SAFETY
FOOD SUPPLY
FRUIT VEGETABLES
FRUITS
GOVERNMENT INTERVENTION
GRAIN
GRAINS
HARVESTS
INFLATION
INNOVATION
INTEGRATION
INTEREST RATES
INTERNATIONAL MARKETS
LIQUIDITY
LIVESTOCK
LOCAL GOVERNMENTS
MACROECONOMIC STABILITY
MARKET ACCESS
MARKET DEVELOPMENT
MARKET ECONOMIES
MARKET INFORMATION
MONOPOLIES
MONOPOLY
NONGOVERNMENTAL ORGANIZATIONS
POOR HOUSEHOLDS
POSITIVE EFFECTS
POTATOES
POULTRY
PRICE CONTROLS
PRIVATIZATION
PRODUCE
PRODUCT QUALITY
PRODUCTION ACTIVITIES
PRODUCTIVITY GROWTH
PROFITABILITY
PROPERTY RIGHTS
PUBLIC POLICY
REORGANIZATION
RETAIL
RURAL DEVELOPMENT
SEED
SEED COTTON
SEEDS
SMALL FARMERS
SMALL PRODUCERS
SOYBEANS
SPOT MARKET
SPOT MARKETS
SUBSIDIARY
SUGAR
SUGAR BEETS
SUPPLIER
SUPPLIERS
SUPPLY CHAIN
SUPPLY CHAINS
SUPPLY CONTRACTS
TAXATION
TECHNICAL ASSISTANCE
TRADE POLICIES
TRADE POLICY
TRANSACTION COSTS
TRANSPORT
VEGETABLES
VETERINARY SERVICES
WAREHOUSE
WESTERN EUROPE
WHEAT
WORKING CAPITAL
YIELDS
spellingShingle ACCESS TO MARKETS
ADB
AFFILIATES
AGRIBUSINESS
AGRICULTURAL DEVELOPMENT
AGRICULTURAL MARKETING
AGRICULTURAL PRODUCTION
AGRICULTURE
ANIMAL FEED
ANIMAL PRODUCTS
BANK LOAN GUARANTEES
BANKRUPTCY
BANKRUPTCY LAWS
BANKS
BARLEY
BEET SUGAR
BENCHMARK
CENTRAL ASIAN
COMMODITY
CONSOLIDATION
CONTRACT ENFORCEMENT
CONTRACTUAL ARRANGEMENTS
COOPERATIVES
CORN
COTTON
COTTON PRODUCTION
COTTON SECTOR
CROP
CROPS
DAIRY PRODUCTION
DAIRY PRODUCTS
DAIRY SECTOR
DEBT
DEPRESSED PRICES
DEVELOPMENT STRATEGY
ECONOMIC COOPERATION
ECONOMIC RESEARCH
ECONOMICS
EGG PRODUCTION
EGGS
EMPLOYMENT
EQUIPMENT
EXCESS DEMAND
EXTENSION
EXTENSION SERVICES
FACTORING
FAO
FARM
FARM MANAGEMENT
FARM PRODUCTIVITY
FARMING
FARMS
FERTILIZER
FINANCIAL INSTITUTIONS
FINANCIAL MARKETS
FOOD INDUSTRY
FOOD PROCESSING
FOOD SAFETY
FOOD SUPPLY
FRUIT VEGETABLES
FRUITS
GOVERNMENT INTERVENTION
GRAIN
GRAINS
HARVESTS
INFLATION
INNOVATION
INTEGRATION
INTEREST RATES
INTERNATIONAL MARKETS
LIQUIDITY
LIVESTOCK
LOCAL GOVERNMENTS
MACROECONOMIC STABILITY
MARKET ACCESS
MARKET DEVELOPMENT
MARKET ECONOMIES
MARKET INFORMATION
MONOPOLIES
MONOPOLY
NONGOVERNMENTAL ORGANIZATIONS
POOR HOUSEHOLDS
POSITIVE EFFECTS
POTATOES
POULTRY
PRICE CONTROLS
PRIVATIZATION
PRODUCE
PRODUCT QUALITY
PRODUCTION ACTIVITIES
PRODUCTIVITY GROWTH
PROFITABILITY
PROPERTY RIGHTS
PUBLIC POLICY
REORGANIZATION
RETAIL
RURAL DEVELOPMENT
SEED
SEED COTTON
SEEDS
SMALL FARMERS
SMALL PRODUCERS
SOYBEANS
SPOT MARKET
SPOT MARKETS
SUBSIDIARY
SUGAR
SUGAR BEETS
SUPPLIER
SUPPLIERS
SUPPLY CHAIN
SUPPLY CHAINS
SUPPLY CONTRACTS
TAXATION
TECHNICAL ASSISTANCE
TRADE POLICIES
TRADE POLICY
TRANSACTION COSTS
TRANSPORT
VEGETABLES
VETERINARY SERVICES
WAREHOUSE
WESTERN EUROPE
WHEAT
WORKING CAPITAL
YIELDS
World Bank
The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
geographic_facet Europe and Central Asia
description 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. In the absence of appropriate public institutions, private contractual initiatives, often from large food and agribusiness companies, are emerging to overcome these obstacles. Large traders, agribusinesses, and food processing companies, often as part of their own restructuring or following foreign investment, start contracting with the farms and rural households and provide basic inputs in return for guaranteed and quality supplies. This process of interlinked contracting, called vertical coordination, is growing rapidly in ECA agriculture and rural areas. This report pinpoints unresolved issues related to efficiency, equity, and government policy. As a part of its analysis, the report identifies options for improved policies, institutions, and investments which Governments could make, and which the World Bank could support, in order to improve links in agricultural marketing and processing chains and increase access of farmers to input and output markets.
format Economic & Sector Work :: Other Rural Study
author World Bank
author_facet World Bank
author_sort World Bank
title The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
title_short The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
title_full The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
title_fullStr The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
title_full_unstemmed The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations
title_sort dynamics of vertical coordination in agrifood chains in eastern europe and central asia : implications for policy and world bank operations
publisher Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/06/6869081/dynamics-vertical-coordination-eca-agrifood-chains-implications-policy-bank-operations
http://hdl.handle.net/10986/8806
_version_ 1764405601578778624