Advanced Search
MyIDEAS: Login

Risk Diversification in the Agricultural Sector in Bulgaria

Contents:

Author Info

  • Marina Nikolova

    ()
    ('D.A. Tsenov'' Academy of Economics, Svishtov, Bulgaria)

  • Marusya Linkova

    ('D.A. Tsenov'' Academy of Economics, Svishtov, Bulgaria)

Registered author(s):

    Abstract

    The Bulgarian and Romanian European Union membership coincides with the Common Agricultural Policy (CAP) Reform. Applied till the 80s of the 20th century, the system of European subsidies which aimed at developing a functioning agricultural sector led to constant surplus of basic agricultural goods with high budget prices. During the 90s production quotas (e.g. the milk quotas of 1983) were introduced an emphasis was put on ecologically clean agricultural production. The CAP reform of 2003 reorganized the European subsidies in accordance with demand and stimulated farmers to produce what the market needed. Direct subsidies changed from payments based on territory to payments for farms. In order to cut surplus, the EU introduced an intervention system; fix quotas for the production of milk and sanctions for breaking them; restrictions on the export subsidies and the amount of cultivated land/number of bred animals for which farmers can receive subsidies. Bulgarian and Romanian farmers receive direct payments which maintain their incomes stable but lower compared to these of their European counterparts. At the same time they have to meet the same requirements concerning environment preservation, food safety, and humane treatment of animals (a requirement for “cross compliance”). These factors together with the heavy dependence of the agricultural sector on climate make the issue of researching the possibilities for minimizing investment risks through product diversification extremely significant. The main aim of this article is to identify the risks in the agricultural sector and assess the priority usage of various forms of diversification as an instrument for controlling risks. In addition, the article outlines / studies the possibilities for adding value to the agricultural sector by diversification of products and activities. The article is written as follows: M. Nikolova – chapter 2; M Linkova – chapter 1; abstract, introduction and conclusion joint action.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.amfiteatrueconomic.ro/temp/Article_1037.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.

    Volume (Year): 13 (2011)
    Issue (Month): 29 (February)
    Pages: 305-320

    as in new window
    Handle: RePEc:aes:amfeco:v:13:y:2011:i:29:p:305-320

    Contact details of provider:
    Postal: 6 ROMANA PLACE, 70167 - BUCHAREST
    Phone: 0040-01-2112650
    Fax: 0040-01-3129549
    Email:
    Web page: http://amfiteatrueconomic.ase.ro/
    More information through EDIRC

    Related research

    Keywords: sustainable agriculture; entrepreneurial solutions; risk; diversification; nontraditional activities;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:13:y:2011:i:29:p:305-320. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentin Dumitru).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.