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

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  • Mykhaylenko, Maryna
  • Schaft, Franziska
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    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.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia with number 94901.

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    Date of creation: Aug 2010
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    Handle: RePEc:ags:eaa118:94901

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    Related research

    Keywords: vertical coordination; transaction costs; Ukraine; Community/Rural/Urban Development; L14; Q12;

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