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Risk Governance in Bulgarian Dairy Farming

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Author Info

  • Bachev, Hrabrin Ianouchev
  • Nanseki, T.

Abstract

This paper identifies and assesses the efficiency of major modes for risk governance in Bulgarian dairy farming. Firstly, New Institutional Economics is incorporated and framework for analyzing governance of natural, market, private, and social (institutional) risks presented. Next, major types of risks faced by the dairy farms are specified and dominant market, private, public and hybrid modes of risk governance assessed. Finally, principal forms of risks caused by the dairy farms are identified, and efficiency of governing structure assessed. The development of Bulgarian dairy farming has been associated with quite specific risk structures facing by and causing from this sector. The huge market and institutional instability and uncertainty, and the high transaction costs, blocked evolution of effective market and collective modes for risk protection. A variety of private modes (internal organization, vertical integration, interlinking) emerged to deal with the significant natural, market, private, and social risks faced by the dairy farms and the other affected agents. Nevertheless, diverse risks associated with the dairy farming have not been effectively governed and persist during transition now. That is a consequence of ineffective public (Government, international assistance) intervention to correct market and private sector failures in the risk governance. The later have had considerable negative impacts on the evolution of farms, development of markets, structure of production and consumption, state of environment etc. Certain risks related to the dairy sector “disappeared” due to the lack of effective risk governance and the declining dairy farming. That would lead to further deformation in development of the dairy and related sectors unless effective public measures are taken to mitigate existing problems and risks.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44136.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44136

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Related research

Keywords: risk management; dairy; Bulgaria; Livestock Production/Industries; Risk and Uncertainty;

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References

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  1. Hrabrin Bachev, 2005. "Efficiecy Of Agrarian Organisations," Microeconomics 0511002, EconWPA.
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Citations

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Cited by:
  1. Bachev, Hrabrin, 2012. "Governing Agrarian Risks," MPRA Paper 41651, University Library of Munich, Germany.
  2. Bachev, Hrabrin, 2009. "Framework for Analisis and Improvement of Agrarian Dynamics," MPRA Paper 19349, University Library of Munich, Germany.
  3. Hrabrin Bachev, 2009. "Mechanisms Of Governance Of Sustainble Development," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
  4. Bachev, Hrabrin, 2012. "Risk Management in Agri-food Chain," MPRA Paper 39594, University Library of Munich, Germany.
  5. Bachev, Hrabrin, 2012. "Agri-environmental Management during EU Integration of Bulgaria," MPRA Paper 42098, University Library of Munich, Germany.
  6. Bachev, Hrabrin, 2010. "Study on Agrarian Contracts in Bulgaria," MPRA Paper 22946, University Library of Munich, Germany.
  7. Bachev, Hrabrin, 2010. "Competitiveness of Bulgarian farms," MPRA Paper 25626, University Library of Munich, Germany.
  8. Hrabrin Bachev, 2013. "Risk Management in the Agri-food Sector," Contemporary Economics, University of Finance and Management in Warsaw, vol. 7(1), March.
  9. Bachev, Hrabrin, 2012. "Competitiveness of Bulgarian Farms in Conditions of EU CAP Implementation," MPRA Paper 41657, University Library of Munich, Germany.
  10. Bachev, Hrabrin, 2012. "Assessing environmental management in agriculture," MPRA Paper 35802, University Library of Munich, Germany.
  11. Bachev, Hrabrin, 2010. "A case of integration of organic dairy sheep farm in value chains in Bulgaria," MPRA Paper 30385, University Library of Munich, Germany.
  12. Bachev, Hrabrin, 2008. "Production and productivity of Bulgarian agriculture in post war years," MPRA Paper 7787, University Library of Munich, Germany.

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