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Risk and Contract Relationships

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  • Freier, Axel E.
  • Kuhl, Rainer
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    Abstract

    The current structure of the German agri-food-sector is deduced from an increasing (international) competition and its division into small and medium business units particularly on the producers’ side. The roots of this development lie in a more a hundred year’s history of a productive branch that was intensively shaped by co-operatives. Nowadays this cooperative structure competes with networks and capital market-oriented firms that raise the question of the today’s role of cooperatives (see Kühl/ Hanf, 2004) In the following sections different approaches evaluating possible strategic paths of the actors within the production chain in the agri-food-sector will be presented. As a consequence risk issues agricultural economists have to address will be differentiated. Just (2003, p. 135) claims that “for the most part, longer-term risk issues have been examined only in the agricultural finance literature”. We support his statement when we estimate general valuation models – especially to judge the sustainability of cooperatives – as too much referring to the past and try to integrate more future oriented methods as in the case of due diligence.

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    Bibliographic Info

    Paper provided by International European Forum on System Dynamics and Innovation in Food Networks in its series 2009 International European Forum, February 15-20, 2009, Innsbruck-Igls, Austria with number 59182.

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    Date of creation: Oct 2009
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    Handle: RePEc:ags:iefi09:59182

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    Web page: http://www.fooddynamics.org/

    Related research

    Keywords: Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies; Risk and Uncertainty;

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    1. Just, Richard E., 2003. "Risk research in agricultural economics: opportunities and challenges for the next twenty-five years," Agricultural Systems, Elsevier, vol. 75(2-3), pages 123-159.
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