Foreign Investment, Supermarkets, and the Restructuring of Supply Chains: Evidence from Eastern European Dairy Sectors
AbstractThe combination of transition and globalization since the early 1990s has caused dramatic changes in supply chains globally. This paper uses survey evidence from several Eastern European countries (Albania, Bulgaria, Poland, Slovakia, Romania and Russia) on how these forces affect the dairy sector. In many countries dairy farms are small family farms. Investments by foreign companies in processing and retailing and the opening to international markets have introduced higher standards, leading, in turn, to extensive contracting and vertical coordination in the dairy chain. In countries close to the EU the restructuring of the dairy chain was mostly driven by investments in dairy processing, while in countries further from the EU, and less advanced in transition, retail investments are playing a more important role in driving change throughout the dairy chain. There have been significant efficiency gains, and the vertical coordination had positive effects on farm investments and productivity, especially since the late 1990s. Evidence suggests that small dairy farms have generally benefited from the vertical coordination processes.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 16506.
Date of creation: 2006
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Other versions of this item:
- Swinnen, Jo & Dries, Liesbeth & Noev, Nivelin, 2006. "Foreign investment, supermarkets, and the restructuring of supply chains: Evidence from Eastern European dairy sectors," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/120481, Katholieke Universiteit Leuven.
- NEP-AGR-2006-02-12 (Agricultural Economics)
- NEP-ALL-2006-02-12 (All new papers)
- NEP-BEC-2006-02-12 (Business Economics)
- NEP-CIS-2006-02-12 (Confederation of Independent States)
- NEP-EEC-2006-02-12 (European Economics)
- NEP-TRA-2006-02-12 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Transition and agricultural labor,"
International Association of Agricultural Economists, vol. 32(1), pages 15-34, 01.
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- Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
- Hildegunn E. Stokke, 2009.
"Multinational supermarket chains in developing countries: does local agriculture benefit?,"
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- Hildegunn Ekroll Stokke, 2008. "Multinational supermarket chains in developing countries: Does local agriculture benefit," Working Paper Series 9408, Department of Economics, Norwegian University of Science and Technology.
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