This paper identifies and assesses the efficiency of major modes for risk governance in agriculture on the base of Bulgarian dairy farming. Firstly, the New Institutional and Transaction Costs Economics is incorporated and a framework for analysis of the governance of natural, market, private, and social (institutional) risks presented. Next, the pace and challenges of the dairy farming development during the post-communist transition and EU integration is outlined. Third, major types of risks faced by the dairy farms are specified, and the 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 and impacts of governing structure assessed. Development of Bulgarian dairy farming has been associated with quite specific risk structures facing by and causing from this important sector of agriculture. The huge market and institutional instability and uncertainty, and the high transaction costs, have blocked evolution of effective market and collective modes for risk protection. A great variety of private modes (internal organization, vertical integration, interlinking etc.) has emerged to deal with the significant natural, market, private, and social risks faced by the dairy farms and other affected agents. Nevertheless, diverse risks associated with the dairy farming have not been effectively governed and persist during the transition now. That has been a consequence of ineffective public (Government, international assistance) intervention to correct market and private sector failures in risk governance. The later has had considerable negative impacts on evolution of size, productivity, and sustainability of farms, development of markets, structure of production and consumption, state of environment etc. What is more, certain risks related to the dairy sector have “disappeared” due to the lack of effective risk governance and declining dairy farming. That would lead to further deformation in development of dairy and related sectors unless effective public (regulations, assistance, control etc.) measures are taken to mitigate the existing problems and risks.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
7770.
References listed on IDEAS 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.: