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Vertical coordination as a driving force for structural change in the Romanian dairy market

Author

Listed:
  • Pieniadz, Agata
  • Hanf, Jon Henrich
  • Wegener, Stefan
  • Voicilas, Dan Marius

Abstract

This paper addresses the various modes of access to production factors, such as capital, specific inputs and know-how, as reasons for the varied development of Romanian dairy supply chains and their respective actors (farmers, processors). The paper draws on results from an ongoing World Bank study. The findings are based on semi-structured telephone and face-to-face interviews conducted in January-February 2009. The interviews indicate that large and prosperous dairy chains have better access to all production factors, which allows the strengthening of their relationships, especially in the upstream stages (farmers), and supports their competitive advantages in the domestic market. Many barriers exist in the domestic market, particularly for small and medium-sized dairy chains, which hamper their potential exploitation of particular stages in the chain. In the same way the findings indicate that virtually only large companies and farms benefit from public support regarding access to capital (EU funding, governmental programmes) and know-how (extension service).

Suggested Citation

  • Pieniadz, Agata & Hanf, Jon Henrich & Wegener, Stefan & Voicilas, Dan Marius, 2010. "Vertical coordination as a driving force for structural change in the Romanian dairy market," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 111, March.
  • Handle: RePEc:ags:stagec:59043
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