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Vertical Coordination as an Opportunity for Market Risk Management in Agricultural Holdings in Bulgaria

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  • Tanya Georgieva

    (University of Economics - Varna, Varna, Bulgaria)

Abstract

The purpose of this article is to assess the impact of the Common Agricultural Policy on the potential of agricultural producers in Bulgaria to manage price risk through a vertical coordination strategy. A comparison was made between the established producer organizations in Bulgaria and other Member States of the European Union on the main indicators of the level of development - number of recognized organizations, organization rate and average number of members. It is concluded that the policy objective of reducing producer price volatility through vertical coordination along the supply chain has not been achieved at this stage. In order to make it possible for the market (including price) risk to be managed by farmers in Bulgaria in this way, it is necessary to seriously increase the share of farms that cooperate for the purpose of joint sale of products, as well as to increase the size of established producer organizations.

Suggested Citation

  • Tanya Georgieva, 2020. "Vertical Coordination as an Opportunity for Market Risk Management in Agricultural Holdings in Bulgaria," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 9(3), pages 127-135, December.
    • Handle: RePEc:vra:journl:v:9:y:2020:i:3:p:127-135
    DOI: 10.36997/IJUSV-ESS/2020.9.3.127
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    References listed on IDEAS

    as
    1. Rebelo, João & Caldas, José, 2015. "The Economic Role of the Portuguese Agricultural Cooperatives," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 53(Supplemen), pages 1-12, March.
    2. Hardesty, Shermain D., 2005. "Cooperatives as Marketers of Branded Products," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-6, March.
    3. Martinez, Stephen W., 2002. "A Comparison of Vertical Coordination in the U.S. Poultry, Egg, and Pork Industries," Agricultural Information Bulletins 33773, United States Department of Agriculture, Economic Research Service.
    4. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economic Reports 34051, United States Department of Agriculture, Economic Research Service.
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    More about this item

    Keywords

    market risk; agriculture; producer organizations; vertical coordination;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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