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The challenge of agribusiness and agricultural finance in central Europe

Author

Listed:
  • Eric P. Thor

    (School of Agribusiness and Environmental Resources at Arizona State University, Tempe, AZ 85287-3306. Concurrently)

  • Kenneth L. Peoples

    (NIS and Central and Eastern European Projects)

Abstract

The recent euphoria over political and social changes in Central Europe is fading. Now, a cold, stark reality has seeped into the agribusiness community. The lack of financing is devastating many projects that otherwise may make economic and business sense. The prospects are daunting agribusiness and agricultural enterprises. It compounds the diffculties of agribusiness and agricultural production, the development of a system of private land ownership, the building of a necessary storage and transportation infrastructure, and the growth in international trade. All these issues are interrelated. This article focuses on agribusiness and agricultural finance as it is developing in the milieu. Furthermore, each Central European country is coping with its own troubles springing from its conversion from communism toward a market economy. The collapse and lack of agricultural and agribusiness imports and exports reflect these challenges. Even with these constraints, progress is being made as the agricultural and agribusiness finance restructuring progress is continuing in each country. This article will overview the progress agribusiness and financial concepts have made in the past 3 years in the region, giving special attention to Bulgaria. The review also highlights some important financial issues for private sector and cooperative foreign investors, joint venture partners, marketing agreement participants and others interested in exploring agribusiness opportunities in Central Europe and Bulgaria.

Suggested Citation

  • Eric P. Thor & Kenneth L. Peoples, 1994. "The challenge of agribusiness and agricultural finance in central Europe," Agribusiness, John Wiley & Sons, Ltd., vol. 10(1), pages 93-103.
    • Handle: RePEc:wly:agribz:v:10:y:1994:i:1:p:93-103
    DOI: 10.1002/1520-6297(199401)10:1<93::AID-AGR2720100109>3.0.CO;2-T
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    References listed on IDEAS

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    1. Bergson, Abram, 1992. "Communist Economic Efficiency Revisited," American Economic Review, American Economic Association, vol. 82(2), pages 27-30, May.
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