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The role of semi-subsistence farms and corporate farms in the modern supply chain: evidence of Ukrainian dairy industry


  • Mykhaylenko, Maryna
  • Schaft, Franziska


This contribution aims to analyze the main factors determining the initiation of vertical coordination between processing enterprises and milk producers in Ukraine. In this regard special attention is paid to the role of uncertainty, asset specificity and resource availability. Furthermore, the impact of vertical coordination on quality improvement, trust development and strategic advantages achieved is analyzed. The survey results indicate that uncertainty is a major driver for the processing level to initiate vertical coordination schemes. Although vertical coordination appears to have positive impacts on both supplier groups, corporate farms tend to benefit more from vertical coordination schemes than semi-subsistence farms.

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  • Mykhaylenko, Maryna & Schaft, Franziska, 2010. "The role of semi-subsistence farms and corporate farms in the modern supply chain: evidence of Ukrainian dairy industry," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia 94901, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa118:94901

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    References listed on IDEAS

    1. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
    2. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
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    More about this item


    vertical coordination; transaction costs; Ukraine; Community/Rural/Urban Development; L14; Q12;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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