Market Linkages in the Slovak Agri-food Sector

Study on "Market linkages in the Slovak agri-food sector" focuses on the vertical coordination between farms and agribusiness companies which has in the recent years become a strong phenomenon not only in the Slovak agri-food chain, but also in the other countries of Central and Eastern Europe.

The growth of vertical coordination and contracting between Slovak farms and the agribusiness companies is illustrated in the report by the brewery-malting-barley chain and the dairy chain. While the chains differ strongly in product and processing characteristics, in both chains almost the whole sector is based on supply contracts including farm assistance.

Given the importance of vertical coordination, the study indicates a need to explicitly integrate supply chain developments into policy thinking and program strategies. In addition, the study reinforces the importance of macro-economic and regulatory policy environment which stimulates investment and restructuring, importance of competition and empowerment of farms. The study also suggests that the role of the government and policy making should be revised, with the focus on policy analysis and information gathering, rethinking traditional public investments and considering public-private partnerships. The study was prepared in cooperation with the Research Institute for Agriculture and Food Economics.

Market Linkages in the Slovak Agri-food Sector

Trhové väzby v agropotravinárskom priemysle Slovenskej republiky