The future of small agricultural producers on changing agricultural markets

Forgács, Csaba

Keywords: agricultural markets, food trade, produce route, small production, vertical cooperation/integration

Beside developed countries multinational chains of food traders are increasingly present also on the markets of developing countries where they play an increasingly dominant role in food marketing. Their presence, their marketing weight changes the function and power structure in the food industry concerning the route food passes through from producers to consumers. All this is happening in the name of reduced food prices and a higher level of consumer satisfaction. The examples of several countries show that despite expectations food prices did not increase upon joining the EU, but in some instances they actually declined. An effective marketing regime due to its bargaining position, weight and increased level of organisation breached significant cracks on the bastion of food industry believed to be quite robust up to now. This has mostly indirectly brought about a significant deterioration of markets mainly for sectors producing row materials especially for market orientated small agricultural producers. The question is what opportunity does the future hold for such small producers in the framework of globalisation to survive and integrate into new structures in the world in general and in Central Europe in particular. This is a useful conclusion also for domestic small producers.

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