The role of vertical coordination in sustainable agriculture
1995
Kerner, Ue. | Metsa, H. (Estonian Agricultural Univ., Tartu (Estonia). Institute of Economic Theory and Marketing)
Agriculture is one of the most important sectors of Estonian economy. The present situation in Estonian agriculture can be described as rather complicated one. Because of the many problems the land reform has progressed too slowly and it has been lagging behind the agricultural reform. The aim of the land reform was to create or reestablish relationships and land use based on private ownership of land. The main tasks of the agricultural reform were to carry out the property reform on socialist large-scale farms, and reorganize or liquidate collective and state farms and establish a system of private farms. The gross agricultural output, production per 100 ha of arable land and per inhabitant have dimished significantly during the last years. The vertical coordination in agricultural sector is of extreme importance due to the economic specialities of agricultural production. Integrated concept of sustainable agriculture includes the following cycle: Phase I: Production of agricultural crops and other products; Phase II: Processing of the agricultural products to add value; Phase III: Marketing value added agricultural based products
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