Growing inequalities in added-value distribution in the Czech agri-food chains
2008
Seják, J. | Zavíral, J.
If Czech and European agriculture have ensured people’s basic existential needs for many centuries, then it seems paradoxical that in the present institutional conditions of advanced market economies under free price formation, the share of this branch’s contribution to the distribution of added value has fallen to an untenably low level. Since 1990, Czech agricultural primary production has become predominantly unprofitable and is maintained only through the supports from the European and national public budgets. This demonstrates almost the stagnation of prices for agricultural products during the rapid growth of the general price level in the Czech economy. The new form of the Common Agricultural Policy cannot rely on subsidies, but must correct the institutional conditions in the production verticals (agri-food chains) in a fundamental manner. That is the condition for the future sustainability of Czech agriculture.
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