Problems of vertical coordination in Hungarian agribusiness
Tompe, F. (Szent Istvan University, Godollo (Hungary). Department of Economics)
The enumerated conditions of efficient vertical market coordination are either not present or only found to a small degree in Hungarian agribusiness of the new Millenium. However, there are big differences among the food-sectors in this respect. We can say that the weak bargaining position of primary producers, disproportionate division of risk and profit, and crudeness of registration and requirement systems are a general characteristic. Elimination of these shortcomings is necessary in order to not only increase the efficiency of market coordination, but rather to make it fit more European practice and the requirements of international competitiveness.
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