Gains of grain producers from horizontal mergers in Zemgale region
2013
Bite, L., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Muska, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Glusaka, D., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics
The aim of the present research is to examine the gains of Zemgale region's grain producers from horizontal mergers. The authors selected the cooperative "LATRAPS" as a research object, since it is one of the examples of horizontal merger in Zemgale region. The authors based their research on the analysis of annual reports of 30 farms and the result of a questionnaire survey of 100 farms. It was concluded that the largest gainers from horizontal mergers were farms that farmed an area of 100-300 ha, and their major gains were as follows: a beneficial grain purchase price, a possibility to get premiums for high quality, beneficial prices on fertilisers and plant protection products, and a possibility to have additional services and stability in a long-term.
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