The Benefits of Horizontal Integration in Polish Agriculture Exampled by Agricultural Producer Groups Cover Image

Korzyści płynące z integracji poziomej w polskim rolnictwie na przykładzie grup producentów rolnych
The Benefits of Horizontal Integration in Polish Agriculture Exampled by Agricultural Producer Groups

Author(s): Bartłomiej Bajan, Wawrzyniec Czubak
Subject(s): Politics, Geography, Regional studies, Agriculture, Sociology, EU-Legislation
Published by: Instytut Rozwoju Wsi i Rolnictwa Polskiej Akademii Nauk
Keywords: horizontal integration; agricultural producer groups; prices; revenues

Summary/Abstract: The purpose of the study is to identify the benefits of belonging to producergroups in relation to the prices received for their products by cooperating farmers and,consequently, also to assess the appropriateness of agricultural policy which supportsimprovement of horizontal integration in agriculture. A comparison of prices of individualagricultural products obtained by members of producer groups with average procurementprices from the Central Statistical Office (Statistical Yearbooks of Agriculture), has beenmade. It also indicated differences in revenue between the various entities resulting fromthe comparison. The analysis shows that in all examined industries (oilseeds, potatoes, cerealgrains, milk), the prices received by the cooperating farmers were higher than the averageprocurement prices. In addition, assuming identical sales volumes as in producer groups,they had significant revenue advantages over the rest of the market. This demonstratesthe relatively higher market power of affiliated holdings, and from this point of view alsopublic support directed at improving horizontal integration is justified.

  • Issue Year: 180/2018
  • Issue No: 3
  • Page Range: 229-241
  • Page Count: 13
  • Language: Polish