Dutch Multinationals in CEECs

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Presentation transcript:

Dutch Multinationals in CEECs 14/01/2019 Dutch Multinationals in CEECs Siemen van Berkum EastAgri 2005 Annual Meeting World Bank session on ‘The Dynamics of Vertical Co-ordination in Agro-food Chains in Europe and Central Asia’ 28 February 2005, Rome, FAO Headquarters

Major findings Most FDI in Poland, mainly motivated by large market 14/01/2019 Most FDI in Poland, mainly motivated by large market Contracts with individual farmers, preference to work with larger farmers F&V and feed processor contract intermediate traders and associations Company specific quality requirements (linked to client) dominate public standards

Farm Assistance Programmes Aimed at improving quality Main components: extension, training and advice Pre-finance of inputs occasionally provided Companies are very reluctant to provide credit for medium-term investments

Impact of VC with FDI on CEEC sector Improved quality performances and higher yields at individual farm level; High demands on quality and farmers’ own responsibilities to comply with industry’s requirements Role of FDI: strong link with internationally operating industries and retail

Issues hampering efficiency improvements in VC (and where government actions can help) Extension (improve quality awareness, improve knowledge and skill to comply with standards) Credit access (improve farmers’ creditworthiness) Enforcement of quality standards (create level playing field) Contract enforcement (strengthen the constitutional state)

14/01/2019 End © Wageningen UR