1. 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

2. 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

3. 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

4. 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

5. 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)

6. 14/01/2019
End
© Wageningen UR