1. Vertical Coordination in the dairy supply chain Evidence from Albania, Bulgaria, Poland & Slovakia Liesbeth Dries – K.U.Leuven EastAgri 2005 Annual Meeting, Rome, 28 February 2005

2. Goal & methodology Goal: to analyse the extent and impact of vertical coordination in the dairy sector Goal: to analyse the extent and impact of vertical coordination in the dairy sector Methodology: Methodology: Countries: PL, SK, BG, ALBCountries: PL, SK, BG, ALB Interviews dairy processing firmsInterviews dairy processing firms Interviews input suppliersInterviews input suppliers Farm level survey / interviewsFarm level survey / interviews

3. Dairy assistance programs

4. Assistance versus reform

5. Impact on milk quality (PL)

7. Impact on investments (PL)

8. Impact on farm growth (PL)

9. Conclusions Vertical coordination in dairy supply chain leads to potentially strong positive spillover effects in terms of: Vertical coordination in dairy supply chain leads to potentially strong positive spillover effects in terms of: Delivered product qualityDelivered product quality On-farm investmentsOn-farm investments Farm growthFarm growth Remark: FDI as an initiator of change & institutional innovation Remark: FDI as an initiator of change & institutional innovation Remark: Initial size distribution is relevant Remark: Initial size distribution is relevant