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© 1995 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Impact of changes in agricultural policy on the agro-food chain in Bulgaria*

NEDKA IVANOVA, JOHN LINGARD, ALLAN BUCKWELL and ALISON BURRELL

Ministry of Agriculture Sofia, Bulgaria
University of Newcastle upon Tyne UK
Wye College, University of London UK
Agricultural University Wageningen, The Netherlands

John Lingard, Department of Agricultural Economics and Marketing, University of Newcastle upon Tyne, Newcastle upon Tyne, NE1 7RU United Kingdom

Summary

Control of consumer food prices in pre-reform Bulgaria led to large price distortions and significant welfare transfers through the food chain. Policy changes during the transition period have reduced the level of transfers and changed their pattern. At the beginning of the period, the largest transfers at farm and processing levels went via retailers to final consumers. By 1993, there were income transfers from farmers and final consumers in favour of retailers. It is shown that, since reform began, government measures to contain consumer food prices have had a large negative impact on farmers, without providing much benefit to consumers.

Keywords: welfare transfers, marketing chain, Producer Subsidy Equivalent (PSE), Bulgaria, price control


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