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Организация На Снабдяването С Материални Активи В Българските Ферми
[Governing of inputs supply of Bulgarian farms]

Author

Listed:
  • Bachev, Hrabrin

Abstract

This is the third paper from a series of articles on governing of different types of transactions in Bulgarian farming applying the framework of New Institutional and Transaction Cost Economics. It is based on a large scale microeconomic data from 194 typical commercial farms of different sizes (small, middle-size, big) and types (individual, family and group farms; cooperatives, agrofirms) from all regions of the country. This study concentrate on factors and modes for organization of inputs supply in Bulgarian farms. Different governing forms (internal production, own cooperative, member-organization, market contragent) for major types of current (chemicals, seeds, forage) and long term (buildings, machinery, livestock) inputs supply in farms of different types and sizes has been determined. Microeconomic factors responsible for various organizational and contract choices for input supply (buying, leasing, internal procurment) have been specified. Dominant governing modes have been explained by comparative advantages for saving on transacting costs (for finding partners and needed material assets, contracting, contract enforcement and disputing, renewal of contracts etc). Extension (optimization) of farm size through some mode of input supply is undertaken only if it is less expensive comparing to other forms for farm enlargement (e.g. land supply, labor supply, service supply, vertical integration etc). Transaction costs economizing framework has been used through analysis of: frequency of transactions between same partners (always the same partner, usually same partner, different suppliers, every time and season a different partner); reasons for choosing the supplier (the best prices, postponed payments, good reputation of supplier, providing supply on farm, lack of other suppliers, high quality, tradition, high confidence in the supplier, additional benefits); price type (based on market price, negotiated every time, fixed for a long period); interlinked relations (supplier buy farm output, suppliers assist marketing of farm output, no such relationships); problems in input supply (in finding of requested materials, equipment etc; in finding out of a supplier; in quality control; in price negotiations; in contracting other supply terms; in meeting contract terms in execution stage; in conflict resolution).

Suggested Citation

  • Bachev, Hrabrin, 2002. "Организация На Снабдяването С Материални Активи В Българските Ферми [Governing of inputs supply of Bulgarian farms]," MPRA Paper 99405, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:99405
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    References listed on IDEAS

    as
    1. Bashev, Chrabrin & Denchev, Rumen, 1992. "Economic Efficiency of Agricultural Research," 1992 Occasional Paper Series No. 6 197730, International Association of Agricultural Economists.
    2. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    3. Peter J. Barry & Sonka Steven T. & Kaouthar Lajili, 1992. "Vertical Coordination, Financial Structure, and the Changing Theory of the Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1219-1225.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    governance. agriculture; inputs supply; Bulgaria;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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