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Contractual relationships in the Hungarian milk sector

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  • Zoltán Bakucs, Lajos
  • Fertő, Imre
  • Szabó, Gábor G.

Abstract

In this paper we present an empirical analysis of farmers' contracting choice in the Hungarian milk sector using 2005 milk producer survey data, employing transaction cost economics. We focus on analysing some key determinants of farmers' contracting choices: type of contracts, duration, number of contractors, incentives provided in the contract and business history of farmers and buyers. Some of the main results include the importance and effect of farm size, quantity of milk delivered, planned short and long run or contract related investment on farm, the possibility of farmer to influence prices on the contracting choices.

Suggested Citation

  • Zoltán Bakucs, Lajos & Fertő, Imre & Szabó, Gábor G., 2010. "Contractual relationships in the Hungarian milk sector," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52700, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    • Handle: RePEc:zbw:iamo10:52700
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    References listed on IDEAS

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    Cited by:

    1. Bakucs, Lajos Zoltan & Ferto, Imre, 2013. "The role of trust in contractual relationships," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158870, Agricultural Economics Society.
    2. Imre Ferto & Bakucs Lajos Zoltan & Sándor Elek & Csaba Forgacs, 2011. "Contracts in Hungarian Food Chains," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    3. González-Moralejo, Silvia Andrés & Muñoz, Pablo Muñoz & Miquel, Juan Francisco López, 2015. "Firm Size, Contractual Problems and Organizational Decision-Making: Logistics for Perishable Goods," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-16, November.

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