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Agrarian Economy and Rural Development - Realities and Perspectives for Romania SECTION 4: PROJECT ADER 16.1.2 “Models of development of the short chains for capitalizing along the pathway service-primary production-storage-processing-sales market” 396
MODELS FOR SHORT VEGETABLES’ CHAIN ION RALUCA ANDREEA 1 Abstract The paper presents models for short chains of vegetables, considering integration as the main mechanism of coordination agents’ activities on the chain. Among other mechanisms, such as subsidies system, price, contracts, horizontal and vertical integration, the latter has been chosen because, as other research show, it provides the highest performance for operators of agro-food system. The research question is how efficient are activities of vegetables’ chain in this particular form of integrated operations of collecting vegetables, store and process them into cans and sell them to the market in a single economic unit. The objective of the research is to assess business’ efficiency. In achieving this purpose, economic data regarding investment, production, revenues and expenses have been analysed, for an associative form of processing and selling vegetables, which develops such a business. The results show that investment is feasible, because revenues are higher than expenses, the rate of return is 22.6 per cent, and the return of investment is ten years, less than the machineries’ period of operation. The model can be implemented by farmers who want to apply for structural funds and to develop, as such, their business in the direction of integrating activities down-stream the chain. Key words short chain, vegetables, efficiency, integration JEL classification: Q13 INTRODUCTION This article aims to identify models for short vegetables’ chain within the wider concern for increasing performance. The need of this piece of research consists in offering solutions to farmers who face difficulties in selling their output to the market. As seen in previous research (Manole, 2006; Turek, 2008), farmers deliver small quantities of vegetables, difficult to be sold to hypermarkets and supermarkets who require large and homogenous batches of products. In addition, vegetables chain registers high level of losses, 37 per cent of total production (Istudor, 2007). These shortcomings can be overtaken by integrating post-harvest activities into one single economic unit, creating, as such, the short chain of vegetables. Vegetables chain and market in Romania were studied in numerous papers (Istudor, 2000, Preda, 2001, Ion, 2005, Manole, 2005). This piece of research emphasis, particularly, the role of integration and it aims at designing a model for short chain in agriculture. The research question is whether short chain of vegetables is efficient or not, considering the short chain as a business where post harvest activities are integrated and performed in one single economic unit. In order to answer this question, economic data regarding investment, production, revenues and expenses have been analysed and indicators of economic efficiency have been assessed. The research objective is to identify the feasibility of the business which integrates post harvest activities of collecting and processing vegetables and selling cans. According to Manole (2006) “the highest performance is recorded if the chain is coordinated through the mechanism of integration, because efficiency, equity, economy of transaction costs and access to markets are high, just prices and income stability are average”. In this paper, a model of a short chain is presented, in a form of a project that can be used as an example for farmers who want to set up a cooperative of processing vegetables and apply for structural funds in order to finance their 1 Associate Professor, PhD. Ion Raluca Andreea, The Bucharest University of Economic Studies, Faculty of Agro-food and Environmental Economics, raluca.ion@eam.ase.ro 397
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MPRA Munich Personal RePEc Archive
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Copyright @ 2016, Research Institut
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SCIENTIFIC COMMITTEE President: ALE
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CONTENTS SECTION 1 “THE CONCEPTS,
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Alin-Angelin IORGA „Legal regleme
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Agrarian Economy and Rural Developm
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Italy Bulgaria Hungary Netherlands
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2002 2003 2004 2005 2006 2007 2008
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RESULTS AND DISCUSSIONS According t
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Table 4. Comparative situation rega
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Other important areas are cultivate
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early varieties, with a smaller veg
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MATERIAL AND METHOD Livestock farmi
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Luxembourg 205 185 199 188 Malta 19
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Luxembourg Bulgaria 1,828 2,101 1,4
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CONCLUSIONS The analysis has shown
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DEMAND AND SUPPLY OF MILK (THOUSNAD
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POULTRY MEAT (THOUSAND TONS) Agrari
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LEGAL REGLEMENTATIONS IN THE EUROPE
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and Directive 2000/76/EC of the Eur
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• rural environment - in 2008 the
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Responsible authorities are the Min
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