Transfers and distortions along CEEC food supply chains.

Since the downfall of communism, Central and East European Countries (CEECs) have pursued an array of agricultural and food policies. These have included price controls at farm, processing and retail levels, margin and profit limitations, credit and budgetary subsidies to farmers and assorted trade controls. Moreover, policies employed have varied considerably between countries and over the period of transition and have been applied to underdevelope d ( noncompetitive markets). Many of the policies would appear to be inconsistent with each other and at first glance it is difficult to characterise the degree of protection (taxation) afforded to farmers and the implications for final consumers. This paper aims to present an overview of the nature of transfers along, and levels of distortion within, five key agro-food chains in six CEECs. In undertaking this research, four key questions are apparent. First, is it possible to compare margins and transfers along agro-food supply chains at an international level? What problems emerge in making cross-national comparisons? Second, who are the main beneficiaries of transfers along supply chains and how does this vary between countries? This leads on to the question as to what are the size and causes of these distortions and finally, what methods may be employed to understand and evaluate the causes of these distortions?