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

Abstract

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. Coauthors are John Lingard, Allan Buckwell, and Alison Burrell. Copyright 1995 by Oxford University Press.