Restructuring the agribusiness sector and the role of foreign direct investment

Abstract

During the past decade , the agrifood sectors in Central and Eastern European countries (CEECs) have been undergoing massive restructuring as firms and governments alike have attempted to adapt processing, manufacturing and supply organisations, along with product and procurement markets, to meet the demands imposed by the still evolving new market economy. Before the start of the transition period , CEEC governments had designed an agrifood system that was characterised by large, vertically integrated, geographical monopolies. This provided the old CEEC communist governments with a structure that allowed them to gain effective control over the total chain.