August 22, 2013

ARE EASTERN EUROPEAN AGRICULTURAL MARKETS WORKING? BEWARE OF STATE-PRESCRIBED MARKET INTERVENTIONS!



Some Eastern European countries, specifically the large grain-producing nations of the Black Sea region (Russia, Ukraine and Kazakhstan), will be of major importance in solving the ‘global food problem’. To achieve this, they will need to further mobilise their market and export potential via properly functioning agricultural markets and trade structures. The current debate about global food security, however, is controversial when it comes to whether and with which measures the state should intervene into the economic system. Based on the findings of several joint research projects that examine how Eastern European grain, dairy and meat markets are functioning, agricultural economist of IAMO and Christian-Albrechts-Universität zu Kiel strongly advocate restraint in the introduction of measures to regulate agricultural markets.