Agrifood sector transformation and its implications on development of small farmers in Kazakhstan

We investigate the process of agrifood sector transformation in Kazakhstan. Based on regional panel data, the implications of this transformation process on small producers’ welfare are investigated. To the best of our knowledge this is the first study addressing this research topic for Central Asia. The results of the study show a significant impact of urbanization, information and marketing services on modernization of the retail and processing sectors. The analysis shows further that individual farms have benefited from the transformation process. However, the link between processors and household producers seems to be less developed due to high transaction costs associated with linking household producers to markets. Therefore, only a limited impact of agrifood sector development on household producers is found which is mainly explained by spillover effects from larger farms. Improving rural infrastructure seems to be one important aspect in order to increase the market access of small producers

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 Record created 2017-04-01, last modified 2019-08-30

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