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Abstract

The distribution of rents between the successive stages in the food chain has been of great interest both to academicians and policy makers. Notwithstanding the extensive literature devoted to this issue, our understanding of the vertically related nature of the food chain and factors affecting bargaining power of various agents is still limited. This paper tries to fill this gap at least in part. The specific example that we use comes from dairy sector in Poland. Based on a unique micro-survey data, we provide some evidence documenting farmers’ position vis-à-vis processing industry and input suppliers. Interestingly, the picture we get is rather inconsistent with a popular opinion arguing that farmers are being “exploited” by other stages in the food chain.

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