This report examines the restructuring of the livestock sectors in five countries: Russia, Ukraine, Poland, Hungary, and Romania. All five countries experienced a decline in both animal inventories and meat output during the early years of transition away from a centrally planned economy. ERS, in cooperation with Purdue University, developed five general equilibrium models depicting the economies of each nation. The models were used to evaluate capital investment at different stages of production; the rise in land prices that would result from a better functioning land market; reduced marketing costs; increased availability of credit; and, the creation of off-farm employment to draw labor out of agriculture. The study identifies potential trade and investment opportunities, but emphasizes that this potential depends on the successful implementation of institutional and policy reforms.


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