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Schmiterlöw, Henrik (2006) Småskalig utsädesproduktion. Other thesis, SLU.

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Abstract

The economic situation in the Swedish agricultural industry is currently experiencing a development towards larger units. This progress occurs simultaneously as farmers in cooperation more frequently make investments to decrease risk exposure and to improve the financial result. The purpose with this thesis is to study which advantages and problems a group of farmers experience after a common investment in a small-scale seed production. The aim with this investment is to increase the level of vertical integration in their respective agricultural firms and the results will be analyzed from an economic point of view. At present, the farmers are all seed producers with considerable cultivation areas. They experience that the co it of inputs are getting higher and higher. Further refining the goods produced means that the farmers produce certified seed in a common plant, for own use and for sale. The thesis is based on interviews with six farmers. Three of them belong to the group "Refiners" and the other three are called "Buyers". Common for all six is that they all have good knowledge about seed industry and the problems involved in seed production. The study also aims to show what economic incentives that occur when farmers cooperate with each other when investing to increase the level of vertical integration, as well as analyze the problems that arise. The theoretical framework is based on the agent theory which describes problems in a common organizational structure. Problems considered are the decision-maker problem, portfolio problem, horizon problem and finally the control problem. The results obtained in the study show that large volumes are required to reach good profitability when producing certified seed. The price of seed and grain on the market also plays a key role for the final result. It is also important that the farmers have a good understanding of what the refining industry asks for. Furthermore, a good relationship to the customers is of importance to create a long-term profitability.

Item Type: Thesis (Other)
Keywords: small-scale seed production
Subject (faculty): Faculty of Natural Resources and Agricultural Sciences > Dept. of Economics
Divisions: SLU > Faculty of Natural Resources and Agricultural Sciences
Depositing User: Henrik Schmiterlöw
Date Deposited: 05 Oct 2006
Last Modified: 18 Aug 2015 09:43
URI: http://ex-epsilon.slu.se/id/eprint/1188

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