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Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain

Report Series - N. 7 - February 2005

This publication is part of report series published under the FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme. The series presents sector reviews and studies undertaken in Central and Eastern Europe that cover development issues and innovative areas to increase investment in agriculture in the region.Recent studies have shown a dramatic rise in the establishment of supermarkets in Central and Eastern Europe. This increase is expected to have a profound effect on agrifood systems, in particular on local farmers. EBRD has invested significant sums in the development of food retailers throughout the region. It called on FAO’s expertise to analysis the transition impact on food retail investments in two countries: the Russian Federation and the Czech Republic. This report was prepared to present the conclusions of this analysis, elaborating on the cascade of effects that food retail investments have on agrifood processors, wholesalers and farmers. This publication contains useful background information for international financial institutions and policy makers involved in developing marketing systems.
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