Market Inclusion Through Enhanced Eco-Management in Bulgarian Farms

Abstract

Enhancing environmental performance is a prospective way for increasing market inclusion, effectiveness and sustainability of small-scale farms in Eastern Europe and Central Asia. Nevertheless, with very few exceptions there are no studies on forms, factors and efficiency of ‘eco-driven’ market inclusion of smallholders in modern supply chains in Bulgaria. This paper presents the findings of a first large scale study on state, driving forces, and efficiency of market inclusion of farms through enhanced eco-management in Bulgaria. First, we identify diverse forms of eco-management in farms with different sizes, market orientation, product specialization, and location. Second, we assess costs, effects, and efficiency of eco-management, including the extent it contributes to increased market inclusion of farms. Third, we specify critical personal, economic, contractual, institutional, etc., factors of managerial choice in the eco-active farms. Finally, we estimate perspectives of expansion of this particular mode of market inclusion, and suggest directions for improving public policies and business strategies of smallholders.