THE IMPACT OF PRICE VOLATILITY ON THE VEGETABLE CHAIN FRAGMENTATION IN ROMANIA

The paper studies the impact of price volatility on business activities in the Romanian vegetable supply chain. The analysis reveals that a high volatility is reflected in a fragmented production and distribution chains. This situation leads to increased uncertainty in terms of what vegetable to produce and where to sell and it negatively impacts the farmers' revenues and investment decision. The paper employs a quantitative and a qualitative analysis using the coefficient of variation in order to assess the impact of price volatility on vegetable commercialization channels including vegetable processing companies. The data regarding vegetable prices are retrieved from the tempo on line data base and the analysis is also based on interviews with the main stakeholders of the vegetable chain. The results reveal a high coefficient of variation at the farm gate stage which is further transmitted at the level of distribution and commercialization stage. The analysis is carried out also at the processing level, the results indicating also a quite high coefficient of variation.