Sensitivity of Agri-Food Sector to the Financial Crisis: Empirical Evidence From a Balkan Country

Abstract

SUMMARYIn post-communist economies, agri-food sector can suffer financial instability in periods of external shocks, such as the global financial crisis of [2008][2009][2010]. By applying two different approaches, authors examine the financial response of the listed and unlisted Macedonian agri-food companies to the crisis. The results show that the crisis had no great effects over the Macedonian agrifood companies, except for the reduction of the production volume of the unlisted companies and the decreased investment activities of the listed companies. Finally, this paper suggests an understanding of the financial behaviour of the agri-food companies when faced with systematic risk factors, and sets grounds for further researches in the context of other post-communist economies.

Macedonian Agricultural Capital Market and Supporting Mechanisms: An Overview

“…Agricultural loan consumers are mainly larger farms and agribusiness companies, which constitutes only 1% of the total number of farms, hence, the consumption of loans is relatively low. To improve the credit absorption by the agricultural sector, especially by the smallholders, the Government has established different supporting mechanisms: establishment of a state development bank (the Development Bank of North Macedonia), establishment of credit fund for agriculture to support both, the lending institutions and farmers/farm companies (ACDF), and introduction of a subsidized interest rate to support pre-financing for IPARD co-financed investments (Simonovska et al, 2017).…”