Changes in the Lithuanian intervention cereal purchasing system and their influence on cereal growers

Abstract

Due to natural and climatic conditions, periodicity of production and other factors, the growing of cereals isn't the branch of business where free market regulates supply and demand at the same time securing revenue for cereal growers. Therefore, our state invokes various levers for production and revenue regulation. One of the main measures of the state's intervention into the inner market of cereals, i.e. the system of intervention purchases is analysed in the article. It enables cereal growers to sell cereals (under unfavourable market conditions) to the State Enterprise Lithuanian Agricultural and Food Products Market Regulation Agency, which administrates intervention purchases in the country for the fixed intervention price. In Lithuania, the intervention cereal purchasing system was started to be applied in 1988. It was under constant rcstructurization. Till the accession to the European Union the cereal intervention purchasing model applied in the European Union has been tried to adapt and after the accession to the European Union the same model as in other Union's countries has been started to be applied.The analysed changes and the reasons of the cereal intervention purchasing system in the country till the accession to the E U and after it enabled to evaluate the significance of the application of this system in order to stabilize prices of cereals and maintain revenues of cereal growers

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