Position and Perspectives of Small Farms with Respect to the Structure Development of Subsequent Vertical Link

The objective of the paper is to find out the position and perspectives of small farms’ production sales with respect to the structure development of subsequent vertical stage. Structure development is evaluated in terms of company’s size, which is defined according to the number of the persons employed. The analysis is based on the assumption that small farms are able to sell their production rather to small than big processors and the question is whether the small processors give stability and certainty for small farms. The paper deals with chosen commodity chains in the Czech Republic. As an example of the variability in the food industry there were chosen two processing sectors that are important processors of diverse commodity sources of production and with different structural characteristics which was mainly affected by divergent development during consolidation process in the Czech Republic. The main methodical approach is based on the share of value added which is as the indicator of performance showing the rate of production factor usage (input) on the final production (output) and on the turnover produced. Furthermore other indicators of financial situation are evaluated by the Spider Analysis of particular size groups of processors.