Smalholders’ Market Inclusion through Improved Eco-management – The Case of Bulgaria

Abstract. Enhancing environmental performance is a prospective way for increasing market inclusion, effectiveness and sustainability of small-scale farms around the globe. With a 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 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, diverse forms of eco-management in farms with different size, market orientation, product specialization, and location are identified. Second, costs, effects, and efficiency of eco-management are assessed, including the extent the improve eco-performance contributes to increased market inclusion of farms. Third, critical personal, economic, contractual, institutional, etc. factors of managerial choice in the eco-active farms are specified. Forth, perspectives of expansion of this particular mode of market inclusion of Bulgarian smallholdes are estimated. Finaly, directions for improving public policies and business strategies of smallholders in Bulgaria and other countries with similar conditions are suggested.Keywords. Farm sustainability, Governance, Economic, Social, Ecological aspects, Framework for assessment.JEL. Q10, Q56, R33