INPROFORUM 2014

Market Concentration as a Precondition for Higher Competitiveness of the Czech Food Industry
Ivana Blažková, Gabriela Chmelíková

Language: en
Last modified: 2015-03-06

Abstract


The paper deals with the market concentration in the context of the development of market structure within the agribusiness commodity verticals. The aim of the paper is to evaluate the concentration on the Czech food pro-cessing market and to find the disparities among particular sectors of the food industry. Market concentration is calculated in the Czech food industry as a whole and within the particular food sectors. The general market concentration in the food industry in the period 2007-2012 grew. However, the number of companies, size structure of enterprises and the process of concentration are different in the particular food sectors in the Czech food industry. The concentration increased significantly in the sector of manufacture of vegetable and animal oils and fats and in the sector of manufacture of prepared animal feeds. The relatively high level of concentration is also in the sector of processing and preserving of fruit and vegetables, in the sector of manufacture of other food products and in the sector of manufacture of dairy products. Less concentrated sectors are manufacture of grain mill products and manufacture of bakery products, where there is a large number of very small enterprises of local significance. Increasing concentration in most sectors of the food industry can be considered as a prerequisite for higher competitiveness of the Czech food processors in relation to highly concentrated retail. 

Keywords


Market Concentration; Food Industry; Market Structure; Competitiveness

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