Examination of market structure in selected livestock agri-food chains in the Czech Republic

Abstract

This paper deals with a description of the most important livestock agri-food chains in the Czech Republic and an evaluation of their vertical price transmission. The paper examines the pork, beef, poultry, and milk agri-food chains generally from May 2004 to June 2011. The time series of selected variables contain biweekly, monthly or annual data and, according to data availability, contain a different number of observations within the selected period. The first part of the paper is focused on a descriptive analysis of the selected agri-food chains. Long-term developments and short-term fluctuations in production, supply and consumption, being the main factors which influence price level, are examined in particular. The second part of the paper is focused on vertical price transmission in the selected agri-food chains; specifically, the relationship between farm-gate price and wholesale price is examined and explained. For this purpose multivariate time series analysis is employed, namely the VAR and VECM models. Based on the empirical analysis, it could be concluded that the assumed long-term relationship was not confirmed for all analyzed agri-food chains. On the other hand, imperfect competition was confirmed; even its form may differ among the analyzed agri-food chains. However, generally speaking, one could say that wholesalers have a stronger position than farmers.

Hungarian Pig Sector: Actual Problems and Prospects for the Future Development

“…The domestic market is determined by the consumption level, while the chances of the Hungarian pork products are influenced by the other EU and non-EU producers. In a study conducted in Western European countries, Stern et al (2005) concluded that the main issues among the wide public were food safety and health, animal welfare and animal health, environmental impact and the price of pork. Their report concluded that in Western Europe there is a public demand for more sustainable production, and not only for inexpensive pork.…”

“…Their report concluded that in Western Europe there is a public demand for more sustainable production, and not only for inexpensive pork. (Stern et al, 2005).…”

“…Vojtech and Peterková (2015) defined the three key areas of the Czech pig-producing sector: dealing with issues of food quality and safety, animal welfare and environmental requirements. Popp and Potori (2010) and Rumánková (2012) highlighted the common problem of Hungarian and Czech 1: Distribution of other pigs by type of pig farm (FSS 2010) Source: http://ec.europa.eu/eurostat/statistics-explained/index.php/Pig_farming_sector_-_statistical_portrait_2014 pig sector: farmers are not able to compete with foreign farmers and their cheap imports. Due to the constant level of pork consumption, decreasing production must be and is substituted by imports.…”

Competitiveness of the EU Beef Sector – a Case Study

“…For instance, in a study by Rezitis and Stavropoulos (2010), the authors examined the supply responses of the Greek beef market and found a negative asymmetric price volatility, which implies that producers have a weak market position. Rumánková (2012) analysed the price transmission mechanism in Czech meat markets. Employing the VECM model, she found imperfect competition in the form of oligopsony or oligopoly, confirming that wholesalers have a stronger position than farmers.…”

Factors of ensuring the competitiveness of Ukraine’s pig breeding production in external markets

“…Noteworthy is the fact that while feeding pigs, most farmers of Poland and Hungary prefer fodder, grown by them, which conditions its imbalance in terms of nutrients [8]. Due to this fact, farmers of the mentioned countries cannot compete with the producers from the leading countries, this problem is getting worse due to unsolved issues in ensuring the quality and safety of commodities, meeting the requirements of biosafety on farms as well as social and ecologic requirements [9].…”