IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/303925.html
   My bibliography  Save this article

Competitiveness in Dairy Trade – the Case of EU and the Visegrad Group Countries

Author

Listed:
  • Judit Nagy
  • Zsófia Jámbor

Abstract

The European Union (EU) produces 15% of its agricultural production in the dairy industry. The article focuses on the European Union and Visegrad Group’s (VG) dairy export and analyses it with Balassa’s (Revealed Comparative Advantage, RCA) index. Our aim is to explore the foundations of EU's competitiveness and the role and opportunities of the dairy sector in VG countries. The analysis is based on EU dairy export data for the period 2000-2017. The main result of the analysis is that the most competitive countries in terms of export performance (Denmark, France, Ireland and Belgium) do not fully align with the order of the largest dairy producing and processing countries (Germany, France, the United Kingdom, the Netherlands) or the largest dairy exporters (Germany, the Netherlands, France and Belgium). We have discovered that some EU countries have a really strong, dominant competitive advantage. The reason for this is that the highest customer value can be achieved through the production of highly processed products, and the most competitive countries specialize in the production of one or a few of these products.

Suggested Citation

  • Judit Nagy & Zsófia Jámbor, 2019. "Competitiveness in Dairy Trade – the Case of EU and the Visegrad Group Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(4), December.
    • Handle: RePEc:ags:aolpei:303925
    DOI: 10.22004/ag.econ.303925
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/303925/files/431_agris-on-line-2019-4-nagy-jambor.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.303925?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Leslie Budd & Amer Hirmis, 2004. "Conceptual Framework for Regional Competitiveness," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1015-1028.
    2. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 1-35, March.
    3. Zoltan Bakucs & Jan Falkowski & Imre Ferto, 2012. "Does Farm and Processing Industry Structure Matter for Price Transmission? Some Evidence From Transition Countries: A Comparison of Dairy Sectors in Hungary and Poland," CERS-IE WORKING PAPERS 1212, Institute of Economics, Centre for Economic and Regional Studies.
    4. Tihomir Domazet, 2012. "Regional Cooperation Striving For Competitiveness And Finance," Serbian Association of Economists Journal, SAE - Serbian Association of Economists, issue 5-6, pages 290-300, August.
    5. Salou, Thibault & van der Werf, Hayo M.G. & Levert, Fabrice & Forslund, Agneta & Hercule, Jonathan & Le Mouël, Chantal, 2017. "Could EU dairy quota removal favour some dairy production systems over others? The case of French dairy production systems," Agricultural Systems, Elsevier, vol. 153(C), pages 1-10.
    6. Perekhozhuk Oleksandr & Hockmann Heinrich & Fertő Imre & Bakucs Lajos Zoltán, 2013. "Identification of Market Power in the Hungarian Dairy Industry: A Plant-Level Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-13, January.
    7. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    8. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    9. Bent Dalum & Keld Laursen & Gert Villumsen, 1998. "Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 423-443.
    10. Keld Laursen, 2015. "Revealed comparative advantage and the alternatives as measures of international specialization," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 99-115, June.
    11. Jo H.M. Wijnands & Harry J. Bremmers & Bernd M.J. van der Meulen & Krijn J. Poppe, 2008. "An economic and legal assessment of the EU food industry's competitiveness," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 417-439.
    12. Aron Torok & Tamas Mizik & Attila Jambor, 2018. "The Competitiveness of Global Coffee Trade," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 1-6.
    13. Hanisch Markus & Rommel Jens & Müller Malte, 2013. "The Cooperative Yardstick Revisited: Panel Evidence from the European Dairy Sectors," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 151-162, December.
    14. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 265-280, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jambor, A. & Toth, A.T. & Koroshegyi, D., 2018. "Competitiveness in the trade of spices: A global evidence," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277195, International Association of Agricultural Economists.
    2. Beňo, Michal, 2021. "E-working: Country Versus Culture Dimension," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    3. Liu, Bin & Gao, Jianbo, 2019. "Understanding the non-Gaussian distribution of revealed comparative advantage index and its alternatives," International Economics, Elsevier, vol. 158(C), pages 1-11.
    4. Nendissa, Doppy Roy & Anindita, Ratya & Khoiriyah, Nikmatul & Sa’diyah, Ana Arifatus, 2021. "Consumption and Beef Price Changes on Demand in East Nusa Tenggara, Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    5. Jámbor, Attila & Tóth, Andrea Tímea & Kőröshegyi, Domonkos, 2017. "Az agrárexport versenyképessége - a nemzetközi fűszer-kereskedelem esete [Export competitiveness in agriculture: the case of the international spice trade]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1202-1223.
    6. Cima, Elizabeth Giron & Freire da Rocha-Junior, Weimar & Uribe-Opazo, Miguel Angel & Dalposso, Gustavo Henrique, 2021. "Modifiable Areal Unit Problem (MAUP): Analysis of Agriculture of the State of Paraná-Brazil," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    7. Látečková, Anna & Trnková, Michaela, 2021. "Cloud Computing in Agricultural Enterprises in Slovakia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    8. Iglesias, Matias Nehuen, 2021. "Measuring size distortions of location quotients," International Economics, Elsevier, vol. 167(C), pages 189-205.
    9. Darmawan, Dwi Putra & Arisena, Gede Mekse Korri & Utami, Ni Wayan Febriana & Krisnandika, Anak Agung Keswari, 2021. "The Dynamics of the Social Network of Urban Farmers in Subak Sembung Denpasar," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    10. Zdráhal, Ivo & Hrabálek, Martin & Kadlec, Petr & Krpec, Oldřich, 2021. "Brazil's Comparative Advantages and Specialization Dynamics in Agri-food Trade," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    11. Widarjono, Agus & Mumpuni Ruchba, Sarastri, 2021. "Demand for Meat in Indonesia: Censored AIDS Model," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    12. Kudryashova, Ekaterina & Casetti, Michele, 2021. "The Internet of Things - the Nearest Future of Viticulture," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    13. Imre Ferto, 2007. "The Dynamics of Trade in Central and Eastern European Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(1), pages 5-23.
    14. Dominika Choros-Mrozowska, 2020. "Changes and Comparisons in Pattern of Polish Chinese Trade within the “16+1” Format," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 327-342.
    15. Jambor, Atilla & Toth, Andrea Timea & Koroshegyi, Domonkos, 2017. "The Export Competitiveness of Global Cocoa Traders," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(3), September.
    16. Kaveri Deb & Bodhisattva Sengupta, 2018. "Value-Added Trade and Empirical Distributions of RCA Indices," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 235-264, March.
    17. Souguir, Afef, 2019. "Evolution of the specialization of the Tunisian international trade on the European market," MPRA Paper 92500, University Library of Munich, Germany.
    18. Zdráhal, Ivo, 2024. "The Revealed Comparative Advantage of Agri-Food Industries in Selected Countries in the Central and Eastern Europe: Gross-Versus Value-Added Trade Flows," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(2), June.
    19. Amador, João & Cabral, Sónia & Ramos Maria, José, 2007. "International Trade Patterns over the Last Four Decades: How does Portugal Compare with other Cohesion Countries?," MPRA Paper 5996, University Library of Munich, Germany.
    20. Martin Grančay & Tomáš Dudáš, 2019. "Bilateral trade flows and comparative advantage: does the size matter?," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(4), pages 397-413, December.

    More about this item

    Keywords

    Agribusiness; Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:303925. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.