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Structure, Conduct and Performance of the European Food Sector

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  • Viaene, Jacques
  • Gellynck, Xavier

Abstract

The structure, conduct and performance of the Food, Drink and Tobacco (FDT) industry in the European Union are evaluated. Statistical data and interviews with experts are the main information sources for this analysis. The structure of the FDT industry is characterised by increasing concentration, largely determined by growing concentration in the retail sector and greater consumer demand for variety and quality. Productivity, prices and profitability are higher in subsectors where concentration is high. Competitive conduct in the FDT industry involves both horizontal and geographic diversification, brought about through mergers and acquisitions. The overall performance in the FDT industry is adequate. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Viaene, Jacques & Gellynck, Xavier, 1995. "Structure, Conduct and Performance of the European Food Sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(3), pages 282-295.
    • Handle: RePEc:oup:erevae:v:22:y:1995:i:3:p:282-95
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    1. repec:bla:afrdev:v:29:y:2017:i:s2:p:135-146 is not listed on IDEAS
    2. Stefan Hirsch & David Lanter & Robert Finger, 2021. "Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 235-263, April.
    3. Jean D. Kinsey, 1998. "Une revue de la littérature académique anglo-saxonne sur la grande distribution alimentaire," Économie rurale, Programme National Persée, vol. 245(1), pages 93-101.
    4. Cucagna, Maria Emilia & Goldsmith, Peter D., 2018. "Value Adding in the Agri-Food Value Chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), February.
    5. Luljeta Hajderllari & Kostas Karantininis, 2012. "The structural changes of the food industry in the European Union," IFRO Working Paper 2012/8, University of Copenhagen, Department of Food and Resource Economics.
    6. Kinsey, Jean D., 1998. "Concentration Of Ownership In Food Retailing: A Review Of The Evidence About Consumer Impact," Working Papers 14329, University of Minnesota, The Food Industry Center.
    7. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    8. Lanter, David & Hirsch, Stefan & Finger, Robert, 2018. "Profitability and Competition in EU Food Retailing," 2018 Annual Meeting, August 5-7, Washington, D.C. 274202, Agricultural and Applied Economics Association.
    9. Maximilian Koppenberg & Stefan Hirsch, 2022. "Output market power and firm characteristics in dairy processing: Evidence from three EU countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 490-517, June.
    10. Emil Erjavec & Matthew Gorton & Ales Kuhar & Vesna Valant, 1999. "Firm Level Restructuring in the Slovenian Food Industry," Post-Communist Economies, Taylor & Francis Journals, vol. 11(4), pages 519-539.
    11. Korner, Julia & Weiss, Christoph R., 2001. "Die Zyklik der Profite in der Ernährungswirtschaft: Ein internationaler Vergleich," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(03), pages 1-5.
    12. Muehlfeld, Katrin & Weitzel, Utz & van Witteloostuijn, Arjen, 2011. "Mergers and acquisitions in the global food processing industry in 1986-2006," Food Policy, Elsevier, vol. 36(4), pages 466-479, August.
    13. Stefan Hirsch & Jan Schiefer, 2016. "What Causes Firm Profitability Variation in the EU Food Industry? A Redux of Classical Approaches of Variance Decomposition," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 79-92, January.

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