Influence of Qualitative Factors on Quantitative Determinants in the Czech Meat Industry Economy

DOI 10.7160/aol.2016.080410
No 4/2016, December
pp. 111-123

Náglová, Z. and Horáková, T. (2016) “Influence of Qualitative Factors on Quantitative Determinants in the Czech Meat Industry Economy ", AGRIS on-line Papers in Economics and Informatics, Vol. 8, No. 4, pp. 111 - 123. ISSN 1804-1930. DOI 10.7160/aol.2016.080410.

Abstract

The meat industry is one of the key sectors within the food industry in the Czech Republic. Development, especially in the pork production, is unfavourable. Negative foreign trade balance and low self-sufficiency is reported. Czech market products compete with foreign imports of meat and economic performance of enterprises plays an important role in this field. Article aims to identify qualitative factors limiting the competitiveness of the meat industry and to identify groups of enterprises with key position. The size of a company was confirmed as an only factor limiting the competitiveness. Statistically significant differences among the three performance indicators (out of the four analysed) were demonstrated. The larger the enterprise, the greater values of indicators are. Form of company ownership, drawing subsidies and region of the company cannot be confirmed as factors influencing the economic performance and competitiveness.

Keywords

Meat industry, competitiveness, economic performance, cluster analysis, food processing industry, economy of enterprises.

References

  1. Bakucs, L., Latruffe, L., Fertö, I. and Fogarasi, J. (2010) „Impact of EU accession on farms technical efficiency in Hungary“, Post-Communist Economies, Vol. 22, No. 2, pp. 165-175. ISSN 1465-3958. DOI 10.1080/14631371003740639.
  2. Baguley, T. (2012) „Calculating and graphing within-subject confidence intervals for ANOVA“, Behavior Research Methods, Vol. 44, No. 1, pp. 158-175. ISSN 1554-3528. DOI 10.3758/s13428-011-0123-7.
  3. Banterle, A. and Carraresi, L. (2006) “International Trade and Competitivene s s Analysis in the European Union: the Case of Prepared Meat Sector“, In: 98th EAAE Seminar Marketing Dynamics within the Global Trading System: New Perspectives, Chania, Crete, Greece as in: 29 June – 2 July, 2006.
  4. Bennani, Y. and Benabdeslem, K. (2006) „Dendogram-based SVM for multi-class classification. CIT“, Journal of Computing and Information Technology, Vol. 14, No. 4, pp. 283-289. ISSN 1846-3908. DOI 10.2498/cit.2006.04.03.
  5. Berman, S. L., Wicks, A. C., Kotha, S. and Jones, T. M. (1999) „Does stakeholders orientation matter? The relationship between stakeholder management models and firm financial performance“, Academy of Management Journal. Vol. 42, No. 5, pp. 488-506. ISSN 1948-0989. DOI 10.2307/256972.
  6. Bernini, C. and Pellegrini, G. (2011) „How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy“, Regional Science and Urban Economics, Vol. 41, No. 3, pp. 253-265. ISSN 0166-0462. DOI 10.1016/j.regsciurbeco.2011.01.005.
  7. Bigliardi, B. and Galati F. (2013) „Innovation trends in the food industry: The case of functional foods“, Trends in Food Science & Technology, Vol. 31, No. 2, pp. 118–129. ISSN 0924-2244. DOI 10.1016/j.tifs.2013.03.006.
  8. Brase, Ch. H. and Brase, C. P. (2016) „Understanding Basic Statistics“, Cengage Learning, Boston, USA. ISBN 978-1-305-87349-0.
  9. Buckwell, A. and Davidova, S. (1993) „Potential implications for productivity of land reform in Bulgaria“, Food Policy, Vol. 18, No. 6, pp. 493-506. ISSN 0306-9192. DOI 10.1016/0306-9192(93)90006-W.
  10. Cardinal, N. and Aitken, M. R. F. (2006) „ANOVA for the behavioral sciences researcher“, Lawrence Erlaum Associates, New Jersey, USA. ISBN 0-8058-5586-6.
  11. Carroll, J., Greene, S., O ́Donoghue, C., Newman, C. and Thorne, F. (2009) „Productivity and the Determinants of Efficiency in Irish Agriculture (1996-2006), In: The 83rd Annual Conference of the Agricultural Economics Society, Dublin, Ireland, 30 March-1 April.
  12. Criscuolo, C., Martin, R., Overman, H. and Van Reenen, J. (2009) „The Causal Effects of an Industrial Policy“, NBER Working Paper, No. 17842, National Bureau of Economic Research, Cambridge.
  13. Čechura, L. and Hockmann, H. (2010) „Sources of economic growth in the Czech food processing“, Prague Economic Papers, Vol. 2, pp. 169-182. ISSN 2336-730X.
  14. Del Monte, A. and Papagni, E. (2003) „R&D and the growth of firms: empirical analysis of a panel of Italian firms“, Research Policy, Vol. 32, No. 6, pp. 1003–1014. ISSN 0048-7333. DOI 10.1016/S0048-7333(02)00107-5.
  15. Food Drink Europe (2015) „European Food and Drink Industry 2014-2015“. [Online]. Available: http://www.fooddrinkeurope.eu/uploads/publications_documents/Data_and_Trends_2014-20151. pdf/ [Accessed: 20 Sep 2016].
  16. Gorton, M. and Davidova, S. (2004) „Farm productivity and efficiency in the CEE applicant countries: A synthesis of results“, Agricultural Economics, Vol. 30, No. 1, pp. 1-16. ISSN 1574-0862. DOI 10.1111/j.1574-0862.2004.tb00172.x.
  17. Habib, A. (2006) „Disaggregated earnings and prediction of future profitability: evidence from industrial groups in Japan“, Review of Accounting and Finance, Vol. 5, No. 4, pp. 355-369. ISSN 1475-7702. DOI 10.1108/14757700610712435.
  18. Hall, B. and LeVeen, P. (1978) „Farm size and economic efficiency: The case of California“, American Journal of Agricultural Economics, Vol. 60, No. 4, pp. 589-600. ISSN 1467-8276. DOI 10.2307/1240243.
  19. Harris, R. and Trainor, M. (2005) „Capital Subsidies and Their Impact on Total Factor Productivity: Firm-level Evidence from Northern Ireland“, Journal of Regional Science, Vol. 45, No. 1, pp. 49–74. ISSN 1467-9787. DOI 10.1111/j.0022-4146.2005.00364.x.
  20. Hockmann, H., Levkovych, I. and Grau, A. (2013) „Review of recent developments in the agri-food sector“. COMPETE Working Papers. [online]. Available: http://www.competeproject.eu/ fileadmin/compete/files/working_paper/COMPETE_Working_Paper_1_Recent_developments.pdf [Accessed: 10 Sep 2016].
  21. Kislingerová, E. (2008) „Inovace nástrojů ekonomiky a managementu organizací“ (Innovation of tools of economic and management organizations - in Czech), C. H. Beck, Prague. ISBN 978-80-7179-882-8.
  22. Krystallis, A. and Arvanitoyannis, I. S. (2006) „Investigating the concept of meat quality from the consumers ́perspective: The case of Greece“, Meat Science, Vol. 72, No. 1, pp. 164-176. ISSN 0309-1740. DOI 10.1016/j.meatsci.2005.06.013.
  23. Lambarra, F., Stefanou, S., Sarra, T. and Gil, J. (2009) „The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain“, Agricultural Economics, Vol. 40, No. 3, pp. 355-364. ISSN 1574-0862. DOI 10.1111/j.1574-0862.2009.00378.x.
  24. Latruffe, L. (2010) “Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors”, OECD Food, Agriculture and Fisheries Papers, No. 30, OECD Publishing. ISSN 1815-6797.
  25. Latruffe, L., Balcombe, K., Davidova, S. and Zawalinska, K. (2004) „Determinants of technical efficiency of crop and livestock farms in Poland“, Applied Economics, Vol. 36, No. 12, pp. 1255-1263. ISSN 1466-4283. DOI 10.1080/0003684042000176793.
  26. Liargovas, P. and Skandalis. K. (2010) „Factors Affecting Firm Competitiveness: The Case of Greek Industry“, Global Business and Management Research - An International Journal, Vol. 2, No. 2, pp. 184-197. ISSN 1947-5667.
  27. Martin, H. M., Smith, K. T. and Smith, M. (2015) „A Financial and Public Policy Analysis of the Meat Industry“. [Online]. Available: https://ssrn.com/abstract=2618753. [Accessed: 15 Sep 2016]. DOI 10.2139/ssrn.2618753.
  28. Mathijs, E., Dries, L., Doucha, T. and Swinnen, J. (1999) „Production efficiency and organization of Czech agriculture“, Bulgarian Journal of Agricultural Science, Vol. 5, No. 2, pp. 312-324. ISSN 1310-0351.
  29. Mijić, K., Zekić, S., Jakšić, D. and Vuković, B. (2014) „Meat industry in Serbia: performance analysis of meat-processing and livestock companies“, Custos e @gronegócio on line, Vol. 10, No. 3, pp. 124-144. ISSN 1808-2882.
  30. Ministry of Agriculture (2014) „Panorama of Food Industry 2013“ [Online]. Available: http://eagri.cz/public/web/mze/ministerstvo-zemedelstvi/vyrocni-a-hodnotici-zpravy/panorama- potravinarskeho-prumyslu/panorama-potravinarskeho-prumyslu-2013.html [Accessed 10 Sep 2016].
  31. Medonos, T., Ratinger, T., Hruška, M. and Špička, J. (2012) „The Assessment of the Effects of Investment Support Measures of the Rural Development Programmes: the Case of the Czech Republic“, Agris on-line Papers in Economics and Informatics, Vol. 4, No. 4, pp. 35-47. ISSN 1804-1930.
  32. Mejstříková, L., Mezera, J. and Plášil, M. (2011) „Positive and Negative Aspects of Financial Economic Development in Selected Branches of the Food Industry of the CR in 2007-2009 as Revealed by Spider Analysis“, Agris on-line Papers in Economics and Informatics, Vol. 3, No. 2, pp. 39-54. ISSN 1804-1930.
  33. Menrad K. (2004) „Innovations in the food industry in Germany“, Research Policy, Vol. 33, No. 6, pp. 845–878. ISSN 0048-7333. DOI 10.1016/j.respol.2004.01.012.
  34. Meric, G., Welsh, C., Weidman, S. and Marmon, R. (2011) „The Effects of the 2008 Stock Market Crash on the Managerial Behavior, Financial Characteristics and Competitiveness of Large U. S. Corporations“, Journal of Global Business Issues, Vol. 5, No. 1, pp. 11-20. ISSN 1931-311X‎.
  35. Munroe, D. (2001) „Economic efficiency in Polish peasant farming: An international perspective“, Regional Studies, Vol. 35, No. 2, pp. 461-471. ISSN 1360-0591. DOI 10.1080/00343400123499.
  36. O ́Neill, S. and Matthews, A. (2001) „Technical efficiency in Irish agriculture“, The Economic and Social Review, Vol. 32, No. 3, pp. 263-284. ISSN 12-9984.
  37. Putićová, M. and Mezera, J. (2008) „Food industry in the Czech Republic – with regard to labour force development“, Agricultural Economics, Vol. 54, No. 6, pp. 285-292. ISSN 1805-9295.
  38. Rasmussen, E. M. (1992) „Clustering Algorithms. Information retrieval: data structures and algorithms“, Prentice-Hall, Inc., New Jersey, USA. ISBN 0-13-463837-9.
  39. Rossi, F. andMirtchev, V. (2016) „Statistics for Food Scientists“, Academic Press, San Diego, USA. ISBN 9780124171794.
  40. Santis. P. Albuquarque, A. and Lizarelli, F. (2016) „Do sustainable companies have a better financial performance? A study on Brazilian public companies“, Journal of Cleaner Production, Vol. 133, No. 1, pp. 735-745. ISSN 0959-6526. DOI 10.1016/j.jclepro.2016.05.180.
  41. Schiefer, J. and Hartman, M. (2008) „Determinants of competitive advantage for German food processors“, Agribusiness, Vol. 24, No. 3, pp. 306-319. ISSN 1520-6297. DOI 10.1002/agr.20168.
  42. Skuras, D., K. Tsekouras, Dimara. E. and Tzelepis. D. (2006) „The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of the Greek Food and Beverage Manufacturing Industry“, Journal of Regional Science, Vol. 46, No. 355-381. ISSN 1467-9787. DOI 10.1111/j.0022-4146.2006.00445.x.
  43. Špička, J. and Krause, J. (2013) „Selected socioeconomic impact of public support for agricultural biogas plants: the case of the Czech republic“, Bulgarian Journal of Agricultural Science, Vol. 19, no. 5, pp. 929-938. ISSN 1310-0351.
  44. Tangen, S. (2003) „An overview of frequently used performance measures“, Work Study, Vol. 52, No. 7, pp. 347-354. ISSN 0043-8022. DOI 10.1108/00438020310502651.
  45. Wijnands J. H. M., Van der Meulen B. M. J. and Poppe K. J. (2007) „Competitiveness of the European Food Industry, An economic and legal assessment“. Luxembourg: European Commission. ISBN 978-92-79-06033-5.
  46. Zhu, X., Demeter, R. and Oude Lansink, A. (2008) „Competitiveness of Dairy Farms in Three Countries: The Role of CAP Subsidies“, In: 12th Congress of the European Association of Agricultural Economists, Gent, Belgium, 27-30 August.

Full paper

  Full paper (.pdf, 341.96 KB).