Table 4 - uploaded by Andris Miglavs
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The food industry is one of the most important sectors in the Latvian economy. However, due to its close links to agriculture, the structural crisis in the processing sector is the main obstacle to increasing output, productivity and profitability in the entire agricultural sector. Based on the structure-conduct-performance framework developed by t...
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By 2010, foodservice establishments are projected to capture 53 percent of consumers' food expenditures, whereas in 1980, foodservice captured less than 40 percent. The foodservice industry accounts for approximately 4 percent of the Gross Domestic Product and about 11 million jobs. It has been rapidly changing due to economic factors, technologica...
Citations
... e.g. GIRGZDIENE et al., 1998;JASJKO et al., 1998;SEPP et al., 1999;European Commission, 1998;EITELJÖRGE et al., 1999). In Poland the situation of the dairy sector was different. ...
... fering farmers guarantees for forward contracts and future prices (e.g. TOTH, 1999 p. 65;JASJKO et al., 1998 andGIRGZDIENE et al., 1998 and. ...
The dairy sector in the CEC countries had to cope with tremendous adjustment pressures in the 90ies. Privatization and liberalization contributed to intense competition on the CEC countries’ dairy market. Major problems that impede the competitiveness of this sector are a considerable fragmentation of the dairy processing industry, pronounced excess capacities, high seasonality of milk production and low investment activities. The latter delays the modernization of processing technologies and thus hinders quality improvements and the adjustments of hygienic conditions as well as product and process standards to EU norms. These problems are common to all CEC countries, though to different degrees. In addition, especially in Bulgaria and Romania, but also in Poland, Lithuania and Latvia the dairy industry is burdened by the low quality of the raw material and high milk collecting costs. Improving technical as well as economic efficiency in the primary and processing sector and seeking strategic alliances are necessary to secure the competitiveness of the CEC countries` dairy industry in EU and world markets.
... One of the main goals of privatisation was to integrate farming and milk processing enterprises. As has been described in JASJKO et al. (1998), the reorganisation of milk collecting and primary processing enterprises in 1992-93 was carried out according to the legislation based on the historical principles of the cooperative movement that existed in Latvia before World War II. This explains why small dairies were in most cases transformed into co-operatives. ...
Based on the analytical framework of the structure-conduct-performance paradigm of the theory of industrial organisation, the paper analyses those economic conditions that determine the degree of competitiveness in the Latvian dairy and milling industry. The analysis is based on information from milk and grain processing enterprises acquired through a survey carried out at the beginning of 1998. It is shown that the development of market conditions and market behaviour in the sectors examined has in general progressed. Privatisation in both sectors has been completed. While in the dairy sector the majority of processing enterprises were privatised as co-operatives, in the milling industry all enterprises have become closed joint-stock companies. Since the legal status of a co-operative has turned out to be quite problematic for enterprise restructuring, more and more dairy enterprises have started to change into joint-stock companies. Competition in the investigated processing sectors can be considered as functioning. However, in the dairy sector tendencies of stronger horizontal concentration can be observed. The majority of enterprises react in quite an active way to the market conditions. Procurement and marketing channels have been diversified, and considerable investments have been undertaken. Further investments, however, are impeded by high interest rates for credits. As for performance, quite a considerable differentiation between the enterprises in the considered branches could be shown. The main problems seen by the processors are the saturation of the domestic Latvian market, the lack of investment funds, the unstable legislation, the absence of any substantial support from the government, and, in the dairy sector, the low quality of the raw milk.
Der Zusammenbruch des planwirtschaftlichen Systems in Mittel- und Osteuropa zu Beginn dieses Jahrzehnts und die �ffnung dieser Volkswirtschaften hat zu einem bedeutenden Migrationsschub nach Westeuropa gef�hrt. Die Darstellung der Entwicklung der bisherigen Migrationsstr�me aus Mittel- und Osteuropa und die Bestimmungsgr�nde der Migration bilden den Ausgangspunkt f�r eine Sch�tzung des zuk�nftig zu erwartenden Migrationsniveaus im Falle eines EU-Beitritts einzelner mittel- und osteurop�ischer Staaten. Ausgehend von der Dominanz �konomischer Motive bildet die unterschiedliche Einkommensentwicklung zwischen West- und Osteuropa das zentrale Element der Prognose. Hinsichtlich der �konomischen Auswirkungen der Migration steht nicht die Zielregion, sondern die Abwanderungsregion, insbesondere der l�ndliche Raum, im Vordergrund. L�nderschwerpunkte der Analyse stellen Polen, Ungarn und die Tschechische Republik dar. -- E N G L I S H V E R S I O N: The collapse of the planned economies in Central and Eastern Europe at the beginning of this decade and the opening up of the national economies led to considerable migration flows into Western Europe. The description of earlier migration flows from Central and Eastern Europe and reasons of migration provide the basis for assessing the extent of migration to be expected after an EU-accession of individual Central and Eastern European countries. Since economic motives can be assumed to be dominant, the income development differing between Western and Eastern Europe is central to this prognosis. Rather than the destination region, the region of origin, in particular rural areas, are focused on with respect to the economic effects of migration. The developments are illustrated with the example of Poland, Hungary and the Czech Republic.
Presently Russia is experiencing the complicated process of transforming the economic system of central planning into a socially oriented market economy. Of great importance for the success of this process is the institutional reshaping of the agricultural sector, particularly the privatisation of land and assets. In this paper the procedure and the problems of privatising Russian agriculture are extensively discussed against the background of the unfavourable development of the Russian agricultural sector.
This paper discusses whether compensation payments in a transition economy can contribute to a reduction of the conflict between winners and losers of the transformation. The political relevancy of this issue is obvious. The failure of both parties to realize their political objectives due to a lack of power, they will obstruct each other, restraining the transformation process. The analysis is based on an overlapping generation model following DIAMOND, which was extended by technical progress relevant for productivity and improvement of the product quality. Hence, whether the aim of the compensatory payments will be achieved or not, depends on their financing and on the reference point of the household in assessing the effects of transfer payments. Older households, i.e. potential losers, will prefer generally a way of financing the payments which are for the younger generation, as the potential winners, disadvantageous.
This paper analyzes why the Association Agreements between the Central and Eastern European countries, referred to as Central European Associates (CEAs), and the European Union (EU) have failed with respect to agriculture. In the first part of the paper the development and importance of agricultural trade in the CEAs is described. It is shown that the EU is the most important trading partner in agricultural and food products for the CEAs. However, in recent years the trade balance for agricultural and food products between these countries and the EU has changed in favor of the latter; this is contrary to the aim of these agreements. Important external and internal factors determining trade relations between the EU and the CEAs are identified and discussed in the second half of the paper. These include the development of the real exchange rates, restrictions in the levels of domestic production, inadequate food quality compared to EU products, and insufficient sanitary standards in and a lack of competitiveness of the processing industry. These factors offset agricultural and food policies which have been aimed at protecting and supporting agriculture and the food processing industry in all CEAs but Bulgaria and Romania. In the last two countries, agricultural and food policies have primarily protected consumers at the expense of these two sectors.
In their Europe Agreements with the EU, the Central and Eastern European countries stated their intention of joining the Union. To ease the process of accession these countries must adjust their economies already prior to becoming an EU-member. Agriculture requires special attention, because it still represents a large share of the total economy in these countries. A better understanding of the competitiveness of agricultural products at domestic and EU markets is essential for providing the necessary economic framework to make the process of joining the EU as smooth as possible. Competitiveness can be analyzed at various levels of the economy: at the enterprise level, the sector level, or the level of the entire economy. Several measures exist for each of these levels. This paper focuses on those used for sector analysis. Since the measures commonly employed for this purpose do not deliver the same results, a better understanding of the underlying causes is necessary. This paper discusses the differences between the various indicators. It identifies the factors leading to disagreement in the results obtained.
