FOODIMA EU Food Industry Dynamics and Methodological Advances

1. FOODIMAEU Food Industry Dynamics and MethodologicalAdvances Task 1.2 Market structure of the Food Supply Chain in the EU κosτas κaranτininis & Luljeta Hajderllari

2. In-depth Picture and Evaluation of the Market Structure, Concentration and Competition of the Food Supply Chain in the EU

3. 1.2.1 FOOD industryin the European countries • 1.2.2 Retail marketin the European countries • 1.2.3Specific reportregarding the food industry in Eastern European Countries • The analysis is conducted on the basis of existing information and literature • Deadline: Deliverable 1.2 in month 18 Task 1.2 (Reports)

4. Size of enterprises in FDT • turnover • employment • Number of enterprises in FDT • Concentration • Lorenc curves • Gini coefficients • Globalization of food processors 1.2.1FOOD industry in the European countries

5. Turnover in manufacturing Source: Own calculations based on Eurostat SBS

6. Value added in manufacturing Source: Own calculations based on Eurostat SBS

7. Employement in manufacturing Source: Own calculations based on Eurostat SBS

8. Food Industry in Total Source: (Otte Hansen,2005)

9. Source: Own calculations based on Eurostat SBS Branches of Food Industry

10. Source: Own calculations based on Eurostat SBS Branches of Food industry

11. Source: Own calculations based on Eurostat SBS Turnover in meat & dairy

12. Source: Own calculations based on Eurostat SBS Employement in meat & dairy

13. Eurostat data 2000-2005 • Turnover and enterprises broken down by size classes for all the EU members • Share of turnover and enterprises • Cumulative percentage • Lorenc curves • Gini coefficients Concentration:Method used

14. 1 to 9 employees, are high in volume but low in value • 10 to 19 employees, high number of enterprises with a very low share in turnover • 20-49 and 50–99, a considerable number of enterprises with a considerable share of turnover • More than1000 employees, a very small share of enterprises and the highest share of turnover Turnover & enterprises broken down by size classes

15. Source: Own calculations based on Eurostat SBS Lorenz curve 2000-2001

16. Lorenz curve: EU countries 2000

17. 1 to 9 employees are high in volume but low in value • 10 to 19 employees high number of enterprises with a very low share in turnover • 50 to 249 employees, a considerable number of enterprises with a considerable share of turnover • More than1000 employees, a very small share of enterprises and the highest share of turnover Turnover & enterprises broken down by size classes

18. Source: Own calculations based on Eurostat SBS Lorenz curve 2004-2005

19. Lorenz curve of the EU members 2005

20. Source: Own calculations based on Eurostat SBS Lorenz curve 2000-2001

21. 0.93 0.89 0.75 Ranking of the EU countries according to Gini coefficients

22. Ranking of Multinational Enterprise (agri-food focus) by food and drink sales • Total sales toward agrifood sales of MNE • The total number of businesses for leading enterprises is counted in both home and host zones and a globalization index is obtained Globalization of food processors

23. Source: (CIAA, 2007; Rama, 2005); * 2006 classification of FDT enterprises

24. Source: (CIAA, 2007; Rama, 2005); * 2006 classification of FDT enterprises Total & agrifood sales of Top 30 FDT (Billion$)

25. (Muchielli, 1998) a firme can be consideres as : • Ethnocentric MNE (more business activity on their home zones than oversees) • Polycentric MNE (limited number of business activity overseas compare to a large number of business activity on their home zone) • Geocentric MNE (the same number of bussines activities in its home zone as in its host zone) Globalization index of MNE

26. Coca-cola Company and Lactailsare considered as being geocentric globalized, (from 1988 to 2000 didn’t change anything from its operating strategy in the market) • As we can see from the table major FDT player that can be considered as polycentric multinationals are Uniliver, ConAgra Foods Inc and to a lesser extent Nestle. • The strategy of these giants in the future is to decrease the number of their activities in both host and home zones Globalization index of MNE

27. Source: ( Rama, 2005); * 2006 classification of FDT enterprises

28. FDT the second in value added (€ 188 billion),employment (14%), and number of companies (309.7 thousand) after fabricated metal products • Enterprises are small in terms of turnover but large in terms of employment per enterprise • Concentration of turnover in large enterprises is increased • Most of the developed countries are higly concentrated such as Dk,Fr, etc,. • Globalisation is present and is increasing • FDT industry is the largest sector in manufacturing industry in the EU with regard to turnover (€ 850.3 billion) Conclusions

29. Structure • Conduct • Performance and development • Conclusion and outlook • Data sources available from Eurostat • General Information on Countries (GDP, GVA, EMPetc.) • Structural Business Statistics (SBS) • Short-term business statistics (STS), e.g. Retail Trade Turnover Index • EU-Klems Food industry in the Eastern European Countries

30. Food industry in the Eastern European Countries

31. Meeting in Warwick • VERTICAL INTEGRATION • Ref.man (2 case study Hungary and Chzec) • CONTRACTS • Ref.man • COOPERATIVES • Eu dairy & meat cooperatives • Development of cooperatives over the years • Top EU cooperative • RETAIL SECTOR • Overview of the retail formats in the EU countries • Tha Main players in retailing sector • Globalization of retailers • COMPETITIVENESS