IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2011059040287.html
   My bibliography  Save this article

The impact of global trends on Czech trade in agrarian and foodstuff products

Author

Listed:
  • Eva Rosochatecká

    (Katedra ekonomiky, Česká zemědělská univerzita v Praze, Kamýcká 129, Praha 6, 165 21 Praha, Česká republika)

  • Luboš Smutka

    (Katedra ekonomiky, Česká zemědělská univerzita v Praze, Kamýcká 129, Praha 6, 165 21 Praha, Česká republika)

Abstract

The Czech retail market has changed its structure and form during the last twenty years. The influence of two factors is especially significant. The first one is the growth of internationalization and the second one is market concentration growth. The significant opening process of the Czech economy, accompanied by the liberalization of the Czech market process, enabled the international retail companies to penetrate the national retail market. The most powerful European retail companies are now present in the Czech market. The available shopping area/cap is also one of the largest in Europe. Retail chains have taken a dominant position in the market, and because of their market power they are able to determine trade/contract conditions for domestic suppliers. Retail chains' sales have been constantly growing. While in 2006 the value of sales was about 258.5 billion CZK, in 2008 it was about 312.2 billion CZK. The impact of the economic crisis on the Czech retail market has not been as stressful as it was abroad. In 2009, a slowdown of the Czech retail market was recorded, but the value of sales decreased by only 3 billion CZK (in comparison with 2008). The highest sales (59 billion CZK) were recorded by the Lidl & Schwarz-Gruppe, which is the owner of two dominant retail chains in the Czech retail market (Kaufland and Lidl). The main aim of the paper is to evaluate the selected aspects, which have been influencing the relationship between multinational companies (retail companies - supermarkets and hypermarkets) and local (Czech) suppliers of agrarian and foodstuff products (farmers and foodstuff companies). The paper analyses the problem of abuse of multinational companies' significant market power in relation to their suppliers. Based on a pilot project, the efficiency of market force law, and its use in practice, are analysed. The main idea is to analyse the following problems: the impact of 30 days payment period for goods delivered, under cost prices required by retail companies, and the structure of fees and charges required by retail companies.

Suggested Citation

  • Eva Rosochatecká & Luboš Smutka, 2011. "The impact of global trends on Czech trade in agrarian and foodstuff products," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(4), pages 287-294.
    • Handle: RePEc:mup:actaun:actaun_2011059040287
    DOI: 10.11118/actaun201159040287
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201159040287.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201159040287.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201159040287?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:mup:actaun:actaun_2011059040287. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    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.