IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v67y2021i3id442-2020-agricecon.html
   My bibliography  Save this article

Agriculture farms product differentiation assessment in the Czech Republic

Author

Listed:
  • Michal Chocholousek

    (Department of Management, Faculty of Economics and Management, Czech University of Life Sciences, Prague, Czech Republic)

  • Zuzana Hlouskova

    (Liaison Agency FADN CZ, Institute of Agricultural Economics and Information, Prague, Czech Republic)

  • Tereza Simova

    (Department of Management, Faculty of Economics and Management, Czech University of Life Sciences, Prague, Czech Republic)

  • Jan Huml

    (Department of Management, Faculty of Economics and Management, Czech University of Life Sciences, Prague, Czech Republic)

Abstract

Farms generally produce products with low differentiation. To reach an increase in the profit and sales, product differentiation is one of the potential strategies that could be successfully applied. This paper identifies "Intermediate Consumption/Total Output" as a simple and user-friendly indicator for farm product differentiation performance and comparison assessment in the Czech Republic, based on a two-step cluster analysis performed on 1 225 farms with different operating conditions and reproduction process characteristics in the Czech Republic. The data are sourced from Farm Accountancy Data Network (FADN CZ). Four farm clusters based on product differentiation levels are identified and described from the point of view of the production process and conditions. The resulting cluster profiles, in general, indicate the production conditions and process affecting the resulting product differentiation. Nevertheless, farms deliver extraordinary product differentiation values in fields with less favourable conditions and production processes. Those have the potential to be an inspiration for farms with lower product differentiation values. The result of this paper provides hope, less favourable conditions are not a limit for formidable performance. This paper result can be practically applied by anyone aiming to easily identify, evaluate, and compare farm product differentiation levels.

Suggested Citation

  • Michal Chocholousek & Zuzana Hlouskova & Tereza Simova & Jan Huml, 2021. "Agriculture farms product differentiation assessment in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 81-89.
  • Handle: RePEc:caa:jnlage:v:67:y:2021:i:3:id:442-2020-agricecon
    DOI: 10.17221/442/2020-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/442/2020-AGRICECON.html
    Download Restriction: free of charge

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/442/2020-AGRICECON.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.17221/442/2020-AGRICECON?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.

    References listed on IDEAS

    as
    1. Filip Hampl, 2020. "A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 1-9.
    2. Astrida Slavickienė & Jūratė Savickienė, 2014. "The Evaluation Of Small And Medium Farms’ Economic Viability In The New Eu Countries," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 843-855.
    3. Phillips, Jon C. & Peterson, H. Christopher, 2004. "Product Differentiation and Target Marketing by Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    4. J. Špička & J. Boudný & B. Janotová, 2009. "The role of subsidies in managing the operating risk of agricultural enterprises," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(4), pages 169-180.
    5. P. Lynn Kennedy & R. Wes Harrison & Nicholas G. Kalaitzandonakes & H. Christopher Peterson & Ronald P. Rindfuss, 1997. "Perspectives on evaluating competitiveness in agribusiness industries," Agribusiness, John Wiley & Sons, Ltd., vol. 13(4), pages 385-392.
    6. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    7. David Hughes, 2014. "European Food Marketing: Adding Value in Mature Food Markets through Market Segmentation and Product Differentiation," EuroChoices, The Agricultural Economics Society, vol. 13(2), pages 20-26, August.
    8. Giaime Berti & Catherine Mulligan, 2016. "Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems," Sustainability, MDPI, vol. 8(7), pages 1-31, July.
    9. Tomas Hlavsa & Jindrich Spicka & Marie Stolbova & Zuzana Hlouskova, 2020. "Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 193-202.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kennedy, P. Lynn & Rosson, C. Parr, III, 2002. "Impacts Of Globalization On Agricultural Competitiveness: The Case Of Nafta," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(2), pages 1-14, August.
    2. Vladimir Todorovic & Marinko Maslaric & Sanja Bojic & Maja Jokic & Dejan Mircetic & Svetlana Nikolicic, 2018. "Solutions for More Sustainable Distribution in the Short Food Supply Chains," Sustainability, MDPI, vol. 10(10), pages 1-27, September.
    3. Agata Malak-Rawlikowska & Edward Majewski & Adam Wąs & Svein Ole Borgen & Peter Csillag & Michele Donati & Richard Freeman & Viet Hoàng & Jean-Loup Lecoeur & Maria Cecilia Mancini & An Nguyen & Monia , 2019. "Measuring the Economic, Environmental, and Social Sustainability of Short Food Supply Chains," Sustainability, MDPI, vol. 11(15), pages 1-23, July.
    4. Tomas Hlavsa & Jindrich Spicka & Marie Stolbova & Zuzana Hlouskova, 2020. "Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 193-202.
    5. Zhanguo Zhu & Qinyuan Shen & Zhifeng Gao, 2022. "Consumer choices in agricultural markets with multitier collective labels and private brands," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 905-922, October.
    6. Sara A. L. Smaal & Joost Dessein & Barend J. Wind & Elke Rogge, 2021. "Social justice-oriented narratives in European urban food strategies: Bringing forward redistribution, recognition and representation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 709-727, September.
    7. Unknown, 2023. "Farmer’s adoption of agricultural insurance for Mediterranean crops as an innovative behavior," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2), October.
    8. Yao Wei & Fanglei Zhong & Xijing Luo & Penglong Wang & Xiaoyu Song, 2021. "Ways to Improve the Productivity of Oasis Agriculture: Increasing the Scale of Household Production and Human Capital? A Case Study on Seed Maize Production in Northwest China," Agriculture, MDPI, vol. 11(12), pages 1-18, December.
    9. Junquera, Victoria & Rubenstein, Daniel I. & Grêt-Regamey, Adrienne & Knaus, Florian, 2022. "Structural change in agriculture and farmers' social contacts: Insights from a Swiss mountain region," Agricultural Systems, Elsevier, vol. 200(C).
    10. Jessica Ann Diehl, 2020. "Growing for Sydney: Exploring the Urban Food System through Farmers’ Social Networks," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    11. Muhammad Mumtaz Khan & Muhammad Tahir Akram & Rhonda Janke & Rashad Waseem Khan Qadri & Abdullah Mohammed Al-Sadi & Aitazaz A. Farooque, 2020. "Urban Horticulture for Food Secure Cities through and beyond COVID-19," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    12. Zuzana Fuksová & Iveta Bošková & Jana Hlaváčková & Marek Novák, 2025. "The economic aspects of organic farms selling their products to organic or conventional market," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 71(4), pages 218-227.
    13. Zsófia Benedek & Imre Fertő & Viktória Szente, 2020. "The Multiplier Effects of Food Relocalization: A Systematic Review," Sustainability, MDPI, vol. 12(9), pages 1-18, April.
    14. Giannis T. Tsoulfas & Panagiotis Trivellas & Panagiotis Reklitis & Anna Anastasopoulou, 2023. "A Bibliometric Analysis of Short Supply Chains in the Agri-Food Sector," Sustainability, MDPI, vol. 15(2), pages 1-46, January.
    15. Valeria Borsellino & Emanuele Schimmenti & Hamid El Bilali, 2020. "Agri-Food Markets towards Sustainable Patterns," Sustainability, MDPI, vol. 12(6), pages 1-35, March.
    16. Giaime Berti, 2020. "Sustainable Agri-Food Economies: Re-Territorialising Farming Practices, Markets, Supply Chains, and Policies," Agriculture, MDPI, vol. 10(3), pages 1-9, March.
    17. Tshidzumba, Ratsodo Phillip & Chirwa, Paxie Wanangwa, 2022. "Forest-based land reform partnerships in rural development and the sustenance of timber markets. Learning from two South African cases," Forest Policy and Economics, Elsevier, vol. 140(C).
    18. Shashi & Rajwinder Singh & Piera Centobelli & Roberto Cerchione, 2018. "Evaluating Partnerships in Sustainability-Oriented Food Supply Chain: A Five-Stage Performance Measurement Model," Energies, MDPI, vol. 11(12), pages 1-18, December.
    19. Tomislav Galoviæ & Heri Beziæ, 2019. "The competitiveness of the EU sugar industry," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(1), pages 173-189.
    20. Milan Cizek & Miroslav Mimra & Miroslav Kavka & Jaroslav Humpal, 2019. "Analysis of economic risk in potatoes cultivation," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(7), pages 331-339.

    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:caa:jnlage:v:67:y:2021:i:3:id:442-2020-agricecon. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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://www.cazv.cz/en/home/ .

    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.