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Croatia’s Dairy Sector—Can it Compete in the European Market?

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  • Klaus Frohberg
  • Patrick Zier
  • Judith Möllers
  • Gertrud Buchenrieder

Abstract

Croatia is very close to meeting the requirements for becoming a member of the European Union (EU). Obviously, the agricultural sector and food processing chain are core issues within the negotiation process. This paper discusses the competitiveness of Croatia’s agro-food sector, specifically dairy products, within the EU-25 market. Two analytical methods are employed: (1) the domestic resource costs (DRC) and (2) the revealed comparative export advantage index (RXA). The DRC analysis is based on a 2007 survey of dairy farms. Primary data was complemented with trade figures from 2000 to 2007. The analyses indicate that Croatia’s dairy production is not competitive in its present structure. This lack of competitiveness at the farm level can be compensated somewhat at the processing level. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Klaus Frohberg & Patrick Zier & Judith Möllers & Gertrud Buchenrieder, 2010. "Croatia’s Dairy Sector—Can it Compete in the European Market?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 223-236, May.
    • Handle: RePEc:kap:iaecre:v:16:y:2010:i:2:p:223-236:10.1007/s11294-009-9253-4
    DOI: 10.1007/s11294-009-9253-4
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    References listed on IDEAS

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    1. Möllers, Judith & Zier, Patrick & Frohberg, Klaus & Buchenrieder, Gertrud & Bojnec, Štefan, 2009. "Croatia's EU accession: socio-economic assessment of farm households and policy recommendations," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 48, number 53665.
    2. Kevin Chen & Lian Xu & Yufeng Duan, 2000. "Ex-Post competitiveness of China's export in agri-food products: 1980-96," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 281-294.
    3. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Matthew Gorton & Sophia Davidova, 2001. "The International Competitiveness of CEEC Agriculture," The World Economy, Wiley Blackwell, vol. 24(2), pages 185-200, February.
    5. van Berkum, Siemen, 2009. "Dairy chain competitiveness in EU’s new member states, candidate and potential candidate countries," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(07), pages 1-10, October.
    6. Arye Hillman, 1980. "Observations on the relation between “revealed comparative advantage” and comparative advantage as indicated by pre-trade relative prices," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 315-321, June.
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    Cited by:

    1. Abdurakhmanova, Milana, 2013. "Analysis of the interaction of the banking sector and small businesses," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 113-125, December.

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    More about this item

    Keywords

    Trade analysis; Dairy sector; EU enlargement; Croatia; Q17; F14; O52;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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