Pre and post- EU accession restructuring of the Slovenian food industry

Kuhar, Aleš (author)

The main objective of this article is to present an overview of the Slovenian food industry's economic development in the period before European Union (EU) accession and during the first three years' of EU membership. Accession to the EU was certainly the most comprehensive change in the economic environment of the country since Slovenia gained its independence. Even during the pre-accession period the changes required by the EU intensified the restructuring of the food industry and increased pressure on the sector to improve its commercial performance. The agrifood industry, however, is one of the sectors in which EU enlargement tradidionally brings the most radical change. Price level adn cost differences, barley comparable production structures, but most of all, disparities in types of agricultural policies and differences in comprehension of the major adjustments required, all lead to significant economic pressure on the country. Using a framework of economic indicators, this paper will try to answer some of the most frequent questions related to the restructuring process of the Slovenian food industry during the last decade. Initially, the paper introduces past financial performance of the sector using the appropriate medium-term economic indicators. The central part of the paper analyses and comments on four key characteristics of the restructuring process. The characteristics can be formulated into four questions relevant to dealing with: 1) cost-price developments; 2) relationships within Slovenian agrifood value; 3) developments in international trade; and 4) trends in budgetary support intended to enhance industry competitiveness. The results confirm that the economic restructuring which had been slow to take effect in the Slovenian food industry during the decade preceding EU accession began to react radically in the post-accession phase. This brought to an end the favourable economic conditions enjoyed by participants in the highly protected domestic market. Business performance deteriorated dramatically, and today, only those food companies that proactively restructure can expect to find a sustainable position in the EU marketplace.

• Language: English
• Keywords: živilska industrija, Slovenija, EU
• Work type: Not categorized
• Typology: 1.08 - Published Scientific Conference Contribution
• Organization: BF - Biotechnical Faculty
• Year: 2009
• Number of pages: Str. 33-53
• PID: 20.500.12556/RUL-32832
• UDC: 664
• COBISS.SI-ID: 2748552
• Publication date in RUL: 10.07.2015