© 1995 Oxford University Press and the Foundation for the European Review of Agricultural Economics
research-article |
Structure, conduct and performance of the European food sector
University of Ghent Belgium
Jacques Viaene, Xavier Gellynck, University of Ghent, Faculty of Agricultural and Applied Biological Sciences, Department of Agricultural Economics, Division Agro-Marketing, Coupure Links 653, B-9000 Gent, Belgium
Summary
The structure, conduct and performance of the Food, Drink and Tobacco (FDT) industry in the European Union are evaluated. Statistical data and interviews with experts are the main information sources for this analysis. The structure of the FDT industry is characterised by increasing concentration, largely determined by growing concentration in the retail sector and greater consumer demand for variety and quality. Productivity, prices and profitability are higher in sub-sectors where concentration is high. Competitive conduct in the FDT industry involves both horizontal and geographic diversification, brought about through mergers and acquisitions. The overall performance in the FDT industry is adequate.
Keywords: European Union, food industry, structure, conduc, performance