Preview

Analysis of the Competitiveness of the Pork Industry in Denmark

Powerful Essays
Open Document
Open Document
7034 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis of the Competitiveness of the Pork Industry in Denmark
Analysis of the competitiveness of the pork industry in Denmark

By: Gianluca Selva Food and Resource Economics Institute, KVL Denmark

Paper prepared for presentation at the 99th seminar of the EAAE (European Association of Agricultural Economists), “The Future of Rural Europe in the Global Agri-Food System”, Copenhagen, Denmark, August 24-27, 2005

Copyright 2005 by [Gianluca Selva]. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

EAAE XIth CONGRESS - COPENHAGEN

Analysis of the competitiveness of the pork industry in Denmark
By: Gianluca Selva

Food and Resource Economics Institute, KVL Denmark Abstract
Now days in the pig industry as well as in other agro food sectors is the competitiveness that declare the success or failure on the global market. In the case of the pig industry, to be competitive it means to be able to offer a product of higher quality than rivals, but at similar price. The Danish pig industry has reached this level of competitiveness mainly thanks to its forward vertical integrated production chain. This specific coordination, besides than to reduce the transaction costs, push toward a production of excellent quality, that can be promptly adjusted according to the consumers demand.

Keywords : Competitiveness, Danish Pork Industry, Vertical Integration

1 Introduction
Recently, many articles have been written about the Danish pork industry, this attention was justified from the fact that such a small country could have a pig production of five times its population and at the same time could be the world biggest exporter of pork. The purpose of the previous studies carried out, was that to describe the characteristic coordination between the several stages of the production chain and through what mechanisms the vertical integration in the industry could affects the transaction costs and their

You May Also Find These Documents Helpful

  • Good Essays

    Three Little Pigs Essay

    • 467 Words
    • 2 Pages

    Three Little Pigs, Inc. (PIGS) is a provider of pork product. Its inventories consist of three categories: live hogs ready for sale, developing animals and processed pork product. Management thinks it is unnecessary to apply the lower of cost or market method to live hogs ready for sale or developing animals which will be internally processed and sold as processed pork product. However, there are live hogs in some locations have to sold at the declined spot market prices due to the problem of transportation and processing .…

    • 467 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The E.U’s main strategy for managing food production the Common Agricultural Policy (C.A.P) was emplaced in 1957, its purpose was to increase production to stabilise food markets, to increase food security and to provide consumers with food at reasonable prices. The C.A.P has been very successful in fulfilling its purpose so much so that now rather than encouraging the growth of food production it is reforming to link at maintaining a constant of food production and looks to address the surpluses, and how these could aid feeding the world. In 1984 71% of the EU’s entire budget was spent on the C.A.P (in fairness if ¾ of a budget for a global organisation is spent on one thing – an agricultural policy you would think it would be rather successful) and in 2007 only 48% of the entire budget was spent on C.A.P this shows how the C.A.P’s support of modern technology and more efficient farming methods has revolutionised the food market to the extent in no longer needs such a vast amount of aid from the E.U. Furthermore the E.U feels that our food production has now become so sufficient and many aspects of it need less attention as they aim to only spend 33% of their overall budget on it during 2013.C.A.P was successful in that the policy is now being turned on its self and to some extent, being used to decrease food production.…

    • 925 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Ruth Chris Case Study

    • 285 Words
    • 2 Pages

    In order to make the first cut in the list of potential countries, Hannah looked at the penetration strategy, market development, diversification and product development as a strategy for entering a new market. The unused variable that would be helpful would be the political stability, competition and the regulations that might limit the business growth. For research purposes the following were taken in consideration: Population, legal to import USA beef, affinity for American brands, consumer dining habits and amount of beef-eaters in that country. The exhibit number 4 was used to narrow the 200 countries to 33.…

    • 285 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Chipotle Case Analysis

    • 958 Words
    • 4 Pages

    INDUSTRY: 1. New entrants (H): Low Barrier, small economies scale, product taste better, and small capital requirements. 2. Suppliers (L): customized food, many local farms. 3. Buyers (H): low switch costs, sales represent all revenue. 4. Substitute (H), low switch cost, many choices. 5 Rivalry (H), many equally balanced competitors; low storage cost.…

    • 958 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    The agrarian crisis as well as the depletion of livestock had profound effects on European society and economy. (Gottfried, 1985) Since the peasant have nowhere to produce, the…

    • 549 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Porter Forces over Tyson

    • 565 Words
    • 3 Pages

    When deciding on entering an industry as a new company one must be aware of the borrow costs of bank loans and credit rates. The meat packing and manufacturing industry is not easy to break into although it can be done.…

    • 565 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Not withstanding the company’s financial performance, this strategy has facilitated the rapid adoption of new technology, improved quality control, assured markets for the hogs and provided a steady flow of hogs for processing. This essentially created economies of scale and lowered production costs. The customers benefited as the company was able to respond to their changing preferences for quality…

    • 2806 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    few ideas on the following subject. For many years, the meat packing industry of this…

    • 336 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Whole Food

    • 2211 Words
    • 9 Pages

    As you can see in exhibit # 1, there are substitute for organic food. People can grow in their own backyards, there are so many small farmers market, also people can do hunting and fishing and the biggest substitute is non organic food which is cheaper and easily available anywhere. When the recession hit this industry, sales went down and those people probably switched to non organic food in order to be in budget. The power of buyer is medium to high because there are other sellers who offer similar product at same price and with good customer service. Threat of entrant is low because you need to have a learning curve and also the capital requirement is high in order to start up the business. The power of supplier is low because there are many suppliers and also there is no shortage of supply. Price is little bit higher than non organic food but supply is meeting the demand. Also in this industry backward integration is possible, as whole foods did by opening fish farms which is 60% of their sales. The rivalry is very high because there is a industry growth, and differentiation is not possible. Although they sell exotic products but still their major revenue is from organic meat and vegetables which any one can buy it from supplier and sell it in stores. Also, buyer switching cost is nothing; they can go to a different store next time. In short, this industry is risky but from moderate to high.…

    • 2211 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Decline of Family Farms

    • 1657 Words
    • 7 Pages

    In the 21st century, few people are able to step outside on a warm summer morning and hear hens clucking and cattle lowing in a nearby pasture. They cannot walk to the garden and pull up fresh carrots or pluck ripe tomatoes. This way of life is rapidly disappearing. Gone are the times when farmers would work together with their wives and children to feed the livestock or harvest that year’s crop. This old way is no longer because of the diminishing number of family farms. The causes of this trend range from the rising age of farmers to the rising costs of expenses. *Or from the more common use of subsidies by the government to agribusiness taking control of family farms. With the loss of the family farm, a class of society is being lost, and with it, rural landscapes are fading at an alarming rate due to environmental consequences of agribusiness.…

    • 1657 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    The food industries have been significantly changed for a few decades, especially increased number of big supermarkets and enlarged livestock industry. Emerging of big supermarkets has let convenient purchases possible by offering various choices of products to the consumers. A movie Food Inc. finds that a usual super market in the United States has 27,000 products (“Food”). Additionally, livestock industry has become one of the largest industries in America.…

    • 1835 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Case 16 Sara Lee Corp

    • 579 Words
    • 3 Pages

    The narrowing of focus in the food industry and away from less fitting industries has allowed for value chain match-ups in the form of production technology, shipping logistics and customers. Opportunities for skills transfer, cost sharing and brand sharing include the production of bakery, retail and foodservice goods since many of these are similar or the same products. Producing a large batch of the same product costs less than having to set up and run a separate product line.…

    • 579 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services, with considerable economic influence around the world. The company was founded in Minnesota, U.S.A. in 1865, and currently employs 160,000 people in 68 countries, Cargill (2009) <http://www.cargill.com/>. Cargill is the United States’ largest privately held (85% of shares held by Cargill and MacMillan families) corporation in terms of revenue, with a range of business activities including processing, purchasing, distributing grains and other agricultural products. Other business venture include manufacturing, selling livestock feeds and ingredients for processed foods and pharmaceuticals, as well as operating a large financial arm that manages financial risks.…

    • 3568 Words
    • 15 Pages
    Best Essays
  • Best Essays

    Walmart: Pest Analysis

    • 3527 Words
    • 15 Pages

    Jui, P., 2011. Walmart’s Downfall in Germany: A Case Study. Journal of International Management, p. 7.…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Q1) Discuss the competitive forces in the dairy processing industry. Identify the other industry that Bauhinia has entered and highlight the key differences in the competitive forces between the two industries. Comment on their comparative attractiveness in Hong Kong.…

    • 680 Words
    • 3 Pages
    Good Essays