The Competitiveness of Agriculture in EU Member States According to the Competitiveness Pyramid Model

Abstract

Agriculture in the European Union is highly differentiated, and one of the objectives of the Common Agricultural Policy is to improve agricultural competitiveness. Therefore, surveys regarding the competitiveness of agriculture and grouping countries of the European Union (EU) according to similar characteristics of agriculture are very valuable. They help make strategic decisions concerning the agricultural sector. This paper aims to evaluate the agricultural competitiveness of EU member states in 2010–2019. Data used is derived from the Eurostat and FADN (Farm Accountancy Data Network). The study employed a competitiveness pyramid model based on two groups of factors–competitiveness sources (bottom of the pyramid) and competitiveness effects. Partial components allocated to the groups mentioned above of factors were used to calculate a synthetic measure to determine the level of agricultural competitiveness in respective countries. The studies revealed that EU agriculture varies both in terms of resources and relationships between production factors, as well as the efficiency of their utilization. A clear difference in the level of competitiveness occurred between old and new member states, although some new countries ranked relatively high in terms of competitiveness sources (Czechia and Poland). Belgium scored highest for the synthetic measure of agricultural competitiveness in 2010–2019, and Cyprus had the lowest. It was demonstrated that human resources were of utmost importance in the structure of competitiveness sources. In turn, the average holding area determined the management conditions to the highest extent.

Economic competitiveness vs. green competitiveness of agriculture in the European Union countries

“…Other studies corroborate that agriculture in member states varies in terms of competitiveness. Nowak and Różańska-Boczula (2022) demonstrated a significant difference in the level of competitiveness of agriculture between new and old member states. Countries with the lowest competitiveness expressed by a synthetic measure based on sources and effects of competitiveness were Belgium, Luxembourg, France and Germany.…”

“…Some researchers perceive competitiveness as the ability to achieve good results (Matyja, 2016, pp. 368-381;Nowak & Różańska-Boczula, 2022). In turn, others see it as maintaining the country's comparative advantage (Latruffe, 2010, p. 7;Matkovski et al, 2019, pp.…”

“…Also, many scientific studies tackled the existing competitive potential and results achieved by this sector. They implied that a high competitiveness potential was not always equivalent to the country's highly competitive position (Nowak & Różańska-Boczula, 2022). However, no uniform methodology was developed to evaluate the level of competitiveness of agriculture, let alone its definitions (OECD, 2011, p. 21).…”

“…A broader research context in analysing international competitiveness, taking its determinants into account, was given by Ball et al (2010) and Viira et al (2015). Some studies evaluated competitiveness using a synthetic measure designed based on a broader range of variables (Nowak & Różańska-Boczula, 2022). However, they did not consider features expressing the environmental competitiveness of agriculture, nor did they compare the competitiveness of this sector in light of the achieved economic and environmental objectives.…”

A short descriptive analysis of the European evolutions of input price indices of agricultural products between 2008-2017: Patterns, trends and implications

“…As argued in Timmer, 2002;Webb and Block, 2012;Andrei andDrăgoi, 2019 andNowak andRóżańska-Boczula, 2022, the analysis of the role, place, and influence of the agricultural sector and agriculture in general in the contemporary economy cannot be achieved without a deep understanding of the system of specific sectoral flows and determinants.…”