Competitiveness of the Czech food industry

Abstract

The study is engaged in the problems of competitiveness and the performance of the Czech food industry. Both these attributes are evaluated in the framework the domestic manufacturing sector and market, as well as from the point of view of the relations in foreign trade, that means in context with the European and world market. The study applies in the frame of methodology the economic model based on input-output analysis in CZ conditions. In majority of assessed indicators, there were used databases from 2000-2008, i.e. the period before and after the accession to the EU. The outcome of the study is the evaluation of the situation in the macroeconomic environment that influences food sector and the use of input and output in this sector. The SWOT analysis shows, among other, the occasions that could improve the current stagnant or rather decreasing situation of competitiveness of the assessed sector. The study also indicated new directions of the further development in this area. The analysis of the food sector development demonstrated that the sector competitiveness is not in a critical situation. However, the sector competitiveness assessed by the RCRCA index and foreign trade is not going to be improved. The stagnation has come. As it follows from the SWOT analysis, the reason is that the opportunities of the sector are not fully utilised. Food producers are facing the basic problems in the output sphere mainly in the domestic market. Above all, it is necessary to strengthen marketing with regard to improving the Czech products competitiveness.