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Paper presented to the British Association of Slavonic and East European Studies (BASESS) Conference, Cambridge,7 th-9 th April 2001 The International Competitiveness of CEEC Agriculture

By Matthew Gorton, Sophia Davidova and Key Words


The paper surveys the price competitiveness of agricultural production in Central and East European Countries (CEECs). It draws together empirical work conducted by the authors and other studies that have estimated domestic resource cost (DRC) ratios for agriculture in various CEECs. The paper identifies that in general CEEC crop production is more internationally competitive than livestock farming. During the mid-1990s, wheat production in Bulgaria, the Czech Republic, Hungary, Romania and Slovakia was internationally competitive. In contrast, during the same period, milk production was not internationally competitive. However, there is also a considerable degree of variation from country to country; very little of Slovenia's agricultural production is internationally competitive. In the livestock sector the greatest problems lie where large herds have been broken up resulting in fragmented production. This has particularly affected beef and milk production. Considering variations in DRCs by farm type, larger private farms in Hungary and the Czech Republic are more internationally competitive than smaller private farms in crop production. If CEEC producers faced average EU prices for their traded inputs and output, most could be price competitive. However, the conclusions should be treated with caution due to sensitivity of DRC ratios to changes in international prices and the choice of the shadow prices for non-tradable inputs

Year: 2011
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