- •Abstract
- •Аннотация
- •Анатацыя
- •Contents list
- •Introduction
- •Chapter1 analysis of trends in global dairy market
- •Chapter 2 government’s role in increasing product competitiveness
- •Chapter 3
- •Vertical holdings integration as a factor of competiteveness of agriculture
- •3.1. The need for vertical coordination in dynamic agrifood markets
- •3.2. Approaches competitiveness of agricultural enterprises
- •Conclusion
- •References
- •Vocabulary
Conclusion
Improving the competitiveness of products is one of the main ways of entering new markets. Itis true for both individual regions of the internal market and external in general.
The analysis of situation in the global dairy market shows that the measures of increasing product competitiveness include both direct ways, as quality, innovations, marketing etc., and government influence, as some price regulation, subsidies and others. The ways used by state are usually indirect, but in the Republic of Belarus they have a special place because almost all dairy manufacturers are in public ownership. So, there is a big interest of government in making Belarusian dairy products competitive.
We analyzed if state interference may be useful or not by using international examples, and what our companies can take into account for better cooperation with the government in subsequent increase of product competitiveness. It was found that even such experienced countries as the USA and Great Britain have big problems in this sphere. That’s important for Belarus not to repeat these mistakes and be ahead of other competitors. Deregulation of domestic, government-controlled pricing and greater flexibility in the use of new technologies and ingredients to create more healthful products could spawn increased competition, innovation and consumer choice in product categories where sales are lagging.
Analysis in chapter 3 shows that primary reasons leading a firm to the decision for vertical expansion come especially from the effort to minimize costs and increase productivity of inputs. To analyze these effects, we have to distinguish if the efficiency motive is based on the struggle to minimize production cost or to save transaction cost.
If two production phases influence each other, integration may lead to decreasing of production cost. Integration will evidently lead to increased production efficiency and creates factors of competitiveness. However, integration need not always lead to increased efficiency. In case of scale economies, specialization may be more convenient.
References
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2. Co-operatives prominent in Agricultural Competitiveness Paper/Business Council of Co-operatives and Mutuals. Web link: http://bccm.coop/co-operatives-prominent-agricultural-competitiveness-green-paper.
3. Dairies are more dangerous than other plants / Dairy Foods Magazine. Web link: http://www.dairyfoods.com/articles/90534-dairies-are-more-dangerous-than-other-plants.
4. Dairies must balance exports with growing domestic sales/ Dairy Foods Magazine. Web link: http://www.dairyfoods.com/articles/90835-dairies-must-balance-exports-with-growing-domestic-sales.
5. Doing more with less. The only reliable way to produce more food is to use better technology. / The Economist – World News, Politics, Economics, Business & Finance. Web link: http://www.economist.com/node/18200606?zid=293&ah=e50f6-36873b42369614615ba3c16df4a.
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