Abstract
Production of meat and processing of meat products is a very significant part of the food industry. In order to secure economic growth and development, especially in the meat industry, it is very important to provide free competition for the business entities that operate within it. Therefore, the main purpose of this study was to measure market concentration using the Herfindahl-Hirschman Index (HHI), in order to determine the competition level in the Serbian market. Furthermore, the HHI should provide evidence of any business entities that hold monopolistic or oligopolistic positions on the market. Moreover, another aim of this study was to define to what extent business entities in the Serbian meat industry export products and goods to international markets. The 350 companies that reported the highest revenues during 2013-2017 and which are registered in this sector were studied.
Highlights
According to the Serbian Chamber of Commerce and Industry, the food industry is one of the leading Serbian industries, since it registered a surplus in international trade of €894.1 million in 2016 (PKS, 2017)
Compared to nearby countries’ economies, the Serbian food industry has been in a difficult situation for a very long time, primarily as it does not have covenants with the European Union (EU) or with Central European Free Trade Association (CEFTA) countries
A Hirschman Index (HHI) value of 10,000 means there is a monopoly in the market, i.e. only a seller is present on the market and possesses full market power
Summary
According to the Serbian Chamber of Commerce and Industry, the food industry is one of the leading Serbian industries, since it registered a surplus in international trade of €894.1 million in 2016 (PKS, 2017). The meat industry is an important segment of the food industry, which, according to the Chamber of Commerce and Industry of Serbia, employed 89,378 people in 2016 (PKS, 2017). We are currently witnessing many debates on the quality of imported food, especially, around the presumption that imported meat and meat products are of lower quality. There is no doubt that developing the meat products and processing sector will both improve the quality of food and increase the confidence of consumers
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