Archive » 2022 » 2022. 02 » Szenderák, János – Popp, József: Concentration in the Hungarian Food Chain
Concentration in the Hungarian Food Chain
Szenderák, János – Popp, József
Keywords: agriculture, Gini index, Lorenz curve, Q10, Q13
In this study, we examined the concentration processes in the food chain and the related structural risks in Hungary between 2015 and 2019. The food chain is facing significant challenges due to population growth, dietary changes and climate change. This has led to increased sectoral concentration and closer vertical and horizontal cooperation. Sectoral consolidation pushes less competitive sectoral players, especially small-scale producers and family farms, out of the market. Family farms are a prominent feature of both EU and Hungarian agricultural policy, but their production structure is often fragmented and there is a lack of cooperation at the sectoral level. This paper discusses the concentration of the food industry and its possible effects, including other factors such as price volatility and environmental issues. Our results showed that there were significant concentration differences between the levels of retailing, food processing and raw material production. In the future, the environmental impact of the food chain needs to be reduced further, which will require increased competitiveness and industry collaboration. Addressing these issues has been important in the past, but has become even more important as environmental challenges increase globally.
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