CHANGES IN THE CONCENTRATION OF THE HUNGARIAN MEAT PROCESSING AND PRESERVATION SECTOR BETWEEN 2015 AND 2021

Rácz, Zsolt – Szőllősi, László

Keywords: Keywords: pork processing, TEÁOR 10.11, concentration analysis, EMIS, Gini index, Lorenz curve, HHI, CR4 JEL codes: L11, L16, Q13

Teljes cikk
The pork sector faced several crises during the period of 2015-2021, including the Covid-19 pandemic, African swine fever, and significant increases in global feed prices in 2021. In the industrial sector, the role of economies of scale is well-known. Concentration measures the extent to which production in an economic sector is held in the hands of large enterprises. The aim of the study is to analyse the size of participants in the Meat Processing and Preservation (TEÁOR 10.11) sector and determine the concentration of Hungarian pork processing in 2021 compared to 2015. Furthermore, the goal is to propose measures to enhance the competitiveness of Hungarian pork processing. Two hypotheses were formulated in relation to the objectives. The first hypothesis (H1): In Hungary, there is a high concentration in the sector defined by enterprises performing the main activity of TEÁOR 10.11. Second hypothesis (H2): The concentration of the TEÁOR 10.11 sector in 2021 is higher than it was in 2015. Following secondary data collection, data obtained from the EMIS database are presented using maps. Sectoral concentration was further analysed using CR4, HHI, Gini index, and Lorenz curve.
The first hypothesis is accepted; the sector's concentration is high. However, according to the literature, it lags the concentration levels of developed Western countries (USA, Denmark). We also accepted the second hypothesis: compared to 2015, the HHI, CR4, and Gini index based on total assets increased in 2021. In the same period, the CR4 and Gini index calculated based on revenue increased, while the HHI decreased. However, the increase in concentration was not sufficient for the concentration of the Hungarian Meat Processing and Preservation sub-sector to catch up with the values of the most competitive Western countries. The competitiveness of Hungarian pork processing could be enhanced by further increasing concentration and thus economies of scale. Therefore, it is recommended to establish and expand integrative collaborations among economic actors of the sub-sector.
DOI: https://doi.org/10.53079/GAZDALKODAS.68.6.t.pp_495-513