Economic performance differentiation of the processing stage within the commodity chain

Abstract

The article is focused on the evaluation of economic differentiation of subjects on particular processing stages within the wheat commodity chain in the Czech Republic with regard to agro-food market development in the last years. The analysis is based on the statement that better economic results of businesses can be achieved not only by successful business strategy or quality management and employees but also by business ability to advance its own interests and to influence market conditions, such as setting higher prices, pressure on lower input prices, better position for negotiations with business partners etc. The Spider Analysis was used for evaluation. The results of analysis have proved worsening of economic position of the second stage of processing (bakeries) in comparison with the first stage of processing (mills) within the commodity chain in the last time, especially as a result of increasing market power of retail. It was also confirmed that decisive subjects in milling industry become bigger mills with joining to raw commodity supplier and subsequent processing stages.

Keywords

• economic differentiation
• commodity chain
• spider analysis
• processing stage