The Competitiveness of Agriculture in EU Member States According to the Competitiveness Pyramid Model

Abstract

Agriculture in the European Union is highly differentiated, and one of the objectives of the Common Agricultural Policy is to improve agricultural competitiveness. Therefore, surveys regarding the competitiveness of agriculture and grouping countries of the European Union (EU) according to similar characteristics of agriculture are very valuable. They help make strategic decisions concerning the agricultural sector. This paper aims to evaluate the agricultural competitiveness of EU member states in 2010–2019. Data used is derived from the Eurostat and FADN (Farm Accountancy Data Network). The study employed a competitiveness pyramid model based on two groups of factors–competitiveness sources (bottom of the pyramid) and competitiveness effects. Partial components allocated to the groups mentioned above of factors were used to calculate a synthetic measure to determine the level of agricultural competitiveness in respective countries. The studies revealed that EU agriculture varies both in terms of resources and relationships between production factors, as well as the efficiency of their utilization. A clear difference in the level of competitiveness occurred between old and new member states, although some new countries ranked relatively high in terms of competitiveness sources (Czechia and Poland). Belgium scored highest for the synthetic measure of agricultural competitiveness in 2010–2019, and Cyprus had the lowest. It was demonstrated that human resources were of utmost importance in the structure of competitiveness sources. In turn, the average holding area determined the management conditions to the highest extent.