Economic appraisal of the commodity vertical of pork market and its input prices in the Czech Republic

Milan Palat and Sarka Palatova

Abstract: The aim of the article is to evaluate economic aspects of commodity verticals of pork market, including pigs for slaughter and pork meat taking into account input prices in the Czech Republic. In the Czech Republic, pig breeding and pork production had a traditional and significant position, which has been hampered by foreign competition in recent years. Czech producers can hardly compete with large enterprises from Germany or the Netherlands with modern infrastructure, concentrated production and are thus able to benefit from the economies of scale. Lower competitiveness of the Czech Republic in the production of pork reflects also in its high focus on imports. A result of several years of decline in the total number of pigs is high non-self-sufficiency of the Czech Republic in the production of pork and a high focus on imports. This is also evident from the calculated models of development trends in pork production in the Czech Republic. Correlations of pig breeding and other indicators were determined on the basis of selected indicators and create a basis for further analyses. A multidimensional regression analysis was performed using the backward stepwise regression method to evaluate pork production and selected economic indicators in the Czech Republic and confirmed an assumption that input prices have a significant impact on pork production in the Czech Republic.

Keywords: commodity vertical; correlation; input price; market; multidimensional regression; pork

Date published: 2021-02-17