The chances of Hungarian beef in the EU27 market
Mészáros, Kornélia – Béres, Dániel
Keywords: relative advantages and disadvantages, beef cattle, export, import
This paper looks at the competitiveness and relative advantages and disadvantages of the foreign trade in live cattle intended for slaughter in Hungary in the 1999 to 2010 period. A significant portion of beef is exported. An analysis of its competitiveness shows that currently it is at a relative disadvantage in the EU27 beef market. The indicators show that the extent of this disadvantage is reduced each year. Following a gradual increase, the mean RSCA indicator turned positive in 2008. The balance of foreign trade was positive in each year. The financial crisis which unfolded in 2008, however, had negative consequences and caused a significant decline reflected in all three indicators. Based on the categories established by Gehlhar and Pick it is concluded that quality-based competition was replaced by price-based competition in the period under review in Hungary. There is very strong price competition between the countries, which is very difficult to keep abreast of.