Agri-Food Sector Structure and Food Prices in European Union Countries

Food prices vary significantly across European Union countries, and the extent of this variation has evolved in recent years. This article examines the underlaying factors driving these differences. Unlike previous studies, it considers all stages of the food supply: agricultural production, process...

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Main Author: Aneta Błażejowska
Format: Article
Language:English
Published: Collegium of Economic Analysis, SGH Warsaw School of Economics 2025-06-01
Series:Gospodarka Narodowa. The Polish Journal of Economics
Subjects:
Online Access:https://gnpje.sgh.waw.pl/Uwarunkowania-sektora-rolno-spozywczego-a-ceny-zywnosci-i-napojow-bezalkoholowych,202288,0,2.html
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author Aneta Błażejowska
author_facet Aneta Błażejowska
author_sort Aneta Błażejowska
collection DOAJ
description Food prices vary significantly across European Union countries, and the extent of this variation has evolved in recent years. This article examines the underlaying factors driving these differences. Unlike previous studies, it considers all stages of the food supply: agricultural production, processing, distribution, and consumption. Using dynamic panel models, the study identifies multiple determinants of food price disparities across countries. At the production phase, relative price increases are linked to a decline in economic farm size, an expansion in farm area, and rising agricultural production costs. At the processing and distribution stages, higher prices are associated with increased processing costs, smaller average enterprise size, and greater retail concentration – reflecting the stronger bargaining power of processing and retail chains. Finally, at the stage of food consumption, relative differences in food prices are primarily shaped by divergence in consumer wealth.
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series Gospodarka Narodowa. The Polish Journal of Economics
spelling doaj-art-64557024fc0c461b82d5959ac36253d22025-08-20T03:28:41ZengCollegium of Economic Analysis, SGH Warsaw School of EconomicsGospodarka Narodowa. The Polish Journal of Economics2300-52382025-06-013222708210.33119/GN/202288202288Agri-Food Sector Structure and Food Prices in European Union CountriesAneta Błażejowska0https://orcid.org/0000-0001-6846-6358Szkoła Główna Handlowa w Warszawie, PolskaFood prices vary significantly across European Union countries, and the extent of this variation has evolved in recent years. This article examines the underlaying factors driving these differences. Unlike previous studies, it considers all stages of the food supply: agricultural production, processing, distribution, and consumption. Using dynamic panel models, the study identifies multiple determinants of food price disparities across countries. At the production phase, relative price increases are linked to a decline in economic farm size, an expansion in farm area, and rising agricultural production costs. At the processing and distribution stages, higher prices are associated with increased processing costs, smaller average enterprise size, and greater retail concentration – reflecting the stronger bargaining power of processing and retail chains. Finally, at the stage of food consumption, relative differences in food prices are primarily shaped by divergence in consumer wealth.https://gnpje.sgh.waw.pl/Uwarunkowania-sektora-rolno-spozywczego-a-ceny-zywnosci-i-napojow-bezalkoholowych,202288,0,2.htmleuropean unionfood pricesfood chainprice level indexsgmm
spellingShingle Aneta Błażejowska
Agri-Food Sector Structure and Food Prices in European Union Countries
Gospodarka Narodowa. The Polish Journal of Economics
european union
food prices
food chain
price level index
sgmm
title Agri-Food Sector Structure and Food Prices in European Union Countries
title_full Agri-Food Sector Structure and Food Prices in European Union Countries
title_fullStr Agri-Food Sector Structure and Food Prices in European Union Countries
title_full_unstemmed Agri-Food Sector Structure and Food Prices in European Union Countries
title_short Agri-Food Sector Structure and Food Prices in European Union Countries
title_sort agri food sector structure and food prices in european union countries
topic european union
food prices
food chain
price level index
sgmm
url https://gnpje.sgh.waw.pl/Uwarunkowania-sektora-rolno-spozywczego-a-ceny-zywnosci-i-napojow-bezalkoholowych,202288,0,2.html
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