Competitiveness of the EU dairy industry

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Competitiveness of the EU dairy industry

Figure 6.1 Trend in firm population trend per country (indexed, 1996= 1)

Source: Constructed from Eurostat SBS database.

Firm age

Age is measured by deducting the date of incorporation from the year under

analysis so that it reflects increase in age as the panel year increases. For example,

firms that enter the industry in 1996 have an age of one year in 1997,

two in 1998, and 10 years by 2006. The age of the sample firms ranges between

1 and 136. The oldest company is in Germany and in one of the large

size classes. The mean age is 26 years and higher for medium and small firms.

Firm entry

Firm entry to the industry is traced from 'date of incorporation' of the firm.

On average about 81 firms enter the industry every year. The higher entry was

in 2002 and 2003 when 115 and 111 firms entered the industry respectively

(table 6.2). The highest entry numbers are registered in Italy and France, which

is not surprising considering the high total population of firms in these countries.

The rate of entry does not show any increasing or decreasing trend. The

average size of entrant firms is high in the UK and Germany (appendix 1, table

1). The lowest average size of new entrants is in Italy and France. The Netherlands

and Poland are between these two groups of countries. In general the new

entrant firms have 112 employees, a €17 m turnover and €8 m in total assets

on average.

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