Competitiveness of the EU dairy industry

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Competitiveness of the EU dairy industry

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Table 6.2 New firm entry (number) per year per country

France Germany Italy Netherlands Poland UK Total

1996 15 2 35 3 1 6 62

1997 22 3 42 3 2 8 80

1998 18 2 45 2 9 76

1999 19 3 48 2 4 12 88

2000 14 60 1 2 13 90

2001 16 61 12 89

2002 16 66 3 30 115

2003 19 2 45 3 3 39 111

2004 17 1 41 1 11 71

2005 3 15 2 4 24

Total 159 13 458 14 18 144 806

Source: Eurostat SBS database.

Firm exit

According to the Amadeus database, firm exits are caused by bankruptcy,

merger, liquidation and receivership. Between 2002 and 2006 a total of 172

firms became inactive in the six countries. The Netherlands and Germany have

not shown any type of exit in the sample. It means there is no high rate of exit in

the population as well. Italy has both a high firm entry and exit. France and the

UK are in second place with nearly the same exit number. This result can be attributed

to the high competition in these countries, where small and medium

firms dominate compared to other countries (except for Poland, which looks

concentrated due to data biases). The mean turnover of exiting firms is 30% of

the mean of incumbents' and the mean total asset of exiting firms is 27% of incumbents'.

In terms of mean employment it is about 53% of incumbents' mean

employees.

Industry concentration

To analyse industry concentration we use four-firm concentration ratios (CR4)

for France, Germany, Italy, and Poland. A three-firm concentration ratio (CR3) is

used for the Netherlands due to data limitations and compared to the Eurostat

totals. For the UK no concentration ratio could be calculated due to lack of

sales data.

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