Business Excellence, Vol. 16 No. 1, 2022.
Original scientific paper
https://doi.org/10.22598/pi-be/2022.16.1.33
PRICING MANAGEMENT IN MILK PRODUCTION
Jadranka Deže
orcid.org/0000-0002-3434-5619
; Josip Juraj Strossmayer University of Osijek, Faculty of Agrobiotechnical Sciences Osijek, Department of Bioeconomics and Rural Development, Croatia
Sanja Antunović
; Josip Juraj Strossmayer University of Osijek, Faculty of Agrobiotechnical Sciences Osijek, Graduate student of Agroeconomics and Nutrition of Domestic Animals, Croatia
Ružica Lončarić
; Josip Juraj Strossmayer University of Osijek, Faculty of Agrobiotechnical Sciences Osijek, Department of Bioeconomics and Rural Development, Croatia
Abstract
Pricing management is part of farm management with the purpose of increasing
profitability and competitiveness. It is based on the production cost and purchase price
which difference affects to the financial result. The aim of this research is to identify milk
price volatility at the Croatian and EU level, international trade, as well as to identify
trends for the period from 2016 to 2020 and to simulate changes for the next period from
2021 to 2025. The analyzed data were taken from the Eurostat and processed using time
and harmonized index. Milk production in the EU-27 for 2020 is 23 mil. tons of milk and
averages 65 kilograms milk consumption per capita. The lowest average production price
of milk in the analyzed period at the EU-27 level was in 2016 (28 € per 100 kg of milk)
and in following years it is up to 35 € per 100 kg. The market situation reflects the
consequence of the abolition of quotas in the dairy industry (2015) and the impact of the COVID-19 pandemic. In period from 2021 to 2025, a slight growth and slowdown in milk
production of 2.83% compared to 2020 and an increase in the average producer milk
prices in 2025 by 9.6% compared to 2020 are projected. This research contributes to
identifying the sources of difficulties in managing prices. The guidelines have been
developed for more efficient price management in order to improve the competitiveness
and market positioning.
Keywords
pricing management; production and purchase prices; volatility; milk production.
Hrčak ID:
278860
URI
Publication date:
7.6.2022.
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