PROFITABILITY OF PARTICIPANTS IN SUPPLY VALUE CHAIN IN CROATIA

Abstract

The management system in supply value chain covers wide range of activities. The goal of the implementation of the system is to create strong value in the process between producers and final customers or consumers. In recent years, Croatian economy was faced with many significant changes in profitability of its participants. Production, distribution and retail sector had passed through significant changes since 2009. Production sector decreased -12,3% in 2009 compared with the same period of previous year, afterwards wholesale, distribution and retail sector decreased -11,6% compared with year 2008. The economic crises from 2009, caused by crises of mortgage loans in United States of America, left significant consequences on Croatian economy as well (GDP decreased -7,4%). The movements of consumer’s preferences and habits changed rapidly in period of recession from 2009 to 2014. Nevertheless, the changes in consumer preferences and habits had an impact on other key players in the chain. The players are: producers, distributors and retailers. According to all mentioned facts, the main subject and the goal of this Paper is to analyse profitability of each participant in the supply value chain. Focus is on Croatian producers in Food and Beverage industry (National Classification of Activities abbreviation NKD C10 and NKD C11), distributors (NKD G46.90 and NKD G46.36) and retailers (NKD G47.11 and NKD G47.19). The hypothesis in this paper is emphasizing the disproportionately in division of a profitability between main players in value chain, where producers are the most negatively affected. The paper analysis TOP 10 participants in production, distribution and retail sector. The period which was taken into observation in this paper is 2011 – 2015, together with data from 2016 (only the companies listed on Croatian stock exchange market). The identified trend is the same for 2016 as for the period 2011 – 2015.

Key words: profitability, supply value chain, food and beverage industry sector, distribution, retail