Economic Features of Sectors in Food Industry

Bozhidar Ivanov, Angel Sarov

Abstract: For agriculture, the food industry is the main market for outlet and sale of commodities, while for the food industry; agriculture is a source of raw materials and economic turnover. They are closely linked and interdependent, with the main objective of both being to reach the final consumers of foodstuff, and the income and revenue generated thereof must be redistributed between the two industries. As questionable and uncertain is the issue of value distribution of the products used by consumers so problematic are the relationships between the two industries. The three major sectors included in this industry are foodstuff production, beverages and tobacco. Overall, their total share in the industry's total gross output declines in recent years, which also pertains to the added value of the economy. EU membership has conveyed many benefits, as important access to the common European market and improved economic conditions in the country, raising the incomes and market orientation of producers, but at the same time has posed the food industry in strong competition. The purpose of the present study is to analyze certain economic characteristics in the different sectors of the food industry, which will allow comparisons between different sectors in food industry and make an assessment of emerging trends. The research methodology is based on a comparative analysis, comparing the performance of the individual sectors by comparable indicators relating to the economic use of investments, value added, economic size and employment in the sector. The sustainability of food industry will largely depend in the future on its ability to integrate and to a greater extent to consolidate and increase domestic production of agricultural raw materials, which will guarantee them both better positioning in prices and better access to quality raw materials.

Keywords: economic analysis; food industry; food sectors; sustainability

Date published: 2020-01-14