Q17 - Agriculture in International TradeReturn

The article deals with the development of consumer prices in the Czech Republic in the context of food prices in the European Union and the World market. This article aims to identify consumer prices development in the market in the Czech Republic in relation to the development of consumer prices in the world market and the EU market. The paper is also analyzing the development of consumer prices in relation to individual commodities and products sold in Czech retail companies. The position of the most significant retail chains in Czech market is highlighted and price differences among individual retail chains are identified. In relation to the results it can be said: Prices on the Czech market very strongly correlate especially in relation to the EU market, a little bit lower (but still significant) correlation is existing in relation to the World market. Czech consumer price sensitivity is very strong - very flexible to changes in the price level on the market of the EU (cc more than 1%) and vice versa inelastic (cc 0,3%) with respect to changes in the price level on the World market. CR follows the general development price trends which exist in the EU market. In relation to particular commodity segments in CR we can say that food prices increased fastest in case of fruit and vegetables, oils and fats, dairy products, fish and seafood, poultry, beef and cereals and bakery products. In the Czech Republic there is no uniform price level between regions. On the one hand Czech retail market is very concentrated - a relatively small number of players control the character of the market - but compared to the European average we can say that the market is highly competitive (the result of this development is the fact that already several retail companies left the Czech market during the last several years), because none of the subjects clearly dominates on the market. Individual retail chains in their pricing policies more or less follow the same general price trends and tendencies which are similar to the price development of the domestic market and especially the EU market.

Agricultural trade in the case of all of the analyzed countries (the Visegrad group, or only V4) represents only a minor part of the merchandise trade. The overwhelming majority of agricultural trade - export as well as import - je conducted in relation to EU countries. V4 market is also important for all analyzed countries. The share V4 market in individual V4 countries merchandise trade performance is about one fifth. If we focus on the actual objective of the article, which is to identify the comparative advantages of agricultural trade of the V4 countries in the area of commodity structure and territorial structure in relation to "their own internal market" of the V4 group countries, the following may be stated. Within the scope of mutual trade competition (2010), Poland is of course in the best positions (it controls about one third of total exports realized within V4 market). Taking in consideration the mutual trade balance among individual countries - results are the following (2000 - 2010). Polish and Czech agrarian trade is able to reach positive trade balance in relation to V4 market on the other hand Hungarian and Slovakian agrarian trade is in deficit. If we focus further on the distribution of the comparative advantages within the scope of mutual trade of the V4 countries - then it may be stated that Poland clearly dominates. Hungarian export in relation to the market of the V4 countries is also able to gain comparative advantages in some years. However, Czech and Slovak agricultural trade as a whole profile themselves as uncompetitive within the whole area of the V4 countries. But it should be mentioned that despite of Czech and Slovak total agrarian trade is not competitive, individual its segments are able to reach comparative advantages especially at the bilateral level.