Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries
-
Author(s)Oksana DubanychLink to ORCID Index: https://orcid.org/0009-0007-0977-3850
,
Jan VavřinaLink to ORCID Index: https://orcid.org/0000-0001-9079-3566
,
Josef PolákLink to ORCID Index: https://orcid.org/0000-0002-7305-3379
-
DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.33
-
Article InfoVolume 20 2023, Issue #4, pp. 416-433
- Cited by
- 192 Views
-
48 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Food insecurity is not a new phenomenon even in leading European economies, but this complex problem area is facing new global challenges. This article traces the research gap in addressing food insecurity by focusing on the role of food retail chains in the former “Eastern Bloc” in light of unprecedented food price inflation and the resulting scale of demand for the services of food banks. Through empirical analysis of secondary financial corporate data, a low level of their profitability in the period of 2011–2019 was revealed, which preceded the synchronicity of two unexpected global economic downturns. Specifically, Return on Sales for food retailers located in the Czech Republic and Hungary was generally below 2%, offset by higher Total Asset Turnover figures, consistent with the need to extend the volume of goods for sale. Development in profitability in selected newer EU member states is just as significantly similar to the situation in Ukraine. The mutual interaction of factors of economic size and the country of residence of business was analyzed regarding a possible influence on their financial performance. This study concluded that the presence of unresolved market distortions can both lead to increased food insecurity and, paradoxically, contribute to increased food waste.
Acknowledgment
The authors are thankful to the Internal Grant Agency of Mendel University in Brno for financial support to carry out this research as the partial output of the project No. IGA-PEF-TP-23-015 “Zajišťování výživových potřeb obyvatelstva vzhledem k aktuálním výzvám v oblasti regenerativních přístupů při vykonávání hospodářských činností podniků agropotravinářského komplexu se zaměřením na roli tuzemských potravinových bank”.
view full abstract
- Keywords
-
JEL Classification (Paper profile tab)G32, L81, M38
-
References39
-
Tables11
-
Figures5
-
- Figure 1. Dynamic breakdown of indicator ROE according to the economic size of food retailers in selected countries in 2011–2019
- Figure 2. Dynamic breakdown of the ROA indicator according to the economic size of food retailers in selected countries in 2011–2019
- Figure 3. Two-way ANOVA interaction plot regarding the studied factors – size and country of the basement for the indicator ROE (subch. 3A) and its breakdown components ROS (subch. 3B) and TAT (subch. 3C) in the sample of businesses based in Visegrad 4 me
- Figure 4. Two-way ANOVA interaction plot regarding the studied factors; size and country of the basement for the indicator ROE (subch. 4A), and its breakdown components ROS (subch. 4B), and TAT (subch. 4C) in the sample of businesses based in Czechia, Hun
- Figure 5. Factorial ANOVA results using categorical predictors for the indicator ROE (5A) and its decomponents ROS (5B), TAT (5C) for food retailers in selected Visegrad 4 and Baltic countries in 2011–2019
-
- Table 1. Number of enterprises in the sample for categories of economic size of observed active food retailers in 2019
- Table 2. Results of testing effects of all intended factors on indicators ROE, ROS and TAT for a group of countries: Czech Republic, Hungary and Poland
- Table 3. Results of the post hoc Scheffe test regarding the country effect for homogenous group identification within observed values of indicators ROE, ROS and TAT among selected Visegrad 4 member countries
- Table 4. Results of the post hoc Scheffe test of the economic size effect for homogenous groups within observed values of the indicator TAT and the size effect
- Table 5. Results of testing effects of all intended factors on indicators ROE, ROS and TAT for a group of countries: Czech Republic, Hungary and Poland
- Table 6. Results of the post hoc Scheffe test regarding the country effect for homogenous group identification within observed values of indicators ROE, ROS, and TAT in the sample of countries: Czechia, Hungary, and Ukraine
- Table 7. Results of the post hoc Scheffe test for homogenous groups within observed values of indicator TAT and the size effect among samples in Czechia, Hungary, and Ukraine
- Table 8. Results of testing effects of all intended factors for countries Czechia, Hungary, Poland, Estonia, Latvia, and Lithuania regarding the observed indicators ROE, ROS, and TAT
- Table 9. Results of the post hoc Scheffe test for homogenous groups within the observed values of the ROE indicator and the country effect regarding the samples of Czechia, Hungary, Poland, Estonia, Latvia, and Lithuania
- Table 10. Results of the post hoc Scheffe test for homogenous groups within observed values of the ROS indicator and the country effect regarding the sample of Czechia, Hungary, Poland, Estonia, Latvia, and Lithuania
- Table 11. Results of the post hoc Scheffe test for homogenous groups within the observed values of the indicator TAT and the country effect regarding sample of Czechia, Hungary, Poland, Estonia, Latvia, and Lithuania
-
- Antonioli, F., & Santeramo, F. G. (2021). On Policy Interventions and Vertical Price Transmission: the Italian Milk Supply Chain Case. Journal of Agricultural and Resource Economics.
- Beacom, E., Furey, S., Hollywood, L. E., & Humphreys, P. (2021). Food poverty contributors: individual, structural or political? Examining stakeholder perspectives using interviews and nominal group technique. British Food Journal, 123(6), 2199-2215.
- Beck, D. J., & Gwilym, H. (2022). The Food Bank: A Safety-Net in Place of Welfare Security in Times of Austerity and the Covid-19 Crisis. Social Policy and Society, 1-17.
- Belas, J., Gavurova, B., Dvorsky, J., Cepel, M., & Durana, P. (2021). The impact of the COVID-19 pandemic on selected areas of a management system in SMEs. Economic Research-Ekonomska Istraživanja, 35(1), 3754-3777.
- Bredin, D., Potì, V., & Salvador, E. (2022). Food Prices, Ethics and Forms of Speculation. Journal of Business Ethics, 179(2), 495-509.
- Bureau van Dijk. (2020). Orbis database of companies and other entities. [Database software offline]. Database version of 2020-12-21.
- European Union. (n.d.). Directive (EU) 2019/633 of The European Parliament and of The Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain (2019).
- European Union. (2020). Farm to Fork Strategy: For a fair, healthy and environmentally-friendly food system.
- Farnsworth, K., & Irving, Z. (2020). Introduction: A Hostile Decade for Social Policy: Economic Crisis, Political Crisis and Austerity 2010-20. Social Policy and Society, 20(1), 74-76.
- Hamulczuk, M., & Skrzypczyk, M. (2021). COVID-19, spatial market integration and producer prices: A case study of EU agri-food markets. Studies in Agricultural Economics, 123(2), 53-61.
- Hannus, V., & Sauer, J. (2021). It is not only about money – German farmers’ preferences regarding voluntary standards for farm sustainability management. Land Use Policy, 108, 105582.
- Harrison, K. (2022). The futility of participation: austerity and public reluctance to oppose it. British Politics, 17(4), 469-487.
- Hasnain, T., Sengul Orgut, I., & Ivy, J. S. (2021). Elicitation of Preference among Multiple Criteria in Food Distribution by Food Banks. Production and Operations Management, 30(12), 4475-4500.
- Heinrichs, J., Kuhn, T., Pahmeyer, C., & Britz, W. (2021). Economic effects of plot sizes and farm-plot distances in organic and conventional farming systems: A farm-level analysis for Germany. Agricultural Systems, 187, 102992.
- Horvathova, J., Mokrisova, M., & Petruška, I. (2022). Indebtedness and profitability – A threshold model approach. Investment Management and Financial Innovations, 19(3), 13-27.
- Ilhan, A. & Füredi, F. (2023). Employment status of Hungarian food delivery workers in the post pandemic era. Ukrainian Food Journal, 12(1), 141156.
- Ivanov, V., Shevchenko, O., Marynin, A., Stabnikov, V., Gubenia, O., Stabnikova, O., Shevchenko, A., Gavva, O., & Saliuk, S. (2021). Trends and expected benefits of the breaking edge food technologies in 2021-2030. Food Technology, 10(1), 7-36.
- Juhász, T., Huszka P. & Karácsony, P. (2022). Impact of the crisis caused by the coronavirus on Hungarian consumer behavior related to food purchases. Ukrainian Food Journal, 11(2), 315-330.
- Kapelko, M., Harasym, J., Orkusz, A., & Piwowar, A. (2022). Cross-national comparison of dynamic inefficiency for European dietetic food manufacturing firms. Technological and Economic Development of Economy, 28(4), 893-919.
- Kokemohr, L., Escobar, N., Mertens, A., Mosnier, C., Pirlo, G., Veysset, P., & Kuhn, T. (2022). Life Cycle Sustainability Assessment of European beef production systems based on a farm-level optimization model. Journal of Cleaner Production, 379, 134552.
- Konieva, T. (2021). The impact of financing policy on the cost of debt. Investment Management and Financial Innovations, 18(4), 177-189.
- Kumar, M., Raut, R. D., Sharma, M., Choubey, V. K., & Paul, S. K. (2022). Enablers for resilience and pandemic preparedness in food supply chain. Operations Management Research.
- Lehenchuk, S., Chyzhevska, L., Meluchová, J., Zdyrko, N., & Voskalo, V. (2023). Determinants of agricultural companies’ financial performance: The experience of Poland, Slovakia and Ukraine. Investment Management and Financial Innovations, 20(1), 99-111.
- Lowrey, J. D., Richards, T. J., & Hamilton, S. F. (2022). Food Banks and Retail Markups. European Review of Agricultural Economics, 49(5), 1027-1055.
- Meloun, M., & Militký, J. (2004). Statistická analýza experimentálních dat [Statistical analysis of experimental data]. Praha: Academia. (In Polish).
- Nagpaul, T., Sidhu, D., & Chen, J. (2022). Food Insecurity Mediates the Relationship between Poverty and Mental Health. Journal of Poverty, 26(3), 233-249.
- Nes, K., Ciaian, P., & Di Marcantonio, F. (2021). Economic determinants of differences in the composition of seemingly identical branded food products in the EU. Food Policy, 100, 102020.
- Platform EU Waste on Food Losses and Food. (2019). Recommendations for Action in Food Waste Prevention.
- Reeves, A., & Loopstra, R. (2021). The Continuing Effects of Welfare Reform on Food Bank use in the UK: The Roll-out of Universal Credit. Journal of Social Policy, 50(4), 788-808.
- Ryciuk, U. (2022). Ambidextrous governance impact on supply chain performance – buyer and supplier perspectives. Journal of International Studies, 15(1), 47-62.
- Skare, M., & Riberio Soriano, D. (2022). Explaining COVID-19 shock wave mechanism in the European service industry using convergence clubs analysis. Service Business, 16(2), 283-307.
- Soboń, J., Burkina, N., Sapun, K., & Seleznova, R. (2021). Comprehensive Analysis of a Company’s Activity by Means of Statistical Modeling as Support for its Decision-Making System. Financial Internet Quarterly, 17(1), 62-69.
- Travnikar, T., & Bele, S. (2022). Vulnerability of the Slovenian food system in connection with the war in Ukraine. Journal of Central European Agriculture, 23(4), 921-934.
- Triyonowati, Amalia Elfita, R., Suwitho, & Mildawati, T. (2023). Does innovation efficiency affect financial performance? The role of ownership concentration. Investment Management and Financial Innovations, 20(1), 58-67.
- Trnková, G., & Žáková Kroupová, Z. (2021). Jodrivers of economic performance: what can we observe in the Czech food industry? E+M Ekonomie a Management, 24(3), 110-127.
- Turkkan, C. (2021). Who is “deserving” of aid? Subject-formation in Istanbul’s food banks. Food, Culture & Society, 24(3), 464-480.
- Wahdat, A. Z., & Lusk, J. L. (2022). The Achilles heel of the U.S. food industries: Exposure to labor and upstream industries in the supply chain. American Journal of Agricultural Economics.
- Zlati, M. L., Florea, A. M., Antohi, V. M., Dinca, M. S., Bercu, F., Fortea, C., & Silvius, S. (2023). Financing Romanian Agricultural Cooperatives’ Investments for the 2023–2027 Horizon. Sustainability, 15(3), 2306.
- Zsarnóczai S. J., Popp, J., Belás, J., & Kovács, S. (2021). Developments in the income situation of the agricultural sector in selected the EU member states. Economics and Sociology, 14(1), 232-248.
Close
Investment Management and Financial Innovations