Profitability of Selected Visegrad 4 Group Food Processing Industries in the Context of EU Food Quality Logos in the Period of Economic Recovery after the Recent World Financial Crisis

Abstract:

Profitability of respective food processing industries of V4 countries is generally considered to be a lagging behind the profitability of comparable industries from EU core Countries. This fact is reflected by effort for encouraging the production of foodstuff with qualitative aspects connected with specific traditions and qualities of foodstuff. Namely, awarding quality logos Protected Designation of Origin (PDO) and the Protected Geographical Indication (PGI), which are linked with a region where respective products come from. The logo of the Traditional Speciality Guaranteed (TSG) then promotes a traditional way of foodstuff processing. Promotion of qualitative and extraordinary aspects of foodstuffshould help producers to enhance their profitability via an increased demand for the PDO, PGI and TSG labelled products. The aim of the article is to identify key factors within the financial performance of selected foodstuff processing industries in V4 member countries, covering the branches awarded with the logos PDO, PGI and TSG according to the data of EU DOOR database and financial data of businesses accessible in database Amadeus of Bureau van Dijk within the period of years 2012-2015.