Drivers of the Duration of Grain Competitiveness in European Union Countries

This paper describes an evaluation of the drivers of the duration of grain competitiveness in the European Union (EU-27) member states on global markets from 2000 to 2011. Results indicate that most of the EU-27 member states were competitive with at least one segment of grain chain products. The long-term competitiveness of grain products differs between the EU-27 member states and across grain chain product groups. Trade costs reduce, while agricultural endowments, the level of economic development, export differentiation for final consumer grain products, EU enlargement and recent EU membership increase the duration of grain competitiveness. Competitiveness may be increased through sustainable grain trade specialization with a focus either on entering the market for diversified niche products, or on developing a competitive, global, integrated supply chain management system.