Internationalization Strategies in the German Dairy Industry and their Influence on the Economic Performance of Firms

Johannes Meyer, Jan-Henning Feil and Christian Schaper

International Journal on Food System Dynamics, 2019, vol. 10, issue 04

Abstract: Growing milk production, stagnating domestic consumption and ongoing liberalization of the worldwide milk market have led to increasing exports of milk and milk products out of Germany. This situation heightens competition amongst German dairies for market share on foreign markets. The German dairy industry, which comprises of some international corporations and many medium sized companies, including both cooperatives and privately owned companies, therefore has to find strategies with which to compete successfully on international markets. This study analyzes the German dairy industry comparing different internationalization strategies and their influence on the firms’ economic success. 18 German dairy companies have been analyzed. We identified different internationalization strategies with reference to Perlmutter’s EPRG model. To measure economic success, we analyzed annual reports from the dairy companies observed over the years 2010 to 2017 and so calculated different key figures. The influence of different internationalization strategies on economic success is analyzed by a Hausman Taylor estimation where the EBIT-margin is the dependent variable in our model, representing economic success. We found that German dairy industry companies do pursue different internationalisation strategies and that these have different influences on the companies’ economic success.

Keywords: Dairy Farming; Dairy Production/Industries; International Development (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/345341/files/I ... DAIRY%20INDUSTRY.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ijofsd:345341

DOI: 10.22004/ag.econ.345341

Access Statistics for this article

More articles in International Journal on Food System Dynamics from International Center for Management, Communication, and Research Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().