Firm Level Restructuring in the Slovenian Food Industry

Emil Erjavec (emil.erjavec@bf.uni-lj.si), Matthew Gorton, Ales Kuhar and Vesna Valant

Post-Communist Economies, 1999, vol. 11, issue 4, 519-539

Abstract: During the 1990s Slovenia has moved toward a more market-based economy with a greater role for the private sector in asset ownership, production and price determination. The Slovenian food industry comprises a small number of producers operating in a comparatively modest market. Primary and secondary data analysis indicates that firms are largely oriented to a domestic market that is significantly protected. This has augmented profitability in the sector, albeit with substantial variations between branches. Profit levels (measured as cash flow as a percentage of turnover) are relatively high. If Slovenia joins the EU, food manufacturers operating in an enlarged European Single Market will not be afforded the degree of protection they currently receive and this heralds a substantial challenge to enterprise managers.

Date: 1999
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DOI: 10.1080/14631379995878

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