countries (Spain and Italy) can be explained by the weight of the financial costs and taxation. Labour
costs, which are not measurable for Greek companies, are not taken into account when calculating the
processed fruit and vegetables score. To clarify this analysis, the following table presents the costs
structures in the 5 Mediterranean countries of the EU (national averages calculated for a sample of 63
European regions), including the wages for 4 of the 5 countries being studied.
Our preliminary observation is that the net mark-up is very low in this industry (3 to 4%) and that there is
not a great difference between the countries with respect to this criterion. However, breaking down the
costs to arrive at a global index of partial cost (sub-total of the previous table), we observe relatively large
differences between countries, which would explain the deviation noted for the cost index in the next
figure.
Tabl. 5: Cost Structure in the F&V Manufacturing Industry, 5 countries, 2000-2004
|
Country (63 Regions) |
Number of |
Raw |
Wages |
Amortization |
Financial |
Taxes |
Sub- |
|
(in % of Total Cost) | |||||||
|
France____________________ |
165 |
45,6% |
11,8% |
_______3,2% |
1,2% |
1,0% |
62,7% |
|
Greece____________________ |
_______286 |
55,6% |
NA |
_______4,3% |
2,4% |
0,7% |
NA |
|
Italy_______________________________ |
_______299 |
65,8% |
10,9% |
_______3,9% |
2,2% |
1,1% |
84,0% |
|
Portugal_____________________ |
________25 |
48,1% |
10,5% |
_______5,2% |
1,4% |
1,1% |
66,2% |
|
Spain_______________________ |
_______271 |
61,7% |
11,6% |
_______3,7% |
2,0% |
0,9% |
79,8% |
|
5 countries, mean___________ |
1 046 |
55,4% |
11,2% |
_______4,1% |
1,8% |
1,0% |
73,4% |
|
Gap between extreme values |
44% |
12% |
62% |
103% |
62% |
34% | |
Source : computed from Amadeus Database
As for the hotly-debated subject of pay differentials between the countries, we observe in table 6 a
disparity of 79% between France and the Iberian Peninsula. However, the weight of the payroll in total
costs remains very similar, at around 10 to 12%. There is, therefore, no visible penalisation of the
competitiveness-cost by the labour factor.
Tabl. 6: Labor Cost in F&V Manufacturing Industries, 2000-2004
|
Country |
Number of |
Per capita Wages |
|
France_________________________ |
1^65^ |
34 495 |
|
Greece_________________________ |
__________286 |
____NA____ |
|
Italy_____________________________________ |
__________299 |
____________28 100 |
|
Portugal__________________________ |
____________25 |
____________19 389 |
|
Spain___________________________ |
___________271 |
____________19 284 |
|
Mean, 5 countries________________ |
__________1 046 |
___________20 004 |
|
Gap between extreme values_____ |
___________79% |
Source : computed from Amadeus Database
The costs of raw materials (fruit and vegetables) are high (on average 55% in the countries concerned),
which reflects good agriculture/industry integration. However, it is impossible to identify the origin of the
products bought by the industry and thus to identify any downstream/upstream ratchet effects in the
region where the factories are established. In certain regions, agricultural purchases represent a very large
sum which consequently corresponds to a low level of sophistication of the products produced. We can
state the hypothesise that a high purchasing ratio of raw materials corresponds to primary processing
industries which produce intermediate products demonstrating little differentiation and marketed in a
similar manner.