| Summary: | The paper deals with the current problem of agrarian sector withinfluence mainly to food producers. It deals with their impact on changes ofagricultural producer’s position in a framework of food production systems.Concretely paper deals with the problems of risk related to milk products pricingdistortion due to possibility of substitution milk fat behalf vegetable fat. Togetherwith formation of such a risk, food producers are dealing with the other problem,which is using of the similar product name on the common market of EU. Problemis currently related to using the term “spread butter“, which is denoted as deceivebecause of harming a butter producers. There is an argument that by the influenceof currently used term might be those two products consider as a perfect substitutes,between which arise an elicitation of the cross substitution effect. On the Europeanenlarged market of the food could to several situations occur, particularly if there isan offer of the products of the similar, or even the same product name. This is veryoften visible on the EU common market, this naturally cause problems especially ifthe composition of the product and the production technology are completelydifferent. The solution of this problem is linked to the question of the economicalsubstitution, which is usually related to completely different products. This bringsabout damage to food producers on the first side, and also a deception of consumeron the second side. The example of such as situation is currently visible on theEuropean dairy market, concretely in the case of dairy products. In this article willbe explained the situation linked to problem of the Czech producers of “Spreadbutter”, which is a traditional Czech product and the producers of the “Traditionalbutter”.European Commission ruled in producers of “Traditional Favour” favour,which means that it will be no longer possible to sell products, with lower than 39%of milk fat, under the product name “butter”. From the economic theory is wellknown [3] GRAVELLE, that substitution effect describes the effects of changes inrelative prices on consumption. According to the substitution effect, an increase inprice of one good causes a buyer to buy more of the other good, since the first goodhas become relatively expensive, and vice versa. The buyer substitutes consumptionof the second good for consumption of the first. Therefore even a small pricechange could cause a significant change of the optimal combination in the terms ofthe quantity of the both commodities (in our case spread butter and traditionalbutter.
|
|---|
