Innovation and Integration in European Cereals Commodities Markets

Francesco Benedetti & Marco Cella

Student thesis: Master thesis

Abstract

In this work, we aim to provide and discuss a set of measures that would allow improving the current state of the European cereals markets. First, the characteristics of these markets are discussed, providing appropriate information on their structure and functioning. Then, using insights from previous academic literature and the observations made during our previous discussion, we analyse the most critical problematics, identifying the sources and their effects on various classes of shareholders. Once devised a set of precise sub-goals to achieve, we apply relevant innovation methodologies to our case. We found that the structure of the market was by far more complex than what we had originally anticipated. The level of fragmentation within the supply side was much higher than expected and we soon discovered how regulation truly shapes the competitive environment, rather than traditional market forces. Another interesting finding lies in the use of commodity derivatives which is now overwhelmingly oriented towards speculation and portfolio management, rather than being an additional tool in the producers’ arsenal. This fact increased prices volatilities during troubled financial periods and augmented the scale of price spikes and bursts. Finally by providing an actionable set of suggestions in regard to how to tackle the problems found, we open up new research opportunities both in terms of building upon our finding, or better still to find new solutions through a more in depth analysis of the topic of European agrarian regulation or through the further exploration of the topic of innovation clusters.

EducationsMSc in Management of Innovation and Business Development, (Graduate Programme) Final ThesisMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages151