During rite 1990s Slovenia has moved toward a more market-based economy wit
h a greater role for the private sector in asset ownership, production and
price determination. The Slovenian food industry comprises a small number o
f producers operating in a comparatively modest market. Primary and seconda
ry darn analysis indicates that firms are largely oriented to a domestic ma
rket that is significantly protected. This has augmented profitability in t
he sector, albeit with substantial variations between branches. Profit leve
ls (measured as cash flow as a percentage of turnover) are relatively high,
If Slovenia joins the EU, food manufacturers operating in an enlarged Euro
pean Single Marker will not be afforded the degree of protection they curre
ntly receive and this heralds a substantial challenge to enterprise manager
s.