Economics of sea buckthorn production and processing in Hungary

This study focuses on the business management-related advantages and disadvantages of sea buckthorn production and processing based on economic analyses. It is the main objective of the authors to identify the expected economic findings in a high standard plantation with different average yields. A deterministic model calculation was performed on the basis of technological processes, using the primary data collected from enterprises dealing with sea buckthorn production. The calculation is based on the assumption of a 10 hectare plantation with intensive production technology (high soil quality (golden crown value: 32 GC per ha), irrigation, high plant density per hectare). The cost and income relations and the long-term return of the plantation were examined in the case of different average yields (12 t ha-1, 18 t ha-1 and 24 t ha-1). Under the economic circumstances of 2016, the planting cost of an intensive plantation is around 4-4.1 million HUF ha-1. In the years following the fruit-bearing stage, direct production costs are between 2.5-3.9 million HUF ha-1, depending on the given average yield. On the contrary, 5.6-11.1 million HUF ha-1 revenue can be reached based on the current market prices, resulting in a gross margin of 3.1-7.1 million HUF ha-1. Under the modelled circumstances, return is realised on the plantation’s costs in 6-8 years. The net present value (NPVr=3.24%) calculated for the 15-year-long life cycle of the 10-hectare plantation is between 151-466 million HUF, while the internal rate of return (IRR) is between 23-45%. From the business management aspect, the advantage of sea buckthorn production is that it provides better income and return at a planting cost which is similar to that of other small fruits and berries. At the same time, the disadvantage of sea buckthorn production is the fact that yields are harvested every two years due to the technological characteristics of harvesting. The negative impact of this bi-yearly yield on liquidity can be eliminated with the so-called delayed planting.

Comparative economic analysis of superintensive and intensive apple orchards

The objective of thsi study was to compare economic aspects of superintensive and intensive apple production.
According to our results, conclusions and recommendations regarding the establishment of superintensive orchards are the followings: A yield of 60 tons per hectare in the average of the mature years provide a quite late payback, in this way yield losses should be avoided in the plantation of such a huge capital requirement. When yield losses happen, which cannot be avoided or may be avoided only in a limited way, up to 65 to 70 tons per hectare yield should be reached even in good years, in order to yield the average 60 tons per hectare in the long run. In this case yield losses from production technological mistakes must not be arisen. Inputs and professional expertise should be used in a maximum way in order to reach yields ensuring profitable production. Investment subsidies may ensure safer return. The return of a superintensive orchard from totally own sources may be risky under the domestic marketing conditions and selling prices, it is strongly uncertain.

Economics of apple-storage I: Comparative time series analysis of apple producer prices in Germany and Hungary

Based on standard econometric methods the article analyses the time series of fresh apple producer prices in domestic markets of Germany and Hungary. In Germany, as a consequence of high storage capacities the quantity offered in different parts of the season is relatively stable, that’s why only a rather limited price increasing can be detected. In Hungary, as a consequence of the limited storage capacity this fluctuation is much more important. The modern methods of time series analysis (ARIMA models, stepwise regression) can be efficiently applied for forecasting of price movements.

Technologies developed to avoid frost damages caused by late frost during bloom in the fruit growing regions of Siófok and Debrecen

The aim of the study was to fi nd out which of the methods used to avoid damages of late frosts would be the most effective for the fruit growing practice. Three technologies have been tested in the regions of Siófok and Debrecen-Pallag. The antifrost irrigation proved to be the most advantageous. For that purpose microjet sprayers are used, which are thrifty and do not need for that purpose large containers. With the aim to secure an even distribution of water, the sprayers are distributed on three levels: above and inside of the crown as well as on the level of trunks. On a large scale, a single microjet above the crown level would be suffi cient. By means of a detailed analysis served to set the optimum intervals between spraying phases: with each 15, 10, 5 and 3 minutes during half a minute. The synchronous presence of water and ice below the freezing point, the released freezing heat plus the water used much above the freezing point (9–10 °C) altogether maintains the temperature above around 0°C near the fl owers or growing fruitlets, meanwhile, the surrounding air cools down to –8 °C. The effectiveness of the generally used anti-frost would be increased substantially by the former application of cooling irrigation, which delays the blooming date. The Frostbuster represents a new technology developed for the same purpose of frost defence. It uses butane burning and produces high (80-90°C) temperature with a strong blast of air. On the protected area sensors have been distributed for measuring temperature and relative humidity. The means of the measurements proved a rise of temperature, which was suffi cient to save the fruit trees until the difference is less than –3–3.5 °C. Our analyses stated that paraffi n candles avert the frost until –4 °C. Its success depends largely on the intensity of air movements. A small wind would be enough to frustrate the effect. The results show clearly the utility of Frostbuster and paraffi n candle combined is approved.

Challenges of the vegetable and fruit market

The situation of the horticulture sectors have been in the limelight of the professional and economic decision makers all over Europe. This article analyses the situation of the sector from economic point of view and reveals the main reasons of its low income and high risk. It concludes that one of the biggest problems is the trading uncertainty in the vegetable and fruit sector that is caused by the asymmetric market structure of the post-regime era. Since sizes of vegetable and fruit plantations do not allow producers to supply individually the extremely concentrated food retail trade or the processing trade they must find alternative ways for trading their products. The study introduces two alternative solutions. One alternative is foundation of modern multi-level producer co-operatives with the help of EU subsidies. Secondary and tertiary co-operatives may achieve better market position and lower trading price risk with managing production, professional marketing, and improving the information flow. The other alternative is searching for new trading channels such as local provision, restructuring of local markets, and direct trade (home delivery and pick-it-yourself programmes). The shorter producer-consumer distance means better quality at lower price for customers and income in the case of smaller amount of products for producers. It is concluded that both solutions together or separately may help individual producers in their trading problems. However, whichever way they choose, producers must co-operate.