No. 29 (2008)

Pricing in the pig production

Published July 28, 2008
Andrea Bartha
Debreceni Egyetem Agrár- és Műszaki Tudományok Centruma, Agrárgazdasági és Vidékfejlesztési Kar, Vállalatgazdaságtani és Marketing Tanszék, Debrecen


Bartha, A. (2008). Pricing in the pig production. Acta Agraria Debreceniensis, (29), 25–29.

During my research work I will exame the state of pig production and the pigmeat trade in Hungary as well as in the EU. In this article I am looking at this branch, I plan to ask consumers about this topic. There is no point in importing pork if there is no market for it. The reality is that we like what is new, unusual and different. What lies behind this way of thinking?
Everybody agrees, consumer habits differ culturally, and this is true in European countries as well. I find it interesting to examine what parts of the pig are favoured the most by consumers in certain countries. As habits are different we can say that certain countries prefer pork chops while on other countries’ menus pork knuckles can be found. If we follow this train of thought it becomes apparent that due to these differences the price of pork varies from country to country.
According to figures, it is clear that certain countries are able to produce pork products cheaper. Since market works on the principle of supply and demand, those who offer their products cheaper will have a greater chance of remaining in this sector. Those on the other hand who can only produce their products at a higher price will eventually disappear from the market. The price is determined by the rate of the forint to the euro. Today’s strong forint is leading to the growth in imports. Recently, pork exports have fallen, but if the rate were to be 280 forints as it has been in the past, then it would be more favourable to sell pork products.
As Hungarian prices are high, meat processing companies are forced to import from neighbouring countries, which means a cheaper source of product. This has led to a decrease in the number of pig in Hungary meaning that we are now an overall importer of pork products rather than an exporter.


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