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Analyzing the Efficiency of Dairy Farms by Using the Method of Data Envelopment Analysis (DEA)
17-21Views:267In Hungary the dairy sector is in a long-term critical period, the stock has been in constant decline. The consumption of milk and dairy products in Hungary is slightly rising compared to the world tendency, and it is fallen behind the level in 1990. The milk consumption per capita in 2006 was with 75 liters less than the EU-15 average. Dairy enterprise is a very risky activity: the profitability of the enterprise is affected by the fluctuation of feed and animal health products prices from the side of inputs, and by the fluctuation of end-product prices. Under these circumstances it is vital for the
cattle breeders, in order to survive, to harness the reserves in the breeding as effectively as possible. In our research we made a multi-faceted efficiency analysis of an agricultural holding’s three dairy farms. The chosen method for the analysis was Data Envelopment Analysis (DEA). The
selection of the method is justified by the fact that there is not such a reliable database by which we could define production functions, and that DEA makes possible to manage several inputs and outputs, i.e. multiple decision problems, simultaneously. By using DEA the sources that causes shortfalls can be identified, analyzed and quantified on farms that does not operate efficiently, thus it can help the corporate decision support successfully. In the model inputs are the cost data per one liter milk – feed, medicinal product use, logistic costs -, and the main parameters
concerning the keeping and rearing. Outputs are indicators concerning milk production, milk quality and others. We prepared the model in MS Excel, the linear programming model series were programmed by Visual Basic. After solving the model, in light of the shadow prices we can determine why either of the farms is not efficient. -
Economic Aspects of Winter Wheat and Sunflower Production Under Organic Farming Methods
256-261Views:159On the basis of data from selected organic crop producing farms around Hortobagy and a significant conventional agricultural enterprise, the efficiency calculation of two important crops, winter wheat and sunflower were compared to each other, according to the organic and the conventional farming methods. The analysis was carried out on the basis of data of the year 2002, helped by the calculation and the comparison of the efficiency indexes. According to the results, the organic winter wheat was more highly profitable in 2002 than the conventional one, and this is because the price ratio of the two was quite high, however the yields and the production costs per hectare were almost on the same level. Considering the sunflower, organic farming was less productive than the conventional one in 2002, as the average yield in the examined organic farms was significantly lower than under the conventional farming method, and this was not compensated by the extra price for the organic crop product.
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The effect of fertilization and plant protection in sunflower (Helianthus annuus L.) production
57-63Views:371Sunflower is the most important oil crop in Europe which is grown on the biggest area of all the oil crops. The area of producing sunflowers in Hungary was changing to 524–704 thousand hectares in the past decade in comparison with approximately 100 thousand hectares in the 1970’s. In our experiment different sunflower hybrids were examined. The doses of fertilizers were the following in 2017 and 2018: 0–30–90–150 kg ha-1 N, 0-50-90-90 kg ha-1 P2O5 and 0–70–110–110 kg ha-1 K2O. Three different treatments of plant protection were used in the experiment to protect them from fungal infections. A rise in the dosage of nitrogen resulted in increasing infection. The biggest fungal infection was identified in 150 kg ha-1 N, 90 kg ha-1 P2O5 and 110 kg ha-1 K2O treatment. The largest infection was measured on plots without plant protection at the highest N doses, both in leaf and disc diseases. We measured the highest 41.25% in 2017 and 53.1% in 2018 Diaporthe helianthi infection, and 24.5% in 2017 and 25.5 % in 2018 Sclerotinia sclerotiorum disc infection in these plots. kg ha-1
Average yield was changing between 2.96–4.67 t ha-1 in 2017/2018. The lowest yield was obtained in the absolute control plot (without plant protection and without nutrient) in both years, which was 2.96 t ha-1 in 2017 and 3.14 t ha-1. The yields increased due to growing nutrient supply and excellent plant protection. The highest yields were 3.67 t ha-1 in 2017 and 4.67 t ha-1 in 2018 (150 kg ha-1 N, 90 kg ha-1 P2O5 and 110 kg K2O active substance). Purpose of the experiment at analysing the impact of different treatments on the profitability of sunflower production.
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Survival analysis of sow longevity and lifetime reproductive performance – Review
75-80Views:545Sow longevity plays an important role in economically efficient piglet production. Improving sow longevity results increase in the productivity and profitability of a sow herd. Longevity is a complex trait with many factors that can contribute to a sow having a long and productive life. Not only the sow’s genetics, but also nutrition, environment and the management policies are important. In addition, the removal of non-productive sows along with the introduction of replacement gilts is an essential part of maintaining herd productivity at a constantly high level. The objective of this paper was to summarize the current knowledge about the sow longevity and lifetime performance values, as well as, discusses the survival analysis methods for sow longevity traits. This method can estimate the hazard rate indicating proportional risk of sows being culled at any given time, in addition, it is able to investigate the effects of different factors on longevity. Identifying factors that influence the longevity could assist many commercial pig producers in becoming more efficient.
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The ain impacts of the Lisbon Strategy on tobacco growing
80-87Views:144The Lisbon Strategy of the EU promises a more competitive Europe with more and better workplaces, in addition to sustainability.
Tobacco production is one of the most controversial industries of the agricultural sphere in the European Union. This crop is a „leader” of the world’s economic growth, a promoter of globalisation and has been an economic channel between America and Europe for more than 500 years. It is also a motor of technical development, due to its inducing effect on profitability and work efficiency. The tax competition of the states and the increase in consumption have become such a self-inducing system in which the increase of production created an increasing number of jobs, especially in tobacco growing, where the replacement of manual labour was much slower than the increase of the demand for raw material. The fact that smoking is becoming general should be handled as a social demand, though its health risks cannot be denied. However, the extreme objection to smoking cannot be accepted, especially not when it evokes social strains and concludes that people smoke because of tobacco production, al though the real situation is the opposite: People smoke in Europe, so the tobacco should be grown here, as is in our economic interest.
There is a contradiction between the strategic objectives and the roles of the industry which should be ceased urgently. Al thong aim is the creation of jobs, stopping tobacco growing could result in unexpected agro-social disadvantages. Rejection of the industry’s sustainability questions the realization of the keystones of the strategy. Competitiveness, sustainability and social cohesion should be implemented as a unit of the strategy also in tobacco growing. -
Effect of change of natural efficiency indicators for profitability of broiler chicken fattening
57-61Views:199I consider it important that the fattening of broiler producers in an economic sense to remain alive in the present difficult situation. This does not mean to me, that just does not generate a loss, but they do remain in their activities after income. Because if you do not have sufficient income in a given sector then the technology becomes obsolete over time and income deficit due to the possible improvements are still lagging behind, resulting in competitive disadvantages occur. The natural efficiency remains a priority, because fundamentally determine our competitiveness in the broiler production. In the present study, scenario analysis can prove the veracity of my claim, in point of the three most important natural efficiency indicators. The natural efficiency indicators of a company compared to the natural effectiveness of our country and the our competitions (Western-European countries).
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The Developmental Possibilities for Methods of Real Estate and Farm Property Evaluation in Agriculture
241-247Views:162Different methods for evaluating property have gained greater importance in agriculture since the change of regime. The open market evaluation could be the best method if the agricultural property had significant turnover, which could serve as a reliable comparison. However, there is no notable turnover, and selling is scarce. And, when there is some, the sales contracts are not available. On the other hand, the open market evaluation is almost the only one assessing method in Western Europe and in the United States. The matrix comparing market data in my methodological development helps to estimate the effects of the elements which determinate real estate value of farms.
Another method for evaluating farm property is the discounted future earnings. Enterprises are able to produce series of income continuously during their working periods, which can be considered as perpetuity. This is the base of the discounted future earning evaluation. Determination of income generating capacity is not an easy task. It is also difficult to choose the proper rate of capitalization. If this rate is higher than the usual level, the property will be underestimated. If it is lower, the property will be overrated. According to my calculations the profitability of certain farms of animal breeding may be evaluated under different operating conditions. Furthermore, the capitalisation interest rate may be determined in an objective way.
The problem of applying the depreciated replacement cost evaluation method is that there are big deviations among investment costs in tenders of contractors; moreover the estimations of special depreciation forms are rather subjective. One of the process’s greatest difficulties for reliability is that it is doubtful whether depreciated replacement cost could reach the real market value. The utilisation of this method may be spread further in the future by standardising average gross replacement cost of building as well as by measuring depreciation more objectively. -
Bioenergy production: are the objects realistic??
53-58Views:163Currently we do not have the possibility to define our energy reserves, since we do not know the magnitude of extant material resources. The known petroleum (crude) supply will be sufficient for about 100 years at the longest, and according to the latest estimates in 2008 we will reach and even exceed the maximum level of oil extraction, and after this it is going to decrease.
Hungary has good givens to go upon the way of sustainable energy economy according to experts, however a coherent government policy that lasts for not just one period is essential, and a sound economic- and agricultural policy is needed as well. According to the FVM’s under-secretary in Hungary more than 1 million hectares can be disposable for energy crop production. This would mean that 20 percent of the fields would be taken away from food production and on these fields energy crops would be grown. But we also have to take into consideration that the increase in energy plant production could happen at the expense of food production. If we would like to ensure the food for Hungary’s population from national sources we have to make calculations in determining energy need. In my research I set out the objective to determine the level of that specific turnover and marginal cost which supports the profitability of grain cultivation. With these indicators it is possible to analyze the economy and competitiveness of growing energy crops in the region of the North Plain. The alternatives of using cereals and rational land use should be also considered. A developing bio-fuel program can be a solution for the deduction of excess grain that is typical in Hungary for several years in the cereals sector. The pressure on the national market caused by excess grain can be ceased or moderated, and therefore the storage problems would decrease as well. -
Simulation of optimizing decisions and risk analysis in investment plans
160-164Views:159Investments always contain risks, as data referring to the future are planned and uncertain. Therefore, besides feasibility analyses we need to perform risk analyses, as well. Through statistic simulation methods, our aim is to examine how uncertain and prospective data as risk factors affect investment-profitability indices. On the other hand, our aim is to find out the optimal innovation – financing decisions by using decision optimizing
methods. -
The production and financial achievement of the agricultural co-operatives in 2002-2007
21-28Views:160The aim of the study was the examination of the achievement of the Hungarian agricultural enterprises – special regard to the agricultural co-operatives – based on the aggregated database of Hungarian Tax and Financial Control Administration (APEH), from the database of the Research Institute of Agricultural Economics. From the methodological aspect plain statistical devices were used, indicators for corporate analyses were
calculated and analyzed for the time series. One important conclusion is that the socio-economic weight of the agricultural co-operatives was strongly decreased in the period after the EU accession. The other important statement is that over the general examination of economic actors on an aggregated level the comparative analysis of the single enterprises forms would be needed. In the case of the co-operatives the separated examination of the former type producer co-operatives and the new type co-operatives would be necessary -
Evaluation of IT-Investments
378-386Views:163An informatical innovation is essentially a private business in the life of a venture but the ability of evolution and adaptability of ventures is remarkable for the national economy too. This is why it is important to observe the economical effects of IT investments. The introduction of an information system – as in the cases of other investments – requires pre- and post-calculations for payback of fixed assest, thrift and profitability. The operation of an information system means not only one-off acquisition of instruments and intangible assets, but requires continuous development, version control and improvement of hardware in the sake of conservation. There is a high rate of depreciation of IT investments in Hungary, because such goods change too quickly, together with the economic environment. If the conservation of IT instrument value wanted one has to make new expansions continually. IT specialists have determined some indices, one of which is Total cost of Ownership, which is an important indicator for investment analysis. In practice, there are some other models and methods we can adopt in our analysis. In this paper, I collected several relevant and usable methods for pre analysis of IT projects. Management can adopt these models in his investment process to make sound decisions.
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Novel market conditions and marketing consequences in the hungarian guided hunting sector
47-52Views:155In Hungary the operating medium of game management and the guided hunting sector is undergoing such a radical change nowadays that on the one hand it considerably influences the profit-producing ability of the sector, and on the other hand it sets the actors of the industry new challenges and opportunities. If the Hungarian hunting industry, which has a traditional past, also wishes to preserve its position in this changed business medium, it is essential that the new situation be thoroughly assessed, and the value-oriented marketing attitude be adapted. The phenomena presented in this essay discuss the consequences and causes of the appearance of new service providers regarding the supply side, and the content changes of the consumer group and the modification of earlier consumption preferences and their causes on the demand side. The changing of the two media jointly generate the adaptation of the value-oriented service - marketing concepts, by using which the areas to be developed and deemed as the narrow cross-section of consumer decisions can be determined. After specifying the target group specific marketing properties of the aove-mentioned – prestige – service, such services of high utility content can already be established successfully that can be positioned as a proper alternative for the new consumer group of higher value expectation. On the other hand, the employment and profitability indexes related to this sector may considerably be improved.
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Special Investment Support Under the Agricultural Reorganisation Programme 1995-2000
64-73Views:175Since the political changes in Hungary, agricultural businesses have worked in a declining economic environment and hectic market situation, with a widening price gap between agricultural and industrial products and low profitability. A declining export comes then by no surprise. The sector has not been able to even benefit from export opportunities provided in the European Agreement. The area least benefiting from quotas is animal products (beef, mutton, lamb, slaughtered chicken, cheese, egg). The ministry of agriculture was lagging behind in responding to these problems, and it was as late as in 1995 when it launched a reorganisation programme for export stocks fund build-up (5).
The author has conducted empirical studies on agricultural enterprises in Csongrád county to see what results the special investment support delivered under the reorganisation programme produced. The fundamental aim of the reorganisation programme for export stocks fund build-up was to boost exportable Hungarian animal product stocks in a bid for businesses to better benefit from the preferential quotas set by the European Agreement. The author examined how the special investment support scheme succeeded in its aims, whether livestock grew considerably in its wake, whether farmers were able to attain exportable quality and what development funds enterprises were able to raise. -
Survival Analysis of Hungarian Large White, Duroc and Pietrain Sows
31-36Views:453The aim of the present study was to perform lifetime performance analysis in three pig breeds; Hungarian Large White (n=295), Duroc (n=76) and Pietrain (n=91) on a commercial farm using analysis of survival sows. We took into consideration the age of sows at the time of their inclusion into breeding, their age at the time of culling, time spent in production, number of mating and parities, parity percentage, intervals between litters, number and mean of piglets born alive and born dead, number of raised piglet litters, number and mean of 21 days old piglets, the weight and mean of raised litter and raise percentage.
We carried out the analysis by SPSS 22.0. Single factor analysis of variants, Kaplan-Meier analysis and Cox PH model were used. The determination of the significance of risk rates differences was done by Wald chi square test.
Our results showed that the average culling age were 1056 (±33.52) days for the Hungarian Large White, 735 (±73.56) days for Duroc and 818 (±71.98) days for the Pietrain.
The log rank test of the survival analysis indicated a significant difference between the three tested genotypes (χ2=16.981, P<0.001), which means that the survival percentage of the individual breeds varied significantly from one another. In comparison with the Hungarian Large White genotype the Duroc genotype has a 1.6 times higher (P<0.001) culling risk while that of the genotype Pietrain was 1.36 times higher (P<0.001).
Our results can be used to compare the breeds kept under the same conditions and to compare the life span of one genotype under different farming conditions. Factors that increase survival and improve the profitability of pig farming can be determined by this method.