Our country has great traditions in the field of beef production. As early as the Middle Ages, Hungary was known as Europe’s beef exporter. In this decade, production of the Hungarian Grey has increased, due to the popular method of keeping these animals extensively. These animals were even exported to the European markets on foot.
The economic activities must be judged by their effectiveness and profitability, but in most cases their effectiveness can only be seen through such outstanding facts which are independent from the farmer.
I would like to model the economy of a certain enterprise, and the size and the level of its production, through my research under the actual economic circumstances. In my research, I pay special attention to the circumstances which are important in the Hungarian agricultural sector and rural development.
Since 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 opportun...ities 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.
technical and economic characteristics, which give rise to high levels of uncertainty and greater control in the supply chain. In order to investigate the role of different transaction costs in marketing behavior, we carried out research in the central region of Hungary among beef retailers and wholesalers. This research is based on primary dat...a collection and examines the motivation of choices in the beef sector on distinction among different marketing channels and the role of transaction costs in procurement. Since this case can be regarded as a qualitative choice situation the hypothesis that transaction cost’s variables are significant is judged by the application of multinomial logit model in order come up with the variables that can influence the supply chain structure and the choice of different marketing channels. This analysis enabled us to explore the structure in data and confirm or reject the expected interrelations of causative variables. Our
1 A szerző témavezetője Dr. Fertő Imre.
2 A kutatás az OTKA F038082 sz. „Vertikális koordinációs és integrációs modellek az élelmiszer-gazdaságban” c. programja keretében valósult meg.
3 A szerző köszöni Dr. Fertő Imrének és Dr. Szabó G. Gábornak, a Magyar Tudományos Akadémia Közgazdaságtudományi Kutatóközpont tudományos főmunkatársainak a kutatás során nyújtott nagy értékű segítséget. results partly support and contradict the basic predictions of transaction cost economics.