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Market competition and concentration in the world market of concentrated apple juice
129-135Views:167In the study, I examined the market competition and concentration in the word market of concentrated apple juice. I used RCA index to determine comparative advantages In the world China possesses the strongest comparative advantages. Besides China, Poland, Hungary, Chile, Ukraine, Turkey and Moldova possess strong comparative advantages too. I used Herfindahl-Hirschman-index to determine the market concentration. Based on it – excluding the high Chinese market share between 2006 and 2010 – the world market of concentrated apple juice can be considered as a market with a moderate concentration. Based on the secondary research the study has a detailed examination of cause and effect relationships behind the RCA and HHI index results
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The Possibilities of Futures and Option Hedge in Price Risk Management for GrainProduction
72-80Views:95The greataest risk tograin production is fluctuation in market prices, which is over 50% over the course of a year; and year by year, as well. There are real market circumstances in the grain market, instead of state guaranteed fix prices, which was the norm under the former political system.
According to the general opinion of producers, losses come from their defencelessness against buyers. The real situation is that price risk can be managed by suitable market strategy, and loss production can be avoided.
Hungary has a futures market (which is organized according to the CBOT system) in the grain sector, which is an unique institute in Europe. This organisation is suitable for hedge businesses and it has convenient technical and institutional background.
There are two possibilities to make hedge business. One of them is the short hedge with futures contract when the producer sells his product for long term if an acceptable profit is included in market price. In this case seller can protect himself against low market prices.
This technique can be considered as professional for price risk management, but possibly has financial cost because of the weak financial situation of Hungarian producers this solution seems expensive for them.
There is an other possibility in the Commodity Exchange for manage price risk, that is the option technique. This solution is suitable for insure prices as well, and has an other additional advantage, namely: there is no financial costs in this case. -
Wine market trends in the EU and Hungary
101-105Views:118Traditions of the Hungarian grape and wine sector go back centuries. However, although this sector is proud of its rich traditions, it has gone through several shocks. Having joined the EU, Hungary has become a part of the integrated internal market. The commercial obstacles and difficulties among EU-members and Hungary have officially been removed. At the same time, within the Common Agricultural Policy, the wine market has been organised at community level by EU-members. There is no possibility for the sector to access any kind of direct supports from the Hungarian budget, unless such activity is definitely allowed by community directions or unless Hungary were authorized in the framework of a supplementary procedure. After joining the EU, the customs-protection - which aim was to protect the EU-market against the third countries - reduced, so wine producers from overseas countries emerged with their competitive wine prices in the home market and also became competitors of Hungarian wine producers who have been working under low technically equipped conditions. In order to increase the competitiveness of Hungarian wines, it is essential to improve the machinery of producers and to improve the equipment of winecellars. Finally, it is also vital that Hungarian wine producers develop a well-constructed marketing policy.
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Possible explanations for the transformation of the Northern Great Plain Region's labour market
69-78Views:79As a result of the processes of hungarian economy and society the increase in territorial differences is noticeable in the last few days. The changes in society's status, the rate of increase and the level of development can be tracked for example in the diverse variation of labour market. In my study I would like to demonstrate the typical processes of labour market based on the time scale between 2000-2007, and I also want to reveal the root causes of the change in unemployment rate. The source of data is a regular, representative labour-survey by the Hungarian Central
Statistical Office based on interviewing people, as well as registration on place-hunters by the Employment and Social Office together with the summary of governmental subsidy. I targeted the age-groups between 15-74 years in my analysis, but the results are not modified by the over 65 years old population because of their small economical importance. I define the status of labour market by markers among others like economical activity, employment rate, unemployment rate, and I also consider the change in the amount of registered place-hunters in the period examined. My aim is to determine the responsible coefficients of the change in unemployment rate. -
Presentation of sales price reserves for live lamb
37-45Views:99Although sheep breeding in Hungary is grounded in strong traditions, its activities only comprise 1% of the total production value generated from agriculture, and 2% of that for animal-based products. The most significant portion of incomes earned in the Hungarian sheep sector has, for years now, stemmed from the sale of live animals. The sector is decidedly export-oriented, as the domestic demand for its main product, i.e. lamb meat, and is minimal, equaling some 20-30dkg per person per year. Part of the sold animals is sold to market as dairy sheep, while the greater
part is sold in the category of lamb carcasses. For this reason, the average weight of slaughter sheep has lied between 19-22 kg for years now. The target markets for live lamb sales are predominately Italy and Greece. In Greece, movement on this market has shown an upward tendency in recent years; noteworthy are also sales to Austria, Holland, Bosnia-Herzegovina and Poland. In 2003, we exported sheep meat in the form of carcasses to Italy, as well as to Germany, and of these exports, 94% went to Italy, while the remaining 6% went to Germany.
Among sheep products, only the trade balance for live animal sales is positive. But even for such producers, only those who are specialized in intensive breeding and those sheep farms “targeting” meat production can obtain earnings. Specialized literature on the sector argues that the quality of Hungarian lamb has diminished dramatically and is beginning to lose its market position. If Hungarian lamb does not meet market expectations, then it will only be bought from producers at lower prices.
My research focuses on those factors which influence price. I separately discuss the question of quality, as one of the most important decisive factors on price. Within this discussion, I describe the market expectations which actually have an effect on the acceptance of live animals for sale on commission. In practice, after the problems of quality, the next most important question is that of when sale is made. In the course of my research, I studied the development of averages for sales on commission of live lambs using statistical methods. The most important problem of this sector is the hierarchical system used in sales: this is the topic hich neither the producer, nor the buyer, wish to discuss, not even with each other. On the basis of the information at my disposal, I outlined the levels of traders and individual levels used to arrive at commission prices. Finally, I examined the components of the production value of live lamb sales. The results I obtained quantified the key role of the prices and the yield, as well as the factors influencing income. -
Career Monitoring, Institutional Assessment and Ranking
73-77Views:107The labour market started to make a difference between the diplomas issued by higher educational institutions. The decision of prospective students considerably depends on the labour market value of a certain diploma. Career monitoring of graduates is a very important task of higher educational institutions. Feedback and experiences from the graduates and the employers are valuable sources of information for the institutions to shape their teaching activities in order to meet the actual demand of the labour market. Career monitoring of graduates is not a common activity at present in Hungary. Some institutions regularly monitor the labour market position of their graduates, but unfortunately most institutions do not invest time or manpower in such activities. A country level study has already been introduced that included almost all the higher educational institutions in Hungary. This study, coordinated by the Hungarian Ministry of Education, appears ready to be continued. The aim of this study is to introduce some institutional and country level initiations of career monitoring.
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The Developmental Possibilities for Methods of Real Estate and Farm Property Evaluation in Agriculture
241-247Views:95Different 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. -
The correlation of foreign language proficiency, employment and regional competitiveness in the North Great Plain Region of Hungary
74-82Views:69Employment is one of the basic factors when evaluating a region’s competitiveness. Boosting employment figures will also increase individual income. However, the creation of jobs alone will not solve the problems of unemployment, as labour force with skills matched to labour market demands should also be available. Continuous development of the labour force, adjusted to recent needs in the labour market, can contribute to a region’s competitiveness. Mismatches between education and labour market requirements would be too expensive, especially for backward regions like the North Great Plain Region of Hungary. Foreign language education should also be adapted to the changing economy when selecting target languages and language skills. A workforce equipped with contemporary and needed second language skills can be an element in making a region attractive for investors. Although current trends show signs of improvement, Hungary and especially the North Great Plain Region still does not have much to offer in this respect. The paper examines the reasons for the low level of second language acquisition among Hungarians and the population of the North Great Plain Region and explores the ways foreign language knowledge could promote economic development.
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Possibilities of Corn Seed Commercialization on the Hungarian Market in 2003
166-169Views:93According to the sales results of the past two years we can draw the conclusion that although the Hungarian hybrids have very good capabilities, they are still in a big disadvantage in the corn seed sales sector, considering other foreign varieties. These above mentioned disadvantages, as published in prior essays, are not because of the variety’s low quality, but the lack or little presence of marketing. In order to gain position and market on the seed sales sector in Hungary, a lot more has to be done in the area of advertisement.
Seed advertising is very particular and different from all other types of goods. To make growers familiar with your product, you have to be in continuous contact with them, through field days, exhibitions and presentations, besides the well known and in other areas also used quotidian advertisement methods.
Although Hungarian breeders reach better and better results each year, they still cannot catch up with the multinational companies spending millions of dollars on development and advertising, thanks to their financial position.
Finally we can state that choosing the appropriate variety for our needs and possibilities of land and machinery is of great importance in order to reach the best results we can. -
Labour market characteristics of Ukrainian employees with special regard to the North Great Plain region
67-72Views:141National Employment Public Foundation founded our research to examine the employment characteristics and job market importance of Ukrainian citizens in Hungary in 2008. As the means of our investigation we analysed available statistical data and conducted a survey. Ukrainian citizens working in Hungary with valid work permit were questioned. 226 people were in the sample.
Hungarian job market processes were not significantly affected by the officially employed Ukrainian citizens because their number was rather small in relation to the number of registered unemployed people and in relation to the available job positions. It can be stated that Ukrainian citizens mainly work in positions where high specialised knowledge is not a requirement.
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How can we determine the expected prices for lambs? – Analysis of the Hungarian and Italian lamb prices
59-67Views:79The Hungarian sheep sector has become a one-market sector, almost the whole amount of slaughter lamb went to Italy, which increased its defenselessness. In addition to the sole Italian market showing a permanent demand for Hungarian lambs, it would worth to exploit possibilities in other European markets considering the seasonal differences in Italian prices. Such markets can be the Spanish and Greek for ”light” and the French, German and English markets for ”heavy” lambs. Both the Italian and Hungarian prices have three major periods: Easter, Ferragusto and Christmas. Due to the changes in the prices, the producers often suffer great losses, therefore, the temporal adaptation of production, market research, technological and development activities need to be improved. It is important that the living of Hungarian sheep breeders should not be dependent solely upon the Italian market, distribution of products should be ensured in other markets too, so that the safety of sales be increased and higher prices and higher income could be achieved. The European lamb prices are characterized by large seasonal fluctuation and the degree and timing of changes are different in the different countries. Study of the literature and the results obtained in my study on lamb sales called for an analysis and study of the possibilities of price forecasting. In my study, I performed a forecasting of lamb prices in Hungary and Italy for the period between 1996 and 2006 based on the data of the European Committee. Among the forecasting methods, seasonal decomposition and SARIMA models are the most precise, producers can achieve a better market position by using these in the practice.
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Price Risk Management by Futures Markets and Public Warehousing
58-65Views:98The principal achievement of this paper is the combinative use of two market institutions: public warehousing and commodity exchange and how their joint application is beneficial for the players on the grain market. Based on a theoretical foundation, a calculation model was developed in order to assist short and long-term marketing decisions. It allows all the three participants of the market: producers, consumers and traders, to use this model in order to establish their own business strategy. The model can be used to analyse factors influencing the establishment of price; therefore, it can be also used for policy-making decisions.
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Examination of requirements of labour market, connected with competencies of agrienvironmental engineers and nature protection engineers
81-87Views:108The most important goal of firms is to supply demand of their economic partners. To make it successfully, highly qualified human resource is needed. The quality of human resource is determined not only by qualification, command of a language, professional experience, practise, but extant competencies that can also be developped. To choose the expectant employee, it is not enough to have intelligence and proficiency. It is also decesive to examine particular competencies. All of these will define the employee’s achievement that can be the right way to the success of
the enterprise.
It is need to make the cooperation between higher education institutions and employers closer. As a result of this, employers can know theirs ways about possibilities of the new higher educational training system. They can use professional knowledge, competencies of the Bologna system’s graduates at different pointsof the economic life. The higher education institutions can revise their training systems considering requirements of labour market. According to these requirements, they can form syllabus in order to train auspicious experts. -
Expansion of the small cable television counterparts of market leading commercial channels in view of Hungarian regional and social aspects
107-110Views:182Currently, there are 102 Hungarian-language television channels in Hungary. TV2 Hungary is the second largest commercial television channel. Current trends in the television market in Europe indicate that large channels are expanding their portfolios while at the same time selling their smaller units. This trend has now affected Hungary as well.
After having TV2 for 16 years, MTM-SBS Television Ltd. eventually expanded its portfolio with three new cable channels. The first new channel was FEM3, a channel directed at women, which was launched on January 1, 2010. A year later, the male channel, PRO4, was launched and finally, SuperTV2, primarily a premium entertainment channel, was launched on November 2, 2012. Although the main channel, TV2, remained free, the new pay channels on cable received a significant amount of investment from venture capitalists and Pro7Sat1 for the development of new content.
SuperTV2 is a premium channel. When the channel was launched, the goal was to target those viewers who had turned away from watching the increasingly less-sophisticated content on the commercial channels as well as those who were not drawn to the programming on public television. When the viewer stats were examined, the channel had proven itself. The premium brand of Super TV2 was successful in attracting new viewers and consumers and within a year it had gained a strong foothold over more than 100 other Hungarian-language channels.
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Marginalisation and Multifunctional Land Use in Hungary
50-61Views:89Our study prepared as a brief version of National Report in the frame of EUROLAN Programme. We deal with the interpretation of some definitions (marginalisation of land use, multifunctionality of land use, marginalisation of agriculture, multifunctionality of agriculture), with sorting and reviewing indicators of marginalisation and finally with the analysis of functions of land use. We suggested a dynamic and a static approach of marginalisation. We can explore the dynamic process by time series and the static (regional) one by cross-section analyses.
It is very hard to explain the perspective of the future of marginalisation of land and of agriculture in Hungary. The process of marginalisation seems faster in the agriculture in the coming years, but it depends on the utilisation of new possibilities given by the EU financial resources and by the Common Market. At this moment agriculture seems one of the big losers of the accession.
In the long term we should face considerable challenges in the land use. It is necessary to take into account that there is a supply market of foods and traditional fibre production world-wide. There are limited possibilities to produce and to market for example biodiesel (fuel), bioethanol, or maybe biogas. Thus the environment and landscape preservation becomes more and more real land use alternatives.
The environmental interpretation of the multifunctionality of land use: activities (functions) of environmental preservation and nature conservation in a certain area, which aim to preserve natural resources by the existing socio-economic conditions.
Preservation of rural landscapes is the task mainly for land-users, who can be commanded by legal means and can be encouraged by economic measures to carry out the above activity. In the recent past measures of „command and control” type regulation were predominant, however nowadays, especially in the developed countries, the role of economic incentives increases.
As a conclusion of our analysis we can state that as long as the main land-dependent activities (agriculture, forestry, housing, tourism, local mining) cease to be viable under an existing socio-economic structure, then it is hardly possible to sustain the rural landscape on an appropriate level by non-commodity products (such as environment preservation, cultural heritage, nature conservation, employment etc.).
1 The study was prepared in the frame of EUROLAN (EU-5 Framework Project), QLK5-CT-2002-02346, as a compiled version of the Hungarian National Report, The national project co-ordinator: Prof. Dr. Gabor Szabo.
A part of places with high ecological values coincides with the areas with unfavourable agricultural endowments and underdeveloped micro-regions. We think so that the marginalisation preserves the non-environmental-sound activities and hinders the development of multifunctional agriculture and this process can change only by joint utilisation of endogenous and exogenous resources and methods. Thus the successful programmes for agri-environmental protection and multifunctional land use can serve the moderation of negative effects of marginalisation or maybe the marginalisation process itself. -
The role of self regulation and market mechanisms in tertiary education
91-97Views:122The social functions of tertiary education have gone through considerable changes with the transformation of economic environment in the more than two past decades. In the decade after the political transformation the number of students in the tertiary education increased more than threefold. Personal interests, social needs and the demands of the society lay different claims to the performance of this sector. The needs for structural transformation of the tertiary education system are connected with the development of social and economic processes. The changes of legal regulations determining the operation of the sector are induced by these factors, which refer to the autonomic characters of the public participants. Tertiary education possesses a specific market environment each of whose characters – both the supply and demand sides – strive for the enforcement of self-regulatory mechanisms.
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The R&D and innovation activity of agribusiness enterprises in Hajdú-Bihar County
67-71Views:137Economic changes have significantly accelarated in the 21th century. In this turbulent market environment enterprises are forced to adapt continously as they must be flexible in order to meet changing market needs. To achieve flexibility companies require innovation. The economic relevance of innovations is significant in every market sector and agriculture is no exception. Re-dynamizing agricultural innovations is a possibility for the outburst of the Hungarian agriculture. Agricultural enterprises have to face competitors as well and they should give priority to efficiency, sustainability and competitiveness in order to preserve their position in BOTH global and domestic markets. This study examines the innovation potential of the agricultural enterprises in the North Great Plain region based on own databases and case studies.
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Present situation and future prospects for Hungarian fruit and vegetable sector
31-38Views:88Changes in people’s lifestyles and the emergence of nutritional science have created favorable opportunities for a boom in fruit and vegetable consumption, which have been fully exploited by the adaptive fruit producer and exporter countries. Unfortunately, Hungary is not one of these countries. Affected by a number of uncertainty factors, the Hungarian fruit and vegetable sector has fallen behind international trends, seeking opportunities for survival (Erdész, 2007).
The impacts of the country’s accession to the EU have been more adverse than expected. While no administrative measures are used to control production and the increasing competition and import have put Hungarian producers to a loosing position. The cooperation producers, the well-organized work of professionals and the coordinated activity of producers marketing organizations may resolved some of the problems affecting the sector.
The fruit and vegetable sector can also anticipate significant changes during the new seven-years budget period of the CAP reform.
With the new drat reform of the sector, the European Commission intends to simplify the common organization of the fruit and vegetable market, improve competitiveness, increase market orientation, promote fruit and vegetable consumption and to continue the environmental efforts.
Hungary has had great expectations concerning the reform of market regulation, but the Commission proposal didn’t bear out the expectations, because the new proposal includes insignificant changes in important issues and fails to provide sufficient additional resources for the catching up of he new member states. -
The structure of tertiary education, training and research potential influencing factors
49-53Views:140Nowadays more and more pronounced demand for tertiary education appears as an output of the labor market and the real labor market needs coordination of intention. A necessary condition for the long-term sector strategies, conscious coordination. In Hungary – the sector management level – headed tertiary education training structure and the transformation of the institutional network. There is a close relationship between training supply and research and development potential, as an institution typically the same disciplinary education and research base continues. Based on this, we assume that the structure of the training may influence the development of the restructuring of the research and development potential as well. The institutional network reorganization (merger, liquidation, establishment of new institutions) is expected to result in a former spatial structure of tertiary education in the modification, which in itself is a training and research supply spatial rearrangement may apply. Against this background, questions have been raised as to how the objectives in the current tertiary education strategy for economic operators serving the needs of each territorial unit, how the institution fits into network transformation of economic structure and labor market needs of the regions.
In order for the Hungarian tertiary education can meet the requirement for industry standards, an essential part of the structure of industries, and the changes occurring in the economic structure, trends and industry relations in the investigation. On the other hand, we do not ignore those factors are not, which have a determining influence on the tertiary education institutions in training and R&D supply. As part of this study in tertiary education institutions will be examined possible factors influencing education, research and development demand and supply, which gets a prominent role in the economic structure of relations between the territorial dimension in the evolution of discount factors and the nature of particular sectors.
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Pricing in the pig production
25-29Views:96During 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. -
Innovation activity of the agricultural enterprises in the North great Plain region
237-240Views:98Economic changes have significantly accelarated in the 21th century. In this turbulent market environment enterprises are forced to adapt continously as they must be flexible in order to meet changing market needs. To achieve flexibility companies require innovation. The economic relevance of innovations is significant in every market sector and agriculture is no exception. Re-dynamizing agricultural nnovations is a possibility for the outburst of the Hungarian agriculture. Agricultural enterprises have to face competitors as well and they should give priority to efficiency, sustainability and competitiveness in order to preserve their position in BOTH global and domestic markets. This study examines the innovation potential of the agricultural enterprises in the North Great Plain region based on public databases and case studies.
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A study of social and economic influences of universities in the Derecske-Létavértes subregion
153-157Views:119Businesses operating in the region – adopting to local conditions – mostly pursue agricultural activities. Their R+D activity is rather moderate and largely focuses on development, moreover, the range of innovative businesses is relatively significant, which businesses – before long – will become potential partners for institutions of higher education (especially for Debrecen University).
Social impacts of universities are notable on the person’s status in the labour market. Our study of the Derecske-Létavértes region shows that those with a university degree have an advantageous position in the labour market, compared to the sample of youth aged between 16 and 35. Knowledge obtained at college and other skills greatly help the young to find employment.
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The change of youth unemployment based on the concept of precariat
105-108Views:131Youth unemployment is a hot potato issue worldwide, including Hungary and its reduction is a major focal point in every country. Today's labour market is characterized by uncertainties and unpredictability while flexibility, project-related employment are emphasized, which pose different expectations on employees than before. This phenomenon is included in the concept of precariat. In the present study the labour market status, future potentials and options of youths in the Derecske district of Hungary are described.
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Population date of Great Cormorant at the area of the Hortobágy Fish Farm Co.
51-54Views:268Hungary’s great cormorant stock did not use to be a considerable one before the 1980s. After that, their number has been rising significantly. The size of the stock now is rather stagnating or slightly growing. The presence of cormorants has been significant around ponds of the Hortobágy Fish Farm in the past few years. Due to considerable fish consumption of cormorants it is essential to know which and what kinds of units of the ponds (spawning, supply, and market) are preferred by the birds in order to see to adequate protection. The aim of our research was to discover any differences in the number of cormorants present at particular units of the fishpond system and certain ponds of equal kinds within them.
Our observations were in line with the methods used in ornithological researches. The experiment took place between April and October 2012 on a monthly basis. According to the results we found relevant differences in the number of cormorants based on the seasons and months as well. This fact was supported by statistical data. During the autumn and winter birds prefer supply and market purpose ponds while their presence here is vanishing during the summer. Relevant presence of cormorants around the area of the Old Fishponds (70 to 200 specimens) might be due to lack of disturbance and large sizes of the ponds.
Our research has great scientific relevance since it is vital to be aware of the preferred periods and areas in order to maintain effective protection; this way alerting activities can be applied in a more harmonized way. By keeping our research up as a monitoring activity, we will be able to receive more precise data later on.
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Effect of facility location on haulage efficiency
204-209Views:91In the 21st century, every economic sector must use the chances of evolution, technical and technological acquisitions, due to the level of competitiveness on the market. Such a sector as agriculture, where technology and the ideology of production are changing and adapting very slow to global expectations, by taking maximum advantage of opportunities, is a more central question. The greatest problems of Hungarian agriculture’s competitiveness are that this sector is very weak in capital and production costs make producers uncompetitive on the market. We can remedy this situation by using sources logically, purposefully and system approached. Logistics can provide the most useful assistance in such efforts.
In agricultural logistics, there is a great deal of uncovered territory. The aim is to transplant methods that are working correctly in other sectors into the agricultural sector, while maintaining development. One of the most important areas is transport logistics and material movement. Methods of analyzing and planning transportation and material movement found in professional literature do not take into account the specific needs of agricultural production. My aim is to examine the effect of facility location in the running of an enterprise. Through the results, I make suggestions for modifying the currently used logistic method and suggest further methods of examination. The effect of agro-specific needs must be examined in carrying out innovations and making logistical planning methods reliable.