Vol. 11 No. 3-4 (2017)
From 19-24 June 2017 the biyearly AGRIMBA-AVA tool place in Debrecen,
Hungary. The conference was well-organised by our colleagues from the Faculty
of Economics and Business from the University of Debrecen.
The program covered a wide variety of topics, some very topical, as is demonstrated
in the selection of papers that is presented in this special issue of APSTRACT.
Among the very topical paper we find a paper in American trade policy with
the catchy title Agricultural policy : America first? , and another on the allocation
of structural funds before and after the Brexit, an exercise in the economics of
cake sharing. At a more local topical level this issue contains papers in the role of
social media in gastronomy industry , reasons for and obstacles to cycling, palinka
recognition within tourism and gastronomy.
The are several papers on topical lifestyle issues as on the role of demographic and
lifestyle attributes with respect to food supplements, another one on bread consumption
in a gluten free diet and a third one everyday physical education.
Related to lifestyles, are two papers on consumer behaviour of food consumption
. One paper discusses global consumption of pork meat and a second paper is on the
effect of protected geographical indication recognition and the willingness to pay ,
the case of the Grojec apple.
Hungarian agricultural sector. Attention in one pare is paid to the economics of
duck production, in another on the technical efficiency of dairy and beef production,
in a third paper on corporate on strategies in the dairy industry.
Three papers discuss other aspects of Hungarian economic life. One paper is a
methodological approach in determining rental values of land, a second one is the
application of advanced ICT in small and medium sized enterprises in the agro food
sector, and a third one relates to the enhancements of Hungarian relations in Southeast
Asia, Vietnam in particular.
Human resources is the topic of three papers. One paper is on the nature-nurture
issues in entrepreneurship, another one analysis the challenge of demographic change
in the agricultural economy and a third paper is on the recruitment of graduates in
Siberian agricultural enterprises.
Sustainability comes to the fore in papers. One paper is on the construction of a
composite sustainability indicator and regional development applied to the Stavropol
region in Russia, a second paper is on energy alternatives in large-scale waste water
management, a third paper discusses the effect of climate change on ski tourism. A
fourth paper concerns the differences of primary energy consumption across countries.
The next AVA-AGRIMBA conference will be organised in Ulaanbaatar in
Mongolia in June 2019.
Hungarian endeavours for the enhancement of economic relations in Southeast Asia focusing on a new partnership with Vietnam5-12Views:197
Beyond a brief review of the economic integration process among the states of the ASEAN region, the authors of the present study aimed to examine and analyze the main economic, social and political characteristics of the Hungaro-ASEAN relations. The importance of the topic of this research is underlined by the fact that the Hungarian government considers big importance to the improvement of the foreign economic relations with Asian economies. This intention was expressed by a new foreign economic strategy „Eastern opening” announced by the government in 2012, even though the foreign trade statistical figures did not justify its success by now.The authors believe that increasing opening towards Asia serves Hungarian economic interests. Therefore, it is a right and desirable direction to proceed, they consider that in the background of the modest results there might be the insufficient knowledge of the market mechanisms, the actors of the local supply chains and the potential partners. They believe that in order to make the Hungarian foreign economic endeavours in this direction more successful a more thorough examination of the local characteristics – including the actual demand arising at the targeted markets - is necessary. This opinion is prevalent to not only the Asian „Giants”, like China, India and Japan, but also to smaller states, like the ASEAN members, which – together - in terms of population and economic performance – reach the dimensions of an economic great power as well.
Furthermore, the integration of the ten Southeast Asian countries develops rapidly, which is coupled by their increasing weight in the world trade. The dynamic economic and social development in the ASEAN region – and in parallel with this the growing demands and purchasing power - may encourage the Hungarian ventures in theory. However, there are still very few Hungarian entrepreneurs, who are ready to enter the market in the region and able in long run to operate there successfully. It is a well-known fact that the since the regime has changed in Hungary, foreign trade became strongly concentrated towards the EU members.
The ASEAN countries – because of the geographic distance and by other reasons - definitely cannot mean an alternative of the EU market, however in a certain extent they can relieve this one-sided concentration and may provide additional opportunities for the Hungarian export of goods, and rather to the export of Hungarian services and know-how. The ratio of the ASEAN region within the entire Hungarian foreign trade turnover is small nowadays, furthermore – according to the statistical figures – this region is rather an import resource for Hungary than being an export market. This fact – just itself – is should not be considered as problem. When the amount of the import exceeds the amount of exports, that means that it is more worthwhile to do business with suppliers from there countries than with others. By and large all this is prevalent to the field of the agricultural trade as well: Hungary imports a range of commodities which cannot be produced by domestic farmers or in Europe (spices, tropical fruits, etc.). It is obvious that the ASEAN region cannot be the major market for the Hungarian agricultural export, not even in long run. However, there are still a lot of opportunities to enlarge the turnover of goods and services and enhance the co-operation in this geographic region. In the last chapter, the authors outlined an example in case of Vietnam – co-operation of joint public warehousing of agricultural commodities – which may be a good example for the promising potential opportunities. In contrast with the majority of the ASEAN countries, the Hungaro-Vietnamese political and economic relations had started much earlier than the regime was changed in Hungary. However, the potential advantages arose from this fact – the network of connections and the sympathy of Vietnamese professionals graduated in Hungary, the reputation and popularity of Hungarian agricultural products and technologies, the achievements of R&D in the field of agriculture – could not be utilized from Hungarian side. Vietnam, however still preserved its socialist political establishment, but in terms of its economic development strategy and economic policy has gradually been standing on the basis of market orientation. Vietnam, with its population of ninety million shows a rapid and successful development and it means good opportunities even for Hungarian entrepreneurs. It would be a mistake to leave these potentials unused.
JEL Classification: F14, Q17, R11, N75
Determining fair rental value of land in the Hungarian valuation practice – a methodological approach13-18Views:137
The directive of 1666/2015. (IX. 21.) called ’Land for Farmers!’ has changed not only the legal terms and conditions but also the economic basis of land use in the relation of land use and resulting derivative demand. Institutionalized rental fees can be modified to market level only if it is confirmed by qualified expert’s report hired by the new land owner. Setting a fair rental value has quite a few methodological approaches. Due to the lack of a legally recommended calculation process, authors hereby are presenting a method to calculate fair rental value that is beneficial for both renter and owner. Foreign rental conditions related to the topic are also concerned in the article.
Climate change effects on ski tourism19-26Views:313
Nowadays, climate change poses a common recurring problem in our everyday life. The weather forecasts tend to be inaccurate, the swiftly changing weather often makes fun of the people. The same unpredictability applies for forecasting the amount of precipitation or snowing. The major problem in ski tourism consists in the gradual shift of seasons, namely there is no snow in December yet, while at Easter-time we can count on such an enormous amount of snow. I’d like to present this climate condition and offer a sort of way out of this problem. In my empirical study, I have carried out document-analysis along the data collection phase, and I made half-structured deep-interviews, as well.
My research questions were the following: How is the winter season affected by climate change or by the lack of snow? Due to the unreliable climatic conditions what is the estimated ratio of drop in tourism in the season? How much shorter is a skiing-season and how does it affect the operation of the local ski-school? What are the features of pre, and post peak-season tourists’ emergence? How and for how long can a smaller ski-resort be maintained? What is the biggest challenge, problem at the ski-resorts along the state border?
First of all, I’d like to present and tackle the various solutions emerged facing the challenges of climate change effects related to skiing, on the other hand, I have made some personal interviews with Hungarian ski instructors working abroad and also with managers of Austrian ski schools trying to find out the various answers and reactions they have hammered out coping with the new challenges and difficulties in ski tourism.
Hungary can not be considered a skiing nation, although more and more people tend to take up skiing and get involved in this special field of sport tourism. The number of ski slopes being built and developed is increasing, yet the Hungarians ski-lovers tend to visit rather the foreign sport centers for the time being. The reasons mostly involve the various length and versatile difficulty level of the ski slopes. We should also take into account the challenging conditions imposed by climate change on the smaller winter sport centers and the way they can cope with it and also compete with other sport centers with similar features.
Climate change affects considerably the operation of skiing season, and the service providers must adapt to the new conditions. Many resort venues struggle for survival, though most of the local self-governments are clearly aware of the importance of ski-tourism, particularly in Austria.
Recruiting recent graduates to work at agricultural enterprises: Siberian region case study27-30Views:112
The authors present the results of the analysis of the employment of graduates of agricultural specialties in the Siberian Federal District of the Russian Federation. In the Siberian Federal District, more than 20 universities are engaged in the training of specialists in agriculture. The universities pay special attention to the employment of their graduates and often have their own programs of graduates’ employment.
The article is devoted to discussing the reasons why the graduates consider the work in the rural area to be unattractive (low standards of living conditions compared with town, lack of quality education for children and possibilities for professional development, etc.) The necessity of realization of the state strategy intended to support graduates of agricultural specialties is grounded, including assigning the status of civil servants to social workers in rural areas and attracting successful entrepreneurs to the village and creating conditions for the development of the entrepreneurial
JEL Code: J21
Infrastuctural background of the everyday physical education in Hungarian high schools31-36Views:147
The Hungarian government is dedicated to supporting a healthy and sporty life-style, thus in the past years the number of initiatives directed to publicizing and promoting sports has increased considerably. The new Law of Public Education has put the emphasis on physical education and on organizing other sport events in schools. This led to the introduction, in a phasing-out manner, of the every-day physical education (PE).
We were interested to know the infrastructural background of PE including the number and size of sports halls available for the students, how many classes can they accommodate at the same time, and when were they constructed. To this end a survey was conducted through telephone, contacting 200 high schools in 19 counties of Hungary. Do the schools have their own swimming pools, or do they conduct after-hours sports events. Data were analyzed using the EvaSys program.
The time of construction of the schools and their sports halls spans a wide range between the years 1530 and 2005. So do the number of students, between 150-1200. Nineteen of the schools have none, 67% has one, and 18.8% two sports halls. The size of these halls is also very variable, while in some schools it is only 25 m2, in others it can be as large as 2295m2. In most cases the halls can accommodate one or two classes in parallel. Afternoon classes are held in 87% of the schools, and include basketball, fencing, and soccer, among others. However, only eleven of the interviewed high schools have swimming pools. Research has called the attention to the fact that the exercise of Hungarian youth is too little. This puts the emphasis on the promotion of physical activity in schools. While there are large differences in the infrastructural background in the schools involved in the survey, they all strive to conduct after-hours sport events.
Increasing palinka recognition with tourism and gastronomy37-44Views:132
The history of Hungarian palinka distillation dates back thousands of years. Palinka is a special product; its quality features are being increasingly recognized and appreciated by consumers. Our national drink went through considerable transformations in the past years, as it left the village environment behind and has become a Hungaricum, popular with young people. The authorization of home distilling in September 2010 was a key factor in its gaining ground in the country. In connection with this topic, the international practice of beverage tourism has been reviewed. After that, the Hungarian practice was examined, including the selection of palinka festivals, thematic palinka tours and palinka product ranges in 19 counties and in Budapest based on a total of 100 restaurants. Using SWOT analysis I revealed the strengths, weaknesses, opportunities and threats of palinka gastronomy and pálinka industry. Overall, it was found that the popularity of pálinka is increasing, but the thematic pálinka tours have not yet widened, and there is a need for more procedures supported by community marketing.
JEL Code: Z30, E83
What differentiates the entrepreneurs from non-entrepreneurs on nature and nurture?45-52Views:523
Based on the importance and contribution of entrepreneurship in economic development, it is vital to know that what underlying factors may promote the spirit of entrepreneurship? The entrepreneurship literature suggests two kinds of broader influencers or predictors for entrepreneurs and non-entrepreneurs “nature” and “nurture”. In this study “nature” includes the psychological or personality related factors; self-confidence, locus of control, risk-taking propensity and trust levels. The “nurture” is explained by the effects from society in general and friends and family in particular. To answer the question “What differentiates the entrepreneurs from non-entrepreneurs on nature and nurture?” we collected data through questionnaire from 155 respondents. The 70 respondents were entrepreneurs and 85 were non-entrepreneurs. Step-wise discriminant analysis was used to determine the discriminating factors for entrepreneurs from non-entrepreneurs. Results indicate that societal impacts, risk taking propensity and trust levels were significantly discriminating the two groups; entrepreneurs and non-entrepreneurs. The study has important implications for policy makers, academicians, researchers and potential entrepreneurs.
JEL Code: L26, M13
Reasons for and obstacles to cycling in opinions of residents of Debrecen, Hungary53-59Views:133
It is a basic aim of the European Union that due to the developments in 2014-2020 the bicycle would become one of the most often used transportation, touristic, and sports equipment. We were interested to see to what extent is bicycling present in the transportation system of Debrecen and what are the most important reasons for its residents to use the bicycles. The dedication of Debrecen to promote cycling is clearly proven by the number of newly built or resurfaced bike paths and by the fact that the University of Debrecen has introduced – alone in the region – UniBike which is a bicycle renting system brought forth by the need of its students. Here we present the developments that took place in the North Plain Region in the past few years. We have also analyzed the national and European strategies and reports on bicycling. A survey was conducted among the youth of Debrecen to explore their cycling habits. The data were evaluated using the EvaSys program. Until the end of 2011 with the help of different funds 862 km of bike paths had been built in Hungary. In the North Plain Region due to funds totaling 777 million HUF 15.7 km long bike paths had been constructed until 2015. The development of tourism in this direction is promoted by the web-pages and brochures offering bicycle-tours around Debrecen. Nevertheless, bicycling in the neighboring townships is present not as an instrument for sports and/or tourism, rather as a mean of transportation. It is a clear goal in Europe and thus in Hungary to have bike paths that can provide the means of safe cycling. In parallel, it is also important to promote the benefits of bicycling, including positive physiological effects, cost-effectiveness, and environment-friendliness to increase the proportion of those who select bicycling as an alternative.
JEL Code: I15
Economic issues of duck production: A case study from Hungary61-67Views:126
The Hungarian waterfowl sector is characterised by export orientation, as 55-57% of the revenue comes from exports, so its importance is high in the national economy. The production of slaughter animals in the duck sector has doubled in the last decade. The objective of the study is to examine production parameters, as well as the cost and profit situation of broiler duck production and to reveal the correlations between the factors with a case study through the example of a Hungarian company. The production parameters and cost data of the investigated farm (2014-2016, 96 production cycles) were analysed using descriptive statistical methods, correlation and regression analysis. The results show that the average cost of the duck produced in intensive, closed farming system was between 72.6 and 101.7 eurocent kg-1. The most significant cost items were feed (52-63%) and chicken cost (14-19%). The sales price decreased from 112.9 eurocent kg-1 to 98.4 eurocent kg-1 during the examined period, resulting in a profit from -3.3 to 25.7 eurocent kg-1, and overall profitability was decreasing. The study also revealed that there was no correlation between average cost and final bodyweight, while the correlation between average cost and reared period was weak. At the same time, the relationship between average cost and average daily weight gain, mortality, feed conversion ratio was moderate. In addition, the European Production Efficiency Factor (EPEF) can be adapted to the duck sector as strong, positive relationship can be scientifically verified between the indicator and average cost. There is a close correlation between the sold live weight per m2 and the amount of feed used per m2, as well as between the final bodyweight and the amount of feed used to rear a duck, while the correlation between average cost and the sold live weight per m2 is weak.
JEL Code: Q13, Q19
Allocation of structural funds before and after the brexit: An exercise in the economics of cake-sharing69-71Views:170
What impact has the Brexit on the allocation of money from the structural funds? As the UK is a net contributor to the EU budget, the budget for Structural and Cohesion Policy will shrink. This will have an impact on the allocations of the structural funds to the remaining members of the EU. In order to estimate the allocation of the structural funds to the remaining EU members an allocation model is developed in this article. It appears that the model results do not only show the sharing of the cake, but also the size of it.
JEL Code: F00, Q00
Protected geographical indication recognition and willingness to pay: A case of grojec apple73-80Views:148
The Grojec region of Poland is an important region for apple production and accounts for 40 percent of domestic apple production. Apple growers from the region made an attempt to strengthen their competitive position through registering their apples as Protected Geographical Indication (PGI) products. The European Commission’s PGI allows food producers to obtain market recognition and a premium price for their products. Although the Grojec Apple received PGI registration in 2011, little has been done to promote apples with the PGI label. Two important research questions are addressed: 1) Does the Polish market recognize Grojec Apple PGI, and 2) Does the market value Grojec Apple PGI? Logit and regression models are estimated using survey data collected during an International MBA in Agribusiness and Commerce study week in Warsaw. Only 22% of consumers recognize Grojec Apple PGI. Yet, 70% of consumers indicate they are willing to pay more for the product and their average willingness to pay (WTP) premium is 32%. Results indicate use of the PGI label may be effective in improving sales and profit margins for Grojec Apple producers and their affiliated cooperatives. Older consumers are more likely to indicate a WTP premium. Males, smaller households, and consumers less sensitive to apple price indicate a higher WTP premium. An advertising campaign promoting Grojec Apple PGI as a better product may be effective at increasing consumer likelihood to pay more and WTP premium. Although “Grojec” is already familiar to most consumers in central Poland as a region for apples, a Grojec Apple with PGI label would assure consumers they are purchasing apples from the Grojec region and the apples are high quality.
JEL Code: D12, Q13, Q18
Composite indicators and sustainable development of regional agriculture applied to the Stavropol Territory in Russia81-88Views:194
The aim of this paper is to understand and evaluate agricultural sustainability in the Stavropol Territory by means of a composite indicator. In particular, the paper applies principal component analyses to calculate a composite sustainability index by integration of selected economic, social and environmental indicators. The results demonstrate the utility of analyzing several indicators in conjunction. The results also may indicate which variables influence development of regional agriculture. This information is important in order to design agricultural support policy and to implement an increase the sustainability of the agriculture sector.
JEL Code: O13, Q11
Agricultural Trade Policy: ‘America First’?89-93Views:142
There has been a growing openness and importance in trade over time as indicated by an increasing ratio of trade to gross domestic product for the World. However, some recent movements have been more protectionist and less open to trade. The potential impacts of less trade are explored with the United States (US) taken as an example. Trade agreements have been important in increasing trade by the US, particularly for US agriculture which has had a trade surplus since 1959. Countries should benefit from trade according to economic theory. However, stances taken by the US administration during the first half of 2017 have resulted in the withdrawal of the US from the Trans-Partnership Agreement and an announced renegotiation of the North American Free Trade Agreement. With falling US farm income, the potential undoing of trade agreement benefits, and possible trade retaliations, US agriculture is concerned about any potential disruption in exports and losses from less trade. In addition, US consumers and importers of US agriculture should be concerned about a potential decrease in trade.
JEL Code: Q18
The role of social media in gastronomy industry95-103Views:806
Considering the rapidly changing business environment, staying competitive is a key issue and challenge for companies in the 21st century. The criteria of a company’s success and competitiveness is the changing behavior of the different economic actors and its influence. Through the information society came to the fore, the use of diverse information technology tools and methods has become a significant influence factor in terms of the entrepreneurs or company management and also the customers or other partners. Due to the rapid expansion of new technology developments, the role and importance of social media is continuously increasing. Also statistics show that one of the most regularly used IT tool is the social media and the different web 2.0 applications. The current study is intended to provide a better understanding how social media can emphasize the competitiveness of companies and format the consumer behavior in a special sector – the rapidly developing gastronomy industry. This paper presents an empirical research about the role of social media in the above mentioned industry based on the primary data which are gathered through a survey performed in Hungary. Beyond the empirical results presented, the paper also aims to provide some recommendations for research methodology – based on the international literature review and the Authors’ own experiences – both in gastronomy industry’s and customers’ point of view. Through the analysis the research hypotheses were examined and the most important correlations were identified between the survey results and the Authors’ initial supposition.
JEL Code: D83, L83, M31, Z33
Global tendencies in pork meat - production, trade and consumption105-111Views:932
World meat production is anticipated to stagnate in 2016, rising by a mere 0.3% to 320.7 million tonnes. Increases in output are expected in the United States, Brazil, the EU, India and the Russian Federation, while reduced production is foreseen for China, Australia and South Africa. Global meat trade is forecast to recover in 2016, growing by 2.8% to 30.6 million tonnes, which would represent a return to trend, after a fall in 2015. World production of pig meat in 2016 is forecast to decrease marginally, by 0.7% to 116.4 million tonnes, thus registering a second year of virtual stagnation. As in 2015, lower output in China, which accounts for almost half the world total, is the main reason for the slowdown. An unfavourable feed-pork price ratio in the country and new environmental regulations have caused farmers to reduce breeding sows, stalling growth. China’s production is projected to be 54 million tonnes, down 2.5% from the previous year. Elsewhere in Asia, the Philippines and Vietnam could boost output. Also, production in Japan and the Republic of Korea may expand, as the industry recovers from outbreaks of PED, which reduced piglet numbers in the previous two years. Recovery from the effects of PED has been faster in the United States, where a second year of growth is anticipated, when production could increase by 1.9% to a record 11.3 million tonnes. Output in Mexico also continues to recover, following a PED outbreak in 2014, and may rise in 2016 by 2.0% to 1.3 million tonnes. Pork meat trade could experience a second year of growth, increasing by 4.4% to 7.5 million tonnes – a record level. Lower international prices have stimulated trade. Most of the principal importing countries are anticipated to increase their purchases, including Mexico, China, the Russian Federation, the United States, Japan, the Republic of Korea and Australia. In response to rising demand, exports are projected to grow, in particular those of the United States, Canada, the EU and Brazil (FAO, 2016). Summarizing, in this study we wish to examine how evolve the world pork meat production, trade and consumption, and to demonstrate the main consuming countries, highlighting the role of China, as it is the most populated country in the world with its 1.4 billion inhabitants.
JEL Code: Q13, Q12
Bread consumption habits in the gluten free diet113-119Views:334
Gluten is a protein found in many grain products. Celiac disease is a genetic autoimmune disorder characterized by sensitivity to gluten. When a person with celiac disease consumes gluten, his/her immune system perceives the gluten to be a harmful substance and reacts negatively. The only treatment for individuals with celiac disease is lifelong adherence to a gluten-free diet. It is one of the most frequent and well defined of all lifelong diseases. In Hungary, 1-2 % of the population is said to be affected, but only every 10th has been diagnosed. Bread is a basic and frequently consumed food made principally from wheat. Gluten is the main structure-forming protein in flour, and is responsible for the elastic characteristics of dough, and contributes to the crumb structure and appearance of many baked products. Gluten removal results in major problems for bakers. Currently many gluten-free products available on the market are of low quality, exhibiting poor mouth feel and flavour. People wishing to eat bread in the gluten-free diet basically have two options: buying or baking the bread for themselves. There are several gluten-free bread brands are available on the Hungarian market. The price, ingredients, texture, colour, softness of the available breads are different. There is a rather good choice in gluten-free flour mixtures on the Hungarian market, as well. The composition of these mixtures are also different. The aim of our empirical research was to investigate the gluten-free bread consumption habits of people following gluten-free diet. The research was carried out using Google forms in January 2017. Size of the sample is 196. The online form was shared in four closed gluten free Facebook groups in Hungary since they are really active in sharing information concerning gluten-free lifestyle and diet. Summarizing, in this study we wish to examine how evolve the world pork meat production, trade and consumption, and to demonstrate the main consuming countries, highlighting the role of China, as it is the most populated country in the world with its 1.4 billion inhabitants.
JEL Code: M31
Cost analysis of pig slaughtering: A Hungarian case study121-129Views:179
The scale of Hungarian slaughterhouses is small in international comparison and the cost of slaughter and cutting a pig of average live weight is relatively high at 16.1-19.4 EUR on average. The aim of this study is to evaluate the cost of pig slaughter and cutting through the case study of a medium-scale plant in Hungary. Based on data from the enterprise, a calculation was performed in relation to the “output” quantity of pig slaughter and cutting, as well as its value and the cost and cost structure of processing. The capacity of the examined plant and its utilisation were analysed and cost reductions were estimated for various increases of output. In 2015, the direct cost of slaughter and cutting was 18.9 EUR per pig for the medium-scale plant which processed 100 thousand pigs. When the purchase cost of pigs is excluded, labour costs accounted for the highest share (30%) of costs, followed by services (29%) and energy costs (21%). For this reason, the level of wages and employer’s contributions has a rather high significance. Analysis showed that significant increases in Hungarian minimum wage and guaranteed living wage in 2017 resulted in an estimated 7% increase in the cost of slaughter and cutting compared to 2015, despite the decrease of contributions. The capacity utilisation of the plant was a low 28% when compared to a single 8-hour shift considered full capacity. The cost of slaughter and cutting was estimated to be reduced to 14.2-17.0 EUR per pig if the plant operated at full capacity. This may be considered a lower bound estimate of cost because there are numerous restricting factors on optimising capacity utilisation, such as: 1) number of live animals available for purchase and related logistics; 2) cooling capacity availability; 3) labour availability; 4) market position of the enterprise and potential for marketing additional pig meat products. Enterprises of this scale are recommended to consider producing more value-added products and, accordingly, investing in product development.
JEL Classification: Q13, Q19
Hungarian dairy and beef production sector technical efficiency comparsion using DEA131-138Views:159
To examine and compare the technical efficiency of dairy sector and the beef sector, this research introduced the main indicators of milk and beef production in the world, EU and Hungarian aggregates. Based on the data it can be said that the milk and beef production of Hungary does not occupy any significant position in the world as well as in the European Union neither today nor even in the past. If Hungry must compete in the European counties and international market, their dairy sector must focus to increase of their production efficiency as the key breakthrough point. This paper we compared technical efficiency of both dairy and beef sectors in total, for the year 2014 and 2015 separately and based on the farm size. The specific objectives of the research are: comparing dairy and beef farms efficiency in Hungary. Based on the results, we can determine which sector in Hungary is more effective. The second objective is to compare the efficiencies of both the sectors in 2014 and 2015 separately and from the results we can determine which year was more effective in terms of production efficiency and the third objective of the research is technical efficiency comparison of certain economic sizes for both sectors. In the research, we used (KOVACS, 2009) deterministic (DEA) model adapted to the Hungarian dairy farms and beef farms. For the dairy farms milk and dairy products as well as meat (other income). The input factors originated from the domestic AKI - FADN database. Summarizing the results of the research it can be conclude that the dairy sector is more effective than the beef sector in Hungary. In terms of years compared 2014 was more effective for both sector as compared with 2015. In regards to the farm size almost the same result in evaluating the scale of efficiency, which means that large economies can in most cases, manage resources more efficiently than small farms. In the examined years, based on the results of the DEA model, the VRS technical efficiency of the test for these two years was 72.90% for the dairy farms and 63.60% for the beef farms, which means that the dairy sector is more efficient than the beef sector in Hungary. The VRS technical efficiency of the research was 82.10% in 2014 and 75.10% in 2015 for the dairy farms and 77.50% in 2014 and 68.90% in 2015 for the beef farms, which means that both the dairy sector and the beef sectors followed the same trend and were more efficient in 2014 compared to the efficiency in 2015. The large size dairy farms were most effective in Hungary in the examined period (90.90%). VRS technical efficiency for small farms is 88% and the total number of small, the technical efficiency medium farms was 72.80% For the beef sector VRS technical efficiency for small farms is 71.30% and the technical efficiency medium farms was 74.40% and 70% of the beef meat producing farms in Hungary are medium sized. So, the conclusion is the small size dairy farms have a higher VRS efficiency than the small size beef farms whereas medium sized beef farms had higher VRS efficiency than the medium size dairy farms. As a conclusion, both dairy and beef sectors in Hungary have the potential to overcome technology and knowledge constraints and attain the upmost attainable productivity level through improvements in; farmer volume of production i.e. output, beef cattle technologies, and advertising, and the efficiency of the technology transfer process.
JEL Code: Q13
Energy alternatives in large-scale wastewater treatment141-146Views:166
In my article, after describing the characteristics of recent wastewater treatment activity, I introduce different traditional and innovative energetic opportunities of the compulsory waste management activities at large-scale operational level, covering national and international examples. Furthermore, the wastewater-based biomethane production and the certain plant’s energy self-sufficiency are highlighted topics as well. In the former case, it is possible to utilize the wastewater-based biomethane as fuel (and even to operate own vehicle fleet), while the second one gives the opportunity for the internal usage of produced electricity and waste heat, which can also result in significant cost-savings. As an additional option, algae-based wastewater post treatment is presented, based on the conditions of a Hungarian wastewater treatment plant, which biogas production efficiency and thus energy self-sufficiency has developed favourably due to the technological improvements. These plants may have a twofold role in the future: they are responsible for the compulsory waste management activity and on the other hand they can serve as excellent raw material mines.
JEL Code: Q25
Analysis the advanced ICT usage of the Hungarian SME sector for preparing a domestic agri-food research147-153Views:152
In the Hungarian agro-food sector SMEs have a key role but regarding the tendency of the performance of SME sector, comparing to EU-28 average, the performance of Hungarian SME sector has gradually worsened between 2008 and 2015 while the EU average has an increasing trend. ICT can help enterprises and this article is an overview of the ICT situation of Hungarian SMEs. It is important to analyse in detail the ICT usage characteristics of agro SMEs in the food supply chain because these ICT devices, tools and services are crucial to smooth the information flow within the chain. For all these reasons our work aims to find out how Hungarian agro-food SMEs use ICT and how ICT adoption affect their business procedures, performance and development. A striking observation to emerge from the data comparison is the difference among SMEs and large enterprises regarding the usage of the different basic and advanced ICT solutions. A much bigger percent of large companies use advanced ICT then SMEs and mainly small enterprises are lagging behind as the attitudes of medium sized enterprises are rather similar to the large ones. In Hungary small enterprises in agro-food industry are in difficult financial state and for them free Cloud Computing services can offer good opportunities as they do not have initial costs. ICT adoption is very important to them as ICT sector is a dynamically growing sector and if customers and partners of an enterprise adapt faster to these technological innovations, it may have a negative effect on the different processes, performance and financial results of the organisation. In this article our aim was to determine the main question groups for our questionnaire which focus mainly on ICT solutions supporting the quality of communication and relationship between partners. As the basic IT tools are available in the major part even in the SMEs besides large companies, the two main issues will be the usage of advanced online services and the usage of high quality ICT solutions.
JEL Code: M15
Differences of the primary energy consumption of the countries all over the world155-161Views:140
The global energy consumption is continuously growing, because the population of Earth and the standard of living expands day by day. As a result, the emission of greenhouse gases increases further more. The various countries use the different types of fuels in varying amount.In this study we have examined the primary energy consumption of the countries, according to the BP Statistical Review of World Energy June 2016 (BP, 2016), based upon their usage of fuels.The assay resulted in a 7 cluster model. With one exception, each cluster contains a resource, which is used in a much larger amount than in the other clusters. As a result, we may differentiate between an average cluster, and the clusters of countries that use primarily hydropower, nuclear energy, renewable energy, coal, fossil oil, and natural gas.We have examined if there is any connection between the location of a country in a cluster and its HDI, as well as the countries’ competitiveness.
JEL Code: Q42, Q43, Q35, Q01, P28, P18
Human resource aspect of agricultural economy – challenges of demographic change163-167Views:143
Over the past decades, the agrarian policy has tried to contribute to the catching-up of the rural areas with varying dynamism and aid scheme. However, its result is significantly below expectations. Nowadays, the age composition of the population living in rural areas reveals an unfavourable picture; the rate of the elderly, deprived persons and people being inactive from the aspect of employment is high and it is also combined with the low educational levels. The young generations and intellectuals leave the rural areas and, consequently, the rate of the active population continues to grow narrow as well as the proportion of young and skilled employees decreases. As a consequence of changes in the past decades, the rate of agricultural employment has not led to an intensive change but a failing change in extensive direction which lays off jobs. Nowadays, this process also determines the Hungarian rural society. In the sector, the need for employment diminishes as a result of the development in technology and due to the expansion of services sector. The purpose of our study is to present and analyse the human resources of our country’s agriculture by skill level and age group and compare it with the needs of companies, by doing this we try to compare supply and demand. In details, based on secondary data source, we investigate the agricultural labour force and try to confront it with the advertisements of job search portals (three of our job search portals based on our predefined criteria), by which we achieve a current picture of the agricultural human resource circumstances.
JEL Code: J43
Empirical research on corporate strategies in Hungarian dairy industry169-179Views:148
Corporate strategy has never been as important as it is nowadays. Markets are changing rapidly because of consumer demands, innovations, information flow and economic changes. Our paper concentrates on Hungarian dairy industry (hereinafter dairy) and four main objectives were defined to be analysed: (1) domestic dairy company features, (2) main strategic characteristics, (3) how companies’ strategy resonates on the consumer side and (4) companies’ financial background were analysed as well. A company database was made in order to prepare for the primary research and to understand better the nature of today’s market. B2B (26 companies) and B2C (503 people) surveys were used in order to gain primary data. In 2017 132 Hungarian companies were observed in milk processing, but 44% of the market participants are not present in dairy competition. It is a fairly fragmented market structure because 10-20% of the annual turnover is accumulated among the 80-90% of competitors. The factor analysis of the data proved that the dairy companies followed m strategies at the same time; and it is assumed that most of them are unconscious. Strategically, the majority of the dairy sector is not up-to-date and modern enough. SMEs sector management skills and strategic preparedness are considered to be out-of-date and insufficient. Strategic planning can possibly have an influence on financial results, which was only partly proved by the analysed criteria system. The production and use of own raw milk supplies might make companies experience financial benefits. Nearly 78% of the respondents would rather purchase goods made from own raw material. The willingness to pay a higher price for this was in average 5-15%.
JEL Code: L1, L66
Demographic and lifestyle attributes with a fundamental role in food supplement consumption (exploratory research)181-185Views:136
The worldwide proportion of food supplement consumers has been steadily increasing, more than 50% of the Hungarian population tends to buy at least one type of dietary supplement. In most cases, the purchase and consumption of food supplements are not based on medical indications but depends on consumers’ individual decisions. The study of consumer groups enables the investigation of typicalities which have an impact on attitudes related to the consumption of food additives. The present study explores the demographical factors determining the global consumption of dietary supplements by secondary research. It sought to explore the typical features of consumer lifestyles in line with the research findings, based on previously specified criteria, through qualitative focus group examinations. My study focused on subjects who bought and purchased at least one type of food supplement in the previous year and placed a high emphasis on healthy diet and lifestyle in their everyday lives. The consumption of dietary supplements indicates growth with age and it is more common among women. Consumers with higher qualifications and incomes tend to buy products with vitamins and minerals in a greater proportion. The identification of nutrition factors revealed that the proportion of those who do not need extra nutrient intake is high among food supplement consumers. It is primarily true of women having a healthy lifestyle (they typically consume high amounts of vegetables and fruits, they are physically active, non-smokers and do not use alcohol); moreover, their socio-economic status is typically high. The findings of my quantitative research suggest that the purchase and consumption of dietary supplements are most characteristic of the “Successful”, “Quality oriented- successful” and “Loyal to the brand - modest” groups in the lifestyle-based consumer segments. The investigated sample showed ambiguous attitudes towards product quality and willingness to pay in all the three batches. Nevertheless, it can be established, when consumers buy food supplements, brand sensitivity proves to be a dominant factor in addition to - typically Hungarian - price sensitivity. Based on lifestyle factors, the current research may bring us closer to the exploration of the motivational and attitude patterns of consumers’ food supplement purchases.
JEL Code: I12, M31