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The global financial crisis: Implications for capital to agribusiness
59-62Views:295The global economy has continued to experience lingering effects of the global financial crisis that began in 2007. Although attention was initially given to the liquidity crisis and survival of some the world’s largest corporations and institutions, the financial crisis is likely to have long-lasting implications for agribusiness. As the world slowly recovers from the crisis, another round of problems are emerging as governments and international institutions attempt to unwind the positions they took in an effort to prevent the global economic bubble from bursting. Perhaps the most problematic factor for businesses is access to capital in sufficient amounts and at affordable rates. Governments and institutions, particularly in the United States (U.S.) and the European Union, have increased their financial obligations as the result of activities taken to curtail the economic crisis. These financial obligations and the associated financial risks place pressure on financial markets and tend to restrain the availability of capital and increase the cost of capital for businesses. However, the U.S. agricultural credit market has not experienced problems to the same extent as general business (commercial and industrial) and real estate credit markets have. In general, U.S. farm businesses have a strong balance sheet, adequate repayment capacity, sufficient amount of assets to offer collateral for loans, and reasonable profits. Thus, U.S. farm businesses have had an ample supply of credit at relatively low interest rates.
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Statistical and multi-criteria decision making analysis for consumer attitude and behavior: in case of Mongolian organic food market
31-38Views:652Nowadays, consumers have a full of knowledge on products and services, and their daily consumption of healthy and environmentally friendly products has been increasing. Therefore, businesses need to implement green marketing activities, so they need to be aware of environmental issues and consumer needs while maintaining financial sustainability and competitiveness. (Belz & Karstens, 2002). Examples are the rapid growth of organic food products, as consumers are concerned with their health and environmental issues in their day-to-day purchasing decisions. Over 20 years ago, in 1999, the market for organic food products sales was $ 15.2 billion, while sales in 2017 increased to $ 97 billion, indicating that the world's organic food market is growing rapidly. The organic food market is growing by $5 billion a year, and as of 2014, 172 countries have organic food farm land according to the “The World of Organic Agriculture”. Since the market for organic products is a new market for Mongolia, previous surveys in are relatively small. Therefore, this is aimed at conducting a study on behavioral approaches of consumers of organic food products in Ulaanbaatar. We have run statistical and multi-criteria decision making analysis based on given data of consumers. We also apply Harker’s techniques for complete and incomplete evaluation matrices which are defined from consumers decision making. Numerical examples are presented.
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The problems of regional development in Montenegro
85-88Views:286Economic development is a continuous, stochastic process considering that development depends on a multitude of historical, political, economic, cultural, ethnic and other factors. In the process of development, each country puts effort into strengthening their manufacturing potential, increasing the competitiveness of their economy by modernizing technology, and raising the level of education, culture etc. Owing to the accentuated actions of these factors, and different social, economic and other circumstances, there has been emerging polarizations in regional development, urbanization and so on. Proof of a country’s level of economic development can be found in various indicators such as capital equipment; the share of manufacturing, agriculture, and foreign trade; the share of the private sector in total ownership; the development of financial institutions and capital markets; the development and stability of the legal system; the development of transport, telecommunication and other infrastructure; the realized standard of living; the development of democracy and human rights protection; preserved environment etc. Economies of developing countries, including Montenegro, are usually characterized by a low capital equipment and low labor productivity, expensive manufacturing and insufficient share of world trade, high import dependence, uncompetitiveness, high unemployment, undeveloped entrepreneurship, and an undeveloped financial institutions. Polarized countries in an economic and development sense, are therefore those which are unevenly developed, and are constantly faced with highly pronounced problems of disparity in regional development and demographic problems. Solving these problems is a long-term process and necessitates. The design of a regional policy that is more efficient than the previous ones, as well, as building a different procedure for fulfilling the adopted regional policies.
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The use of models in optimizing the field crop production in agricultural enterprise - MBA thesis
93-96Views:332The full use of resource capacities of agricultural enterprises favorably affects the general increase in economic efficiency and rational production making them more competitive in the market. This creates the need for constant improvement of business strategies that uses all available resources to create the most profitable production. The main objective of this study was to find the ideal structure of production in agricultural enterprise and to enable the realization of maximum profit using the available production resources (land, mechanization, labor forces). As the basic method of planning, this study used the simplex method of linear programming which gives the most profitable sowing structure after detailed analysis of resources and achieved results, based on the limitations and gross margin. This work showed that the use of modern methods in production planning is one of the cheapest and safest methods for development of agricultural enterprises.
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More insurance subsidies for European farmers – is it needed?
33-38Views:353In addition to traditional sources of uncertainties, such as market price volatility and animal and plant health-related risks, the impacts of climate change have recently become a major concern in the agricultural sector throughout the world. Insurance has been commonly proposed as a key instrument in farm risk management, and agricultural insurance schemes have become more widespread both in developed and developing countries. We conducted a case study in the UK to investigate farmers’ risk perception and willingness to pay for crop insurance by using contingent valuation method (CVM). Similarly to the experience from developing countries, we found that farmers are less willing to pay for insurance, however they do take actions to reduce their risks. While these results suggest that the provision of premium subsidies to European farmers can be justified; in order to avoid counter-productive policy outcomes, one may consider the introduction of a risk-based approach in agricultural risk management.
JEL classification: Q14
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The Investigation of Factors Influencing the Market Prices of Agricultural Land in Hungary
5-10Views:333The role of land (as the basis and the resource of agricultural production) is the most significant among the resources of production. The ownership of land, its use, the issue of its price and value, they have been key problems of political, social, legal and economic decisions. There were theoretical and practical experts throughout the world, and we intensively have to deal with the issue of land evaluation. In our research using empirical data collection and statistical methods, we examined not only the factors have influenced on land prices, but its effect as well.
We have proven that the „golden crown”-based land evaluation system (golden crown is a measurement unit of the quality of agricultural land in Hungary) can show the land quality differences even today, but in spite of this, the results of calculations (and also the practice) increasingly justify and urge the necessity of the introduction of a modern land evaluation system.
namese 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: Q10, Q24, Q30
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Development of commodity exchange in Croatia
87-89Views:268Purpose of this thesis work is to show relevance and necessarity for existing of commodity exchange and it’s influence to the economy of Croatia. Because eastern part of Croatia, region called Slavonia is mostly agricultural oriented, it is of essential relevance to establish and make operate of first commodity exchange in Croatia. Widely in the past, while Croatia was part of Austrian – Hungarian kingdom, first commodity exchange in Europe that was established in 1853. in Budapest, practically was domestic commodity exchange for Croatian business subjects, and they were able to use benefits it brought. Me personally, and a lot of other business people and business society in Croatia belive that time to reasteblish commodity exchange has come. In this thesis, I will give a deeper look in to commodity exchange, describe acctual situation in Croatia, show posibillities that commodity exchange brings, how it works and what has to be done to implement commodity exchange and benefits it will bring to Croatian economy.
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The role of trust in cooperation between farmers – the outcomes of a survey in Békés county
103-112Views:425Local socio-economic cooperation arrangements can contribute to the development of adequate solutions which can compensate the negative impacts of globalization. One of the specific areas is agriculture. Capital-intensive technology is the key element in the competitiveness and viability of firms. The present paper reviews the factors affecting the joint machine use arrangements of agricultural producers, with special regard to the role of trust. The questions of trust are examined in two dimensions: contractual and competence trust. On the basis of the survey carried out among farmers a positive connection was detected between the level of trust and the farmers’ activity in cooperation arrangements. Our results also pointed out that the trust needed in different areas of cooperation is very different. The experiences indicate a tendency, according to which contractual trust is more important in intensive cooperation arrangements which result in higher dependence, while competency trust is more emphasized in more extensive solutions.
JEL Code: Q13
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THE ROLE OF TRADITIONAL FARM RISK MANAGEMENT STRATEGIES ON REDUCING CREDIT RISK IN TANZANIA AGRICULTURAL LENDING
Views:138Agricultural financing enhances food security, job creation, a transition from subsistence to commerce farming, and strengthens the overall economy. However, due to unfavorable weather and market conditions there is limited financing directed towards agriculture especially in developing countries. Despite smallholder farmers' high adoption rate of traditional risk management strategies to minimize these risks, little has been done to examine its moderating role on the relationship between agricultural risks and credit risks. Thus, this study examines the role of farm business risk management strategies on minimizing the influences of production and market risk on smallholder farmers loan repayment capacity. The quantitative study used pooled cross-sectional data from a Tanzanian commercial bank from 2019 to 2021, covering 1,277 smallholder farmers from different administrative regions. Using binary interaction effect logistic regression analysis model, the study's results indicate that irrigation, mechanization, and off-farm diversification significantly minimizes the effects of production and market risk amongst smallholder farmers in Tanzania, an indication that traditional risk management strategies are effective tools amongst smallholder farmers. On the contrary, on-farm diversification strengthens the influence of production and market risk on loan repayment amongst the smallholder farmers in Tanzania, the results that can be influenced by a number of factors, including poor diversification knowledge among smallholder farmers. In light of these findings, the study recommends that policy makers and other development partners to develop agricultural infrastructure and provide more extension agents that can educate smallholder farmers on the best practices on traditional risk management.
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The influence of employment modes on employee turnover and agri-business performance: a case for Hunyani farm in the Zvimba district, Zimbabwe
17-27Views:475The labour intensive nature of Zimbabwean agriculture demands that farmers meet excessive labour requirements, at the same time keeping labour costs as low as possible to guarantee profits and achieve maximum business performance. This study, carried through a questionnaire survey, at the Hunyani Matura Farm, in the Zvimba district of Zimbabwe between from October 2017 to March 2018, investigated the effect of employment mode on turnover and agri-business performance. Data collected from the participants, was compared with the information from secondary source documents. From the results temporary workers performed better than permanent workers and they cited problems of low wages, poor working conditions, high work targets, inequality in work allocation, job insecurity and constant shuffling. Temporary workers had higher turnover and turnover intentions than permanent workers. Temporary employment mode had a positive
effect on agri-business performance. This study recommends the use of permanent employment mode on key positions like forepersons, stores persons and supervisors, and temporary employment mode on general farm tasks, while seasonal contracts were seen good for skill demanding operations such as tobacco seedbed establishment, tobacco reaping and curing and grading. A ccareful selection of employment modes reduces inequalities and unhealthy attitudes at work and improves on farm business performance.JEL Classification: Q12
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Potential for Hungarian Grasslands in integrated rural development
37-39Views:291Sustainability and multifunctionality, two key principles, which will determine future development in any activities. On the bases of these principles, society as a whole has already outlined future expectations towards rural areas. Rural functions (economic, ecological and socio-cultural ones) have been declared in European Charter for RuralAreas. To what extend can different rural development initiatives meet these functions? The question may be answered by using the method of multifunctional rural resource analysis (NAGY, 2007). The paper is investigating the potential for Hungarian grasslands by using this methodology. It is concluded that our grasslands, as land use systems in their present conditions can participate in integrated rural development in the most balanced way compared to other land use systems in the county. Economically their potential is good. Ecologically their potential is outstanding. The socio-cultural potential of grassland use in Hungary is also outstanding due to the historical roots.As a future prediction the relative importance of the three grassland functions has been outlined in integrated agriculture and rural development.
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Moderating Influence of Training and Development on Entrepreneurial Performance
47-54Views:328This study assessed the moderating effect of training and development on entrepreneurial performance of Micro, Small and Medium Enterprises (MSMEs) in Nigeria considering the Bank of Industry and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Two hypotheses were tested in this study reflecting training and development in Nigeria and Ethical practices of Training and Development impacts on behavioral outcomes of entrepreneurs. The paper puts to test, the preceding assertions with the aid of Kruskal Wallis test. From the test, the study refutes the former assertions on the reasoning that P-values were less than 5% level of significance. This showed that the impact of ethical training and development would be more significant if the young entrepreneurs had earlier exposure from secondary to tertiary education level to make better entrepreneurs in Nigeria. The study observed that the Nigerian educational system has contributed positively to the area of training and development which has enhanced entrepreneurial performance in Nigeria. The study recommends that training and development programme should focus on developing creative or innovative individuals who can help to move the nation forward. A Self-reliant person is a creative individual.
JEL Classification: M53, M1
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The situation of agricultural sector in Hungary – trends and territorial aspects
Views:515Based on its geographical features, Hungary is basically an agricultural country. The proportion of the production area within the total area of the country is approximately 80% and the proportion of arable land is 60%. This makes our country one of the first in the European Union. In the EU, only Denmark and the United Kingdom have a higher proportion of agricultural land. Hungary accounts for only 3% of the total agricultural area of the EU-27 Member States, however, it plays a significant role in the production of certain products. (Harangi-Rákos, 2013)
In addition, the climate is favorable for agricultural production, which also strengthens the country's agricultural character. Throughout history, we have rightly been given the honorable name “pantry” (Marosi, 2009), which was true both within the Monarchy and Europe. In the socialist system the agricultural country became a so-called “industrial-agrarian” country due to the violent industrializations.
Beyond industrial development, the service sector plays an important role in the national economy due to its technology-intensive nature. In addition, agricultural production is still significant in Hungary (Lakner et al. 2020). The agricultural sector is significantly involved in the production of the gross domestic product (Fróna-Kőmíves 2019) and in the positive development of the export-import balance. During the 2008 world crisis, it was thanks to this sector, among other factors, that the recession that affected our country did not deepen. The domestic consumption is largely covered by domestically produced commodities (Csatáriné, 2019)
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Analysis of economic issues relating to the dairy sector, with emphasis on price transmission
61-70Views:333The dramatic decline in consumption after 1990 was an important problem during the analysis of the sector. Even today, consumption is still below the degree that was before the political change, and significantly lags behind the EU level.The importance of this topic is emphasized by the fact that surplus milk could be marketed through the increased domestic consumption; this would create a more stable and calculable situation for farmers. Therefore, I considered it important to reveal what factors and by what shares influence the consumption of milk and dairy products. The relationship, time series and cross-sectional analysis based on national and international databases demonstrate the relationship between the consumption of milk and dairy products and the other determining factors of consumption in Hungary and in the EU-25 through diagrams. I draw the conclusion that there is a medium correlation between the development of the economy, the higher income level and the consumption of milk and dairy products. Just before our EU accession, the dairy sector was one of the most critical industries of Hungarian agriculture, which is why I chose this for my analysis. I regard as a new scientific result the econometric analysis of the asymmetric market conditions in the price transmission approach within our dairy sector between 1995 and 2003. I confirmed and quantified that the market is under an oligopoly and defined the direction of price adjustment. Furthermore, I regard as a new result in the price transmission analysis (also published in the article published with Dr. József Tóth), that the three possible dimensions (elasticity, a symmetry relations,lag) are analysed simultaneously.Therefore,a more sophisticated picture is given on price transmission. The theoretical advantages and disadvantages are verified by an example of a vertical coordination based on the horizontal cooperation in the dairy sector (Alföldi Tej Ltd).
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Economic aspects of an agricultural innovation – precision crop production
51-57Views:470Innovation in agriculture ensures the wide-spread use of the latest, up-to-date technology. Such new technology is precision farming in crop production, which serves as a validation of the criteria of environmental and economic sustainability. The economic applicability of precision crop production depends on several factors.Among them the following aspects must be emphasized: the size of the farm, the characteristics of the production structure, the current input-output prices and their tendencies, the investment needed for transitioning to precision technology and its capital source, the level of professional knowledge and the managerial attitudes of the farm. I have examined the economic relations between potential savings in chemicals on EU level. It has been found that after switching to precision farming, the active ingredient use for fertilizers can be reduced by 340 thousand tons at the same expected yield level in an optimistic scenario in the EU-27, while the savings in pesticide use can be 30 thousand tons (calculating with the current dose-level). If approximately 30% of the crop producing and mixed farms over 16 ESU adopt this new technology, this will diminish environmental loads by up to 10-35%. The majority of farms characterized by greater output and size can be based on their own equipment but it might as well be presumed that smaller farms can turn to precision farming not based on their own investment. They can buy the technical service from providers, they can establish producer cooperation, for example in the frame of machinery rings. At a certain farm size and farming intensity precision crop production is a real, environmentally friendly farming strategy, with the help of which the farm can reach earnings that cover at least the economic conditions of simple reproduction.
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ICT and agritourism in Czech Republic
45-48Views:332Tourism is regarded as the world’s future. Agritourism is a unique symbiosis of agriculture and tourism. Based on extensive analysis of the state agritourism in the Czech Republic, it was found that information on agritourism facilities is very diverse and disorderly, lacking a specializedportalforagro-tourism. Agritourism facilities in th eCzech Republic is several thousand, but most of them have non-quality websites, or none at all. It should been sured that entrepreneurs in the agritourism (farmers) had knowledge easily and with minimum cost to present their own small farm on the web, such as using Web content management system (WCMS). It is proposed the new portal solution, which according to the principles ofWeb 2.0 will provide greater information sharing among the partners in the field of agri-tourism.
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Research on the natural features of karst water, on the example of some water intakes
63-67Views:276The existence of safe and abundant raw water sources is a priceless treasure for any country. Water resources are of particular importance for Montenegro, especially for the development of tourism and agriculture which represent the backbone of its economic development. With respect to water potential, Montenegro is at the top of Europe. However, it is not a sufficient factor, but the very way it is used and protected, as well as the improvement of its valorization. Economic development which is not based on the conservation and good governance of natural resources may have negative consequences for the overall development. The aim of the paper is the study of natural properties of karst ground waters and their changes through interrelation of some ions, as indicators, on the example of five intakes in use. The paper presents the results of the research on the said waters and the values of indicators which point to their exceptional benefits for the water supply. However, the effects of the anthropogenic factor are evident, which are reflected in the range of the mole ratio of Ca /Mg ions ranging from 5.4 to 9.6, and the values (eqv.SO4/Cl) ranging from 0.3 to 2.0. Protection of the environment, especially preservation of the quality of water resources of Montenegro, imposes the urgency of implementation of the objectives of the Water Framework Directive.
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Protected geographical indication recognition and willingness to pay: A case of grojec apple
73-80Views:412The 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
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