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Integration Efforts in Agriculture
91-96Views:322The economic and political transition brought many challenges for the Hungarian agricultural sector. The break-up of large agricultural holdings had serious negative impacts on food production and on the export of agricultural products. Capital intensive profit-seeking intermediaries dominate the trading of agricultural goods that has injurious effects in terms of downward pressure on production prices and an increase in consumer prices. Cooperatives have a key role in effectively tackling the common challenges that small-scale producers have to face. More vertical integration along the food chain could contribute to providing rural employment and to an increase in living standards in rural areas. This study reviews the development, the specific features and the driving forces of modern cooperatives in Central Europe in general, and in Hungary in particular. The focus is on the integrator role of cooperatives and their future role in our globalised world.
JEL Classification: Q10, Q13
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Factors affecting acceptance of smart retail solutions in Hungary: an empirical study using UTAUT2 model
Views:622In today's digitalisation process, retail is also undergoing a transformation, with the emergence of new smart solutions. Integrating intelligent solutions into a business model means new strategic challenges for retailing companies. The aim of the research is to examine the factors influencing the behavioural intention and use behaviour of smart retail solutions (SRS). The proposed model was based on the extended Unified Theory of Acceptance and Use of Technology (UTAUT2). Data was collected by conducting a questionnaire of 302 Hungarian respondents. Confirmatory factor analysis (CFA) and partial least squares (PLS-SEM) estimation were implemented. The results showed that behavioural intention is significantly and positively influenced by effort expectancy and it is significantly and negatively influenced by facilitating conditions. Most of the respondents are not yet regular users of SRS, and the market penetration of front-end intelligent solutions in retail is considered as rather low.
JEL code: M10, M31, O14
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The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
49-55Views:542This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment and in reaction to developments in the farming sectors in EU countries. On the 12th of October 2011, the Commission presented a set of legal proposals designed to make the CAP a more effective policy to encourage more competitive and sustainable agriculture and vibrant rural areas. The proposal brings various new elements under consideration, some of them raising strong controversies such as introducing “greening” as a component of direct payments. Changes in the direct payments scheme in line with the EC proposition include forcing adjustments in the cropping pattern and creating ecological focus areas (EFA) on 7% of the farm land ; the consequences of such a proposal on the size and structure of agricultural production, and thus on the economic performance of farms and the whole agricultural sector are uncertain. The authors analyse historical changes to the CAP with a focus on a growing importance of the environmental component of the CAP, discuss different scenarios of shaping the direct payments system and present the results of modelling the impacts of greening the CAP on the Polish farming sector with the use of the LP optimisation model. The study was based on Polish FADN data. Results show that the majority of farmers in Poland comply with the crop diversification constraint of greening. However, establishing the required EFAs and necessary diversification on farms with simplified cropping structures will have a negative impact on the volume of agricultural production as well as on farm incomes.
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Hungarian endeavours for the enhancement of economic relations in Southeast Asia focusing on a new partnership with Vietnam
5-12Views:425Beyond 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
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Investment analysis of plum brandy production – methodology approach
103-105Views:308The major prerequisite of successful entrepreneurship venture is quality of decision-making process. Decision in investment is the most important financial decision. It is a part of both long-term business planning process and strategic business definition. Using available investment appraisal methods, entrepreneur should make positive or negative investment decision. Within the development of the economic theory and the practice many of methods made decision-making process rational and gave the scientific and practical base for successful project evaluation.
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Less favoured area measure in the Netherlands: a welcome or negligible addition?
23-28Views:430The Less Favoured Areas (LFAs) Directive (75/268) which was introduced in 1975, was the first common European instrument of regional agricultural structural policy. LFAs are areas where agriculture is hampered by permanent natural handicaps. The major objectives were to ensure the continuation of farming, thereby maintaining a minimum population level and preserving scenic landscapes and environmentally valuable habitats. In the Netherlands, the LFA measure is used as an additional payment, to compensate farmers for negative economic effects due to the conservation of these natural handicaps. It was not implemented as a stand alone policy, but is linked to measures aiming at active nature and landscape conservation management. In this paper, the effects will be examined of the regulations aiming at the conservation of natural handicaps on farm businesses within LFAs, when comparing them to farm businesses outside LFAs, where these regulations and handicaps do not exist. The main data source that was used is the Farm Accountancy Data Network. Reference groups of farms were compiled with the use of the simple and multiple imputation approach in Stars (Statistics for Regional Studies). Both analyses were tested with the use of a parametric and a nonparametric test. When comparing the results of both analyses, it can be concluded that there is no evidence that there is a statistical difference in family farm income corrected for and not corrected for LFA payment between the LFA farm businesses and the reference groups. Based on these findings it can be concluded that the size of the compensatory allowances is small and there is no evidence that it has a significant effect on the family farm income of LFA farm businesses. The main purpose of the Dutch LFA policy is to compensate farm businesses for negative economic effects due to the conservation of natural handicaps. Although this may be true for some individual farms, based on the methods used in this paper, it appears not to be the case for the collectivity of LFA premium beneficiaries as a whole.
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Off-farm participation and technical efficiency among smallholder farmers in the Northern Region, Ghana
35-43Views:440The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities.
JEL code: Q22
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SOCIOECONOMIC DETERMINANTS OF THE INTENSITY OF MUSHROOM COMMERCIALISATION IN GREATER ACCRA REGION, GHANA
Views:408Fungi, such as mushrooms, have the unique ability to decompose and convert obstinate organic substances into protein, thereby improving nutrition, increasing food security, fostering sustainable agricultural production, and generating income for farmers. Since the 1990s, the Ghanaian government, through the Mushroom Unit of the Food Research Institute of Ghana, has promoted the cultivation and commercialization of (oyster) mushrooms in Ghana as an additional source of income for the urban poor. This study used a cross-sectional survey design, questionnaires, and validated structured interview schedule instruments to collect data from 153 mushroom farmers in the Ga East and Adentan Municipalities of the Greater Accra Region to determine the intensity, degree, characterisation, and factors that influence the intensity of oyster mushroom. The Crop Commercialization Index, frequency, mean, standard deviation, Two Stage Least Square regression and Ordinary Least Square regression were used to analyze the data. The results showed a low intensity (GHC 10202.20) but a high degree (75%)of oyster mushroom commercialization in the study area. The vast majority of oyster mushroom farmers (95%) were highly commercialized, selling more than half of their oyster mushroom output. Except for age, farmers' level of formal education, land ownership, and production volume of oyster mushroom all positively influenced the intensity of oyster mushroom commercialization. The Food Research Institute, the Ministry of Food and Agriculture, and development organizations should step up efforts to increase oyster mushroom production and attract educated, young, and unemployed people to oyster mushroom ventures.
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Effect of uncertainty on farmers decision making: Case of animal manure use
7-13Views:318Due to the high levels of manure application and the poor use efficiency of manure, the European agriculture is held responsible for a considerable negative impact on surface water quality (Langeveld et al., 2007). This problem has emerged particularly in Western-European countries such as the UK, Belgium, The Netherlands and Denmark, facing a large expansion and intensification process in the livestock production since the 1960s (Van der Straeten et al., 2008). Policy measures related to the application of manure on the land encompass two major measures: emission rights, understood as the amount of nutrients which can be applied on the land, differentiated by crop and the N spreading calendars, whereby the manure can only be applied when the crop needs nutrients. The fundamental aim of this pillar is to maximising application rate while avoiding overfertilisation. Maximizing the application rate is related to the economic sustainability of the agricultural sector, by altering the manure surplus, while avoiding overfertilisation is imperative in enhancing ecological sustainability, by preventing nitrate leaching to surface and soil waters. For nitrate policy to meet its target, the farmers should not exceed their emission rights, however make optimal use of their emission right for manure. Consequently, the successful implementation of sink-related measures will strongly depend of the absorptive capacity of farmers towards new ways of nutrient management in general and of animal manures in particular.
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Organic tourism as a tool to raise healthy tourism destinations: an investigation in Turkey
69-76Views:512The aim of the paper is to specify the items that effect the importance of organic tourism both for human life and sustainable tourism destinations. The fundamental point of the study is to focus on organic farming both as a tool for welfare of the destinations and their importance and potential for the upcoming future of healthy generations using the data collected from segments of the society such as administrators, non-governmental organization members and farmers. The study is also based on an extensive secondary research analyzing the diverse literature regarding the organic/ecological/sustainable/destination tourism. The results are supplemented by semi-structured interviews. To date, many people have been interested in visiting villages and having an experience in living farms. This tourism activity is combined with facilities to create potent economic force to small villages. Besides, consuming organic food is one of the most important attitudes to live healthier and longer by being or working in the farms or villages as a visitor which creates a new era in tourism named as organic tourism. Organic tourism primarily targets tourists, tours organized for the purpose of health, relaxation activities, agriculture education, culture and gastronomy. The research offers a practical help for farmers, local governors, local people (especially villagers), tour operators and visitors fleeing from the intensity of city life in the light of the findings.
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Integrated approach in Ukrainian dairy industry: a case study from Poltava region
Views:475Integration processes in the field of agriculture, and particularly in dairy industry, have real prospects for improving the efficiency of business entities in this industry due to technological features. Particular attention should be paid to vertically integrated business models that allow hedging of various risk groups and minimizing costs due to the optimal combination of the efforts of enterprises belonging to such associations.
The purpose of the article is to study the current state of dairy industry in Poltava Region, Ukraine, and to show one of the conceptual ways to increase its economic efficiency. The paper presents a theoretical hypothesis concerning the necessity of vertically integrated agricultural formation’s creation in order to improve the competitiveness of dairy production in the region and having positive effect on sustainable development of dairy industry.
The practical significance of the study includes the possibility to use findings and recommendations set out in the paper for introduction of mutually beneficial economic relations between agricultural, dairy and trade enterprises in concluding agreements on joint activities based on a successful example from Poltava Region, and contribute to the stabilization, development and increase of the enterprises’ efficiency in Ukrainian dairy industry.
JEL code: F15, Q13
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Marketing opportunities of local products in the catchment area of Csíkszereda town
38-44Views:474Agriculture plays an outstanding role in Romania, since there are nearly three and a half million small farms operating in the country, accounting for almost 90% of the total number of farms, and scarcely more than 32% of the available farm land is cultivated by 35% of the population. In the settlements found in the catchment area of Csíkszereda, the majority of farms consist of family farms smaller than 5 hectares. The marketing of good quality products made from local raw material by traditional methods contributes to the sustenance of the family farms. Researches show that as a result of the education of the farmers on a local level more and more processed products appear in the markets of Csíkszereda town. Farmers involved in the local market intend to expand their farms on the long run. The respondents consider that “a piece of land can be sold only once”, that is why the sustenance of the farm became the main goal of multi-generational effort. Younger farmers are usually more educated and more open to innovation. The vast majority of farmers under 45 find it important to market their products through rural tourism and they are also more eager to join producer groups. Young farmers need to merge traditional methods and knowledge inherited from previous generations with modern opportunities and methods that facilitate production and marketing. Knowledge gained this way makes it possible for small farms to market their products through short supply chains.
JEL code: Q12,Q13
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Impact of CAP’s pillars on Romanian rural employment
75-80Views:290This paper aims to clarify the direction of change in rural employment on short- and medium term in Romania, while CAP regulations are being introduced and the global economic crisis emerges. First we put into evidence the decrease of the role of agriculture as buffer for unemployment and the poor contribution of non-agricultural activities to provide employment for rural residents.Then we analyse the main characteristics of the rural labour force. Finally we synthesize the opinions expressed by 33 consultants (working at the Offices for Agricultural Consultancy from different counties in Transylvania) about the estimated short term evolution of rural employment and the impact of CAP on Romanian rural areas.
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Agri-product evaluation and biodiversity measurement
91-93Views:246This paper is meant to be the first part of a two part unit that will be published next. The objective of this paper is to be an introduction of agri-product evaluation, with in which a short summary of essentials of diversity measurement is given and to share experience on evaluation of environmental friendly agri-product. For biodiversity measurement and extern effects, literature of related publications was processed and experience gained over experimental projects on environmental-friendly technologies was summed up. Methods applied were based on influence-response approach which guided us all through the research work. It can be stated that one diversity measure or one diversity function fails to describe communities of living beings; therefore, at least two methods should be used in parallel. Scale-dependent description of diversity is necessary, which provides us with new information that can not be revealed by traditional methods. To identify external effects, we have to take influences of use of a specific product into account and the responses generated by use of that product. Influences might appear in parallel or can build up one another, similarly to the generated responses of environment. To be as precise as possible, it is suggested that we take into account only clear responses. Influence-response relations are shown here using terms and concepts in broad sense and in general. More sophisticated application of terms and concepts is needed to evaluate properly and in monetary terms.We will make efforts to clarify terms and their use in the future.
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Impact of Terrorism on Agricultural Business in Borno State, Nigeria
117-124Views:453This study examines the impact of terrorism on agribusiness in Borno state. Terrorist activities in Borno state dates back to 2009 where a group of Islamic extremists popularly known as Boko Haram (meaning western education is a sin) became violent in their activities. The group operates significantly in north-eastern Nigeria where Borno state is located and since 2009. The presence of the group has led to collapse of socio-economic activities in Borno state among other states. Millions of people have been displaced fromtheir homes and forced to live in camps in neighbouring states. As a result, this study examines the impact of insurgency related activities on agribusiness in BornoState. Agricbusiness in Borno state can be measured using four different parameters, amount of area cultivated, annual crop production, rearing of livestock and fish farming. These are the major agricultural business residents of Borno state are engaged in. However due to unavailability of data, rearing of livestock and fish farming are dropped, thus focusing on area cultivated and annual crop production. As a result of these two variables, two models are developed. The first model measures the relationship between amounts of crop produced with insurgency related killings, while the second model measuresthe relationship between total areasof farmland cultivated with fatalities resulting from terrorist activity. This study employs Ordinary Least Squares methodology and finds that both relationshipsreveal negative results thus indicating statistically significant negative impact of terrorism on agribusiness in Borno State.
JEL Classification: Q10, Q18, Q12
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Comparison study of the agricultural subsidy policy applied by Ecuador and Hungary in the last 10 years
Views:479Agricultural subsidies have long been a consistent concern of government policies; they influence the use of resources for pursuing different goals in this sector. In this research, we are making a comparison study of the agricultural subsidy policies of Ecuador and Hungary in the last ten years by a comparative analysis applied for empirical generalization to explain and get a better understanding of the subsidies used in the two countries. The results show an enormous advantage for Hungary compared to Ecuador regarding the agricultural subsidies. Since they are part of the Common Agricultural Policy of the European Union, Hungary's subsidies are institutionalized and planned in the long term within a series of programs financed by the EU and national funds. While in Ecuador, agricultural policies exist as a general framework, and the governing body manages the subsidies through programs and projects that do not remain over time and depend on the current political situation in the country. In the same way, the data collected reflects that although the share of the agricultural sector in Ecuador's GDP is higher than in Hungary, the subsidy amounts for this sector are 36% lower than in Hungary.JEL CODE: Q13 -
Police organization in the Republic of Croatia – problems in decision making
99-102Views:281During the last few years of my police work I had a chance to speak and share opinion with my work associates about the police system in Croatia. My colleagues sometimes shared my opinion and sometimes they did not about the quality of police organization. Everyone’s conclusion was that some sort of change in the police organization has to be made; organization of the police must follow and embrace modern standards in organization and conduct. Almost each person had the same opinion about police management and decision making. Their opinion was that management is not efficient; decision making is based on chain of command and not on finding good solutions; members of the management team do not have education or creativity to be qualified managers; form is more important than the quality of work.
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Regulatory challenges of innovation in food and agriculture market authorization requirements for new foods
137-142Views:331Regulatory authorities face the challenge to strike a fair balance between the interests of consumers to ensure the safety of innovative foods and agricultural products and the interest of innovative businesses.Worldwide prior authorization schemes are applied. This contribution explores characteristics, pros and cons of such schemes. It identifies concerns but also best practices that may contribute to improving food safety without unduly hampering innovation.
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