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Proposals for low-carbon agriculture production strategies between 2020 and 2030 in Hungary
5-15Views:252When viewed from the perspective of climate policy, agriculture as a separate sector is one of the most difficult development areas to assess. One of the reasons for this is the problem of the localization of greenhouse gas emitters, caused by the fact that production takes place in small or dispersed production units. The special circumstance that unit production takes place in complex interactive systems (food, feed, energy sources, main products, by-products, etc.) is yet another special factor, which in addition makes it significantly more difficult to measure and identify the GHGs they emit than if they were a uniform production plant. Additionally, there are few sectors outside agriculture where decision-makers encounter such strong opposition and lobby interests when developing limiting regulations. This stems from the fact that following World War II, European decision-makers and the Common Agricultural Policy elevated agriculture to a prominent role whose importance was indisputable. As a result, both climate policy and other measures that would result in any reduction of the priority of the sector are very difficult to implement, since the players involved always reason that limitations would restrict their competiveness and the security of their production. In addition, the uncertain nature of regulatory elements also poses a grave problem. As an example, the name of the sector itself – the LULUCF (Land Use, Land Use Change and Forestry) sector – shows that the strategy for reducing the greenhouse gasses emitted by the whole sector would be significantly different if these units were treated separately (agricultural land use, forest, not-cultivated areas). Taking the above into account, the present study aims to identify development directions that in turn allow those low-carbon development directions to be pinpointed within animal husbandry and plant production that have the greatest feasibility and can contribute to decreasing the GHG environmental load exerted by agriculture.
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Water footprint in Hungary
83-91Views:173More and more news report on water-related extreme environmental phenomena. Some of these are natural, which are often beyond the human race. But others are definitely due to anthropogenic effects. I think the water footprint index is able to highlight national and international water-use processes and gives us the opportunity of organizing a sustainable, consumer-, environmental- and governancefriendly management. 81% of the fresh water withdrawal is from surface water bodies in the EU. In Europe as a whole, 44% of abstraction is used for energy production, 24% for agriculture, 21% for public water supply and 11% for industry. Public water supply is confined to ground waters. To the water resources related human activity caused qualitative and quantitative amortisation will grow worse in the foreseeable future due to the climate change. Beside seasonal differences the sectoral differences are increasingly becoming critical between different areas, such as Southern and Western Europe. The former, wrong agricultural support system has worsened the situation since it gave financial aid for the used improper techniques of water-intensive crop cultivation. By today, this seems to be solved. Public water abstraction is affected by many factors, of which mostly are based on social situation and habits, but technological leakage receives a big role as well. Interesting, that for example the residents’water consumption in Eastern Europe decreased because price were raised and regular measurements were introduced. But in Southern Europe it increased due to tourism in the past period. Industrial water withdrawal decreased across Europe because of the decline of industry and the development of technologies. According to the European Environment Agency (EEA), the Union needs a sustainable, demand-driven leadership which focuses on the preservation and use efficiency. This have already appeared in politics and legal administration as well. Current research calls the attention to the significance and difficulties of this kind of domestic estimation presented trough the water footprint calculation of bread and pork in Hungary. The received data indicate the domestic water consumption trends in a modern approach. There is no doubt for me about the urgent necessity of water footprint calculation because as a result innovative, sustainability supported environmental, social, economical, and political relationships can be created – not just on local, regional or national level, but on interregional, European and even global stage.
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Analysing sporting goods manufacturers’ environmental management tools
23-29Views:215Organizations around the developed world are facing pressure from governments, international agreements, society and various stakeholders, to improve their behavior towards the natural environment. The application of environmental management tools may be an important step towards sustainability and the preservation of environmental values, however marketing could be the key – with the help of information and communication technologies (ICT) – in publicizing and spreading these ideas thus forming customers’, stakeholders’ attitude in this respect.The aim of this study was to define the concept of environmental consciousness and environmentally conscious behaviour, then to present the shift the traditional marketing philosophy towards the sustainable marketing approach, finally to analyse two top sporting goods manufacturers’ (Nike, Adidas) environmental management tools with the help of data gained from their web sites, reports, case studies. Interpreting environmental consciousness is difficult without knowing the attitude to it. In spite of that it is important to distinguish between environmental consciousness and environmentally conscious attitude, because consciousness often appears in attitude influenced by other, outer effects.The environmental conscious attitude of companies in itself is not enough for making use of the advantages deriving from a positive environmental concern. They need to pursue more active communication, to „green” the whole of marketing activities. Thus marketing seems a possible means to naturalize and expand environmental protection both among customers and in company practice. According to the analysed companies, we need to say, that they are commitment with the environmental protection. They are used state-of-theart technologies to make their activity greener and introduce these with full particulars, examples e.g. ColorDry technologies, Better Cotton, The Framaprene ECO heel. Either Nike, Inc., or Adidas Group realised that ICT have the ability to improve efficiency and cut the use of material goods, thus reducing energy demands and the burden upon the environment.
JEL code: Q01
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Trends on the Artificial Fertilizer Market and in Fertilizers Use in Hungary
5-12Views:228The fertilizer market in Hungary is rather concentrated, which has a strong influence on the price of the fertilizer. Our domestic fertilizer use is primarily determined by that of nitrogen. The use of phosphorus is also significant but the trends in the use of potassium do not match the total quantities applied in individual years. Consequently, it can be concluded that the majority of farmers still focus on the application of nitrogen and also apply phosphorus but either neglect or do not pay enough attention to potassium fertilization. The changes in fertilizer prices between 2006 and 2017 can be broken down into two periods. Until 2012 a very important and dynamic increase was observed as a result of which the prices of N, P and K fertilizers increased by 80-120%, 160% and about 120%, respectively. This was followed by a downturn in the market and in relation to 2012 prices there were 20-30/ decreases experienced until 2017 but the rate of this lagged behind the prices in other European countries. Owing to this trend the prices of N, P and K have increased by 60%, 100% and 80%, respectively, over the past ten years. The correlation between fertilizer application and the prices of fertilizers in any given year is low but there is a positive one observed between fertilizer application and the fertilizer prices in the preceding year. This means supposedly that farmers mostly buy the fertilizers they wish to apply not in the current but in the preceding year and store them until these are applied. There is a strong correlation seen between fertilizer prices and the prices of corn and wheat, which means that fertilizer traders also keep tabs on economic results and also increase fertilizer prices under the influence of higher prices. Furthermore, it can be claimed that there is no correlation between crude oil prices on the world market and domestic N fertilizer prices. This is an important factor since the primary base material of N fertilizers is natural gas and their production involves considerable energy costs as well. It can be seen, however, that this is not what determines our domestic fertilizer prices, which can be explained by the fact that the price calculations by the determining actors on the Hungarian fertilizer market is not based on costs but on the demand.
JEL Classification: Q13
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Health factor in soft drink consumption, German example
41-44Views:108Consumer lifestyle and health are relevant factors to understanding consumption preferences.The number of lifestyle diseases has dramatically increased worldwide. The main cause for these diseases is the change in lifestyle; including a lack of attention to physical activity and good nutrition. Health and lifestyle are important factors by purchase decision process. In accordance with these, I examine the consumer behaviour toward soft drinks with special regards to healthy lifestyle and the state of health. My examinations can be considered mainly as a qualitative research among German students, which can serve as a basis for further analyses and research, however, the conclusions and experience gained from it are worthy of consideration. I differentiated five categories: ice tea, carbonated soft drinks, fruit juices, mineral waters, sport and energy drinks and studied the consumer behaviour toward them. The study focuses on the consumption of these and the factors influencing their purchase with special regards to lifestyle.
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Economic questions of land usage – scarcity, sustainability
43-47Views:101The aim of this paper is to show the economic importance of land usage. This topic is important because land is the basis of industrial and agricultural production, as well as energy and environmental security. The focus of the analysis is the relationship between land usage and scarcity and sustainability.
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Potential impact of the European Green Agreement on EU and Hungarian crop production
Views:185European arable farming, including Hungarian arable farming, faces a huge dilemma: how to contribute to and maintain the global food supply while reducing greenhouse gas emissions while main taining biodiversity, but reducing inputs that are potentially damaging to society and the environment while ensuring that no more land is taken out of production? Not to mention that the increasingly urgent need to tackle climate change is also placing additional demands on EU agricultural decision-makers. Under the European Green Deal (GD), the 'From Farm to Fork' (F2F) strategy will help achieve climate neutrality by 2050, with a target of a 55% reduction in greenhouse gas emissions by 2030. Achieving this will require significant changes in food production, a shift in crop health strategies and accelerated innovation in the agricultural sector. The study addresses these issues. Our first hypothesis (A1) is that the GD and F2F strategies can be implemented without problems and without losses. Our second assumption (A2) is that the know-how solutions and the technological conditions for precision agriculture that are already available exist, and that all of these already justify the feasibility of A1. In order to prove this, we have reviewed recent and up-to-date literature on DG and F2F. For A1, we found that there are pro and con findings in the literature. However, the summary finding is not positive. The conclusion of the studies, based on data calculations, is that EU agriculture faces huge additional costs if it is to maintain production and reduce environmental pressures. Their calculations suggest that more people will be disadvantaged by the decisions, and that millions of euros could be lost to the public. However, the article also shows that there are many cases where positive results can be achieved even with reduced chemical use. Facts and figures from international and Hungarian technological and know-how solutions and their trials at plant level show that the DG's objectives are already partially achievable. It has been established that the systematic use of precision technologies allows to increase the natural and at the same time the economic efficiency. In our work we have used the results of primary and recent secondary research. We have shown the downsides of GD, but also that with targeted support, the objectives of sustainability and GD can be approached. Changes in 2022, drastic price increases for inputs including fertilizers and pesticides, inflation at a 20-year high, energy prices spiraling out of control, and an almost unprecedented drought affecting crop production and horticulture, point to the need for a radical change in technology, thinking and regulation. And all this to ensure that there is enough affordable food in Hungary, that there are export products within and outside the Community, and that those working in agriculture have a decent living.
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Greener cement sector and potential climate strategy development between 2015-2030 (Hungarian case study)
65-74Views:350Advancing the domestic industrial production towards a sustainable, resource-preserving direction can become an important pillar to support competitiveness in the European Union, as well as in Hungary. Reaching the de-carbonization goals for industrial production via lowering the production volume may result in less desirable macro-economic effects, so decisions which concern the industry require a lot of attention from the climate policy as well. In the case of the cement sector, economic actors have to be motivated to make energy-efficiency investments and technology developments, which also show promise in terms of business efficiency. In the more natural-resource-intensive branches of the industry, both innovations and technological developments will be required to reduce the amount of used non-renewable energy resources, keep it in the industrial cycle, and reduce environmental load. The importance of greener cement will be essential in the near future to reduce the sector’s CO2 emission levels. We need to identify more sector branches which relate to sustainability, which can aid the country in establishing long-term competitiveness that points towards the de-carbonization goals. The cost-efficiency aspects of this development process are the most tedious questions in today’s business planning.
JEL classification: Q55
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Green networks: Innovative capacity of SMEs in the Dutch greenhouse horticulture industry
43-50Views:148The Dutch greenhouse horticulture industry is characterized by world leadership in high-tech innovation. The dynamics of this playing field are innovation in production systems and automation, reduction in energy consumption and sharing limited space. However, international competitive advantage of the industry is under pressure and sustainable growth of individual enterprises is no longer a certainty. The sector’s ambition is to innovate better and grow faster than the competition in the rest of the world. Realizing this ambition requires strengthening the knowledge base, stimulating entrepreneurship, innovation (not just technological, but especially business process innovation). It also requires educating and professionalizing people. However, knowledge transfer in this industry is often fragmented and innovation through horizontal and vertical collaboration throughout the value chain is limited. This paper focuses on the question: how can the grower and the supplier in the greenhouse horticulture chain gain competitive advantage through radical product and process innovation. The challenge lies in time- to-market, in customer relationship, in developing new product/market combinations and in innovative entrepreneurship. In this paper an innovation and entrepreneurial educational and research programme is introduced. The programme aims at strengthening multidisciplinary collaboration between enterprise, education and research. Using best practice examples, the paper illustrates how companies can realize growth and improve the innovative capacity of the organization as well as the individual by linking economic and social sustainability. The paper continues to show how participants of the program develop competencies by means of going through a learning cycle of single-loop, double-loop and triple loop learning: reduction of mistakes, change towards new concepts and improvement of the ability to learn. Finally, the paper illustrates the importance of combining enterprise, education and research in regional networks, with examples from the greenhouse horticulture sector. These networks generate economic growth and international competitiveness by acting as business accelerators.
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Urban Food Crop Farming and Farm Households’ Food Security Status in Oyo State, Nigeria
23-28Views:158Food production and supply has been on the decline in Nigeria with a consequent impact on household food security. This study examined the influence of urban farming on household food security in Oyo State, Nigeria. Multi-stage sampling procedure was used to select 159 farm households in a cross-sectional survey. Structured questionnaire was used to obtain data on socio-economic characteristics, determine the food security status of urban crop farming households in the study area, and examine the effects of urban crop production on households’ food security status. Data were analysed using descriptive statistics while the statistical tools were Food Security Index (FSI) and Probit Regression Model (PRM). Results revealed that 84.9% of the respondents was male, 81.2% married. The average age, household size, and farm size were 49.6 years, 6 persons, 1.1 hectares respectively. Most (75.5%) of the respondents did not have access to consumption credit and 62.3% did not belong to any farmers association. Based on minimum daily energy requirement per adult equivalent of N230.8, 90.6% of the farm households was food secure.
The PRM showed that age (β = -0.1, p<0.05), household size (β= -0.4, p<0.01) and economic efficiency (β = -61.6, p<0.05) reduced the probability of household food security while access to consumption credit (β= 1.7, p<0.05) and allocative efficiency (β = 67.9, p<0.05) increased the probability of household food security. The study concluded that urban farming significantly influence household food security.
JEL Classification: Q11
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Adaptations to potential impacts of climate change in the “New Hungary” Rural Development Programme
133-137Views:125There are evidences that the climate is changing and the effects on agriculture and wildlife are discernible. Spring is occurring earlier and autumn later, all of which have impacts on agriculture and forestry. Climate change is also predicted to result in more frequent droughts, increased flooding in Hungary, but the relationship between agriculture and climate change is more complex. Climate change has physical effects on farming and farm based wildlife. Agriculture needs to adapt to climate change by exploring, which crops and farming systems are best adapted to the changed conditions. Land management also needs to adapt to preserve biodiversity by protecting valuable habitats and species and helping them in the changing environment. With better management, agriculture and forestry can also mitigate climate change by reducing direct greenhouse gas emissions from land use, land use change and forestry, by producing crops as a source of renewable energy and by protecting carbon stored in soils and in manure. The HRDP comprises of a series of funding based on the following overarching priorities: (i) enhance the environment and countryside, (ii) making agriculture and forestry more competitive and sustainable, (iii) enhancing opportunity in rural areas, whether in the farming sector or the broader rural economy. Actions discussed in this paper are based on the New Hungary Rural Development Programme (2007–2013) and focused on reducing the effects of climate change in rural area. Establishment of agro-forestry systems and integrated pest management help mitigation goals and increase climate change adaptation potential. Minimizing unwanted side effects of agriculture by reducing the use of fertilizer and increasing the safety for environment (soil, water, and air) and human health have positive effects on adaptation potential. Restoration of agricultural production though diversification of agriculture and pastures management, improvement in drain age and irrigation equipment are good examples of adaptation for climate change. Integrated production, which is oriented to controlled cultivation of crops, vine, fruits and vegetables, and improvement of animal rearing conditions to increase production standards and overall welfare are preferred and ecologically sound methods of adaptation.
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Methane reductions to moderate the global warming effects
59-64Views:147The case-study overviews the possible reduction for the methane gas emission in order to avoid of the more global warming effects and climate change caused by the human activity at latest decades. To collect international data base is for analysing and valuing methane gas emission based on the different country-groups, emphasizing responsibility of developing countries and highly developed countries for gas emission, also the methane emission based is on the economic sectors. China and India have share 8% of China and 2% of India respectively of cumulative CO2 emissions over the period 1900-2005, the US and the EU are responsible for more than half of emissions. Based on the estimation the global gas emissions of methane in the whole world has increased by 37% for period of 1990- 2030, as four decades, and this was 0,92% annual rate growth, while the OECD has increased the methane emission by 8,5% for this period, which means 0,21% growth rate annually. Scenario in developing countries for 2013-2020 the methane gas emission reduction could have been 8200 Mt of CO2e (Equivalent) and less than 10 US dollar per ton in more cost financing. Highly developed and developing economies (last one their methane emission share 56% in 1990, estimated 66,8% in 2030) increase their economic growth by mostly fossil energy resulted in increasing also methane gas emissions. The methane gas emission can be solved by those results-based-finance forms relevant to Kyoto Protocol, which can extend in the world by financial institutions.
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Disentangling the complexity of India ’s agricultural sector
35-42Views:133Agricultural policies in India directly impact the livelihoods of close to two thirds of India’s population. Through policies, the government manages food security, urban and rural poverty, energy, and infrastructure, among others. Given the current state of India’s governance, the connection between policy making and its results in society becomes a key issue for research. This paper presents a game for use as a research instrument. The game can facilitate research into the policy making process at various levels of the government in India. The design is intended to understand the complexity of the institutional arrangement that defines and implements agricultural policies. The game integrates with other games that simulate other aspects of the agricultural system in India. The paper presents the verification and validation cycles followed, and identifies further steps for field validation.
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The role of beekeeping in production of oil crops
77-82Views:121Production of sunflower oil are expected to serve larger and larger extent – over the demand of food industry and chemical industry – biofuel production. This could be especially true for that areas where climate is not allowed to grow winter rape safely and economically. Ecological role of honey-bees can be considered undoubtful in preservation of biodiversity of flora and fauna. I analyse the following problems in our study:
• What is the significance of oil plants in European and Hungarian energy production?
• How influence pollination the yields and the safety of production of oil plants?
• What is the role of oil plants in the development of production structure of beekeeping?
• What are the economical advantages of the above-mentioned effects? -
Consumption habits of “Free range chicken” in Hungary
69-73Views:178Poultry is highly ranked in theWorld meat production and consumption (it accounted for 32% in 2007), and, in the past 20 years it was growing with an annual rate of 3–6%, higher than in case of any other meat-types. This tendency is also valid for Hungary: poultry has the largest share (29.8 kg/person/year, 47%) in the domestic meat consumption since 2000, which is among the EU top (KSH, 2007). As the result of the animal health and nutrition scandals, the EU animal welfare and quality requirements and the advancements in health consciousness the Master-Good group launched the production, processing and trade of free-range poultry under the brand “Free-range chicken”. The new products had good consumer responses, because at present 1.5% of the processed chicken in Hungary (25 tons/week) is under this brand. As it regards the future of this product, we can expect the decrease of the current 1.5 times higher production price over broiler chicken, due to the increasing energy, labour and other cost items, thus the increase of the domestic consumption by 25–30% per annum can be foreseen. Besides the growth in domestic demand, increasing foreign consumer demand can also be expected because of the space requirement of the production. Summarising the above mentioned: „Free range chicken” can be one of the most successful products of the Hungarian poultry industry. In order to realise the prognosis mentioned above, it is inevitable to learn the consumer attitudes towards the brand. A primary market research programme supported by the Master Good group has been launched to study the main features of the domestic chicken meat consumption – including the „Free-range chicken” as highlighted brand. The primary aim of the research was the complete assessment and evaluation of the Hungarian chicken consumption habits and the identification of the possible take-off points. The research undertaken resulted basic information concerning the internal structure of the Hungarian poultry consumption (including that of the „Free-range chicken”), the potential consumer groups and their requirements, provided information on the consumers’knowledge of the products and identified the elements of the consumers’ judgements. This will serve as basis for a marketing communication programme to increase the domestic „Free-range chicken” consumption.
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A multi-dimensional ethical approach to accounting and reporting practices
13-26Views:123Purpose – The purpose of this research is to find out the multi-dimensional ethical approach to accounting and reporting practices going on in India and abroad. What has been the shift in Reporting Practices by Indian companies? What drives the Indian companies to report on the non-financial matters?
Design/methodology/approach – This paper mainly focuses on the inclusion of Non-Financial Matters in the Corporate Annual Reports. An Empirical Survey was carried out and the questionnaires were administered to 122 respondents comprising of 75 academicians and 47 chartered accountants. This paper compares the perceptions of academicians and accounting professionals on the ethical reporting practices of the Indian companies.
Findings – The results were tested using the t-test analysis. The research suggests that more companies should report on their environmental, social, and corporate governance performance and find a way to express them in their Annual Reports and the reporting of data regarding the carbon emissions, energy use, pollution, impact on the local economy, etc., should be made mandatory for companies.
Research limitations/implications – The research included respondents who are currently living in Delhi. For more generalized opinion nationwide survey can be carried out. Another important category of stakeholder for judging the usability of Corporate Annual Reports could be the Institutional Investors.
Practical implications – The results of this study would help the policy makers in framing the guidelines for standardized annual reports, synergizing social and business interest needs on top priority. Corporate philanthropy needs to transform into the realm of core business and corporate social responsibility. Integrated reporting could pave the way for synthesizing financial and non-financial reporting into one form and give a holistic view of companies’ strategies to its stakeholders incorporating new dimensions of IFRS.
Social implications – More emphasis on Non-financial matters will certainly contribute in making the corporates more responsible to the society, environment, and to the future generations. -
New rural economy: Challenges and diversity in Eastern Croatia
51-54Views:131Eastern part of Croatia is agricultural region according to natural resource (fertile soil, first of all), as well as human potential (long experience in traditional agriculture). Besides agriculture as traditional activity, a characteristic of rurality is also added to this region. Rural area is dominant in Eastern Croatia and it effects on relatively small urban areas. This paper represents new possibilities of rural economic activities on family farms in Eastern Croatia. Role and significant of rural economic activities is analyzed through indicators overview (land structure, GDP, population, population density, TEA index, unemployment ect.). Challenges through diversification of rural economic activities in this paper includes added economic activities realized on family farms through tourism, crafts, handy work, processing, renewable energyetc. Added economic activities on family farms in Eastern Croatia participate with only 3.9%. Suggestions and possibilities measures of rural economic activities diversification are reflected through two main streams. First stream is diversification of activities through added value of agricultural products as vertical connection (organic food, autochthony products, functional food, renewable energy sources etc.). Other one economic activity diversification indicates distribution function of final products through different services on the family farm (direct sale, specialized shops, rural tourism and many other services).
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A study into the awareness and acceptance of utilizing vine branches in the micro-region of Gyöngyös
43-44Views:121Every year, a significant amount of renewable dendromass is generated in Hungary. Various possibilities have been recognised by today that are not widespread yet. The greatest obstacle is frequently derived from the lack of the farmers’ knowledge as without having the required knowledge obtained they can become distrustful or adequate efficiency will not be achieved during utilisation. In order to improve the rate of utilisation, targeted information methodologies should be applied that comply with the farmers’ knowledge. In this present study, the awareness and acceptance of vine-growers from the Micro-region of Gyöngyös related to the use of vine branches will be analysed based on the results of a questionnaire survey.
The survey was conducted in accordance with the number of wine-community members in personal interviews. The questionnaire contained questions about the farm, the use of vine branches as well as about the farmers.
Based on the results, information was obtained on the reasons for the use of by-products not being wide-spread among farmers as well as on the sources of information obtained. For the fragmented farms which are typical here it is important to know whether by-products are not utilised as it is not how they can be used or whether the vineyard is cultivated by others therefore the farmer lacks machinery. The level of acceptance was also studied by asking a question on the possible offer of the by-products for greater-scale site.
Our intention is to assist the generally badly off farmers to use the annually generated by-products in a reasonable way. This can be realized by various ways of providing information. By applying the results of the survey, adequate methods and knowledge can be provided for farmers. -
Tests of differential diesel fuels in engine testing room
59-65Views:142The portion of oil could be estimated 33 % of global primary energy consumption in 2012 (BP, 2012) and its average price – beside the products produced from it as well - significantly increased, unlike the demand for transport which has been reduced. This tendency is expected to remain unchanged in the long run, therefore, there is a great importance for the variety of diesel fuel distributors, in comparison of the ratio value for each of them, and replacing them with biodiesel can be used in the comparison. We executed 3 dynamometer measurements performed to determine three different dealers purchased diesel oil, some economical examinations of the diesel oil retail price, and the use of biodiesel all based on the expected economic studies in the literature studies of extra fuel consumption values. The results of these tests indicate that the differences of consumption between diesel oils can be up to 5 %, the conclusion is that distinctions of diesel oil consumptions are almost the same when we tested the differences between diesel oil and biodiesel. This means we can reach the same result with a high quality biodiesel as with poor quality diesel oil. This also means that– below 20% of mixing ratio we can easily choose by prices alone. Between these prices and products ( D1, D2, D3), we can save 4.8% diesel oil by using D2, 6.2% diesel oil by using D3 compared to D1. There could be a little revolution variance (D2: 2.9-6%, D3: 4.9- 7.1%), but this variance is under 1% so it is negligible.
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Cost analysis of pig slaughtering: A Hungarian case study
121-129Views:201The 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
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New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union
25-31Views:158The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs.
JEL classification: Q18
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