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Factors influencing the gross value added in the sheep production chain
141-146Views:736The competitiveness of the sheep sector in East Europe has been decreasing from year to year. The value added in the sector is not generated in the countries as a high proportion of the lambs are exported. For example, in Hungary, 95% of the lambs, unnecessary for replacement, are sold at an average weight of 21 kg and are slaughtered abroad. A stochastic model was constructed to investigate the connections between the cycle phases of the mutton production. Three modules were distinguished, the lamb production, fattening and slaughtering-processing sub-modules. The aim of our study was to identify the gross value added generated in the three sub-modules and to analyse the main factors influencing its volume using the conditions in Hungary as an example. The major hypothesis of our research was that the profitability of the production chain is mainly determined by the breed. The results showed that, considering market prices, the gross value added in the processing module was mostly influenced by the number of lambs sold per ewe per year at the bottom level of the mutton product chain. The next most important factors were the weight gain in the lamb producing and fattening sub-modules and dressing percentage in slaughtering-processing sub-module. Contour plots were constructed which help to describe the relationship among analyzed factors. Using the contour plots, the gross value added for different combinations of these factors might be forecast.
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THE DECLINE OF TRADITIONAL LIVESTOCK FARMING IN SPAIN AND ITS IMPACT ON ECOSYSTEM SERVICES: UNDERSTANDING THE DYNAMICS THROUGH FOCUS GROUPS WITH SHEPHERDS
Views:361Traditional extensive livestock farming has emerged as a potential sustainable development strategy in Europe, particularly to address rural depopulation and provide multiple positive externalities. Despite new European policies emphasizing its importance, the sector continues to decline. This study employs focus group methodology to examine the underlying causes of this decline from the perspective of shepherds. Two discussion groups were held with farmers from the regions of Castilla y León and Castilla-La Mancha in Spain, allowing us to contrast the testimonies of the practitioners with the existing literature. Our methodological approach emphasizes the value of focus groups in capturing complex socioeconomic dynamics within traditional livestock communities.
The findings reveal multiple interconnected challenges: low profitability derived from legal requirements and concentration of demand; increasingly complex access to pastures due to local and state regulations; significant barriers to entry, including economic requirements and bureaucracy; difficulties in work-life balance; bureaucratic obstacles to positive externalities; conflictive relations with the tourism sector; weak associationism; and limited technology adoption. This study contributes to the methodological literature by demonstrating how focus groups can effectively reveal hidden dynamics in declining traditional sectors.
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Economic issues of duck production: A case study from Hungary
61-67Views:454The Hungarian waterfowl sector is characterised by export orientation, as 55-57% of the revenue comes from exports, so its importance is high in the national economy. The production of slaughter animals in the duck sector has doubled in the last decade. The objective of the study is to examine production parameters, as well as the cost and profit situation of broiler duck production and to reveal the correlations between the factors with a case study through the example of a Hungarian company. The production parameters and cost data of the investigated farm (2014-2016, 96 production cycles) were analysed using descriptive statistical methods, correlation and regression analysis. The results show that the average cost of the duck produced in intensive, closed farming system was between 72.6 and 101.7 eurocent kg-1. The most significant cost items were feed (52-63%) and chicken cost (14-19%). The sales price decreased from 112.9 eurocent kg-1 to 98.4 eurocent kg-1 during the examined period, resulting in a profit from -3.3 to 25.7 eurocent kg-1, and overall profitability was decreasing. The study also revealed that there was no correlation between average cost and final bodyweight, while the correlation between average cost and reared period was weak. At the same time, the relationship between average cost and average daily weight gain, mortality, feed conversion ratio was moderate. In addition, the European Production Efficiency Factor (EPEF) can be adapted to the duck sector as strong, positive relationship can be scientifically verified between the indicator and average cost. There is a close correlation between the sold live weight per m2 and the amount of feed used per m2, as well as between the final bodyweight and the amount of feed used to rear a duck, while the correlation between average cost and the sold live weight per m2 is weak.
JEL Code: Q13, Q19
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Economical aspects of thermal and medical tourism
77-84Views:469Thermal and medical tourism in Hungary are characterised by a continuous development. The management, efficiency, operational effectiveness and offer of enterprises in the field of tourism influence the competitiveness of Hungary’s tourism. In the present day economic life the thorough analysis of the enterprises’ economy is indispensable. The result of the analytical methods applied by the report provide information for different stakeholders (owners, transporters, customers, employees, habilitators). The aim is to have data which inform us about the functioning, financial situation and profitability of the economic entities parallel with the factors and conditions determining these elements. In our paper we present the financial situation of the Demjén Thermal Spa Ltd., being one of the newest thermal spas of Hungary.
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Efficiency analysis of dairy farms in the Northern Great Plain region using deterministic and stochastic DEA models
113-122Views:350Running any dairy enterprise is a risky activity: the profitability of the enterprise is affected by the price fluctuation of feed and animal health products from inputs, as well as by the fluctuation of end-product prices. Under these circumstances, it is essential for the cattle breeders, in order to survive, to harness the reserves in management as effectively as possible. In this research the efficiency and risk of 32 sample dairy farms were analysed in the Northern Great Plain Region from the Farm Accountancy Data Network (FADN) by applying classical Data Envelopment Analysis (DEA) and stochastic DEA models. The choice of this method is justified by the fact that there was not such an available reliable database by which production functions could have been defined, and DEA makes possible to manage simultaneously some inputs and outputs, i.e. complex decision problems. By using DEA, the sources that cause shortfall on inefficient farms can be identified, analysed and quantified, so corporate decision support can be reinforced successfully. A disadvantage of the classical DEA model is that the stochastic factors of farming cannot be treated either on the side of inputs or outputs; therefore, their results can be adopted with reservations, especially in agricultural models. This may have been because we could not discover that many agricultural applications. Considering the price of inputs and outputs as probability variables, 5000 simulation runs have been done in this research. As a result, it can be stated that at which intervals of the input and output factors can become competitive and the fluctuation of these factors can cause what level of risk at each farm.
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Analyse the financing structure of agricultural enterprises in 2002–2006
91-94Views:361The capital structure of agricultural enterprises notable modified since the change in Hungary’s economic system. The study discusses the capital structure of agricultural enterprises in Hungary and analyses the most significant indicators, that we can use to describe the financing situation of the firms. My empirical analysis is based on data containing 192 agricultural enterprises between 2002 and 2006. I try to assess the reasons of the changes in the structure of resources of enterprises in order to find the determinants effecting the capital structure. Furthermore, I assess the index numbers illustrating the management of the enterprises.
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THE PROFIT EFFICIENCY OF MORINGA OLEIFERA PRODUCTION IN OSUN STATE, NIGERIA
Views:592This study examined the profit efficiency of Moringa oleifera production by farmers in Osun State, Nigeria. Primary data were obtained from 150 respondents. Multistage sampling procedure was used for selecting respondents. The data were analyzed with the aid of descriptive statistics, budgetary analysis and stochastic frontier production function. The findings revealed that male predominate moringa enterprise with about 55.3% male, most producers fall between the age bracket 41-50years with a mean age of 44.92 (± 13.168) years and the average farm size is 0.3 hectares whilst indicating that most producers had less than 0.1 hectares of land. Moringa production had a benefit cost ratio of ₦5.852, profit margin of ₦0.182, expense structure ratio of ₦0.107, net return on investment ₦4.857, rate of return of ₦5.482 and profitability ratio of ₦0.981. The average profit efficiency of moringa producers was 18.73% on the profit frontier. Family labour, hired labour and transport cost were significant and had positive coefficient while the seed cost, pesticide cost, level of education and farm size are also significant but bears negative coefficient. The level of education and farm size are amongst the inefficiency variables considered. This study concludes that Moringa oleifera production is highly profitable but producers have not been able to maximize profit efficiency. It therefore recommends that producers improve on adding value to moringa products and extend their channels of distribution considering the cost incurred on transportation.
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Current situation and development of the bee-keeping sector in Hungary
71-74Views:537Rural development has become more and more important issue in Hungary since rural areas also contribute to the efficiency of the national economy. Development of rural areas also very important issue in the European Union, which could contribute to the improvement of profitability of small family businesses, higher employment rate in rural areas as well as slow down the migration of people from rural into urban areas. Nowadays the bee-keeping– as one of the activities can provide alternative income for small businesses in rural areas– has become more and more important topic in Hungary. Bee-keeping sector provides income roughly 15 thousands families in Hungary. At the same time it takes important role in the preservation of rural landscape, traditions and their regional values. However, the sector has serious problems, as well (for instance quality issues, competitors on the market, etc.). It can be stated that the market position of Hungarian honey can be preserved through the improvement of quality assurance and product development. These developments can be carried out by the utilization of national and European Union funds.
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Plant production for biomass into energy: economics and energy efficiency view
65-71Views:394The aim of the paper was to determine the influence of the fertilization level on the energy and economics efficiency of the production technologies of selected crops processed into bioethanol or biogas. There were investigated the following crops: rye, triticale, wheat, sugar beets, maize, sorghum, reed canarygrass and Virginia fanpetals. In the energetic efficiency the Energy Return on Energy Investment index (EroEI) was used. Apart from the ERoEI ratio, the Net Energy Value (NEV) ratio was also used. In the economics efficiency attitude, the Gross Margin (GM) was determined.The investigations proved that in general, the production technologies of crops where the lowest levels of nitrogen fertilization were applied proved to have the highest energetic efficiency. The highest economic efficiency was characterized by the production of corn for biogas. In the case of the production of bioethanol (all plants), ratios were on the verge of profitability or the lack of it showed.The analysis proved that the efficiency of the technologies of production of the crops to be processed into biogas is several times higher than the energetic efficiency of the technologies of production of the crops to be processed into bioethanol.
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Investment analysis of a piglet producer farm – a Hungarian case study
141-152Views:673The pig population in Hungary was about 8 million in 1990, while this number dropped to only 2.8 million by 2018. The previously so successful integrated domestic pig farming has almost completely disappeared and most of the smaller farms still operating in the 1990s are no longer functioning. At present, a process of concentration can be observed, which was accompanied by the further specialization of pig farming. The main profile of most pig farms is fattening, but there is a smaller number of farms in Hungary today specialized for piglet production, the successful operation of which requires significantly more expertise and more complex technology.
The main aim of this study is to present the production and economic indicators of a pig farm specialized in piglet production in Hungary as a result of a greenfield investment in the current economic environment, on a case study basis. For this purpose, an economic simulation was prepared based on primary data collection, operating on a deterministic basis, modelling the production and economic processes of the farm. The performed calculation does not derive the economic indicators of the activity from accounting records, but assigns the prices of natural inputs used on the basis of technological data. Primary data and information collection (e.g. technological data, input and output prices, unit cost items, etc.) took place between 2018-2019.
At the purchase prices of pigs in the last two years, which have increased significantly due to the African Swine Fever (ASF), the majority of pig farms in Hungary have an outstanding profit-making capacity. The physical efficiency indicators of the analysed pig farm are almost identical to the average data of such farms in the Netherlands, which has one of the most developed pig industry. The income of the examined pig farm at farm level is about 734 thousand EUR, i.e. 232 EUR per sow. Moreover, this activity is profitable even without subsidies. As a result, the greenfield investment pays off in the 8th year by default (average scenario). The investment has a Net Present Value (NPVr=3%) of EUR 2,609 thousand for 10 years, an Internal Rate of Return of 8.5%, and a Profitability Index (PIr=3%) of 1.3. At the same time, risk factors such as sales prices, output and capacity utilization, and feed costs should be taken into consideration as in extreme cases the return on investment may be unfavourable (pessimistic scenario).
JEL code: D24, M11, Q12
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Analyzing soundness of nationalized banks in India: a camel approach
73-78Views:432Performance of the economy of any country is largely dependent on the performance of its banking sector. Since, banking sector constitutes a major component of the financial service sector. Soundness of the banking sector is essential for a healthy and vibrant economy. The efficiency, productivity, profitability, stability and a shock free economy is possible only when a country is having a sound and healthy banking sector. The present research work has been undertaken to analyze the soundness of five nationalized banks in India. In order to measure the performances of these banks CAMEL MODEL Approach has been applied, incorporating important parameters like Capital Adequacy, Assets Quality, Management Efficiency, Earnings Quality and Liquidity. The finding of the study shows that Bank of Baroda has been ranked at the top position, the Union Bank of India and Dena Bank secured the 2nd position, the next was the State Bank of India which secured the 4th position and in the last position was the UCO Bank which secured the 5th position.
JEL Code: G2, G12, G21, G32& G33.
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