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Moral hazard in producer organizations - some experiences of an empirical survey
77-83Views:445A wide range of empirical experiences shows that the performance of Hungarian producer organizations (aka TÉSZ) significantly falls behind the activity observed in the developed Western European countries. Regarding this issue, the present study examines how moral hazard - as one of the possible reasons - influences the producers’ activities in cooperative organizations. Information for the research was collected with the help of a questionnaire survey among the members of PaprikaKert TÉSZ Ltd. A statistical path model has been developed for the research, which assumed that - in addition to a direct effect - moral hazard also affects collaborative activity by eroding trust. The statistical model has been tested both in member-member and members-management relations. The experiences from the survey clearly show that moral hazard exists in the producer organization. According to my results, though its measure cannot be regarded numerically considerable, its negative effect on cooperative activity can be proved with statistical examinations. Its effect can be divided into two aspects: besides a direct effect, an indirect one can also be detected, which means that moral hazard is able to reduce producers’ willingness to cooperate by eroding trust. Moreover, our results have clearly pointed out that moral hazard has a negative impact on member-member and members-management relations to varying degrees and through different mechanisms. In addition to the above tests, the empirical testing of another model called Sholtes trust model has been carried out, too. The validating was successful, so the model - which attributes trust to the faith in the partner’s loyalty and capability - is basically acceptable. The argument says that high-level trust can be observed among partners only when faith both in loyalty and capability is strong enough. The research, however, revealed that the above-mentioned two factors determine it in a different way: regarding trust between members, the faith in capability is more important; while trust towards the management is more determined by faith in loyalty.
JEL code: Q12, Q13
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Optimal crop plan of cooperative farmers in Osun state, Nigeria: a linear programming approach
Views:467Optimal level of production requires better use of existing resources at the lowest possible cost. Despite the inherent advantage of cooperatives to the agricultural sector, the question of how farmers under cooperative umbrella use farm resource for optimal outcome remains unanswered. This study investigates optimal crop mix for cooperative farmers in rural communities in Southwest Nigeria. Primary data were collected for the study through structured questionnaire. The data were fitted to Linear Programming Model. Three different cropping patterns are identified among the cooperative farmers. Based on the results from linear programming model, only maize, cassava and yam are admitted in the final plan and this combination is to be produced at 2.23 hectares. The gross margin value associated with the plan is ₦156, 235.781 (1$ = N365). Input resources such as land, labour, fertilizer, and chemicals are not fully utilized. The slack values for these inputs are 0.31, 651.20, 1929.6 and 140.76 respectively. The sensitivity analysis shows that seed/seedling is the only binding resource in the final plan with a shadow price which suggests that proper allocation of seed and seedlings would improve returns to cooperative farmers. There is need for appropriate farm management strategies to ensure optimal return for farmers. More education and training is suggested to boost cooperative farmers understanding of optimum strategy that is needed to improve production and earnings.
JEL code: Q10, Q13
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Rural resilience and the role of social capital among farmers in Kirundo province, Northern Burundi
121-125Views:361In Burundi, more than 90% of the active population is engaged in family agriculture, which plays a vital role in food production and constitutes more than 50% of the GDP. Before the civil war of 1993, Kirundo was deemed the “breadbasket of the country”, as the region fed many parts of Burundi through growing particular foods such as legumes and cereals. Family farming was market-oriented. Kirundo alone includes 8 lakes which offer opportunities for field irrigation. Today, this region is the first province in Burundi which shows a high rate of malnutrition, as poverty has increased and a sharp 53.9 % decline in agricultural production has been witnessed between 1996 and 2009. The aim of this article is to analyse the role of social capital through the local association network in improving family agriculture and the resilience to climate change and conflict crisis. In this study, 73 farmers were surveyed in Kirundo province through means of a questionnaire, and the study was completed by collecting secondary data. Analysis of the data reveals that, despite recurrent droughts in that region which caused deaths due to famines and displacement of people to neighbouring countries such as Rwanda and Tanzania, 44% of the farmers who were surveyed were shown to have resilience to climate change. The analysis of data shows that these farmers were members of well organised local associations, and had learned about specific topics such as financial management, processing and storage of agricultural products and livestock. The social capital network positively influences their income and their resilience to climate change and conflict crisis.
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Analysis of consumer habits and attitudes on the Hungarian beef and rabbit market
67-70Views:476As a consortium partner the authors took part in a research project aiming at the development of high added value, healthy and environment friendly animal products. From among the products developed by the consortium (rabbit meat, omega3-fatty acid enriched beef, goose liver from non forcible feeding, selenium-, vitamin-E and natural color enriched eggs) the present study describes the results concerning beef and rabbit meat. The given products are chosen because they are produced in and exported from Hungary in considerable quantities and their competitiveness can be further improved. In order to able to map the consumer preferences a 300 count nationwide, representative, questionnaire based survey was designed and performed. Actual products were tested by focus groups and professional interviews. Beside the specific features of the products a common character is that the marketing strategy focuses on the distinctive nutritional benefits and other quality parameters that seem to be of crucial importance for the targeted consumer segment. Their unique character and health protecting effects make their branding and using community labeling easy. Their positioning points toward the prestige products therefore consumers tend to accept higher prices. In marketing communication the image building advertisement can be a common goal.
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