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Some uses, underuses, and misuses of the findings of disparities between people’s valuations of gains and losses
7-13Views:181The well-known behavioural finding that losses have a greater impact on people’s well-being than gains, has important implications for the study of individual and collective choices, as well as the ways in which analyses are carried out -- many more than have yet been seriously considered. It also has many for analysts’ use of such tools as price elasticities, discount rates, value of statistical lives, risk analysis, and the like. A greater recognition of the behavioral findings would likely lead to reductions of the biases in many present analyses.
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Economics of GM crop cultivation
7-19Views:161Asynchronous approval of new GM crops across international jurisdictions is of growing concern due to its potential impact on global trade. Different countries have different authorisation procedures and, even if regulatory dossiers are submitted at the same time, approval is not given simultaneously (in some cases, delays can even amount to years). For instance, by mid-2009 over 40 transgenic events were approved or close to approval elsewhere but not yet approved – or not even submitted – in the EU.Yet, like some other jurisdictions,the EU also operates a zero-tolerance policy to even the smallest traces of nationally unapproved GM crops (so-called low-level presence). The resultant rejection of agricultural imports has already caused high economic losses and threatens to disrupt global agri-food supply chains. The risk that feed supplies could be affected by a low-level presence of non-EU approved GM material could be resolved if the EU allowed a tolerance for this, rather than operating a strict zero tolerance as now. The Commission has undertaken to come forward with a nonlegislative technical solution to address the difficulties created by a strict zero tolerance policy. To what extent this would be helpful will depend on the nature of the proposed solution.
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The effects of climate change on cereals yield of production and food security in Gambia
83-92Views:950Increasingly, empirical evidences are substantiating the effects of climate change on agricultural production is a reality. In the early part of the 20th century many were skeptical about the so-called climate change that is due to global warming. The Intergovernmental Panel on Climate Change (IPCC, 2007) defines climate change as follows: “climate change refers to a change in the state of the climate that can be identified by changes in the mean or variability of its properties and that persists for extended periods, typically decades or longer” This study analyses the impact of climate change on cereals production (millet and maize) in the Gambia using a time series data for a period of 46 years (1960 – 2013) at an aggregate level to assess the relationship between climate (temperatures and rainfall,) and non-climate variables fertilizer, area planted respectively and yield. The specific objectives of the research are: (1) How climate change affects the expected cereals (Millet and Maize) output or yield in the Gambia. (2) How the level of output risk within cereals (Millet and Maize) farming is affected? In order to achieve these set objectives, the paper will adopt Just and Pope modified Ricardian production functions for climate change impact assessments (e.g., Chen et al. 2004), the paper will also control for the impacts of regular input factors in the production process. The study used a data set for the Gambia comprising variables relevant for cereals production and climate information from 1960 through 2013. There is strong evidence that climate will affects Maize and Millet; according to the analysis 77% and 44% of the variability in the yield of Maize and Millet respectively is explained by the climate and non-climate variables included in the model. Given the effects of climate variables on cereals production, and increasing climate change vulnerabilities on other food production section, the result of this paper will add voice to the growing call for policy makers to step up funding in research and development in climate change adaptation and mitigation.
JEL classification: Q54
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Total Quality Management in the food industry – Current situation and potential in Germany
83-87Views:452The requirements in terms of information availability, risk precaution and control in the food industry continue to increase. In this context the interest of companies in the Total Quality Management (TQM) approach is also increasing. This development attracts notice to Business Excellence and connected systems. Similarly, various quality management tools and techniques are available. In this regard a research project analyzed to what extent the companies in the food industry apply different activities of the TQM scheme. The research calculates the importance that the companies attach to different requirements of TQM and how they implement them. Additionally, statistical analysis provides evidence that there is a positive correlation between the implementation of the activities of TQM and the medium- to longterm success of a company. In this article the methodology and major findings of this research project are presented.
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Relationships between competitiveness in the Northern Great Plain and the organisational culture of local authorities
13-20Views:137One of the five basic factors in the Lengyel-type pyramid model – institutions and social capital – is essential in the economic growth of the region. Economic success however, does not only depend on participants in the economy, but on social factors such as the roles played by local authorities, including their functions, operation and organisational culture, all of which are crucial factors. Based on the results obtained regarding organisational culture it can be stated that performance orientation, dominant motivation based on calculated risk, forward planning and regular feedback are expected values at local authorities in all three counties. All local authorities emphasise the importance of the need for forecasting. Respondents find it important that organisations encourage and reward individual action and contributions as expected values. The degree of human orientation expected by local authorities reflects the fact that respect for colleagues and attention to their well-being should be at the highest level. Reinforcing these organisational culture values (dimensions) is the basis for the efficient and successful operation of organisations (local authorities). The study examines the organisational culture of local authorities in the Northern Great Plain, looking for any relationships it might have with the competitiveness of the region. This study is an element of the wider research into organisational culture. We used the GLOBE (Global Leadership and Organisational Behaviour Effectiveness) survey, which had been successfully applied in the research programme In Competition with the World at the Corvinus University of Budapest. Koopman, Den Hartog, Konrad et al. (1999) examined the culture variables of 21 European countries in organisations. Based on Hungarian and international literature it can be stated that a similar survey of local authorities has not yet been conducted.
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Investment analysis of a piglet producer farm – a Hungarian case study
141-152Views:253The 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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Regulatory challenges of innovation in food and agriculture market authorization requirements for new foods
137-142Views:136Regulatory 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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Climate change impact on crop production in Central Asian Countries
75-82Views:191Increased risk due to global warming has already become embedded in agricultural decision making in Central Asia and uncertainties are projected to increase even further. Agro-ecology and economies of Central Asia are heterogeneous and very little is known about the impact of climate change at the subnational levels. The bio-economic farm model is used for ex-ante assessment of climate change impacts at sub-national levels in Central Asia. The bio-economic farm model is calibrated to ten farming systems in Central Asia based on the household survey and crop growth experiment data. The production uncertainties and the adaptation options of agricultural producers to changing environments are considered paramount in the simulations. Very large differences in climate change impacts across the studied farming systems are found. The positive income gains in large-scale commercial farms in the northern regions of Kazakhstan and negative impact in small-scale farms in arid zones of Tajikistan are likely to happen. Producers in Kyrgyzstan may expect higher revenues but also higher income volatilities in the future. Agricultural producers in Uzbekistan may benefit in the near future but may lose their income in the distant future. The negative impacts could be further aggravated in arid zones of Central Asia if irrigation water availability decline due to climate change and water demand increase in upstream regions. The scenario simulations show that market liberalization and improved commodity exchange between the countries have very good potential to cope with the negative consequences of climate change.
JEL classification: Q11, Q18
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Changes in costs of precision nutrition depending on crop rotation
59-63Views:126By applying precision nutrition the yield heterogeneity owing to the different features of soil spots can be taken into consideration. The planned and sprayed fertilizer adjusted to the expected yield rendered to soil spots can reduce the negative effects of artificial chemicals on soil and environment. The aim of this paper is to examine how the quantity and the cost of fertilizer (material and operational) will change on spot level on a certain plot during a five-year period, considering crop rotation, too. The following crops are in the rotation: winter wheat, corn and sunflower. Precision nutrition can be used in all the cultures mentioned above. Our earlier (static) model calculations have revealed that the threshold price of precision production was lower by 31% than in conventional technology. So it is necessary to explore for a longer period how the profitability of precision nutrition reacts to the changes in input and yield prices in different crops. The risk receptivity of precision nutrition can be characterized with the help of price sensitive analyses. Effects on profitability of other technological elements are not analysed in this paper.
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Influence of social media on tourism – especially among students of the University of Debrecen
105-112Views:4150Derive from the characteristic, decisions connected with travelling have high risk for the travellers therefore they try to collect more detailed information and thoroughly map decision alternatives in order to decrease uncertainty. Wide spread of the Internet and rapid technological evolution have revolutionized all industries in the World especially tourism. Platform of tourism increasingly get to the Internet nowadays which is vitally important because tourism is an informationbased and information-intensive industry. Thanks to development of the internet tourists have an opportunity to access such information and purchasing opportunities which were available with the help of intermediaries earlier. Providing wide range of possibilities, Web 2.0 fundamentally changed the way of tourists’ information search behaviour and travelling decision making. This article collects some of the most significant new applications (social networking sites, blogs) in tourism – examine them from the two sides of tourism (demand, supply) – which principally based on active participation of users. Furthermore an offline questionnaire was made in order to survey the social media usage of the student (University of Debrecen, Centre for Agricultural and Applied Economic Sciences) during their leisure travel planning process. Although findings of the study reveal that vast majority of students use social networking sites every day, they don’t really use these platforms during their trip planning process. Among students, friends and relatives are the most important and the most trustworthy source of information due to characteristics of sample.
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Characteristics of physical activity at the university of Debrecen
115-120Views:196The assessment of physical activity is a much-researched field. Physical inactivity has negative consequences. In the development of diseases, a key risk factor is insufficient exercise. Emphasizing the relation between physical activity and health is a constantly discussed matter. UD-FCSNE students will play a key role in educating children for a healthy lifestyle. They will become teachers and specialists. Mapping students’ motives concerning physical activity, we can see the order of motive factors and the factors influencing the different age groups. The majority of students exercise less than 30 minutes per day. Most of them do leisure sporting. To increase physical activity we must provide leisure sporting facilities, based on the population’s needs. Maintaining and increasing fitness are chief motivational factors, unlike expectations and competition. The order of motives is significantly different. These differences occurred in five categories. There is a difference in physical activity between full and part-time students.
JEL code: Z2
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A study of the causes leading to the liquidation of agricultural enterprises
123-127Views:118The viability of agricultural enterprises is of paramount importance. Their liquidation has harmful effects on broad strata of society. The aim of my research is therefore to analyze the leading causes of liquidation of agricultural enterprises. The research was led on 17 agricultural enterprises. This may help in the prevention and treatment of their insolvency. The research results show that a long-term agricultural production is not sustainable with a low equity capital. For the long-term maintenance it is necessary that the investors establish the enterprise with a capital according to the type of the production.The loan can not replacethe entrepreneursown resources,it is only complementaryto it.Theownersof agriculturalbusinessesshould strive to ensurethatthe paid-up share capital is kept in the firm, because in case of payment difficulties, this can be an adequate financial provision. Companies with financial problems can avoid liquidation if the crisis is detected in time by the leaders. However, the owners must organize the management of the enterprise so that it should have the necessary technical and economic knowledge. With an appropriate management, and use of means of crisis management, the liquidation of the enterprise can be prevented.
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Diversification strategies and their impact on farm performance
57-61Views:134The objective of this study is to identify factors determining the economic performance of agricultural holdings in Italy, with specific attention to the impact of the adoption of on-farm diversification strategies, namely income diversification and product differentiation. The adoption of these kinds of strategies has been increasingly recognised as a viable business option in agriculture as they allow better allocation of farm resources and an increase in the quota of value added retained on farms and therefore not passed on to other agents operating at the end of the food supply chain. By using a panel of professional Italian farms over the time period of 2003-2009, we estimate random effect, ordinary least square and quantile regression models to estimate the impact of income diversification and product differentiation strategies on the levels of farm income per unit of labour income. Our findings show that scale economies are important positive determinants of farm economic performance. On the contrary, when the family play an important role in the farm business, economic performance is worse. Finally, we do not find evidence of a statistically significant impact of the adoption of income diversification and product differentiation strategies. This latter result may be interpreted as a signal that farms use these strategies as risk management tools rather than as income increasing ones.
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The status of agricultural financing by commercial banks in Zimbabwe
45-56Views:422Agricultural finance is indispensable for enhancing productive capacity in both small-scale and commercial farming. This study sought to establish the current status of agricultural financing by 12 registered and operational commercial banks in Zimbabwe in the year 2019. Questionnaires and interview guides were used to collect data. SPSS and NVivo were used for data analysis. All the commercial banks participated in agricultural financing with an average agricultural loan portfolio of 30%. However, their participation in agricultural lending is yet to reach the pre-land reform maximum of 91.3% attained in 1999. Land tenure and weather risks, as well as lack of collateral among farmers reduced the banks’ appetite for lending to the agricultural sector. The majority of the commercial banks offered value chain finance, invoice finance, overdraft facilities, and term loans to agricultural sector clients that mainly included; suppliers, medium-scale, and large-scale commercial farmers. The study established a mismatch in the demand and supply of loans in the medium to long term tenure range of 1 to more than 3 years. There was low demand for 1-3-year tenure loans according to the commercial banks, and a corresponding deficit in the supply of highly demanded longer-term loans of more than 3 years for capital expenditure (CAPEX). Therefore, government should aim to; stabilize currency; arrest hyperinflation; restore economic stability; address land tenure to ensure the bankability of the 99-year Lease; and create an environment that is conducive for investment in climate and weather resilience infrastructure. Local farmers should also invest in human and physical capital to improve their access to bank credit.
JEL Code: Q14
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What differentiates the entrepreneurs from non-entrepreneurs on nature and nurture?
45-52Views:559Based on the importance and contribution of entrepreneurship in economic development, it is vital to know that what underlying factors may promote the spirit of entrepreneurship? The entrepreneurship literature suggests two kinds of broader influencers or predictors for entrepreneurs and non-entrepreneurs “nature” and “nurture”. In this study “nature” includes the psychological or personality related factors; self-confidence, locus of control, risk-taking propensity and trust levels. The “nurture” is explained by the effects from society in general and friends and family in particular. To answer the question “What differentiates the entrepreneurs from non-entrepreneurs on nature and nurture?” we collected data through questionnaire from 155 respondents. The 70 respondents were entrepreneurs and 85 were non-entrepreneurs. Step-wise discriminant analysis was used to determine the discriminating factors for entrepreneurs from non-entrepreneurs. Results indicate that societal impacts, risk taking propensity and trust levels were significantly discriminating the two groups; entrepreneurs and non-entrepreneurs. The study has important implications for policy makers, academicians, researchers and potential entrepreneurs.
JEL Code: L26, M13
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Integrated approach in Ukrainian dairy industry: a case study from Poltava region
Views:235Integration 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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