Hungarian dairy farms went through significant changes in past two decades. The most significant changes were caused by our accession to the European Union in 2004. In Hungary milk production remarkably declined after EU accession due to the decreasing level of support and decreasing milk prices. Size of our dairy herd has been practically redu...cing since the political transformation (1989); meanwhile the relative yields per cow have been continuously increasing. Relatively low prices, high production costs and tightening quality requirements ousted several producers – mainly small farms - from the market in past years. Feeding cost represents the highest rate in cost structure of production, but animal health expenditures and various losses are also significant. Applied technology of the Hungarian dairies lags behind theWestern-European competitors’; in addition they have handicaps in efficiency and product innovation. Moreover Hungarian milk and milk product consumption is about half of the Union average. In 2007 at the University of Debrecen the opportunities and the problems of this sector were discussed in the framework of a research and development project entitled “Project-generating based on sector-specific innovation”.At this workshop farmers, experts and advisers shared their ideas which were all gathered. The main objective of our paper is to provide useful information for the decision makers and the most important members of the sector. Using the practically successful ideas plus the ideas based on previous experience a new strategic concept was created. To reach the objective of this paper we collected, synthesized and analysed the strengths, weaknesses, opportunities and threats of the dairy farms and performed a SWOT analysis. On the basis of this SWOT analysis we set up a well organised problem hierarchy which would help to identify the main weaknesses of the sector. This analysis gives a great framework for the researches and it also gives a useful tool for the decision makers to improve the competitiveness of the Hungarian dairy sector.
As a consortium partner, University of Debrecen, Hungary, has been conducting a European four-year project with the acronym NetGrow financed within the Framework Program 7 under the auspices of the EU focusing on network behaviour of food SMEs and the performance of networks. The overall objective is to reveal more evidences and facts on innova...tion, learning, and networking in the food sector of the EU. Whithin the scope of the project, special attention was paid to reveal how network attributes were evaluated by the main four stakeholder groups of the food sector such as food SMEs, public bodies, research institutions, and network management organisations. The respondents differ in ranking the attributes, while but we got a clear order of attributes, of which the top five can be explicitly selected. Taking the next three ranks into consideration, the attributes behind them have clear meanings and they seem to be complementary for the top five. The stakeholder groups were significantly differ in scoring openmindedness and external relations, the importance of network rendered services, and the goals relevance of the network to the firms.
There are several variations of efficiency definitions and of course ratios concerned with efficiency. A better understanding of the notion of efficiency is critical to dissolve ambiguity about it. Many confuse efficiency with other supposedly synonymous notions such as profitability, successfulness, competitiveness, liquidity or productivity....This ambiguity originates not only in subjective reasons, but the lack of hierarchical order among certain ideas. The primary driver in our research is, to systematize efficiency in general, and formulate a new categorical approach of the efficiency in corporate level.
The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the research is to compare dairy farms in Germany, The Netherlands and Hungary about their tech...nical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Stochastic Frontier Analysis (SFA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow thus, we get that the most efficient farms are in the Netherlands with 84% efficient. The German farms are 76% efficient. The Hungarian farms are 68% efficient. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.
University of Debrecen is the oldest higher educational institution in continuous operation in Hungary based in the same city. MBA training at Debrecen Agricultural University was initiated by 0257-91/1 Tempus Joint European Project Grant. The project was coordinated by the Netherlands Institute for Management (RVB) Maastricht. Participating in...stitutions include University College in Dublin, Agricultural University in Wageningen and Debrecen Agricultural University. Minimum requirements established were a BSc (or equivalent) degree, an English certificate of language proficiency and one letter of reference from work supervisors or former teachers. Application requirements included a completed application form, Curriculum vitae, a certified copy of degree(s), an official copy of language knowledge certificate, a letter of recommendation and the receipt of registration fee payment. The academic year began on 1 September 1991, and project studies were carried out in small groups. Practical experience that had been gained before enrolment was taken into account and after the successful completion of the requirements students were granted MBA degrees.
JEL CODE: I21, I25
The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the paper is to compare dairy farms in Germany, The Netherlands and Hungary about their technic...al efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Data Envelopment Analysis (DEA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow. If we want to eliminate the low sample size effect, we can assume a common frontier, which decreases the efficiency scores a bit, and makes the Hungarian results more reliable. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.
The idea initiating the birth of the journal APSTRACT was initiated by András Nábrádi, during a 2005 AGRIMBA1 executive board meeting held in Aberdeen, UK. AGRIMBA is an open international network of academics and professionals from universities and related institutions dealing with education and research in agribusiness (Csapó et al., 2010...). Currently, the Network is especially active in Central and Eastern Europe (Heijman, 2015). The main objective of the Network is to set standards based on best practices for programmes it oversees and to accredit them on the basis of these standards. The International MBA Network was established in 1995, by founding members from Wageningen University, Scottish Agricultural College, the Czech University of Life Sciences in Prague, Warsaw Agricultural University, University College Cork and the University of Wolverhampton. Between 2000 and 2009, the following universities joined the Network: Humboldt University Berlin, the University of Debrecen, Arkansas State University, the Agricultural University of Ukraine, the Timiryazev Academy in Moscow, the University of Belgrade and the University of Zagreb (Heijman, 2015). The Universities of Belgorod (Russia) and Kazan (Russia) has also joined the network last year.
JEL code: A10
To examine and compare the technical efficiency of dairy sector and the beef sector, this research introduced the main indicators of milk and beef production in the world, EU and Hungarian aggregates. Based on the data it can be said that the milk and beef production of Hungary does not occupy any significant position in the world as well as in... the European Union neither today nor even in the past. If Hungry must compete in the European counties and international market, their dairy sector must focus to increase of their production efficiency as the key breakthrough point. This paper we compared technical efficiency of both dairy and beef sectors in total, for the year 2014 and 2015 separately and based on the farm size. The specific objectives of the research are: comparing dairy and beef farms efficiency in Hungary. Based on the results, we can determine which sector in Hungary is more effective. The second objective is to compare the efficiencies of both the sectors in 2014 and 2015 separately and from the results we can determine which year was more effective in terms of production efficiency and the third objective of the research is technical efficiency comparison of certain economic sizes for both sectors. In the research, we used (KOVACS, 2009) deterministic (DEA) model adapted to the Hungarian dairy farms and beef farms. For the dairy farms milk and dairy products as well as meat (other income). The input factors originated from the domestic AKI - FADN database. Summarizing the results of the research it can be conclude that the dairy sector is more effective than the beef sector in Hungary. In terms of years compared 2014 was more effective for both sector as compared with 2015. In regards to the farm size almost the same result in evaluating the scale of efficiency, which means that large economies can in most cases, manage resources more efficiently than small farms. In the examined years, based on the results of the DEA model, the VRS technical efficiency of the test for these two years was 72.90% for the dairy farms and 63.60% for the beef farms, which means that the dairy sector is more efficient than the beef sector in Hungary. The VRS technical efficiency of the research was 82.10% in 2014 and 75.10% in 2015 for the dairy farms and 77.50% in 2014 and 68.90% in 2015 for the beef farms, which means that both the dairy sector and the beef sectors followed the same trend and were more efficient in 2014 compared to the efficiency in 2015. The large size dairy farms were most effective in Hungary in the examined period (90.90%). VRS technical efficiency for small farms is 88% and the total number of small, the technical efficiency medium farms was 72.80% For the beef sector VRS technical efficiency for small farms is 71.30% and the technical efficiency medium farms was 74.40% and 70% of the beef meat producing farms in Hungary are medium sized. So, the conclusion is the small size dairy farms have a higher VRS efficiency than the small size beef farms whereas medium sized beef farms had higher VRS efficiency than the medium size dairy farms. As a conclusion, both dairy and beef sectors in Hungary have the potential to overcome technology and knowledge constraints and attain the upmost attainable productivity level through improvements in; farmer volume of production i.e. output, beef cattle technologies, and advertising, and the efficiency of the technology transfer process.
JEL Code: Q13