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Assessing the financial viability of the floricultural industry in Ghana
119-126Views:164This study determines the financial viability of the floricultural industry in Ghana using both discounting and non-discounting investment appraisal methods. The feasibility analysis suggests that large-scale floricultural firms are more profitable particularly with the production of cut flowers. However, investors with limited capital can venture into small-scale production specifically cut flowers. The conclusion is that the floriculture industry is financially viable therefore investors are encouraged to expend their resources in the industry. We recommend that the government and stakeholders need to create institutional support to enable the already established firms to further develop and attract new investors in the sector.
JEL. Code: Q13
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Determinants of credit access of cocoa farmers
73-78Views:301Access to credit is one of the critical areas that are of prime interest to development practitioners, agribusiness entrepreneurs and agricultural economists, mainly access to credit by farmers in order to increase their production and also reduce poverty. This study sought to analyze the determinants of credit access among cocoa farmers in the Asunafo North of the Ahafo Region of Ghana. The multistage sampling procedure was used to collect data from 100 cocoa farmers with the aid of a questionnaire. Sources of credit, factors influencing access to credit, and constraints to credit were analyzed with the aid of descriptive statistics, multiple linear regression, and Kendall’s coefficient of concordance respectively. The results of multiple linear regression revealed that, age, marital status, education, experience, and family size were significant factors that influenced access to credit. The constraints analysis with the aid of Kendall’s coefficient of concordance showed that, high interest rate was highly ranked with a mean score of 1.93 whilst the need for a guarantor was least ranked with a mean score of 7.40. Based on the results, the study recommended that a policy aimed at expanding formal and semi-formal financial institutions credit portfolio to embrace cocoa farmers by finding alternative to collaterals and also reducing the interest rate will improve credit access with a positive externality effect of poverty reduction among cocoa farmers in the study area.
JEL Classification: Q14
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The role of agribusiness in stimulating on-farm investments – case-study of the armenian dairy sector
85-91Views:121This paper analyses the impact on investments of contractual arrangements between farms and agribusiness in the Armenian dairy sector. Our empirical evidence is based on a unique survey of 300 Armenian dairy farms. The dairy sector is of particular importance as it provides vital employment and income, in an environment of weak social security and scarce job opportunities. Furthermore, milk production is predominantly organized in small-scale farms, which are most likely to be affected by adversarial financial conditions and limited in their opportunities to raise resources to invest. The results show that a large share of milk producers in Armenia is actively investing to upgrade their farm business. Furthermore, investment activity is not limited to large dairy farmers as over 30% of respondents with less than eight cows have made dairy-specific investments. We find that the linkages between farms and agribusiness – and more specifically the support programs that agribusiness firms offer to their suppliers – have been crucial in stimulating this restructuring process at the farm level. Interestingly, farmers with a more exclusive relationship to the buyer and farmers that deliver to more internationally oriented buyers are more likely to receive support. On the other hand, buyers that operate in a more competitive market are less likely to provide support to their suppliers. These findings have interesting policy implications. On the one hand, our results point to the gains that can be made from openness to international firms. On the other hand, the negative competition effect indicates that buyers are unable to enforce repayment of the provided farm services in an environment where a lot of buyers are competing for the same supply. Policy makers should look at ways of improving the enforcement capability of dairy companies under these circumstances.
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The global financial crisis: Implications for capital to agribusiness
59-62Views:114The global economy has continued to experience lingering effects of the global financial crisis that began in 2007. Although attention was initially given to the liquidity crisis and survival of some the world’s largest corporations and institutions, the financial crisis is likely to have long-lasting implications for agribusiness. As the world slowly recovers from the crisis, another round of problems are emerging as governments and international institutions attempt to unwind the positions they took in an effort to prevent the global economic bubble from bursting. Perhaps the most problematic factor for businesses is access to capital in sufficient amounts and at affordable rates. Governments and institutions, particularly in the United States (U.S.) and the European Union, have increased their financial obligations as the result of activities taken to curtail the economic crisis. These financial obligations and the associated financial risks place pressure on financial markets and tend to restrain the availability of capital and increase the cost of capital for businesses. However, the U.S. agricultural credit market has not experienced problems to the same extent as general business (commercial and industrial) and real estate credit markets have. In general, U.S. farm businesses have a strong balance sheet, adequate repayment capacity, sufficient amount of assets to offer collateral for loans, and reasonable profits. Thus, U.S. farm businesses have had an ample supply of credit at relatively low interest rates.
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Determinants of job satisfaction amongst employees in the poultry sub-sector of Ghana: a test of equity theory
97-104Views:383The study investigated the factors affecting job satisfaction amongst workers of the poultry sub-sector: a test of equity theory in the Dormaa Municipality in the Bono Region of Ghana. The multistage sampling technique was employed in collecting data from 100 poultry workers with the aid of a structured questionnaire. The logit model was employed in modeling the factors affecting job satisfaction. The empirical findings reveal that occupational level, pay, and relationships with co-workers were the statistically significant determinants of job satisfaction. Moreover, the study found that based on equity theory if poultry workers are satisfied with their pay, they would want to stay longer compared to referent others who are not satisfied. Benevolent poultry workers were dominant (52%), followed by equity sensitive (28%) and entitled (20%) poultry workers. Moving forward, the relevance of equity theory on workers in the cocoa value chain should also be investigated as cocoa remains a staple crop in Ghana.
JEL Code: Q10
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The study of group and team management in agribusiness companies
75-77Views:117For almost three decades now that the operation of groups and teams became highlighted by scientific examinations and widespread acknowledged leverage for improving corporate efficiency and effectiveness. Much is known about general conditions of operation, still little is known about managerial attitudes, behaviour in operating them. Considering the agribusiness sector, we have hundreds of years of traditions; although operational rules, internal properties, managerial aspects are poorly acknowledged. The Department of Management of University of Debrecen has been conducting research in this field for many years now. Its research program enabled me to work out a questionnaire for surveying agribusiness organizations so that I could identify major and typical characteristics of performance groups. In this article I intend to more precisely describe internal rules, relations and characteristics of this phenomenon.
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Education for rural development and agribusiness in post-socialist Slovakia
133-137Views:127Agricultural education and training in the former Czechoslovakia has traditionally focused on fostering the position of cooperatives and state farms. The destruction of socialist agriculture and the reduction of commuting opportunities in the urban space during the transition have resulted in the handicapped socio-economic position of the Slovak countryside and its population. The role of education and training in fostering agribusiness growth and rural development could therefore become a crucial strategy. The aim of this article is to analyse the current state of education and training for agribusiness and for rural development in Slovakia using the methods of literature research and document analysis. The article interprets general trends in the development of adult education in Slovakia during the transition period. The main priorities and perspectives formulated in the national strategy for education in agriculture (for the period 2007-2013) are discussed in the mentioned context. With a focus on the leading role of the Slovak University of Agriculture in Nitra, the paper assesses the current status of formal and further agricultural education and training offered in academic and other educational institutions. The paper concludes by discussing implications, recommendations and challenges for developing education and training initiatives for agribusiness and rural development.
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Master training in Agribusiness and Rural Development at the University of Zagreb
87-91Views:176The title of the proposed JEP project is: “Agribusiness Higher EducAtion Development” with the acronym AHEAD. This curriculum development project – in case of acceptance – will last for three years, from July 2005 and June 2008. The primary project site is the University of Zagreb, Croatia; the contractor and the co-ordinator institution is the University of Debrecen, Hungary. In the consortium, 3 further European universities (University of Hohenheim, Wageningen University and Scottish Agricultural College) will participate, from the Croatian side the Ministry of Agriculture, Forestry and Water Management and an additional 7 Croatian institutes will also be involved. The total number of members in the consortium is 13.
The main objective of the AHEAD project is to establish new BSc and MSc programmes in Croatia at two Faculties of the University of Zagreb. These are as follows: Agricultural and Rural Development, Food Safety and Quality Management and pilot MSc training in Agribusiness and Rural Development. These are preceded by faculty retraining programmes in food safety and quality management, as well as agribusiness and commerce within the framework of a MBA programme accredited by the International MBA Network. The professional content of the project is a modernised curriculum and training palette that would be available by the end of this project at the University of Zagreb, serving not only the higher education of the country, but the demand of the Croatian national economy as well, in line with the basic principles of the European Union. -
Risks and competitiveness in agriculture with emphasis on wine sector in Croatia
11-17Views:123International competitiveness, being a key objective of each economic entity, is at the same time significantly determined by the level of risk the entity is coping. Based on the assumption that risk management is directly linked to competitiveness in agribusiness, the scope of this paper is predominantly focused on the wine agribusiness in Croatia. The aim of this paper is to encompass available literature and transfer findings to interested parties, about risks and competitiveness in agriculture, with particular reference to the wine sector. Qualitative analysis of secondary data, descriptive i.e. monographic method, deductive method and comparison of available papers from the world and Croatia were applied in the paper. There are very few companies in general, however, that tend to use their abilities to manage risks as a source of competitive advantage. These companies go beyond compliance or cost-controlling defensive approaches and take a more aggressive stance toward risk. They have realized that their risk management capabilities can be leveraged as a source of competitive advantage (Elahi, 2013). Current literature showed that such companies indirectly exist within global agribusiness. Examples of such companies in the wine sector could be found in Old World and New World wine countries. In regards with the mentioned, further research in the wine sector that would more directly link competitiveness and risk management and benefits that could be drawn from such “linkage” is needed.
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Free Trade Agreement: Impacts on the Costa Rican Dairy Market
83-90Views:154According to the Free Trade Agreement with Central America, Dominican Republic and United States signed in 2008, milk import tariff reliefs will stagger down from 59,4% to 0% by 2025. This study determined milk demand and supply curves in the Costa Rican domestic market. Several variables and two different models were conducted to estimate milk demand and supply: Ordinary Least Squares and Two Stages Least Square simultaneous equations. In both cases, demand was estimated by income and milk prices as independent variables; while supply was estimated by input and milk prices. Nonetheless, the best fit was obtained by TSLS model because it accounts for endogeneity among price and quantity. Based on this model, if domestic prices are supposed to decrease due to increasing quantities of imported lower-priced milk, then national demand would increase (9% average) and national production is expected to decrease (26% average). The gap between national milk demand and supply is expected to be filled by milk imported from United States; assuming 0% tariff, no transaction costs and constant share of exports within national production.
JEL Classification: F1, Q17
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Spatial urban plans as a basis for agribusiness development
139-143Views:111The main goals of the spatial development of rural areas are to protect and prevent degradation of agricultural land, forests and protected areas, as well as to encourage (more) balanced territorial development. Given that the quality and development of agriculture largely depend on the level of consciousness and awareness of the population in rural areas as to the opportunities and benefits of their involvement in the adoption and approval of planning solutions, the aim of this paper is to define a communication strategy to help raise the awareness of the focus groups (landowners, farmers and investors) of the importance of and link between spatial planning and development of agribusiness and rural areas, exploring different techniques and methods of using various communication channels. The methods which will be used in the paper include secondary research, SWOT analysis, and trend and historical analysis. The research results show that it is essential from the very beginning to take the views of various stakeholders into account through frequent thematic dialogues, in order to incorporate a consensus which has been reached together with the expert team of the developer, into planning decisions. Only such an approach can lead to sustainable and enforceable plans as prerequisites for the realisation of realistically planned investment in rural areas. Furthermore, it is very important to legally standardise such an approach so that public participation, as a mandatory legal procedure, can be defined through precisely defined steps and established performance indicators from the very beginning of the process of adopting planning documents.
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Factors influencing Albanian consumer preferences for standardized olive oil
131-136Views:134Albania is considered one of the most important countries where olives are cultivated due to its geographical position and climate conditions. The country is facing many problems with the quality of olive oil which is related to cultivation methods and agronomic techniques. The economic value of the sector is calculated almost €20 million per year. For years the cultivation of olives and associated products have been considered an important sector within agriculture and are an integral part of the Albanian diet. The current study aims to analyze the factors influencing consumer preferences for a standardized olive oil. The data collection was conducted through a socio-economic survey. The survey was an important element which provided general and specific information linked to the study area. The interviewees were selected randomly. Descriptive and multinomial logistic regression analyses were used to evaluate the survey data. As a result, we conclude that Albanian consumers prefer domestic olive oil because they are familiar with the taste and believe in its qualities. Usually, Albanian consumers choose the quality of olive oil at the purchase moment, due to their close relationship with the seller.
JEL CODE: D12
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Results and potentials in agribusiness development – 10 years in the EU
5-13Views:116A decade has elapsed since our country joined the European Union. It is a historical period. In 2004 – when Hungary became the member of the EU – the world surrounding Hungary went through a transformation. Have we achieved our goals? Are we disappointed? The answers to these questions are limited in their scope today. However, the author is convinced that the feeling of unsatisfaction is not the result of our EU membership.
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The role of the green week in the MBA curriculum
Views:89The purpose of the paper is to demonstrate the potential of experiential learning in fulfilling the role of higher education institutions in teaching and promoting an MBA education. The educational achievements of the Green Week of the MBA in Agribusiness and Commerce (AgriMBA) are highlighted and challenges and areas in need of improvement are discussed.
Curriculum serves as the foundation of teaching students. While progress has been made in MBA curriculum, including economics, informatics, finance, marketing, and management, integrating these knowledge areas into experiential learning should be a key component of an MBA education. The AgriMBA provides such an integration of knowledge areas within an experiential learning environment of the Green Week. The Green Week has included 343 students representing 21 countries, six continents, and 11 universities, involved 34 case studies, and hosted by six universities during the 17 years it has been held.
Although most MBA programs include case studies in their curriculum, the Green Week is unique in providing “live”, real-time case studies, where students representing multiple universities and countries come together to present their recommendations to business executives. This intensive, experiential learning opportunity exhibits how students from different cultural backgrounds are able to quickly form functional teams, apply curriculum knowledge areas, and effectively achieve this ambitious goal.
JEL CODE: A23
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Impact of Terrorism on Agricultural Business in Borno State, Nigeria
117-124Views:243This study examines the impact of terrorism on agribusiness in Borno state. Terrorist activities in Borno state dates back to 2009 where a group of Islamic extremists popularly known as Boko Haram (meaning western education is a sin) became violent in their activities. The group operates significantly in north-eastern Nigeria where Borno state is located and since 2009. The presence of the group has led to collapse of socio-economic activities in Borno state among other states. Millions of people have been displaced fromtheir homes and forced to live in camps in neighbouring states. As a result, this study examines the impact of insurgency related activities on agribusiness in BornoState. Agricbusiness in Borno state can be measured using four different parameters, amount of area cultivated, annual crop production, rearing of livestock and fish farming. These are the major agricultural business residents of Borno state are engaged in. However due to unavailability of data, rearing of livestock and fish farming are dropped, thus focusing on area cultivated and annual crop production. As a result of these two variables, two models are developed. The first model measures the relationship between amounts of crop produced with insurgency related killings, while the second model measuresthe relationship between total areasof farmland cultivated with fatalities resulting from terrorist activity. This study employs Ordinary Least Squares methodology and finds that both relationshipsreveal negative results thus indicating statistically significant negative impact of terrorism on agribusiness in Borno State.
JEL Classification: Q10, Q18, Q12
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An Agro-Food Waste Commercial Utilisation Behaviour Lens among Urban Agro-producer Households in a Developing Economy
Views:136Small-urban farm businesses utilise agro-food waste emanating from own production and other levels of food supply chain activities to supplement conventional inputs. Out of these, the food produce surplus from agro-producer households is offloaded to the urban market. As such, the aim of the study was to assess the determinants of agro-food waste commercial utilisation behaviour among urban agro-producer households. An electronically-designed research tool was administered to 456 agro-producer households to collect self-reported estimates of their agro-food waste utilisation behaviour. Results indicated higher budget share towards conventional inputs (0.73) compared to agro-food waste (0.27) but the observed suboptimal production intensification could be rectified with increased use of agro-food waste. Structural equation modelling results indicated that attitude, environmental awareness and concern, motivation and perceived moral obligation had positive significant influence on commercial utilisation intention. The adopted constructs for the model could explain 79.1% of the commercial utilisation behaviour variance. Furthermore, commercial utilisation intention, risk perceptions and perceived behavioural control had significant influence on the commercial utilisation behaviour. Findings are an indicator that agro-food waste commercial utilisation intentions among small-urban farm businesses would likely transition to commercial utilisation behaviour. Since behaviour can be learnt and developed, aspects that contribute to commercial utilisation intentions and behaviour would need to be stimulated. As a strategy of reducing the collectible waste, urban authorities may introduce tailor-made programs meant to stimulate commercial utilisation intention and behaviour in small-urban farm businesses. In valuation of agro-food waste, methodologies that could factor in utility would provide more precise insights in its commercial utilisation.
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Agribusiness higher education development – training needs analysis
107-120Views:126With the tremendous changes in political and economic systems of the Republic of Croatia after independence, new challenges have been put to the higher education system as well. The system used to be structured to serve a centrally planed economy with predominantly state ownership. Universities were producing graduates to be employed on statefarms,inagri-foodsystems(socalled„kombinats“),the state owned processing industry or cooperatives. The graduates were specialised in particular branches, such as crop production, vegetable production or livestock husbandry. Therefore, they were not educated to understand the whole system of a company or the agri-food system. In one word, they were not prepared to run firms as managers, although they were highly educated. Small and medium size entrepreneurs in agri-food business have been rather an exception than a rule, and prior to the transition there was not to much experience in managing, financing or marketing for such a firms.
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Consumer willingness to pay a premium for a functional food in Ghana
51-59Views:198Interest in functional foods has been growing in sub-Saharan Africa due to consumer concerns with diet and nutrition. This paper analyses consumer awareness, perceptions and effects of the determinants of consumer willingness to pay (WTP) a premium for Moringa bread in Ghana. An ordered probit model is employed. The empirical results indicate that consumer knowledge of the nutritional and health benefits of Moringa bread is what matters most to consumers in respect of their WTP a higher premium for the product. Consumers with knowledge on Moringa products are more willing to pay above 50% price premiums for Moringa bread. Fruitful policy recommendations are made in the paper.
JEL code: D12
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Organic food sourcing, processing and distribution: a case of satisfying a growing market
5-10Views:262A case study of an organic food company in the Slovak Republic involved in producing and sourcing inputs, food processing and distribution is presented. The case is based on a June 2014 “live” case study prepared for students in International MBA in Agribusiness programs at the Slovak University of Agriculture in Nitra, Warsaw University of Life Sciences and the National University of Life and Environmental Sciences of Ukraine, Kiev. The company was established in 2001 with the objective to bring organic food to health conscious consumers. The company grows organic spelt grain, wheat, rye, buckwheat, herbs and apples on its 156 ha and 400 ha of owned and rented farmland. The company further processes these crops into more than 40 finished products. Students are presented with company information and summaries of a company visit and discussions with management. Students perform PEST and SWOT analyses, identify a shortage of owned and leased land as a problem the company must address, conduct research and analysis, and recommend product specification contracts as a solution to the problem.
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Small and medium enterprises as development factor of agribusiness in Republic of Serbia
45-49Views:134Development of strong and competitive sector of small and medium enterprises has very important role in process of total transition in Republic of Serbia. This sector should be one of the guidelines of economical development and future, like in developed countries. Within the Strategy of development of SME and entrepreneurship in Republic of Serbia from 2003 to 2008 government of the Republic of Serbia, not accidentally, placed among many sectors which are expected to contribute and boost economical development, increase the employment rate, and realize increased influx of means deriving from export, the priority is on sector of processing of agricultural products. It can be concluded that significant contribution from agriculture to improvement of total economical situation is expected. Accession to EU should be considered primarily not only as the opportunity but serious task in regard to restructuring of the agriculture. However, impeding circumstance,in regard to export ofagricultural-foodproducts,first ofallto EU countries, isthefact that thismarket is under strict protective measures within the policy of agriculture and measures of agrarian protectionism. In such conditions it is very difficult for producers and processors of food to enter such closed markets. Small and medium enterprises are facing the choice of the business strategy:
– to place the existing product on current market;
– to place the existing product on new markets, including export;
– to sell the new product on existing market;
– to place the new product on new markets, including export.
Therefore, based on analysis of domestic market, volume and structure of import and export of agricultural and food products, as well as analysis of food industry and agricultural production in Serbia, it is necessary to define potential programs for small and medium enterprises with production which could be economically efficient and profitable from the aspect of investment.
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The evolution of the Avacongress
113Views:112In the early 1990’s MBA educations started independently in Warsaw, Prague, and Debrecen. In the middle 1990’s a small network was estblished with the mentioned institutions, as well as supporters from different universities like Wageningen, Aberdeen, Cork, later Fayetteville fromArcansas (USA). In the beginning of the 21st century the network became bigger. That time did Kiev join the Network, and started negotiations with Moscow Paralell to extended network leading by Warsaw University we applied for a EU Leonardo grant. The proposal was to develop the teaching and learning materials in the programme to a common approved standard. In order to improve the quality of teaching a set of commonly approved, standardized teaching materials had been eveleoped: Handbooks fo rmodules taught within 7 courses of the MBA programs: Public Policy, Economics, Management, Marketing, Finance, Operational Methods and International Agribusiness. Handbooks and case studies had been put on Warsaw University’s website and are now accessible for teachers and students from all academic institutions participating in the project. Materials had been developed by teams of experts in specific fields from different Universities.The whole set of materials was prepared in English. Another product of the project is the quality assurance standards applied by all MBA programs and an accreditation procedurefor the International Board. That time formulated the name AGRIMBA which is official name of the International Network on Agribusiness and Commerce.
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Rural resilience and the role of social capital among farmers in Kirundo province, Northern Burundi
121-125Views:135In 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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Internationalization development of tertiary education system in the Republic of Croatia
95-97Views:111This paper forms a part of Executive MBA Training in Agribusiness and Commerce which has been supported, developed and carried out in frame of the Tempus project AHEAD, CD JEP 19009–2004. Understanding of business and management with all components related (from economic principles, marketing, accounting to organisational behaviour, strategic development and thinking etc.) and especially international focus on all this areas initiated the idea of this paper. Clear idea of strategic management from formulation, implementation and evaluation, as well as how important analyses are to develop any kind of good business or development plan (as one of the learning outcomes on MBA training) are present throughout the whole paper. Introduction to internationalization development of tertiary education system is given thru PEST analysis followed by analysis of whole tertiary education in Croatia, identifying major issues for internationalization of tertiary education, analysing them and suggesting solutions to develop it in right direction.
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Protected geographical indication recognition and willingness to pay: A case of grojec apple
73-80Views:160The Grojec region of Poland is an important region for apple production and accounts for 40 percent of domestic apple production. Apple growers from the region made an attempt to strengthen their competitive position through registering their apples as Protected Geographical Indication (PGI) products. The European Commission’s PGI allows food producers to obtain market recognition and a premium price for their products. Although the Grojec Apple received PGI registration in 2011, little has been done to promote apples with the PGI label. Two important research questions are addressed: 1) Does the Polish market recognize Grojec Apple PGI, and 2) Does the market value Grojec Apple PGI? Logit and regression models are estimated using survey data collected during an International MBA in Agribusiness and Commerce study week in Warsaw. Only 22% of consumers recognize Grojec Apple PGI. Yet, 70% of consumers indicate they are willing to pay more for the product and their average willingness to pay (WTP) premium is 32%. Results indicate use of the PGI label may be effective in improving sales and profit margins for Grojec Apple producers and their affiliated cooperatives. Older consumers are more likely to indicate a WTP premium. Males, smaller households, and consumers less sensitive to apple price indicate a higher WTP premium. An advertising campaign promoting Grojec Apple PGI as a better product may be effective at increasing consumer likelihood to pay more and WTP premium. Although “Grojec” is already familiar to most consumers in central Poland as a region for apples, a Grojec Apple with PGI label would assure consumers they are purchasing apples from the Grojec region and the apples are high quality.
JEL Code: D12, Q13, Q18
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Market trends and consumer demand for fresh berries
11-14Views:418We present an analysis of markets for fresh strawberries, blueberries, blackberries and raspberries in the United States during 2008–2011. We use weekly panel data covering supermarket purchases in 52 cities. The primary goal is to estimate demand elasticities for fresh berries and thereby provide a better understanding of consumer behaviour in response to price changes and the nature of competition among these crops. We estimate fixed and random effects models for double log demand equations and a complete demand system, the Almost Ideal Demand System. The latter specification can be used to estimate demand relationships that conform to utility maximising behaviour. The elasticity estimates are very robust across the different specifications and estimation methods. This increases confidence in our findings and provides some assurance that choice of functional form or estimation method is not driving our results. We find that retail demands for all berry crops are in the elastic range and that the different berries are substitutes for one another. The demand for strawberries was the least elastic with an own price elasticity of –1.26 and blackberries were the most elastic with a demand elasticity of –1.88. Blackberry demand was also the most responsive to the prices of competing berry crops. The study provides clearer insight into markets for berries in the United States. In addition, it fills a gap in the present lack of up-to-date consumer demand elasticities for these crops and will be useful for growers, decision makers and consumers.
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