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Significance of wheat production in world economy and position of Hungary in it
115-119Views:257This article intends to introduce the significance of wheat production in world economy and role of Hungary in it on the basis of statistic database of FAO. Importance of wheat production in world economy is proven by its share of 15% from 1500 million hectares arable land in the world. This rate is equivalent to 225 million hectares of wheat area based on FAO figures for 2009. From its world economy significance view point, on the basis of some significant features it sets order of ranks among wheat producing countries, accompanied by Hungary too. Setting of rank orders is based on the quantity of wheat produced by countries, cultivated area and exported, imported wheat quantity. As regards wheat export in 2008, Hungary was placed as 11. in the world while on the basis of produced quantity and cultivated area it did not achieve any of top 20 countries. Wheat import of Hungary is negligible since its wheat production is greatly over the self-sufficiency level in one production year. Our logistics disadvantages indicate one of considerable difficulties of market access for primary materials in domestic plant production.
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Market power analysis in Mongolian wheat industry
71-76Views:195Mongolia has been in transition from a planned economy to a market economy for more than 20 years. In many sectors of the economy, it is necessary to define which market mechanisms exist. Grain occupies important economic sector in Mongolian economy. The current state of the wheat market has been studied based on NEIO research methods. In this study, the data for years from 2000 to 2017 and from 2007 to 2017 about wheat and wheat seed sector were taken through 6 indicators. We estimated the supply and demand functions for wheat and wheat seed. Using these functions, we defined market behavior, cost function, price elasticities, and market equilibrium. The capacity setting for product prices of wheat producers is weak, and this market is likely free-style competition.
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Economic modelling and analysis of Hungarian wheat production in the marketing year 2011
63-67Views:136In the framework of the present study I analysed the wheat production sector. In order to evaluate the situation prevailing in the sector I conducted an economic analysis which I based on primary data collection. The year of investigation was the production year of 2011. Long-term implications for different crop sectors can only be based on multi-annual analysis, so in this article I only attempted to analyse the sector with respect to 2011. To evaluate wheat production I compiled its cost structure and assessed it. To evaluate its position in comparison to other crops I also carried out calculations to determine the gross margin (revenue minus variable cost)1 By gross margin I mean the gross margin (C), which is production value (PV) minus direct cost (DC), by definition (C=P-DC). of maize and rape. I observed that the gross margin attainable on one hectare was the lowest in the case of wheat. I applied two types of gross margin, because I consider it important that a given sector should also be profitable without subsidies. In the case of the gross margin including subsidies it is essential to emphasize the role of subsidies, since their ratio varied between 30 and 47% of the total revenue. The importance of subsidies was the most significant in the case of winter wheat.
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Interior point algorithm for solving farm resource allocation problem
45-49Views:169This paper introduces interior point algorithm as an alternative approach to simplex algorithm for solving farm resource allocation problem. The empirical result of interior point algorithm is compared with that of the simplex algorithm. It goes further to address a profit maximization problem. The result revealed several relevant patterns. Results of the interior point algorithm is similar to that of the simplex algorithm. Findings indicated that in both algorithms, the farm is to produce peppers, wheat which is irrigated and weeded manually, hire additional month of labour, and also purchase urea and muriate fertilizer to realize a similar amount of profit. Additionally, both algorithms suggested that practicing crop rotation where beans, if grown, should be altered with wheat cannot be possible since no beans will be grown. The Simplex algorithm saves 39 iterations over Interior Point algorithm in solving the farm resource allocation problem. The findings demonstrate that the interior point algorithm offers a useful alternative to the simplex algorithm when addressing farm resource allocation problem.
JEL code: D24, D57, C61, C63, C67
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The analysis of agro-economic effects of household food wastage through the example of bread
9-18Views:202In our busy world, where numerous people starve and where the resources are restricted, it is a key issue to pay particular attention to the topic of prevention and decrease of food loss as well as food wastage.Wastage of food produced and delivered to the end user (customer) is an issue arising globally and nationally as well, which results in efficiency loss at economic level in any case. While the FAO study mentions food waste of the order of 1.3 billion tonnes on a world scale, then the annual quantity of food waste in Hungary is estimated at about 1.8 million tonnes, which contains the waste of every member of the chain from production to consumption. On the basis of the data published by the Hungarian Food Bank (2015), the amount of food waste caused by the population is 400 000 tonnes. In compliance with our objectives, inputs – expressed by non-financial and financial indicators – emerge during production are assigned to the quantity of wasted food. Applying the aforementioned method we would like to make customers realize how many resources (land, water, artificial fertilizer, pesticide, seed and gasoil) are utilized needlessly in food verticum by the end products – at present by different breads they throw out. As our calculations prove by 10% waste of breads the utilization of 5 300 hectares of wheat land and 660 hectares of rye land can be considered unnecessary. By 10% waste of breads the financial value of the utilized resources is altogether 3.25 million EUR. Out of this the financial value of utilized artificial fertilizer is 1.10 million EUR (34%), of utilized pesticide is 1.15 million EUR (35%), of utilized gasoil is 0.70 million EUR (22%) and of utilized seed is 0.30 million EUR (9%). Among different breads, white bread is purchased in the greatest volume by the Hungarian households, from which 121 900 tonnes are bought annually on an average. This quantity is equal to almost the 40% of the annual bread sell. If 10% of purchased white bread is thrown out, it results in useless utilization of 2 676 hectares of wheat land in food verticum. The quantity of utilized water arising form wastage is 15.8 million m3. Further losses emerge as regards material inputs: artificial fertilizer- to the value of 0.50 million EUR, pesticide- to the value of 0.58 million EUR, seed to the value of 0.15 million EUR and gasoil-loss to the value of circa 0.35 million EUR. Totally, material input to the value of 1.58 million EUR is owing to the Hungarian households in case of 10% white bread wastage.
JEL code: Q53
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Changes in costs of precision nutrition depending on crop rotation
59-63Views:121By 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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Agriculture of the countries of the Western Balkans and European integrations
93-97Views:115The paper presents the results of research of agriculture of the countries of the Western Balkans in the period of 2002–2009. Specifically, general economic (GDP per capita, share of agriculture in GDP, inflation rate, and unemployment rate), resource (share of arable land in the total utilized agricultural land, of employees in agriculture in the total number of employees, and of rural population in the total population), and value indicators (value added of agriculture in % of GDP, value added of agriculture per employee in agriculture, producers’ prices of wheat, corn, and bovine milk, share of agriculture in the values of export and import) were compared.
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Bread consumption habits in the gluten free diet
113-119Views:370Gluten is a protein found in many grain products. Celiac disease is a genetic autoimmune disorder characterized by sensitivity to gluten. When a person with celiac disease consumes gluten, his/her immune system perceives the gluten to be a harmful substance and reacts negatively. The only treatment for individuals with celiac disease is lifelong adherence to a gluten-free diet. It is one of the most frequent and well defined of all lifelong diseases. In Hungary, 1-2 % of the population is said to be affected, but only every 10th has been diagnosed. Bread is a basic and frequently consumed food made principally from wheat. Gluten is the main structure-forming protein in flour, and is responsible for the elastic characteristics of dough, and contributes to the crumb structure and appearance of many baked products. Gluten removal results in major problems for bakers. Currently many gluten-free products available on the market are of low quality, exhibiting poor mouth feel and flavour. People wishing to eat bread in the gluten-free diet basically have two options: buying or baking the bread for themselves. There are several gluten-free bread brands are available on the Hungarian market. The price, ingredients, texture, colour, softness of the available breads are different. There is a rather good choice in gluten-free flour mixtures on the Hungarian market, as well. The composition of these mixtures are also different. The aim of our empirical research was to investigate the gluten-free bread consumption habits of people following gluten-free diet. The research was carried out using Google forms in January 2017. Size of the sample is 196. The online form was shared in four closed gluten free Facebook groups in Hungary since they are really active in sharing information concerning gluten-free lifestyle and diet. Summarizing, in this study we wish to examine how evolve the world pork meat production, trade and consumption, and to demonstrate the main consuming countries, highlighting the role of China, as it is the most populated country in the world with its 1.4 billion inhabitants.
JEL Code: M31
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Analysis of the chain of the banana industry of Ecuador and the European market
57-65Views:964Bananas are among the four main crops in the world, including wheat, rice, and corn. It is the most exported fresh fruit in the world in terms of volume and value. The European Union (EU) is the largest banana importer globally with an estimated volume share of 33%. Ecuador is the top exporter since it is responsible for one-quarter of the world banana exportation. It represents 22% of total world exports, 27% of total agricultural exports in the country and 8% of the value of all exports (including oil). The present work analyzed the chain of the banana industry of Ecuador and its position in the EU market. A non-experimental empirical method with a quantitative and qualitative approach was used supported by scholarly literature and secondary research data collection. Results obtained show that the main countries destination shipped 87.8 % of total bananas exported from Ecuador in the period of 2007 – 2017. The largest importer of Ecuadorian banana is the European Union (28.9%). In Ecuador, approximately 78% of the banana producers are small companies, by adding the medium ones 95.6% is reached. Thus, the production of bananas in the country is mainly based on the family economy. In 2019, the official banana box price for producers in Ecuador is USD 6.30. In the EU market, it can reach over USD 18.00. It suggested an unfair payment to small and medium producers.
JEL CODE: Q13, M16, M21
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Trends on the Artificial Fertilizer Market and in Fertilizers Use in Hungary
5-12Views:228The fertilizer market in Hungary is rather concentrated, which has a strong influence on the price of the fertilizer. Our domestic fertilizer use is primarily determined by that of nitrogen. The use of phosphorus is also significant but the trends in the use of potassium do not match the total quantities applied in individual years. Consequently, it can be concluded that the majority of farmers still focus on the application of nitrogen and also apply phosphorus but either neglect or do not pay enough attention to potassium fertilization. The changes in fertilizer prices between 2006 and 2017 can be broken down into two periods. Until 2012 a very important and dynamic increase was observed as a result of which the prices of N, P and K fertilizers increased by 80-120%, 160% and about 120%, respectively. This was followed by a downturn in the market and in relation to 2012 prices there were 20-30/ decreases experienced until 2017 but the rate of this lagged behind the prices in other European countries. Owing to this trend the prices of N, P and K have increased by 60%, 100% and 80%, respectively, over the past ten years. The correlation between fertilizer application and the prices of fertilizers in any given year is low but there is a positive one observed between fertilizer application and the fertilizer prices in the preceding year. This means supposedly that farmers mostly buy the fertilizers they wish to apply not in the current but in the preceding year and store them until these are applied. There is a strong correlation seen between fertilizer prices and the prices of corn and wheat, which means that fertilizer traders also keep tabs on economic results and also increase fertilizer prices under the influence of higher prices. Furthermore, it can be claimed that there is no correlation between crude oil prices on the world market and domestic N fertilizer prices. This is an important factor since the primary base material of N fertilizers is natural gas and their production involves considerable energy costs as well. It can be seen, however, that this is not what determines our domestic fertilizer prices, which can be explained by the fact that the price calculations by the determining actors on the Hungarian fertilizer market is not based on costs but on the demand.
JEL Classification: Q13
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Main characteristics of trade of the Hungarian cereals and oil crops between 2000 and 2010 and the effects of changes in intervention rules to the Hungarian cop sector from 2004 to 2010
47-54Views:132In this paper the trade of the Hungarian cereal and oil crops from 2000 and 2010 are introduced. The general attributes of the Hungarian crop sector are analyzed and a specific picture from aspect of the trade in Hungarian cereal and oilseed sector, with a focus on the quantity of the export and import of wheat, maize, rapeseed, sunflower and other crops and their main target countries. This article also aims to show the impacts of the changes in the EU’s intervention rules and provide analysis.
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Evaluation of crop and irrigation water requirements for some selected crops in Apulia region -Southern Italy
39-50Views:536Nowadays, nearly 90% of global water consumption is caused by irrigation activities, and more than 40% of the crops are produced under irrigated conditions. This study is an endeavour to estimate the irrigation water requirement (IWR) and crop water requirement (CWR) for some selected crops (Pepper, Eggplant, Potato, Soybean, Maize, Wheat Melon, Lettuce, Sunflower, Broadbean, Citrus, Cherry, Olive tree, Sugarbeet, Artichoke, Wine Grapes, Carrot...etc.) in Sothern Italy. The selected districts (Sant’ Arcangelo) have been taken as a case study area. Demanded meteorologically (rainfall, temperature, humidity, wind speed, sunshine hours) and crop data (crop coefficient and crop calendar) have been collected for 30 years period from 1981 to 2011. FAO CROPWATv8.0 software has been applied for requisite calculation of CWR and IWR along with the developing of cropping patterns. The FAO Penman-Monteith equation is used for estimating the reference evapotranspiration (ET0) by using meteorological data in the framework of CROPWAT model as it regarded as a good evaluator for a wide variety of climatic conditions. The analysis indicates that FAO Penman-Monteith suits very well for the study area and can be successfully used for the estimation of reference evapotranspiration. The important results in this study indicate that the IWR is very low from November to April (wintertime) due to higher rainfall intensity in these months and from month May to October a considerable amount of water is required for irrigation.
JEL Classification: Q25, Q24,Q10
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Structural Breaks or Continuous Adjustments in Grain Production and Prices 1961-2014? An Explorative Study
11-22Views:116This article analyses grain production and prices 1961-2014. We first describe the development in aggregated and relative allocation of land worldwide for wheat, corn and soybeans, and the growth in production volumes and yields. We then proceed by analyzing long-term price relationships. Finding that grain prices are strongly co-integrated, we estimate an Error Correction Model to see whether deviations from the long-run equilibrium are quickly adjusted. Furthermore, we investigate whether changes in land allocations for these principal field crops are best described as a continuous process or as a series of structural breaks, hypothesizing that events like the introduction of GM technologies and the “energizing” of corn after 2005 caused structural breaks in acreage shares and relative prices. Given the major and sometimes dramatic political events and technological changes during this period,one would expect to find significant structural breaks in grain production, yields and prices. However, our main conclusion is that grain markets generally adjust smoothly and continuously. Prices adjust quickly towards long-run equilibrium, and the results from a series of Chow tests indicate that the changes in relative land allocations have progressed as a relatively smooth process with few structural breaks.
JEL Classification: O13, Q10, N50
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Plant production for biomass into energy: economics and energy efficiency view
65-71Views:137The 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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Trends in agriculture and food production
99-110Views:108Agricultural reform resulted a shift from collective farming to small-scale production in China. This reform also has resulted a strong increase in gross agricultural output, which coincides with a slower increase in labour productivity. At the beginning of the reforms, agriculture accounted for 70 percent of total employment in China and still employs more than 50%. As a result of these reforms, China has undergone impressive economic growth also in the agriculture; the country has become one of the world’s top exporters and is attracting record amounts of foreign investment. The government has also stepped up investments in rural areas to meet the market demand for agricultural products. Results are very competitive compared to Central and Eastern European countries, where agriculture accounted for only 15 percent of total employment, but agricultural reform resulted a strong decline in gross agricultural output, which coincides with a similarly strong decline in employment. When approaching the issue of sustainable agriculture, we have to take into consideration, which China and India feed the largest populations in the world and both countries have had its own agricultural successes in the past 50 years. China has used land far more efficiently than many developed countries. With nine percent of the world’s arable land, China is responsible for the greatest share of agricultural production worldwide. Volume of produced pork, eggs, wheat, cotton, tobacco, and rice has increased and China exports an increasing amount of product each year. China has opened his borders, but do not expose food consumers to price shocks and producers to risks and disincentives. In this paper, the land-tenure system and the trends of agricultural developments are analysed in China and selected countries of EU.
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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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