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Economic Analysis of a Good Quality Hungarian Dairy Farm with Leading Technology
43-64Views:234The research includes an economic analysis of the dairy farm based on farm data, which makes it possible to assess the cost-income ratio and partial efficiency of each sector, assuming that it operates at a good production level, and in the case of assumed greenfield investments, economy based on dynamic indicators (NPV, IRR, PI, DPP). As many domestic dairy farms produce with the most advanced technology available, and their indicators do not lag far behind the best farms in Western Europe, the so-called analyses refer to “good production standards or practices”. The performed analysis is based on a deterministic simulation modelling created from a production plant’s primary data which uses its own database. Some of the research findings are supported by data and calculations, while others are based on expert estimates and expert opinions. Based on our investigations, it can be stated that the so-called most important specific natural, economic, and investment analysis indicators of the model plant following good production practice in the case of milk production are the following: Specific annual milk yield 11,000 kg/year; Production value: 1,548.5 thousand HUF/cow; Production cost: 1,312 thousand HUF/cow; Net income: 236.5 thousand HUF/cow; EBITDA: 404.6 thousand HUF/cow; Discounted payback period without investment subsidy: 11 year; Discounted payback period at 50% subsidy intensity: 6 years.
JEL codes: Q12, Q13 -
Analysing ICT Usage of Hungarian Milk Producers and Milk Processors
37-49Views:96Milk production and processing is one of the main agrofood sectors in Hungary. In 2016, the number of enterprises operating in milk production and milk processing sector was 741 and 80, respectively. Advanced information systems enable us to attain more and thorough data on their operation and performance and the analysis of these data is crucial for the evaluation of their situation in the sector. These data sets are important for monitoring and assessing the performance of different sectors. Hungarian Central Statistical Office provides multidimensional databases, while financial and additional information of more than half of the operating enterprises are available in EMIS database. As a complementary database, Institute of Applied Informatics and Logistics has prepared a questionnaire for survey the ICT (Information and Communication Technologies) usage characteristics of enterprises operating in the agro-food supply chain (producers and processors). The survey was conducted in the fourth quarter of 2017 and using structured questionnaire and responses are recorded by a market research company contacting the leaders or a management member of the enterprises. The sample has been selected by stratified sampling based on statistics of Hungarian Central Statistical Office (HCSO). Enterprise size based on staff employed and region at NUTS-2 level were the basis of sampling. Data set contains data about 500 enterprises operating in sectors related to agriculture and food industry (355 are operating in the production part, 145 in the processing part of the chain). 38 enterprises operating in the milk sector from the whole sample (28 belong to milk production and 10 to milk processing sector). The main objective of current article is to determine the difference between food producers and food processors, and separately between milk producers and milk processors regarding their evaluation of ICT devices in their partnerships an the internet-based solutions for certain business activities. Respondents assessed the importance of ICT on 5-point Likert scale relating to four business activities (communication; data storage and exchange, preparing documents; logistics; marketing). To determine the difference, two-sample t-test has been applied. Our results show significant difference only in the case of bulk sample, between food producers and food processors, in the evaluation of ICT devices for marketing purposes. The mean of scores given by food processors was significantly higher (Sig. (2-tailed)=0,0134 and t-value=-2,4829). There is no siginificant difference between milk producers and milk processors, however, the means of scores given by the latter for the importance of ICT tools were higher in the case of each four business activites.
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International Market Segmentation in Dairy Market
43-54Views:104The basis and primary condition of the production level worldwide is the stability of domestic consumption, therefore the size of milk production is determined by the domestic milk consumption apart from smaller or greater exceptions. The aim of this research is to accomplish an international market segmentation based on the volume of milk product consumption. Segment forming variables were the three-year average per capita consumption volumes of liquid milk, cheese (including cottage cheese), and butter in the particular national economies. 46 national economies and the European Union (EU28) were included in the research. After completing the segmentation, our further aim was to characterize the formed segments by the following macro factors: gross domestic product (GDP) per capita, gross national income (GNI) per capita, life expectancy at birth, crude mortality rate, unemployment rate, and consumption expenditures of households as a percentage of gross domestic product. Based on our results, three clusters were identified that significantly differ from each other. The first cluster includes those countries where liquid milk, cheese, and butter consumption per capita are low. The second cluster contains those nations in which per capita consumption can be seen as medium level, Hungary is in this group. In the third cluster we can find countries with high per capita consumption compared to the sample. The formed segments show significant differences according to both GDP and GNI. In the case of segments with higher milk product consumption the means of GDP and GNI are significantly higher on purchasing power parity. In the countries where a higher proportion of gross domestic product is consumed the volume of milk product consumption is lower, while in those countries where a lower proportion of GDP is consumed, the per capita volume of milk product consumption is higher. We found a significant difference among the segments according to the life expectancy, too; life expectancy increases in line with the increase in per capita milk, cheese, and butter consumption. In case of the unemployment rate, we could not find any significant differences among the segments. To sum up, we can conclude that consumption of the examined product categories can be seen as medium in Hungary, i.e. our country belongs to the second segment. Beside Hungary, we can find seven further post-communist countries in this segment that shows the cultural similarity of the region. An important strategic task for Hungary is to increase milk product consumption by the means of communal marketing tools. The consumption of milk products can reach a stable growth path via an appropriate positioning and conscious communications. To reach this goal, the image of the category has to be put in order and healthiness and nutritional advantages of milk products have to be highlighted, then consumer misbeliefs have to be corrected.