EconPapers    
Economics at your fingertips  
 

FACTORS INFLUENCING THE GROSS VALUE ADDED IN THE SHEEP PRODUCTION CHAIN

Bela Cehla, Sandor Kovacs, M. Wolfova, I. Komlosi and Andras Nabradi ()

APSTRACT: Applied Studies in Agribusiness and Commerce, 2012, vol. 06, issue 5

Abstract: The competitiveness of the sheep sector in East Europe has been decreasing from year to year. The value added in the sector is not generated in the countries as a high proportion of the lambs are exported. For example, in Hungary, 95% of the lambs, unnecessary for replacement, are sold at an average weight of 21 kg and are slaughtered abroad. A stochastic model was constructed to investigate the connections between the cycle phases of the mutton production. Three modules were distinguished, the lamb production, fattening and slaughtering-processing sub-modules. The aim of our study was to identify the gross value added generated in the three sub-modules and to analyse the main factors influencing its volume using the conditions in Hungary as an example. The major hypothesis of our research was that the profitability of the production chain is mainly determined by the breed. The results showed that, considering market prices, the gross value added in the processing module was mostly influenced by the number of lambs sold per ewe per year at the bottom level of the mutton product chain. The next most important factors were the weight gain in the lamb producing and fattening sub-modules and dressing percentage in slaughtering-processing sub-module. Contour plots were constructed which help to describe the relationship among analyzed factors. Using the contour plots, the gross value added for different combinations of these factors might be forecast.

Keywords: sheep; simulation model; litter size; gross value added; contours; Agribusiness (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://purl.umn.edu/147429 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:apstra:147429

Access Statistics for this article

More articles in APSTRACT: Applied Studies in Agribusiness and Commerce from AGRIMBA
Series data maintained by AgEcon Search ().

 
Page updated 2017-09-10
Handle: RePEc:ags:apstra:147429