Supply response on the Hungarian pork meat sector

Lajos Zoltan Bakucs and Richard Markus

No 90808, 2010 IAMO Forum, June 16-18, 2010, Halle (Saale), Germany from Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: Despite of the increasing production and consumption of white meats, pig breeding is still one of the most important animal husbandry sectors Worldwide and in the European Union as well. In Hungary over the past decades, the pig sector has undergone significant changes. The livestock has sharply decreased from more than 8.5 million in 1989 to 3.3 million in present. After the post 1989 increase of herd size bred in family farms, their share diminished, at present two-thirds of output is produced by corporate farms. It appears that small scale farming has major difficulties, they must consider all cost reducing alternatives to improve their competitiveness. With pressure on purchase prices from the downstream market levels, and considering that fodder represents about 50-60% within total production costs, in this paper we analyse the influence of these two factors upon pig breeding farmers’ supply response. We employ Vector Error Correction Model specification, following the theoretical model of Hallam and Zanoli, 1993. Estimated long-run elasticities highlight farmers’ reliance on live pigs for slaughter purchase price and soya fodder price.

Keywords: Agricultural and Food Policy; Institutional and Behavioral Economics; Political Economy (search for similar items in EconPapers)
Pages: 12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/90808/files/Markus_IAMO_Forum%202010.pdf (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: https://EconPapers.repec.org/RePEc:ags:iamo10:90808

DOI: 10.22004/ag.econ.90808

Access Statistics for this paper

More papers in 2010 IAMO Forum, June 16-18, 2010, Halle (Saale), Germany from Institute of Agricultural Development in Transition Economies (IAMO) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().