Ekonomická a finančná analýza prechodu chovu brojlerov na štandardy ECC v Slovenskej republike

Economic and Financial Impact Analysis of Transitioning Broiler Production to European Chicken Commitment Standards in Slovak Republic

Branislav Zagorsek

MPRA Paper from University Library of Munich, Germany

Abstract: The economic and financial analysis examines the impacts of transitioning from conventional broiler farming to the standards of the European Chicken Commitment (ECC), focusing on economic viability, market dynamics, and sectoral health. Costs We expect the transition to ECC will lead to increased costs for producers currently using conventional farming methods due to reduced stocking density, slower growth cycles, and infrastructure requirements. We estimate the cost increase to range between 12–25%, which corresponds to an increase of 0.30 - 0.67 EUR per chicken, or 5–11% of the retail price. Historical market data for the Slovak Republic suggests relatively low price sensitivity for chicken meat, with previous price increases having had no significant impact on demand. Financial Health of the Sector Predictive models indicate that approximately two-thirds of businesses may face possible financial difficulties in the coming years. Although larger producers are 6.67 times more likely to remain financially stable than smaller ones, size alone was not a reliable predictor of bankruptcy risk. Investment Requirements Maintaining current production levels after the transition to ECC will require significant investment, estimated at 36.4 - 65.8 million EUR. Conclusion It appears that some producers will need support mechanisms, whether in the form of guarantees or subsidies. These mechanisms should be implemented in a way that does not destabilize the sector and should carefully consider the form of assistance to avoid penalizing financially stable businesses.

Keywords: European Chicken Commitment; ekonomická analýza; finančná analýza; brojlery (search for similar items in EconPapers)
JEL-codes: Q11 Q12 Q18 (search for similar items in EconPapers)
Date: 2025-02-09
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