Factors influencing the gross value added in the sheep production chain

Abstract

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.

Potential of vertical and horizontal integration in the Hungarian fish product chain

“…The consumers' demands cannot be satisfied in an efficient and competitive way, and the fisheries products cannot find safe markets unless the activities of the producers, processors and traders are coordinated. These considerations, at the same time, urge the need for the research of the product chain relationships, for the continued investigation of the value generation and submarket processes of the fish production sector, similarly to what is taking place in other sectors of the animal husbandry (Szőllősi 2009;Cehla et al 2012).…”

Impact of variation in production traits, inputs costs and product prices on profitability in multi-purpose sheep

“…Rational utilisation of inputs and their target relationship to the value of outputs is one of the most important preconditions for effective production. Jávor et al (2005), Vlácil (2005) and Michalicková et al (2014), conducted micro-economic analyses based on evaluation of data from commercial sheep enterprises; while Aguilar et al (2006) and Cehla et al (2012) examined by specific production chain such as lamb production or lamb finishing and of entire production systems. Bio-economic models for the economic evaluation of sheep breeding systems and for the estimation of the economic importance of performance traits have also been reported by Haghdoost et al (2008) and Wolfová et al (2009a,b).…”