Economic analysis of the main Hungarian crop sectors based on the data of the 2011 production year

Kiss, István

Keywords: wheat, maize, rape, sunfl ower, barley

In the frame of the present study five crop sectors considered to be highly significant in Hungary were modelled on the basis of primary data collection. On the basis of the results business analysis was carried out. The five crops are the following: winter wheat, maize, winter rape, winter barley and sunfl ower. The modelling provided an overall picture of the economic situation of the sectors, especially about the direct costs, the cost structures, turnover, production value, contribution margins and subsidies. The importance of the role of subsidies is shown by the fact that the subsidies constitute 33-49% of that contribution margin that includes the subsidies. The serious effect the extreme fl uctuation of specific yields has on the results of crop production was demonstrated by running ceteris paribus scenario analysis of the average yields. In the case of the pessimistic yield scenario most of the sectors make losses, while in the optimistic case one can expect additional profit. In the case of the pessimistic scenario the subsidies help to minimise losses.

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