Strategies of Hungarian pig-breeding farms

Abstract

The article analyses the basic strategic directions of the Hungarian pig-breeding plans, and determines a possible clustering of these farms. The majority of enterprises tries to increase the quality of production, aiming at optimalisation of the production technology and product-quality. Some enterprises try to differentiate their activity form concurrents by breeding of specific varieties. A third group of enterprises tries to increase their size by utilisation of relatively low input prices. Numerous enterprises try to stabilise their position by the minimalisation of input costs. In numerous cases there seems to be any well-defined strategy. Based on different productivity indicators the best results could be found in case of quality-oriented enterprises. The shrinking of production has improved the bargaining position of pig-breeders with feed suppliers, but there remained considerable problems with meat-industrial enterprises. As a consequence of worsening agricultural market situation and decreasing profit margin a further concentration process of producers can be predicted. At the same time, a general reconstruction of technical and technological infrastructure seems to be a necessity.