Economic possibilities of local pork supply chains in Hungary

Abstract

Economic aspects of local pork meat production and distribution have been examined in this review article. Based on international and Hungarian literature, six key elements of local foods and local food chains have been identified which were: geographical proximity, short supply chain, sustainability, social embeddedness, small-scale production, unique consumer value. Three key elements (geographical proximity, short supply chain, small-scale production) have been chosen for further analysis with regard to aspects of corporate economics. Our results show that (in contempt of obstructive factors) local pork supply chains can be viable alternatives to conventional meat supply chains. The geographical proximity exerts positive effects on transport costs, greenhouse gas emission and carcass quality. On the other hand, the high variety of the self-sufficiency of counties obstructs the establishment of local pork chains. The favorable conditions to establish small slaughterhouses can encourage the setting up of short pork chains. Small-scale production is not a real obstructive factor to local pork production. The profitability of small sized processors reach the same level as the profitability of medium and large sized processors. This study demonstrates that the food products which need industrial processing can be successfully produced and distributed by local food chains as well.