No 4/2012 Special, December
Economic Value of Recreation – Determinants Influencing the Willingness to Pay in Natural Region with Low-Intensity Agriculture
The presented article deals with an indirect economic value of recreation in natural areas with a low-intensity agriculture. A high focus on nature preservation does not allow the high-intensity agriculture in some region. The conducted research is focused on two regions: Šumava National Park and Podyjí National Park. The aim of conducted research is to determine factors influencing the tourists ́ willingness to pay. Data gathered from tourists ́ survey are elaborated by ordinal logistic regression. Among studied factors are sex, age, education and daily expenditures per person during a stay.
Pieces of knowledge introduced in this paper resulted from a solution of the institutional research intention MSM 6046070906 „Economics of resources of Czech agriculture and their efficient use in frame of multifunctional agri-food systems“ and the Internal Grant Agency (IGA) of the Czech University of Life Science in Prague, Registration Number 201111110049.
Nature based recreation, national park, willingness-to-pay, logistic regression, ordinal models.
Competitiveness of Domestic Production of Poultry Meat on the EU Market and on the World Market
The article provides a basic overview of the development of production and trade in the case of poultry meat in the Czech Republic. The goal of the actual analysis is to identify the main developmental trends and tendencies forming the development of Czech production and trade in the case of poultry meat. From the results of the analysis, we can observe the increasing growth in time of domestic demand for poultry meat (primarily chicken meat), and further, also a certain level of stagnation in the area of domestic production, whose rate of growth is significantly lower as compared to the rate of growth of actual consumption. In the course of the years, the domestic market is becoming more dependent on imports of poultry meat primarily from EU countries. The negative trade balance of the Czech Republic in relation to partner countries increased significantly within the analyzed period. As far as the comparative advantages of Czech poultry meat trade are concerned, those are gradually fading away more and more in time – or rather, the comparative disadvantage is deepening, both in relation to the countries of the EU, as well as in regard to third countries. Only some sub-aggregations are capable of maintaining comparative advantages, which are additionally characterized by a low level of processing. This paper was supported by the institutional research intentions MSM 6046070906.
Poultry meat, production, trade, EU market, world market, comparative advantage.
The Competitiveness of Agricultural Foreign Trade Commodities of the CR Assessed by Way of the Lafay Index
The article deals with agricultural foreign trade of the Czech Republic in the period of 2008 – 2011. For the whole sector structure of agricultural production – 24 aggregations of commodities structured according to chapters of food goods - it attempts to ascertain how the individual commodities are faring on the foreign market. It presents several tools for the assessment of competitiveness. Primarily, this includes the Balassa auxiliary RCA (Revealed Comparative Advantage) index, and the Lafay index. The last, most comprehensive criterion was utilized – the Lafay index. For the years in question, attention is first given to the overall development of agricultural foreign trade (AFT), the value of export and import is summarized, and the balance and turnover is calculated. The territorial structure is shown, total export is studied, as well as export into the EU 27 countries, into the three countries that are the biggest trading partners (Germany, Slovakia, Poland) and into third countries. For the last year, 2011, the results for the aggregations of commodities that show up on the given market are processed into clear tables, with the order of the first five aggregations of commodities being shown. The results for the year 2008 are set out briefly, and changes in the structure that occurred within the past four years are discussed.
The article was prepared as part of the Research Project MSM 6046070906 “Economics of Resources of Czech Agriculture and Their Effective Utilization within Multifunctional Agricultural-Food Systems”.
Agrarian foreign trade, foreign trade, competitiveness, competitive advantage, Balassa index, Lafay index.
Proposal of the Creation of Resources for the Maintenance of the Production Capability of the Agricultural Land Fund by Way of Tax Savings
The article contains a proposal of the methodology for the creation of resources, monetary funds into agriculture by way of tax savings. Those are created by way of the utilization of items deductible from the tax base. The average official price of agricultural land for the cadastral area and a proposed “land rate” (3.3%) were used for the calculation of deductible items. The land rate was calculated as the inverse value of the return time for investments in agricultural land. The calculated tax savings according to the relevant tax rate and the amount of the deductible item constitutes the amount of CZK 306 - 388/ha of agricultural land depending on the type of business entity. The arisen savings correspond, for example, to the compensation for the cancelled TOP-UP (2010) payments for agricultural land. Other reserves within the current economic system (untaxed agricultural subsidies) could also lead, for example, to the protection of the agricultural land fund in terms of quantity and quality. The said results can be important not only from an information standpoint, but primarily from a methodological standpoint. The article was drawn up as part of VZ MSM 6046070906 “Economy of Resources of Czech Agriculture and Their Effective Utilization within Multifunctional Agricultural-Food Systems”.
Agricultural land fund, production capability, estimated pedologic-ecological unit, tax savings, item deductible from the tax base, official and market price of agricultural land, costs.
Impact of the CAP ́s Second Pillar Budget Reform on the Czech Economy
In this paper, three scenarios concerning different budget options of the reformed CAP are analysed based on the general equilibrium approach. The simulations consider a policy shock in 2014 and assess its impact until 2020. The results suggest that the changes in financing the second pillar CAP will produce only marginal effects on the economy. However, the reallocation of funds from the first to the second pillar has considerably larger negative effects on gross value added and employment in agriculture than the case of the second pillar budget reduction. On the other hand, the reallocation of funds will produce small but positive effects on the remaining sectors of the economy and the GDP.
Research presented in this paper is the result of a research grant MSM 6046070906 “Economics of Czech agricultural resources and their efficient usage within the framework of multifunctional agri-food systems” and a Research Task of UZEI conducted for the Ministry of Agriculture TÚ 4241/2011”.
Common Agricultural Policy, Second pillar, budget, investment subsidies, CGE model, simulation, agriculture.
Modelling Brewing Industry Pricing
The aim of this contribution is to analyse the price behaviour of the second to eleventh strongest brewers on the Czech market on the basis of the price behaviour of the price leader, this being Plzeňský Prazdroj (a member of SABMiller). Using monthly prices (the number of observations is generally 108 periods), is modelled the length of delay between the price leader and the other breweries making a price change. A linear regressive analysis is used to produce the model. The beer brands are divided into 3 segments: super- premium, mainstream and non-alcoholic beer and prices are modelled separately for barrelled and bottled beer if the data is available to allow it. The results of each brewery’s behaviour are summarised in conclusion. The information presented in the article is the product of working on the Research Plan MSM 6046070906, “The Economics of Czech agriculture resources and their efficient use within a multifunctional agri-food systems framework”.
Beer, Brand, Plzeňský Prazdroj, price leader, pricing policy, oligopoly.
Impact of Government Reform on Beef Market
The present paper deals with the simulation of the impact of selected measures of government reforms in the beef market in the Czech Republic. The selected measures of government reforms are defined and specified on the base of available resources in the introduction. Subsequently, these measures are simulated by the model of partial equilibrium of defined market in the practical part. The impacts of the measures on both supply and demand of selected market are then commented, based on formal econometric quantification and verification of model outputs. The analyzed government measures are included in the form of an expected increase in VAT, the movement of the Czech crown, the development of consumer income and the price expectancy in vertical of beef. The results predict negative consequences on domestic market, in particular on the supply side, in the form of a relatively significant reduction in the number of pieces of cattle. These can result in reducing the number of enterprises with intensive fattening or in shifting their focus to other commodities of vegetable nature. On the demand side, the analyzed measures are likely to bring short-term price reductions. However, the steep growth accompanied by a reduction in quality of meat products can be reasonable expected in the long run. Pieces of knowledge introduced in this paper resulted from solution of an institutional research intention MSMT 6046070906 „Economics of resources of Czech agriculture and their efficient use in frame of multifunctional agri-food systems“.
Beef, partial equilibrium, simulation, VAT, Czech Republic.
Time Series Properties and Their Influence on the Results of Price Transmission – Case Study of the Czech Pork Market
This paper deals with an examination of the selected time series and an examination of price transmission in the selected agri-food chain. The analysis is connected with the working question of whether the selection of time series influences the results of price transmission. The analysis is focused on the pork agri-food chain in the Czech Republic; the time series of farm-gate price, wholesale price and consumer price is examined. First of all, the main properties of the selected time series are examined; subsequently, price transmissions based on time series of different frequency and in different periods are analyzed. The price transmission analysis is based on multivariate time series analysis; to be precise, the Vector error correction model and co-integration analysis are employed. The analysis shows that the choice of time series of different frequency should not significantly influence the results of price transmission, whereas the choice of time period might be crucial.
The results presented in this paper are outputs of the research project “P402/11/P591 Modelling of price transmission and its asymmetry in agri-food chain – theoretical-empirical implications” supported by Czech Science Foundation.
Time series, price transmission, pork meat, co-integration analysis, Vector error correction model.
Impact of Complementary National Direct Payments on Cattle Breeding Sector
The article deals with a topic of Complementary National Direct Payments (CNDP) in the Czech Republic. It is focused on a relationship between allocated financial sources (in CZK) and selected indicators of cattle breeding as heads of dairy cows, milk yield, milk balance, self-sufficiency ratio and heads of suckler cows.
Main aim of the article is to evaluate an influence of CNDP on cattle breeding in the Czech Republic, especially on dairy sector and sector of suckler cows in the period 2007 - 2012.
Used methods are chain and base indexes.
Pieces of knowledge introduced in this paper resulted from solution of an institutional research intention MSM 6046070906 „Economics of resources of Czech agriculture and their efficient use in frame of multifunctional agri-food systems“.
Complementary national direct payments (CNDP), support, dairy cows, suckler cows, support, livestock unit.
Production Costs in the Fattening Period of Pigs and Assessment of the Influence of Selected Factors on the Amount of These Costs
From the 90th years of the last century is the production of pigs and pork industry in the Czech Republic thanks to decreasing self-sufficiency CR in this commodity frequently discussed topic. Low and fluctuating producer ́s price, increased imports of live animals and pig meat abroad and the high costs of production are often referred as one of the critical reasons for the current situation in the livestock sector. This paper deals with the calculation of cost of production in the fattening period of pigs and assessment of the influence of selected factors on the amount of these costs. The aim of this paper is to give an overview of the production costs in the final stage of pig production and overview of the influence of selected factors (the prices per year and the size of agricultural land area of farm) on the amount of costs. To meet the goal was used data of anonymous questionnaire survey of farms from the years 2006 – 2010. To quantify the cost of production was used two-stage calculation. Using analysis of variance and program STATISTICA was evaluated statistical significance of selected factors on indicators – cost items. The amount of total cost in the fattening stage of pigs increased from 2006 to 2008, in 2009 and 2010 were identified annual declines, as a result of reducing the cost of feed and labor costs. The average total cost in the fattening period of pig in the period of 2006 – 2010 amounted to 1 752.8 CZK /100 FD. Feed costs in the cost structure are the most important item in the period represented on average 65.6% of total cost in the fattening period of pigs. For farms without agricultural land, the proportion was 2.4% higher. Pieces of knowledge introduced in this paper resulted from solution of an institutional research intention MSM 6046070906 „Economics of resources of Czech agriculture and their efficient use in frame of multifunctional agri-food systems“.
Pig, fattening, cost, economics, competitiveness, influence, producer ́s price, area, agricultural land.
Analysis of the Effects of Subsidies on the Economic Behavior of Agricultural Businesses Focusing on Animal Production
Entry into the European Union and the acceptance of Common Agricultural Policy had a fundamental impact on the economic behavior of animal production businesses in the Czech Republic. Some authors have even reached the conclusion that the slump in animal production is the most prominent manifestation of Common Agricultural Policy. The submitted article quantifies the effect of subsidy policy on production, costs and technical efficiency of agricultural farms. It analyzes the economic behavior of businesses receiving subsidies and of businesses that did not receive subsidies. As part of the study, the microeconomic data of 173 animal production businesses are analyzed. The main methodological tool is the construction of production and cost functions. The effect of subsidy policy on technical efficiency was analyzed by way of the frontier production function model.
The article was elaborated under one goal of research intention MSMT 6046070906 “Economics of Resources of Czech Agriculture and Their Efficient Use within Multifunctional Agri-Food Systems”.
Animal production, subsidies, production, costs, technical efficiency.