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Constraining Factors in Hungarian Carp Farming: An Econometric Perspective

Author

Listed:
  • Gergő Gyalog

    (National Agricultural Research and Innovation Centre, Research Institute for Fisheries and Aquaculture, 5540 Szarvas, Hungary)

  • Judit Oláh

    (Institute of Applied Informatics and Logistics, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • Emese Békefi

    (National Agricultural Research and Innovation Centre, Research Institute for Fisheries and Aquaculture, 5540 Szarvas, Hungary)

  • Mónika Lukácsik

    (Research Institute for Agricultural Economics, 1093 Budapest, Hungary)

  • József Popp

    (Institute of Sectoral Economics and Methodology, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

Abstract

Although carp farming had a key role in the Blue Revolution at a global level, European carp aquaculture has stagnated over the past 25 years without achieving any productivity gains. The objective of this study was to identify the factors and mechanisms constraining production and productivity growth in pond-based carp farming in Hungary, as the country is a good representative of the EU pond-based farming sector. By using data from 44 carp farms, different specifications of the Cobb-Douglas production function were parameterized to investigate the determinants of yields and to assess the extent of economies of scale. Descriptive statistics show that large differences exist in productivity between individual farms, meaning that it is hard to implement technical standards and to ensure repeatability in extensive carp farming technology. Econometric analysis demonstrates that economies of scale do not prevail in pond-based farming in Hungary, so a concentration of farms would not stimulate a growth in carp farming. This may explain the stagnation of carp aquaculture, as the only European aquaculture segments which can grow are those that can exploit economies of scale. Further analysis demonstrates that labour is an important factor of production, and a decreasing workforce may constrain the intensification process of production. On the other hand, mechanisation did not prove to be a significant contributing factor to yields, indicating that large investment in equipment has a limited role in carp farming.

Suggested Citation

  • Gergő Gyalog & Judit Oláh & Emese Békefi & Mónika Lukácsik & József Popp, 2017. "Constraining Factors in Hungarian Carp Farming: An Econometric Perspective," Sustainability, MDPI, vol. 9(11), pages 1-13, November.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:2111-:d:119328
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    References listed on IDEAS

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    1. Gergő Gyalog & Julieth Paola Cubillos Tovar & Emese Békefi, 2022. "Freshwater Aquaculture Development in EU and Latin-America: Insight on Production Trends and Resource Endowments," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    2. Lubica Gajanova & Margareta Nadanyiova & Dominika Moravcikova, 2019. "The Use of Demographic and Psychographic Segmentation to Creating Marketing Strategy of Brand Loyalty," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(1), pages 65-84, March.
    3. Nguyen Van Huong & Tran Huu Cuong & Tran Thi Nang Thu & Philippe Lebailly, 2018. "Efficiency of Different Integrated Agriculture Aquaculture Systems in the Red River Delta of Vietnam," Sustainability, MDPI, vol. 10(2), pages 1-13, February.
    4. Eszter Sugár & Nándor Fodor & Renáta Sándor & Péter Bónis & Gyula Vida & Tamás Árendás, 2019. "Spelt Wheat: An Alternative for Sustainable Plant Production at Low N-Levels," Sustainability, MDPI, vol. 11(23), pages 1-16, November.

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