Animal Welfare

The economical issues of the domestic production of EU-conform fatted goose-liver

Written by TÓÁSÓ, SZILVIA
PhD dissertation, Institute of Economics, University of West-Hungary, Mosonmagyaróvár, 2006

Abstract

In the next few years will come a complete change in the situation of the Hungarian fatty goose liver producing branch. One of the enforcement factors of the changes in the fatty goose liver producing branch is the decreasing profitability of the production. The main reason for that are the increasing costs and the low state purchase prices of fatty goose and fatty goose liver. This situation for the producers could be improved with technology-, feeding-, and organizational innovations, which could also improve the profitability of the fatty goose liver producers. The other enforcement of the coming changes are the aggravation of European Law about animal health and animal welfare. These efforts of the European Community are decision binding also on Hungary. The disadvantageous developments of these factors press the native experts that are prepared for the changes, to insure the future of the meaningful export return from scale producing branch. The conclusion of strategically decision needed for the changes must be also be able to adopt them in the practical field of production.

Summary

Following the EU accession of Hungary there is no doubt that the common regulations of the European Union are also applicable to Hungary. The issue of animal welfare is stressed more and more in the European Union with the objective to improve the animal living conditions. On basis of the above consideration the intensive mass-production is being more and more replaced by extensive farming, which is conforming to the characteristics of the different species. Beside such kind of conceptions and efforts Hungary will also have to face the release of derogation regarding fatty liver production –referring to national traditions-, furthermore the prohibition of that kind of activity.
In Hungary the force-feeding of geese has centuries old tradition, which ensures the living – as also in the main European fatty-liver production competitor in France - of thousands of farmers. That is the reason why we should take these efforts of the European Union seriously. On the other hand, if many people not even suppose that once something can put a stop to that kind of activity, nevertheless we have to believe, and identify ourselves with the common wish of the EU-member states.
Because of the above-mentioned we consider it relevant to work out a method, which could replace force feeding- currently a typical method for fatty liver production- to a certain extent. Raising this problem we wanted to present an alternative method in the dissertation, which could be successfully applicable in the future. Our research stated, that the practical application of this sort of production method (does not require force feeding of geese) can be more profitable for the producers, due to the lower costs of production. It is also to be noted, that fatty liver produced this alternative way is not equivalent (from its mass and quality point of view) to the fatty goose liver, produced with forcible-feeding.
In the dissertation our first aim was to examine the economy of fatty goose-liver production. On the basis of our research we can set down as fact, that in the examined period, in the fattening-phase the production costs has risen with 12 %. The increase of return from scale was slightly just half of that growth. It was found that the result of fatty goose liver production was definitely decreased. In the past six years the specific liver mass has increased with 20 %, simultaneously with liver quality-improvement. Summarizing the economical research of fatty goose-liver production it can be established that between 2000 and 2005 the profit originating from fatty goose liver production has decreased by 46 %. The research of the export income of fatty goose liver between 1998 and 2002 demonstrated a regressive tendency in addition to that in 2002 it produced loss.
We also examined the activity of a fatty goose liver producer in the Szigetköz region. Our aim was to determine how profitable the activity of a small-scale production is in comparison to large-scale farming. It was proved that in 2002 (the agrarian maintained this activity until the end of that year) the surveyed agrarian could bring ten times more profit into being with the fatty goose liver production than the concerning national data.
In the dissertation we made a proposal for an individual selling network, which could result bigger profitability of the farmers. The suggestion was based on the practical and theoretical basis of the selling method of the examined agrarian in Szigetköz.
The profitable maintenance of the fatty goose liver production depends on many factors. One of the European Union’s effort that could stop the practice of forcible feeding of geese as a method for fatty goose liver production. This is independent from the national intention. The other factor of great importance that has influence on the profitability of fatty goose liver production is the development of cost-structure and the size of the export market.