This article describes the methodological problems encountered in comparing cost prices between countries or regions and makes a comparison of the cost price of pork in five European regions using data obtained from the Farm Accountancy Data Network (FADN).
First of all the problem of mixed farms is discussed. Different methods for allocating fixed costs to products are discussed (Activity Based Costing, regression analysis, dividing cost using the distribution of costs on specialised farms etc.). Other methodological problems are corrections necessitated by the influence of external factors in individual years (weather, for example), local currency or ecu versus purchasing power parity standards, the need to correct for differences in the structure of the farms in different countries and the influence of subsidies and taxes. The costs of equity and non-paid labour are given special attention.
Cost prices of pork per kilogram are presented for five European regions:
Brittany, Belgium, Denmark, the Netherlands and Lower Saxony. The effect of applying different methods to the cost price is illustrated.

Attachment cost_prices_in_pig_production.pdf (128 k)

New comparison of world milk production costs

by Claus Deblitz(1), Torsten Hemme(1), Folkhard Isermeyer(1),
Ron Knutson(2) and David Anderson(2)
(1) Institute of Farm Economics and Rural Studies, Federal
Agriculral Research Centre (FAL) in Braunschweig, Germany
(2) Agricultural and Food Policy Center (AFPC), Texas A&M
University, Houston, U.S.A.

This article has been a direct contribution to Agra Europe by
the International Farm Comparison Network (IFCN), published on
July 31, 1998.

Attachment fulltext_milcost.pdf (88 k)

World Meat Trade Shaped by Regional Preferences & Reduced Barriers

By John Dyck ([email protected])
and Kenneth Nelson ([email protected])

This article summarizes a study by USDA�s Economic Research
Service of world meat trade patterns, the surge in U.S. meat
exports, and future trade issues.

Attachment fulltext_ao269d.pdf (82 k)

Structural changes in the pork production and processing
industry of the U.S. and other OECD countries:
major trends and issues

Marvin L. Hayenga
Professor of Economics
Iowa State University

Abstract
What countries will have a competitive advantage in producing
pork for international customers in the next decades? We briefly
examine the changing competitive structure, emphasizing costs of
production and processing, for four major pork exporting
countries-the United States, Denmark, The Netherlands, and
Canada. Several productivity and cost differences, and their
causes are profiled for pork producers and processors in each
country. Changing environmental constraints and differences
likely to play an important role in affecting exports from each
country are summarized. After considering each of the changes
occurring and the relative costs in each country's pork sector
individually, we conclude that Western Canada could develop a
competitive advantage if it develops a more competitive
processing industry, that the United States' very efficient
processing industry and the lower cost hog production should
help expand its market share, but Denmark is likely to remain
the leading exporter despite their higher cost system.

Attachment hayenga3.pdf (230 k)

Inter-regional competitiveness - a cross-country comparison of dairy farming


Istv�n Heinrich (1) and Peter Hinrichs (2)
Institute of Farm Management and Rural Studies (BAL)
Federal Agricultural Research Centre Braunschweig (FAL)

Abstract:
Sustainability of livestock production more and more includes
competitiveness on international markets. On the basis of data analyses for the European Dairy Farmers (EDF), typical dairy farms in different European countries and in New Zealand are compared for various economic criteria. The comparison reveals the great influences of the climate and vegetation as well as political measures on dairy production and its economics.


(1) Hon.-Prof. Dr. Istv�n Heinrich, Senior Researcher
Federal Agricultural Research Centre (FAL), Braunschweig, Germany
Institute of Farm Economica ans Rural Studies (BAL)
Research domains: Production economics, international relationships Honorar Professor at Pannon University, Hungary
E-Mail: [email protected]

(2) Dr. Peter Hinrichs, Scient. Director
Federal Agricultural Research Centre (FAL), Braunschweig, Germany
Institute of Farm Economica ans Rural Studies (BAL)
Research domains: Livestock economics, Policy evaluation
E-Mail: [email protected]

Attachment heinrik3.pdf (188 k)

Effects of the CFA Devaluation on Cattle Trade, Beef Consumption, and Welfare in the Central Corridor of West Africa

by
Samuel Asuming-Brempong and John M. Staatz

Abstract
Constrained social surplus maximization was applied as a tool that allowed us to use mathematical programming methods to analyze the market for cattle and beef within a competitive market framework. The January 1994 devaluation of the CFA franc by 50% relative to the French Franc affected cattle trade flows and beef consumption in the West African Central Corridor. Following the devaluation, there was de-stocking in both Mali and Burkina Faso by cattle producers to take advantage of the improved competitiveness of cattle in the coastal markets, thereby expanding cattle trade in the sub-region.
However, the CFA Franc devaluation resulted in losses in consumer welfare for beef consumers in all four countries of the Central Corridor. On the other hand, cattle producers in general enjoyed higher profits, and therefore experienced welfare increases following the CFA Franc devaluation.

Attachment asumingb1.pdf (155 k)

Patterns Influencing Acceptance of Large Scale Pig Production in Rural Areas

Hans K�gl and Stefan Mann
Rostock University
Institute for Agricultural Economics and Technology

Abstract:
The paper deals with the attitude of rural population in Germany concerning construction of large pig production units. Especially two points are of interest: Which factors influence peoples' attitude towards the pig plants and what kind of decision making process in the communities promotes the investment plans. For that purpose in nine rural municipalities, where the construction have been under discussion, people were asked to state by a questionnaire their preferences as well as the degree of information and participation in the process of negotiations.
Results show that a majority of the inhabitants was against large pig production units. However, there are four largely homogeneous groups of individuals with different attitudes towards the investment. The council's decision in favour for this investment was negatively correlated with the amount of public involvement. From the chosen arguments labour generation by pig production explains individual attitudes best, followed by protection of nature, income generation and plant size. Animal welfare and bad smell, which are often cited in the literature, did not affect significantly peoples� attitude. However, the positive effects are only perceived as small and uncertain while disadvantages seem to be more realistic. The solution of this dilemma may be an reduction adjustment of plant size, a change to more labour input and more public relations for pig production.

Attachment koegl-2.pdf (115 k)