What is it about?
We study how competitive Hungary’s poultry sector is. Using farm data from 2006–2016, we ask whether unusually high profits fade quickly (strong competition) or persist. We then link profit differences to farm size, technology, tax advantages and risk-taking, and highlight where progress technology, expansion and lower labour intensit could raise performance.
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Why is it important?
Competition shapes prices, investment and resilience in food supply chains. This paper is timely because it measures competition with profit persistence using modern dynamic panel methods (Arellano–Bond and Blundell–Bond). It shows profits are close to an equilibrium level, but size, technology and tax advantages can distort competition pointing to where policy and modernization could matter most.
Perspectives
What I find most useful is the practical link between “competition” and farm decisions. Looking at abnormal profits over time highlights why technology upgrades and scaling can be decisive, while long-term risk can erode extra returns. The results also remind us that institutional details like tax treatment can quietly tilt the playing field, so sector policy needs to be evidence-based.
Tibor Bareith
ELTE Centre for Economic and Regional Studies Hungary
Read the Original
This page is a summary of: Dynamics of Competition in the Hungarian Poultry Industry, Agris on-line Papers in Economics and Informatics, June 2022, Czech University of Life Sciences Prague,
DOI: 10.7160/aol.2022.140202.
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