Zagorsek, Branislav (2025): Ekonomická a finančná analýza prechodu chovu brojlerov na štandardy ECC v Slovenskej republike.
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Abstract
The economic and financial analysis examines the impacts of transitioning from conventional broiler farming to the standards of the European Chicken Commitment (ECC), focusing on economic viability, market dynamics, and sectoral health. Costs We expect the transition to ECC will lead to increased costs for producers currently using conventional farming methods due to reduced stocking density, slower growth cycles, and infrastructure requirements. We estimate the cost increase to range between 12–25%, which corresponds to an increase of 0.30 - 0.67 EUR per chicken, or 5–11% of the retail price. Historical market data for the Slovak Republic suggests relatively low price sensitivity for chicken meat, with previous price increases having had no significant impact on demand. Financial Health of the Sector Predictive models indicate that approximately two-thirds of businesses may face possible financial difficulties in the coming years. Although larger producers are 6.67 times more likely to remain financially stable than smaller ones, size alone was not a reliable predictor of bankruptcy risk. Investment Requirements Maintaining current production levels after the transition to ECC will require significant investment, estimated at 36.4 - 65.8 million EUR. Conclusion It appears that some producers will need support mechanisms, whether in the form of guarantees or subsidies. These mechanisms should be implemented in a way that does not destabilize the sector and should carefully consider the form of assistance to avoid penalizing financially stable businesses.
Item Type: | MPRA Paper |
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Original Title: | Ekonomická a finančná analýza prechodu chovu brojlerov na štandardy ECC v Slovenskej republike |
English Title: | Economic and Financial Impact Analysis of Transitioning Broiler Production to European Chicken Commitment Standards in Slovak Republic |
Language: | Slovak |
Keywords: | European Chicken Commitment, ekonomická analýza, finančná analýza, brojlery |
Subjects: | Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy |
Item ID: | 125127 |
Depositing User: | Branislav Zagorsek |
Date Deposited: | 24 Jul 2025 05:17 |
Last Modified: | 24 Jul 2025 05:17 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/125127 |