Agric. Econ. - Czech, 2011, 57(11):545-554 | DOI: 10.17221/58/2010-AGRICECON
Potential for pork production in the Czech Republic
- Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic
The main aim of the paper was a partial analysis of the production potential for pig fattening in the Czech Republic. This aim was achieved by econometric modelling of the production function, which was specified as a Cobb-Douglas function, with the level of average daily increase as the dependent variable, and feed compounds, mortality and weight of new stock as independent variables. The model was specified as a fixed effect model, and the parameters of the function were estimated by the method of least squares dummy variable, based on the ordinary least squares method. Verification of the estimated model was based on a t-test, coefficient of determination, Wald test, autoregressive test, and test of normality distribution of residuals. Subsequently, the estimated function was analysed and significant determinants of production were identified. The behaviour of the production functions was analysed for the average and marginal productions. The functions were also illustrated in graphs of production surfaces, from which the maps of isoproduction functions were derived. The isoproduction functions were used for the final analysis of the potential for pork production. The analysis was based on panel data from 32 farms focused on pig fattening, collected by our own survey. The research indicated significant differences between the surveyed farms. It also declared the most important factor of final production to be, with 99% probability, the new stock weight. The second most important determinant of final production is the feed compound A3, which is used in the final stage of fattening. For maximized production, the farmer should focus on the weight of pigs coming into fattening, choose the biggest one, and introduce the use of the feed compound A3. The results in the submitted paper should also be used by farmers to evaluate their production activity, and to compare their actual output with the theoretical value enumerated by the production function.
Keywords: production function, maps of isoproduction functions, allocation of production factors, exchange rate, rational stage
Published: November 30, 2011 Show citation
References
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