In the global drive for food security, the poultry sector plays an essential role, particularly in meeting the growing demand for affordable, protein-rich food. Central European countries like Hungary and Poland, where poultry farming constitutes a significant part of agriculture, face unique challenges in improving production efficiency while maintaining sustainable practices. In a recent study we investigate whether technological and efficiency differences are more pronounced between Hungarian and Polish poultry farms, offering fresh insights into the region’s agricultural performance.
Poland and Hungary are two of the largest poultry producers in the European Union. Poultry farming contributes approximately 11.7% of agricultural production in Poland and 11% in Hungary. Although these countries share similar histories in agricultural development, differences in technological adoption and farming practices present an interesting comparison for policymakers and agricultural stakeholders. The study utilizes Farm Accountancy Data Network (FADN) data from 2010 to 2015 to analyze technical efficiency and meta-technical efficiency across poultry farms in both countries. By employing a stochastic metafrontier approach, the researchers evaluate how well Hungarian and Polish farms are using available technology and whether further improvements can be made.
The findings reveal that, on average, poultry farms in Poland are more technically efficient than those in Hungary. Meta-technical efficiency—a measure of a farm’s ability to adopt and optimize the best available technologies—was 10% higher in Poland than in Hungary. This indicates that Polish farms are closer to reaching their full production potential using current technologies, while Hungarian farms lag behind. Several key observations emerged from the research. Higher meta-technical efficiency in Poland suggests that Polish poultry farms are better at closing the technology gap and optimizing production processes. Poland’s meta-technical efficiency stood at 0.94, compared to Hungary’s 0.90. The technology gap ratio, measuring the distance between a country’s production frontier and the global best-practice frontier, was also higher in Poland. The technology gap was 5% smaller in Poland, indicating that the country’s poultry farms are better at adopting cutting-edge technologies.
Both countries exhibited increasing returns to scale, meaning that larger farms are more efficient. This finding suggests that expanding farm size could lead to further efficiency gains in both Hungary and Poland, with larger farms benefiting from economies of scale. Specific costs, particularly feed and other input costs, played a crucial role in determining farm efficiency in both countries. In Hungary, labor was also a significant factor, while in Poland, the number of poultry per farm was more influential.
One of the study’s central conclusions is the importance of technological gaps in explaining the differences between Hungarian and Polish poultry farms. Hungarian farms face a larger technology gap, meaning they are not as effective in adopting and utilizing modern farming technologies. This technological lag is one reason why Hungarian farms are less efficient compared to their Polish counterparts. The researchers argue that narrowing this technology gap should be a priority for Hungarian policymakers. Investments in advanced technologies—such as automated feeding systems and data-driven analytics for optimizing production—could significantly boost the efficiency of Hungarian poultry farms.
The findings have important implications for agricultural policy in both Hungary and Poland. To improve the efficiency and competitiveness of their poultry sectors, both countries must focus on technological investment and supporting farm expansion. As the study shows, technological gaps are a significant barrier to efficiency, particularly in Hungary. Policymakers should prioritize investments in modern farming technologies, providing subsidies or grants to encourage the adoption of advanced systems that can help close the gap between local farms and global best practices. Given the benefits of increasing returns to scale, policies that encourage the consolidation and expansion of farms could lead to higher efficiency. Larger farms are better positioned to adopt new technologies, benefit from economies of scale, and improve overall productivity.
Baráth, Fertő, and Staniszewski’s study offers a valuable comparison of the poultry sectors in Hungary and Poland, highlighting the importance of technological adoption and farm efficiency. While Poland currently outperforms Hungary in both technical and meta-technical efficiency, there is significant potential for improvement in Hungary through targeted investments in technology and scaling up farm operations. As global demand for poultry continues to rise, addressing these efficiency gaps will be crucial for ensuring the sustainability and competitiveness of Central Europe’s agricultural sector. With the right policy support, both Hungary and Poland can strengthen their poultry industries and contribute to the region’s food security goals.
Baráth, L., Fertő, I., & Staniszewski, J. (2024). Are technological or efficiency differences more pronounced between Hungarian and Polish poultry farms? A stochastic metafrontier analysis. Agricultural Economics-Zemedelska Ekonomika, 70(8), 406-413.
https://doi.org/10.17221/322/2023-AGRICECON
