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The beef chain in Costa Rica: Identifying critical issues for promoting its modernization, efficiency and competitiveness
2008
Holmann, Federico J. | Rivas Ríos, Libardo | Pérez, E. | Castro, C. | Schuetz, P. | Rodríguez, J.
The objectives of this study were to (1) describe the economic agents of the chain and their commercial and legal relationships; (2) identify the articulations between links, technological levels, indicators of efficiency, installed capacity (scale), and degrees of occupation; (3) characterize and estimate the costing and pricing structures, and the generation of value in different links of the chain; (4) identify those critical costs that can be modified through technological interventions, policy, or other activity; (5) determine the biological and economic risk factors throughout the chain; and (6) develop a methodology to identify and estimate the costs and benefits in each segment and evaluate the generation of value throughout the beef chain. Data at the farm level was obtained from a national livestock survey (CORFOGA 2005b), which provided data on production systems, inventories, productivity, culling, and labor. In addition, surveys were carried out in different segments: (1) auction houses, (2) slaughterhouses, (3) butcher shops, and (4) supermarkets. The aim of these surveys was to describe behavior, determine risks and costs, and identify problems. The weak dynamics of livestock production in Costa Rica are reflected in unsatisfactory productivity indicators. The annual gross income was estimated as US$44/ha for cow-calf operations, $126/ha for dual purpose (including income from milk sales), and $135/ha for fattening activities. Such income rates are considered extremely low, if one uses as reference the commercial value of land allocated to livestock production (ranging between $1000 and $2000/ha). The aforementioned biological inefficiencies, combined with high land costs, impede the recovery of opportunity costs for the capital invested in land, thus making beef production uncompetitive. The cow-calf operation, with its low productivity, remunerates family labor with wages below the legal minimum. On the assumption that the only cash cost is that of labor, cow-calf farms pay family workers at a wage that is equivalent to 60% of the legal minimum. Auctions present relatively good profits per event. However, when these profits are analyzed on a calendar-day basis, they are unattractive because of the low use of installed capacity. One strategy that would usefully improve the efficiency of the auction system in Costa Rica is its integration to reduce the number of fixed operational costs or encourage sharing of these houses so that administrative and operational personnel are rotated among the several existing auctions, taking advantage of the fact that they differ in their days of operation. This scheme would help reduce fixed costs and the commission collected without affecting profits, thus improving efficiency in this link of the chain. However, this option is not easy to implement, as auctions are run by private operators, whose various interests do not always coincide. The industrial sector formed by rural and industrial slaughterhouses shows a low occupation of installed capacity, resulting in high operational costs and low labor efficiency. The total operational costs of slaughtering and dressing are estimated as being between US$32 and $66 per animal. If the estimated unit costs are compared with the rates charged per slaughtered animal (between $15 and $23), then we have to conclude that rural slaughterhouses work at a loss and that industrial slaughterhouses cover their operational costs with processing services and the very small profit margins from sales of byproducts. The best performance in terms of efficiency and profitability is found in the retail sector of butchers and supermarkets. The rate of profits, expressed as the fraction of the final price paid by the consumer that remains in the butcher’s hands as remuneration of his work, ranges widely between 3% and 40%, with an average of 32%. If these profit rates are compared with those of other retail businesses, which are about 8%, then this type of activity presents excellent profit margins with relatively low risk. If, in addition, we take into account that this sector also offers the consumer a broad range of meat cuts from other animals such as pork and chicken, and processed meats, then profit margins are still higher. The value generated throughout the chain, as a percentage of the final value of the young steer at retail price according to activity, is distributed as follows: fattener (34%), retailer (33%), breeder (19%), slaughterhouse (7%), transporter (6%), and auction house (1%). As observed, the distribution of value throughout the beef chain is totally inequitable and incongruent with the level of individual risk confronted by the actors who form it. The inequity observed in the distribution of added value reflects a clear dominant position in the market of some actors of the chain, which enables them to capture a very high fraction of the profits. The value generated in the chain, adjusted for operational time in each link, ranges between US$0.28/animal per day for the breeder and $45.85/animal per day for the butcher. Thus, the highest proportion of the total added value concentrates on the final link of the chain. The butcher or supermarket obtains, on the basis of one animal in the same unit of time, 164 times more value that the breeder located in the first link of the chain. The latter has to confront biological and economic risks not covered by insurance policies, whereas retailers may mitigate risks through insurance policies for their raw materials, equipment, and infrastructure. The competitiveness of the beef chain is the aggregate of the efficiency and productivity of all the links that form it. In a situation where, in the final segment, the demand for beef is low and weakly dynamic, then economic signs of modernization and the technological change it promotes, are not being generated in other components of the chain, particularly in the first link of production. This, in turn, results in a vicious cycle, generating low productivity and lack of competitiveness. To promote technological change, efficiency, and competitiveness in the value chain for beef in Costa Rica, we propose the following six recommendations: 1. That successful experiences of other chains such as that of poultry be analyzed and learned from to identify strategies that would increase the efficiency of the beef chain as a whole. 2. That strategies for promoting the milk production of breeding cows be developed to increase family income, as remuneration of labor is currently below the minimum wage. This option would be viable only in localities where a milk market exists. That livestock producer funds [a livestock producer fund consists of granting livestock in company to produce meat, provided that the producer concerned has adequate pastures for this purpose on his farm] be created as mechanisms to develop social capital, reduce transaction costs, and help improve the chain’s productivity and profitability. These organizations would bring together the different classes of the chain and favor synergies in the interaction of public and private actors. 3. That incentives be created to promote the large-scale adoption of already available improved forage species, as most of the problem of low livestock productivity originates in poor and deficient feed. This strategy would emphasize feeding during dry seasons, thereby minimizing seasonal weight losses in the national herd and improving the profitability of farms. 4. That a carcass classification system be established, based on quality and price that would permit differentiating supplies for different segments of the market. 5. That consumer education be promoted on the health benefits of beef, forms of preparation, and differentiating between cuts, uses, and qualities of beef products.
Показать больше [+] Меньше [-]The analysis of the influence of internal factors on outdoor advertising effectiveness
2016
Grigaliunaite, V., Vytautas Magnus Univ., Kaunas (Lithuania) | Pileliene, L., Vytautas Magnus Univ., Kaunas (Lithuania) | Bakanauskas, A.P., Vytautas Magnus Univ., Kaunas (Lithuania)
The aim of the research is to determine the criteria of internal factors influencing the effectiveness of outdoor advertising. The eye-tracking experiment was conducted in Lithuania in 2016. Consumers’ visual attention toward specific criteria of internal factors influencing the effectiveness of outdoor advertising was measured. The chosen criteria were headline font size, the number of elements in the advertisement, and dominating elements in the advertisement (visual or textual). The main results of the research reveal that when the surface size of visual and textual outdoor advertising elements is the same, textual elements attract more visual attention than visual ones and that advertisements containing a large number of elements attract more visual attention than the ones containing a small number of elements. Moreover, when the font sizes of two headlines are both larger than the body text, but those headlines differ in font size one from another, there is no significant difference in consumers’ visual attention toward those headlines. Consequently, it is recommended to create outdoor advertisements with a large number of elements, where most of them are textual, in order to attract the consumers’ attention.
Показать больше [+] Меньше [-]Attitudes of Latvian adults to the consumption of pulses
2014
Kirse, A., Latvia Univ. of Agriculture, Jelgava (Latvia) | Karklina, D., Latvia Univ. of Agriculture, Jelgava (Latvia)
Pulses (Fabaceae) are an excellent source of nutrients with protein content equal to the protein of meats. Regularly choosing such meat alternatives as pulses can help minimize the amount of saturated fat and increase the amount of fibre in the diet. New pulse products could benefit vegetarians and people struggling with new diet changes. The aim of this study was to determine pulse consumption patterns of Latvian adults. An 11 question survey was developed on an online survey website www.visidati.lv to analyse consumer attitudes towards pulse consumption in Latvia. The questionnaire was completed by 780 respondents from September to December 2013. During the Baltics food industry fair ‘Riga Food 2013’ five question survey was carried out after vegetarian bean spread tasting. The questions were related to pulse consumption and preference; five questions survey consisted of overall preference and quality determination of the product. The results show that the majority of Latvian omnivore adults consume pulses about once a week or less; while pulse intake in vegetarian adults is significantly higher (p is less than 0.05). Latvian adults prefer green peas (Pisum sativum L.), navy and broad beans (Phaseolus vulgaris L.), lentils (Lens culinaris Medik.), chickpeas (Cicer arietinum L.) and maple peas (Pisum sativum L. var. arvense). Overall preference of vegetarian bean spread with sun-dried tomatoes (Solanum lycopersicum L.) is ‘like very much’ (4.5 – 4.6) and most of the respondents would purchase this product if it was available in a store.
Показать больше [+] Меньше [-]Consumers’ attitude towards availability and quality of gluten-free products in the Latvian market
2012
Ozola, L., Latvia Univ. of Agriculture, Jelgava (Latvia) | Straumite, E., Latvia Univ. of Agriculture, Jelgava (Latvia)
Celiac disease is an autoimmune enteropathy disease, triggered in genetically susceptible individuals by ingested gluten from wheat (Triticum), rye (Secale cereale), barley (Hordeum vulgare) and other closely related cereal grains. The only way of the effective daily treatment is a strict gluten-free diet. From the investigation of products available in the local market, it was found that Latvian producers do not offer gluten-free products. The aim of this research was to study a celiac patient’s attitude to gluten-free product quality and availability in the Latvian market and purchasing habits. The survey was designed using website www.visidati.lv, and a questionnaire was sent to people suffering from celiac disease. The respondents were asked to fill in the questionnaire from the beginning of December 2010 till the end of July 2011. The questionnaire was performed with 131 celiac patients, respondents were from all Latvian regions and they answered 15 questions. One of the most important questions was aimed to find out consumers’ opinion about quality of gluten-free products, consumption patterns of gluten-free products, and, moreover, their interest in products made in Latvia. Respondents were asked to name gluten-free products they mainly buy and give specific purchase locations, evaluate the quality of products and necessity for products produced in Latvia. The results of questionnaire show that the consumers are satisfied with the quality of gluten-free flour, flour blends and pasta, but are not satisfied with the quality of bread and confectionery available in the Latvian markets.
Показать больше [+] Меньше [-]Consumers' attitude to milk pomade sweet - sherbet consumption and its quality on the sales network of Latvia
2011
Ungure, E., Latvia Univ. of Agriculture, Jelgava (Latvia) | Muizniece-Brasava, S., Latvia Univ. of Agriculture, Jelgava (Latvia) | Dukalska, L., Latvia Univ. of Agriculture, Jelgava (Latvia)
Sherbet with crunchy peanut chips could be classified as milk pomade. It is one of popular sweets in Latvia produced by Joint-stock Company Laima, which is one of the oldest producers of sweets in the Baltic States. Freshly made sherbet is soft and savoury but after several days’ storage at the open air gradually hardens, the product loses eye appeal, taste and becomes unmarketable. This problem limits the shelf life, so sherbet with crunchy peanut chips can be marketed only at the local market. The target of this study was to clarify the situation on the market in Latvia and to examine an issue of Latvian consumers’ awareness of milk pomade sweets – sherbet quality indicators, packaging and its presentation to consumers, as well as the sherbet market expandability. A questionnaire was developed – 800 respondents answered on the 14 questions – how well-recognized the milk pomade sweet – sherbet is, what the main features for this kind of sweets selection by consumers are, which quality indices are important for consumers. One of most important questions was to get know the consumers opinion about sweets, mainly sherbet possible packaging kind and the market turnover. Summarizing the questionnaire data, the response from consumers in Latvia was heartening – they like milk pomade candies. As a primary quality defect the hardness of sherbet was mentioned. Eliminating this main failing of quality, the demand of sherbet on the market could rise, as well the product marketing opportunities will grow.
Показать больше [+] Меньше [-]Consumer attitudes towards the introduction of ready-to-eat meals in the Latvian market
2014
Ruzaike, A., Latvia Univ. of Agriculture, Jelgava (Latvia) | Muizniece-Brasava, S., Latvia Univ. of Agriculture, Jelgava (Latvia) | Janmere, K., Latvia Univ. of Agriculture, Jelgava (Latvia)
Nowadays the demand for fast and easy-to-make meals is ever increasing. This type of food is an essential dietary component of a large section of people in developed countries. Given the economic importance of ready-to-eat meals there is a need for a better understanding of the factors that determine their consumption. The aim of this research was to determine consumer attitudes towards the introduction of ready-to-eat meal (MRE) sets in the Latvian market. A survey was performed to determine the Latvian citizens’ attitudes towards the introduction of this type of quick-tomake, ready-to-eat products into the market of Latvia. The survey included a total of 800 respondents who answered 14 questions which were related to the interest in MRE sets that can be prepared (warmed up etc.) in less than 10 minutes and taste like home-cooked food, and the types of MRE sets these consumers would like to purchase. The demand forecast for MRE sets in the Latvian market is rather high as 67% of the respondents expressed a desire to purchase these products; the development and implementation of MRE sets is topical. The results show that the highest rated MRE set the respondents, a total of 77.1%, expressed a desire to purchase, was chicken fillet with vegetables. No significant differences in terms of liking were observed between chicken fillet with vegetables and chicken fillet with rice, the second highest rated MRE set by 73.9% of the respondents (p is greater than 0.05).
Показать больше [+] Меньше [-]Customer loyalty to a grocery retailer: differences between urban and rural areas of Lithuania
2017
Pileliene, L., Vytautas Magnus Univ., Kaunas (Lithuania) | Zikiene, K., Vytautas Magnus Univ., Kaunas (Lithuania)
Given the intensive competition in almost all the business sectors, customer loyalty research is gaining its popularity among marketers as well as among scholars. The aim of this research was to determine the differences in loyalty to grocery retailer between urban and rural consumers. In order to reveal the differences, questionnaire research was provided and differences between Lithuanian urban and rural customer loyalties were determined. The research results indicated the existence of statistically significant differences between the loyalties of Lithuanian urban and rural regarding their mostly visited grocery retailers in terms of their attitudes and repeat patronage behaviour. Moreover, based on the neo-behaviouristic approach, considering attitudinal and behavioural measures, all kinds of loyalties were observed stronger in the urban areas of Lithuania. The assumption was made that there might be an effect of limited-choice condition. Affected by the latter condition, rural citizens tend to seek for variety more than the urban ones. Consequently, considering the rural citizens’ evaluations, it can be stated that their loyalty is undermanaged, resulting in a very low amounts of truly loyal customers. Therefore, for the grocery retailers it was recommended to revise their customer loyalty schemes based on the point of residence of their consumers. In such a way the higher possibility of meeting consumer needs might be achieved.
Показать больше [+] Меньше [-]Non-bank consumer crediting trends in Latvia
2017
Mazure, G., Latvia Univ. of Agriculture, Jelgava (Latvia)
Non-bank crediting has become popular in Latvia as well as in other European countries due to various economic and social factors. Since the banks in recent years have introduced much stricter lending conditions, non-bank crediting sector has experienced a significant increase not only in Latvia but also in other European and world countries. Non-bank crediting market actively began to develop through a wide promotion of consumer credits in the major mass media; thus, creating human interest in the availability of fast and easy processable credits. Non-bank credit companies without customer deposits have transformed the present credit market, since a number of new players entered the market testing new business and crediting models and providing solutions to credit-challenged customers. The research aim is to study the non-bank consumer crediting trends in Latvia and it employs a monographic descriptive method as well as the methods of analysis and synthesis and graphics. The research results demonstrate that the popularity of non-bank credits is still growing among consumers, since the total amounts of non-bank credits disbursed for the first time have increased by EUR 116.61 million or 33.18% for the period 2012-2015 with distance credits being the most demanded credit type accounting for approximately 40% of all non-bank credits. Non-bank credit market is saturated and there is a fierce competition between non-bank crediting companies in terms of interest rates, crediting conditions and other factors.
Показать больше [+] Меньше [-]Content marketing decisions for customers’ desired value in the tourism sector
2019
Repoviene, R., Vytautas Magnus Univ., Kaunas (Lithuania) | Pazeraite, A., Vytautas Magnus Univ., Kaunas (Lithuania)
In a landscape of increasing customer/firm interactions in digital space, content marketing, which aims to generate prospects and sales to foster customers’ brand engagement, brand awareness and trust, is on the rise. Notwithstanding, despite significant marketing specialist interest, scientific content marketing research is not widely developed. Therefore, it encourages the need for new studies in the content marketing field. This paper introduces theoretical and practical aspects of content marketing decisions for the creation of desired customer value in the tourism sector. The aim of the presented research is to determine which combinations of content marketing decisions could create the desired value for the customer in the tourism sector. Understanding the content marketing decisions that create the desired value for customers could lead to a proper implementation of content marketing in the tourism sector. The presented results of q-sort study indicate twelve different combinations of content marketing decisions which could be used by tourism organizations in order to create desired value for their customer. Thus, it means that increasement of desired customer value can be made in the light of content marketing usage. The paper ends with insights, conclusions, limitations and future research possibilities.
Показать больше [+] Меньше [-]Testing an operation of prototype for automated assessment: case of visitor profile of Gauja National Park
2020
Berzina, I., Vidzeme Univ. of Applied Sciences, Valmiera (Latvia) | Balodis, E., Vidzeme Univ. of Applied Sciences, Valmiera (Latvia)
This study is based on the authors’ research started in 2017 that resulted in the development of theoretical strategic and tactical models for the construction of a prototype for automated assessment of tourism economic impact in specific regions, including regions of national parks (NP), as well as for other studies. The aim of the research was testing the performance of the prototype in a research e-environment using the travellers’ survey data obtained in a study in 2019 on the national parks’ target groups (visitor behaviour) during the Gauja National Park (GNP) Travellers’ Days. The prototype was based on the open-source platform Drupal, MySQL used as a database management system (DMS). Drupal united with the Jupyter Notebook platform. The methodological substantiation of the test study is based on aspects of consumer behaviour. A quantitative study with details of qualitative research has been performed. Simple data sampling was used in the data acquisition, but in the analysis – induction, deduction approach, synthesis, data sorting and segmentation, determination of mean values and their expression in proportion; a comparative analysis was performed and conclusions characterizing the sample were made. After completing the prototype performance testing, the authors’ main findings indicate that the prototype’s performance efficiency in terms of time consumption is 23.3 times higher than equivalent work in MS Excel. The prototype has yielded quantitative results from the calculations, and that allows the formulation of the GNP’s Travellers’ Days visitor profile, which is characterized by a sample of the surveys.
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