2014, no. 3

MARKET PARTICIPANTS’ INVOLVEMENT IN THE EU’S GRAIN INTERVENTION IN HUNGARY

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Authors:  
Judit NÓGRÁDI, University of Pannonia, Georgikon Faculty, Doctoral School of Management Sciences and Business Administration, Hungary

On the grain market, the increase of prices is the farmer’s interest, while fall in prices favours the traders. Using market intervention for price stablization mainly privileges the farmers, as the intervention price is known well before planting, but serves also the traders and end users by providing a predictable market environment. Considering that unlike traders, most grain producers don’t have storage capacity at their own disposal, and that the administrative burden brought forth by the EU’s intervention on the grain market encumbered the participation in the measure, I presume, that a larger proportion of traders could be involved in the measure. My analysis highlights the fact that farmers were able to adapt to the regulations and sell their grain for intervention. This is proven by the fact that for the intervention buying as of the offerers, 60% of the farmers made a bid for selling their produce. Nevertheless, it can be recommended to lay great emphasis on informing the market participants to make them aware of the changes in time.

Keywords:  
wheat, maize, grain market intervention, market price, farmer, trader.