Source: Own study

2.12. Bottleneck

Almost 10.5 million people lives in household which use agricultural land. It is 27.4% of nation’s population. Over 40% of farms, especially smaller ones, produce mostly for their own needs (self-supply) and very little for the market. Large parts of Polish agriculture have features of peasant economy. Average size area of a farm is 5.76 ha and in the group of farms with 1 ha and more average size is 8.44 ha. There are strong ties between farm and household. In farm families self-supply of food is very important.
Several factors influence a slow process of organization of producers groups:
attitudes of farmers (distrust of partnerships and cooperatives, tradition of individual activity, negative past experiences);
economic reasons (large capital diversity of agricultural producers, unwillingness of strong farms to participate in organizations associating also weak farms);
lack of cooperation patterns in rural society;
lack of leaders who would undertake organization of producers groups.

Small scale and dispersion of pork producers makes difficult to influence significantly contracting conditions offered by meat processing companies. It would be recommended to cooperate between small producers in order to deliver bigger amounts of good quality pork and receiving higher prices.
Small producers of pigs have much worse access to the market than bigger ones. Cooperation between farmers in the form of producer groups or cooperatives is developing very slowly.

It is necessary to further integrate elements of meat market on the basis of commercial ties. In most advanced EU members integration of food chain rests on private ordering. Governments support establishing of vertical organizations integrating producers, processors and trader of food products arranged in branch structures. What more, agricultural producers need stronger organizations in order to represent their interests. There is also lack of sufficient contracting arrangements between actors of food chain in Poland. It makes relations in food chain unstable and non predictable. In order to reduce market asymmetry, small and medium producers should organize producer groups. The process of establishing such groups is in the initial stage in Poland. 21
3. Salami chain in Hungary

The salami is one of the most beloved foods in Hungary. The meat – mostly the pork, beef, mutton, and the fowl – fills the most important part of the feeding. Still fifty years ago, the number of the animals was the symbol of the status. In 20th century, after world wars, a significant part of the population left the countryside, and migrated to the cities. These acts played down the importance of the animal husbandry. The Hungarian animal husbandry was blooming before 1914, but the world war killed the demand. The horrendous poverty, the ticket system to the meat, bread, and the basic foods broke down the developing of meat – including the salami – industry.
But the recipes, the manufacturing processes were deep in the drawers. The stabilization after the world wars revived the demand of the meats in higher quality. The market leaders, which survived the wars, the lootings set back the production on the level before the wars. The salami become wanted food again.
In our days, more Hungarian meat factories produce a wide choice of salamis, kolbász (which is a special Hungarian sausage), and meat products. In my report, I would like focus on the biggest Hungarian salami factory. It calls PICK SZEGED Salami Factory and Meat Processing Plant Co. The seat of the company is in Szeged. Szeged is the 4th largest city in Hungary. The city is the regional centre of south Hungary. This area is very famous for the agriculture. Notable part of the population is living in villages, and hamlets. This environment is very useful for the market garden, and to grow pigs, cattle, and sheep. 22
This report will try to introduce the reader to the chain of salami manufacturing and the most familiar types of the Hungarian salami, in the aspect of the Pick Szeged Salami Factory.

3.1. The way from the farmers to the shops

The natural makings - at the different parts of Hungary - are reasonably various. Almost fifty per cent of the countryside is plain. In this area is very famous for the boondocks. Several family lives in little farms, isolated from the cities. The main sources of income spring from stock-raising, and from the agriculture.

One of the parents or both of them are working in the family business. They grow animals – pigs, cattle, sheep, and poultry – in the farms, and in the right time they can sell it to the forestallers.


They are the first chain link in the salami chain. This style of the living, the premium income, the permanent demand of the pigs, cattle, etc. ensures the adequate supply. These farmers and smallholders grow most part of the necessary amount. The residual part of the required deal is from hog producers.