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The Kings of the Corona Crisis: The Impact of the outbreak of Covid‐19 on Small‐scale Producers in Hungary

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  • Zsófia Benedek
  • Pál Géza Balogh
  • Lajos Baráth
  • Imre Fertő
  • Veronika Lajos
  • Éva Orbán
  • Gábor G. Szabó
  • Gusztáv Nemes

Abstract

The Covid‐19 pandemic has fundamentally reshaped our lives. Its effects on the sales and use of marketing channels of small‐scale Hungarian producers are addressed here. Based on the level of proximity, sales channels were classified into three types. Due to local regulations concerning restrictions on movement, it was only impersonal (online) channels that survived, or the opposite type, i.e. very personal ones involving the face‐to‐face meeting of producers and consumers in the private spaces (mostly homes) of one of the parties. Results from the survey of 136 producers reveal that 60 per cent suffered an economic loss due to loss of sales, while 10 per cent increased their sales. Successful producers were those lucky enough to be operating within the fresh fruit and vegetable sector, within which consumer demand increased significantly. The parallel use of several sales channels before the virus outbreak increased subsequent chances of success by increasing the probability that some of the channels would remain operational. Furthermore, successful producers had invested a lot of work pre‐Covid into maintaining private relationships with their customers; a situation that proved vital during times of restrictions. Also, the former moved fast, and were open enough to learn and make use of the opportunities modern technology offered them. La pandémie de Covid‐19 a profondément remodelé nos vies. Cet article examine ses effets sur les ventes et l'utilisation des circuits de commercialisation des petits producteurs hongrois. En fonction du niveau de proximité, les canaux de vente ont été classés en trois types. En raison des réglementations locales concernant les restrictions de circulation, ce ne sont que des canaux virtuels (en ligne) qui ont survécu, ou du type opposé, c'est‐à‐dire des canaux très personnels impliquant la rencontre en face à face de producteurs et de consommateurs dans des espaces privés (principalement à domicile) de l'une des parties. Les résultats de l'enquête auprès de 136 producteurs révèlent que 60 pour cent ont subi une perte économique en raison de la baisse de leurs ventes, tandis que celles‐ci augmentaient pour 10 pour cent d'entre eux. Les producteurs qui réussissaient étaient ceux qui avaient la chance de travailler dans le secteur des fruits et légumes frais, dans lequel la demande des consommateurs a augmenté de manière significative. L'utilisation parallèle de plusieurs canaux de vente avant l’épidémie de virus a augmenté les chances de succès ultérieures en augmentant la probabilité que certains des canaux restent opérationnels. En outre, les producteurs prospères avaient investi beaucoup de travail avant la pandémie pour maintenir des relations privées avec leurs clients; une situation qui s'est avérée vitale en période de restrictions. En outre, ces producteurs ont évolué rapidement et étaient suffisamment ouverts pour apprendre et profiter des opportunités que la technologie moderne leur offrait. Die Covid‐19‐Pandemie hat unser Leben grundlegend umgestaltet. Ihre Auswirkungen auf den Absatz und die Nutzung von Marketingkanälen durch Kleinerzeuger und Kleinerzeugerinnen in Ungarn werden hier behandelt. Die Marketingkanäle wurden je nach räumlicher Nähe in drei Typen eingeteilt. Infolge der lokalen Vorschriften zur Einschränkung der Bewegungsfreiheit überlebten nur die unpersönlichen (Online‐)Kanäle oder der umgekehrte Typ, d.h. sehr persönliche Kanäle. Hier trafen sich Produzentinnen und Produzenten mit ihrer Kundschaft in den privaten Räumen (meist zu Hause) einer der beiden Parteien. Die Ergebnisse einer Umfrage unter 136 Produzierenden zeigen, dass 60 Prozent aufgrund von Umsatzeinbußen einen wirtschaftlichen Verlust erlitten, während 10 Prozent ihren Umsatz steigern konnten. Erfolgreiche Produzierende waren diejenigen, die das Glück hatten, im Frischobst‐ und Gemüsesektor tätig zu sein, in dem die Nachfrage deutlich zunahm. Die parallele Nutzung mehrerer Absatzkanäle vor dem Ausbruch des Virus erhöhte die späteren Erfolgschancen, da die Wahrscheinlichkeit, dass einige der Kanäle auch später funktionsfähig blieben, zunahm. Außerdem hatten erfolgreiche Produzierende vor dem Ausbruch des Virus viel Arbeit investiert, um die privaten Beziehungen zu ihrer Kundschaft aufrechtzuerhalten. Dies erwies sich während der Zeit der Einschränkungen als wesentlich.

Suggested Citation

  • Zsófia Benedek & Pál Géza Balogh & Lajos Baráth & Imre Fertő & Veronika Lajos & Éva Orbán & Gábor G. Szabó & Gusztáv Nemes, 2020. "The Kings of the Corona Crisis: The Impact of the outbreak of Covid‐19 on Small‐scale Producers in Hungary," EuroChoices, The Agricultural Economics Society, vol. 19(3), pages 53-59, December.
  • Handle: RePEc:bla:eurcho:v:19:y:2020:i:3:p:53-59
    DOI: 10.1111/1746-692X.12292
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    References listed on IDEAS

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    1. Zsófia Benedek & Imre Fertő & Adrienn Molnár, 2018. "Off to market: but which one? Understanding the participation of small-scale farmers in short food supply chains—a Hungarian case study," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 383-398, June.
    2. Zoltán Bakucs & Imre Fertő & Gábor G. Szabó, 2012. "Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative," Society and Economy, Akadémiai Kiadó, Hungary, vol. 34(3), pages 453-468, September.
    3. Nemes, Gusztáv & High, Christopher, 2013. "Old institutions, new challenges: the agricultural knowledge system in Hungary," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 115(2), pages 1-9, June.
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