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Vágány, J., Dunay, A., Székely, Cs and Pető, I


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The paper was originally published at:
Vágány, J., Dunay, A., Székely, Cs. and Pető, I. (2003) Development and Introduction of HACCP System in Józsefmajor Experimental and Demonstration Farm, a Dairy Farm for Fresh Milk Production. pp. 1-16., In: "Large Farm Management" Workshop, IAMO Tage, Halle, Germany (CD: /Papers/Dunay, Petö.pdf; ISBN:3-9809270-0-8)
Development and Introduction of HACCP System In Józsefmajor Experimental and Demonstration Farm, A Dairy Farm for Fresh Milk Production

Judit Vágány(1) – Anna Dunay(1) – Csaba Székely(1) – István Pető(2)

Szent István University

Faculty of Economics and Social Sciences

(1) Department of Farm Economics and Management

(2)Department of Business Informatics

H-2100 Gödöllő, Páter Károly u. 1. Hungary

e-mail: juditv@gtk.gau.hu, adunay@gtk.gau.hu, ipeto@miau.gau.hu

Abstract

Hungary's EU accession brings several new requirements and regulations for the Hungarian agriculture. In our essay we concentrate on special topics, namely food-safety, food quality and quality control. We summarize the steps of the establishment and introduction of HACCP System in a family dairy farm that is specialized for fresh milk production. The milk quality is a key question in milk production and as the Hungarian practice is slightly different from the EU-requirements, its importance will be growing after EU accession.

The farm examined is Józsefmajor Experimental and Demonstration Farm of the Szent István University.of Gödöllő This dairy farm is specialized for fresh milk production, and in order to meet the EU requirements the HACCP System have recently been installed to improve the quality of the milk produced.

This process had several different steps from the completion of the HACCP Manual of the farm, through informatic solutions to the final cost and receipts calculations.



Keywords

food-safety, milk production, milk quality, HACCP System



Introduction

In our days, the human population spend the greatest proportion of money for consumer goods, especially for food products.

In developed countries quality, nutrition value and packaging of the products play an increasingly important role in the consuming and shopping customs. According to this tendency the role of food quality, food safety and quality controlling systems is improving, so that they have to be developed and harmonized in each level “from stable to table”.

Food safety is one of the most important topics of food industrial development in every industrialised country, because




  1. food-borne microbial pathogens in food cause millions of cases of human illness and thousands deaths world-wide every year;

  1. globalisation of trade increases food-borne risks;

  1. liberalisation of the world trade increases the public concern on safety of imported products;

  1. various groups of agricultural producers and processors utilise the increased importance of food safety as a weapon of protection of their domestic market or market position;

  1. recent food scandals, crises (BSE, Listeria, dioxin FMD etc.) underline the importance of food safety.

The increasing importance of food quality and food safety means a key task for the different nations and governments to ensure legislative background for food production and food processing that can protect all of their inhabitants from probable health damages.

Hungary's EU accession made new situation in the agriculture as several changes should be conducted in agricultural production. EU requirements for quality, quantity and the conditions of production are more strict than those is the Hungarian practice. Most sectors of the agriculture are affected by these new requirements, but animal husbandry, especially milk production is one of the mostly affected sector.

The Hungarian standards and regulations on fresh milk quality are EU-conform, but in production technologies and animal welfare in particular, improvement is needed.

The country's EU accession bring some new elements for the production practices, one of them is the compulsory existence of a quality system, in our case the installation of HACCP system in the milk production.

Material and Method

Józsefmajor Experimental and Demonstration Farm

History and objectives

Józsefmajor Experimental and Demonstration Farm was established in 1992, by the Department of Farm Economics and Management of the Gödöllő Agricultural University (the present Szent István University) in 1992.

The area of Józsefmajor Farm was formerly a demonstration farm of the Hatvan Sugar Factory, later an educational farm of the Gödöllő Agricultural University. In the farm cows and horses, later poultry were held, and, in the 1980ies the farm was used for storing sugar. The buildings and machinery of the farm became into very bad condition by 1990.

In 1990 the Department of Farm Economics and Management with the help of the experts of the Justus Liebig University of Giessen and Wageningen University, Holland started to establish the Józsefmajor Experimental and Demonstration Farm on this land. The main objectives of this process were the following:


  1. to create and operate an economically and ecologically viable / sustainable farm,

  1. to demonstrate a family-type farm,

  1. to collect all possible economical and ecological information,

  1. to use management information systems and decision support systems,

  1. to provide information for teaching, research and extension, and

  1. to demonstrate new technologies and management methods.

The dairy farm examined by our team is specialized for fresh milk production. The circumstances of production are rather good, as much development was conducted in the last few years on the farm. The production and milk quality data show a good production level (production data are shown later).

Land and Main Products of the Farm

Main features of the farm are shown in Table 1., the map of the farm is shown by Figure 1.



Table 1: Main features of Józsefmajor Experimental and Demonstration Farm


Total area




270 ha

of which

wheat and maize

149 ha




lucerne and other fodder

90 ha




grass

16 ha




forest

10 ha




roads and buildings

5 ha

Number of livestock

cows

101 head




calves and heifers

98 head

Main products

milk

650 000 l




wheat

500 t




maize

300 t

Labour

The leader of the farm (manager) is the farmer himself, as the farm is modelling a family farm. The farmer's wife helps in the administrative work. Five workers are the whole staff of the farm, in different duties. The farmer and his family are living in the farm.



Buildings

  1. cow barn for 100 dairy cows

  1. barn for 100 calves and heifers

  1. complex building where offices and machine hall are

  1. farmer's house

  1. barns for hay storage

Machinery

  1. tractors (70, 85, 90, 110, 180 HP)

  1. CLAAS Classic combine harvester

  1. milking parlour (DeLaval) 5x2

  1. DeLaval feeding system

  1. ALPRO information system for milk production

  1. OPTIMIX fodder mix wagon

  1. liquid manure system

  1. trailers

  1. field machines (ploughs, seeding machines, fertiliser, sprayer, hay harvesting machines etc.)

  1. pick up car (1,2 t)

  1. other devices (2 personal computers, 3 telephones, fax, 1 mobile meteorological station)

Figure 1: Map of Józsefmajor Experimental and Demonstration Farm



Milk production and milk quality

The number of livestock on the farm as shown above is roughly 100 milking cows and 100 calves and heifers. The milk production since 1998 have exceeded the 600 000 litres per year, in 2002 the total milk production reached the level of 650 000 litres.

The quality of the milk was really good, the ratio of extra milk was 77.9%, first class milk was 16.8 % and second class milk 5.3%.

Main Principles of HACCP System

The development and introduction of this food safety system in the farm was the first step to meet the EU criteria. Main principles of HACCP food safety system (Hazard Analysis and Critical Control Points) are the following:



  1. to identify any hazards that must be prevented, eliminated or reduced to acceptable levels;

  2. to identify the critical control points at the step or steps at which control is essential to prevent or eliminate a hazard or to reduce it to acceptable levels;

  3. to establish critical limits at critical control points which separate acceptability from unacceptability for the prevention, elimination or reduction of identified hazards

  4. to establish and implement effective monitoring procedures at critical control points;

  5. to establish corrective action when monitoring indicates that a critical control point is not under control;

  6. to establish procedures to verify that the measures outlined in subparagraphs (1) to (5) are working effectively. Verification procedures shall be carried out regularly; and

  7. to establish documents and records commensurate with the nature and size of food business to demonstrate the effective application of the measures outlined in subparagraphs (1) to (6).

Results

Critical points of fresh milk production

As the aim of HACCP system is to find the possible hazards and critical points in the process of fresh milk production, the first step was to summarize the detailed technology of milk production on the farm. This is shown on Fig. 2.

The critical points are shown by capital letters: P for physical, C for chemical and B for biological hazards.

In this chart five critical control points were determined, namely:



  1. Starting of production

  1. Formation of cow groups (cows at the same production level)

  1. Examination of milk

  1. Filtration of milk

  1. Chilling.

The detailed technology of fresh milk production is shown on the next pages, where the critical control points are underlined.

The critical points of fresh milk production were determined. By continuous control of these critical points the possible hazards can be prevented so the milk quality can be improved and maintained.

The other steps of milk production have no hazardous effects on the milk quality.

The workers of the farm were informed about these critical control points, they must work according to the circumstances determined by HACCP Manual.

Fig. 2: Technology of fresh milk production in Józsefmajor Experimental and Demonstration Farm





Calculations on Costs and Receipts

As it was mentioned earlier, Józsefmajor is a special farm founded for education, research and demonstration. It is well-developed, new techniques and up-to-date machinery is used. The costs of introduction of HACCP System have not generated additional costs as renovation, special equipment, etc. The costs caused by the introduction of HACCP System were the advisory fee and some additional costs as protection against rodents and insects, cleaning paint or new working-clothes.



In the calculations the basic year was 2002. The production data of 2002 are shown in Table 2.

Table 2: Receipts of the farm in 2002

Month

Quantity of Extra Milk
[l]

Quantity of First Class Milk

[l]

Quantity of Second Class Milk

[l]

Support of Extra Milk in Total

[Ft]

Total Receipts
[Ft]

01

35.325

16.475

0

183.690

3.847.390

02

50.260

0

0

261.352

3.880.072

03

55.085

0

0

286.442

4.252.562

04

52.880

0

0

274.976

4.082.336

05

19.455

19.415

14.860

101.166

3.565.146

06

55.153

0

0

286.796

4.257.812

07

57.663

0

0

299.848

4.451.584

08

0

36.100

18.005

0

3.355.050

09

48.995

0

0

254.774

3.782.414

10

48.510

0

0

252.252

3.744.972

11

47.965

0

0

249.418

3.702.898

12

15.670

32.485

0

81.484

3.418.704

Total

486.961

104.475

32.865

2.532.197

46.340.939

As figures show, the quality of milk was mainly Extra and of First Class. Production of Second Class milk was caused by illness of the milk-maid (the deputy didn't know the production process promptly). These faults can be removed by installation of HACCP system, thus the production and milk quality can be at the same level.

The receipts were calculated by the different quantities of different quality milk, the different milk prices and supports on Extra Milk. The costs side was simplified in our model: only the fee of advisor was counted.



The prices used in the model were the following:

  1. Price of Extra Milk: 72 Ft/litre (0,27 EUR)

  1. Price of First Class Milk: 68 Ft/litre (0,26 EUR)

  1. Price of Second Class Milk: 50 Ft/litre (0,19 EUR)

  1. Support on Extra Milk: 5,2 Ft/litre (0,02 EUR)

In our model the quantity of milk was supposed to be stable, but the quality improved, i.e. only Extra Milk is produced. Prices remained unchanged. (Table 3)

Table 3: Possible changes in receipts as a result of the introduction of HACCP

Month

Quantity of Extra Milk

[l]

Support of Extra Milk in Total

[Ft]

Total Receipts
[Ft]

01

51.800

269.360

3.998.960

02

50.260

261.352

3.880.072

03

55.085

286.442

4.252.562

04

52.880

274.976

4.082.336

05

53.730

279.396

4.147.956

06

55.153

286.796

4.257.812

07

57.663

299.848

4.451.584

08

54.105

281.346

4.176.906

09

48.995

254.774

3.782.414

10

48.510

252.252

3.744.972

11

47.965

249.418

3.702.898

12

48.155

250.406

3.717.566

Total

624.301

3.246.365

48.196.037

According to our calculations the following changes can be predicted by use of HACCP System:



Difference between the two versions (Receipts) [Ft]

+1.855.098

Cost of introduction of HACCP System (advisory fee) [Ft]

-500.000

Support of Hungarian Ministry of Agriculture and Rural Development (50 % of advisory fee) [Ft]

+250.000

Total [Ft]

1.605.098

If HACCP System works perfectly, the quality of milk will improve. This change of quality may cause some increase in the receipts of the farm (1.605.098 Ft that is about 6.170 EUR).

As a matter of fact this is a simplified model reflecting an optimal situation. In one hand, the farm probably will not be able to produce only Extra Milk, as the fresh milk production contains several hazards, on the other hand additional costs can be occur.

Despite of these facts, HACCP System will have positive effects on the receipts of Józsefmajor Experimental and Demonstration Farm, and milk quality will be controllable and well-balanced.

Possibilities of information-logistics in Józsefmajor

In this part of the paper that service-package is introduced (called Info-Periscope), which has been developed according to the requirements of Józsefmajor Experimental Farm. The mission of this service-package is to survey, give structure and comment the external information sources.

Here we present the possible importance of external information (which quality can’t be influenced by the enterprise) in the management of agricultural enterprises (or especially of Józsefmajor Experimental Farm). The applied aspects are the following:


  • In which stage of the applied general management model (Figure 2), and for which reason use the decision-makers external data?

  • Which type of external data is needed in these management stages, and which sources they come from?

  • What kind of technology supports the use of above-mentioned data, and what kind of development possibilities are there in these fields?

Providing external information – Info-Periscope

On the grounds of the quite unfavorable conditions described above and considering the role which external information may fill in management process, this project sets the following aims:



  • Collecting the relevant online sources.

  • Cataloguing, indexing and critic evaluation of these sources.

  • Analyze the way of getting these external data from providers to enterprises (especially to Józsefmajor Experimental and Demonstration Farm) – namely developing interface-solutions.

  • Drawing up quality requirements towards data-providers.

For these aims came into existence the service-package called Info-Periscope and that special service (http://miau.gau.hu/periszkop/cust/index_c.html), which suits the requirements of Józsefmajor Experimental Farm – within the frameworks of the Medium on Internet for Agricultural Informatics in Hungary.

Presently the main part of this service-package is the catalogue of links indexed by different dimensions, so users can examine the same set of sources from many points of view. Inside each of these dimensions the URL’s can be filtered by the help of two other aspects: by field of topic and quality of the source (adequate, “just on the line”, imperfect). In addition some remarks are also given to certain sources, which highlight the deficiencies of the given homepage (that makes the work of users difficult or inefficient)

The other important part is the “Custom Page”, which was developed according to the demands of Józsefmajor Experimental Farm. This service contains a continually maintained and updated link-catalogue, which provides the most important online sources. The most significant aspect was in developing of this catalogue that the Experimental Farm is an educational, research and farming unit at the same time. The main online resource-categories in this service are: legal information; institutes (in education and government); business partners; statistical data; natural environment; price-information; (about commodity and market products); resources (by groups of resources).

Figure 2: Management model of agricultural enterprises
















































STRATEGIC PLANNING







DEFINITION OF MISSION AND VISION







EXTERNAL ANALYSIS

INTERNAL ANALYSIS







DEVELOPING OF STRATEGY







STRATEGIC PROGRAMMING
















YEARLY PLANNIG







ACTIVITY PLANNING

STRUCTURE PLANNING

RESOURCE PLANNING







FINANCE PLANNING

















































OPERATIONAL MANAGEMENT







PLANT PRODUCTION

ANIMAL BREEDING

MACHINERY SERVICES

STORAGE, PROCESSING

MARKETING

RESOURCE MANAGEMENT







COLLECTING AND PROCESSING OF INFORMATION

















































ANALYSIS, CONTROLLING







ANALYSIS OF COSTS- AND REVENUES







STOCK-TAKING OF FORTUNE







COMPARISON OF PLANNED AND REAL RESULTS







STRATEGIC ANALYSIS AND CONTROLLING














































Source: Székely Csaba - Györök Balázs - Kovács Attila: A mezőgazdasági vállalkozások tervezési és döntéstámogatási rendszerének fejlesztése; AVA-konferencia; Debrecen, 2003

Conclusion

In the first steps of the analysis the critical points and critical limits were determined. The next step was to create the special regulations in case of hazards and to establish the possibility of prevention.

The objects of Józsefmajor Experimental and Development Farm with the introduction of HACCP system in addition to the obligations were to expand the quantity and the proportion of extra quality milk production by this system, which helps to prevent faults and hazards by an efficient monitoring system.

According to our simplified model, the improvement of fresh milk quality caused by HACCP System will cause an increase of receipts.



As the demand for quality goods and food is improving, the quality control systems should also be improved. The board of Józsefmajor Experimental and Development Farm plans the development and introduction of ISO 9001:2000 quality system in the future.

References

  1. 178/2002 EC;

  2. MSZ 3698;

  3. Pallaginé dr. Bánkfalvi Emese (1999): Minõségbiztosítás Mezõgazda Kiadó. p43, p27, p34-35.

  4. Szakály Sándor (szerk.) (2001): Tejgazdaságtan. 115-118 Bánáti Diána: The EU and the candidate countries: How to cope with food safety policies? – in Food Control, p89-93, 2003.

  5. Székely Cs., Dunay A. (2002): Az EU csatlakozás várható hatásai a magyar mezõgazdasági vállalkozásokra. Gazdálkodás, 2002. 5. szám, XLVI. évf.

  6. Bánáti Diána: The EU and the candidate countries: How to cope with food safety policies? – in Food Control, p89-93, 2003.

  7. Székely Cs. - Kovács Á.. (1993): Tejtermelõ gazdaságok létrehozásának ökonómiai kérdései. XXV. Óvári Tudományos Napok, Az állati termékek termelésének és feldolgozásának biológiai, technológiai, ökonómiai kérdései I. Mosonmagyaróvár, 1993. 301-307 pp.

  8. Vágány Judit – Dunay Anna (2003): Az élelmiszer-biztonsági rendszer gazdasági hatékonyságának vizsgálata a Józsefmajori Kísérleti és Tangazdaság tehenészetében. EU Konform mezõgazdaság és Élelmiszerbiztonság Nemzetközi Tudományos Konferencia kiadványa, Gödöllő 2003.

  9. Vágány Judit - Schwartz Kitti (2003): A tej minõségének szabályozása Magyarországon és az Európai Unióban – a Józsefmajori Kísérleti és Tangazdaság tehenészetének példáján keresztül. Gazdálkodók esélyei az Európai Unióban, EU-napi Konferencia kiadvány, Mosonmagyaróvár, 2003.

  10. Vágány Judit (2003): Hungary’s EU Accession – The Milk Sector and the Quality in Particular, Konferencia Kiadvány, Brno, 2003.

  11. Pető István (2003): Info-Periscope – Experiences of developing external information system for agricultural enterprises, „Agrárgazdaság, Vidékfejlesztés és Agrárinformatika az évezred küszöbén” Konferencia, Debrecen, 2003.

  12. Dr. Pitlik László - Pető István (2003): Mezőgazdasági vállalkozások külső, online információs rendszerének fejlesztése (kutatási jelentés);NKFP 2001 4/032 sz. kutatás; Gödöllő, 2003.

  13. Székely Csaba - Györök Balázs - Kovács Attila (2003): A mezőgazdasági vállalkozások tervezési és döntéstámogatási rendszerének fejlesztése. AVA Konferencia, Debrecen, 2003.


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