Bárány family can be called a dynasty by now since the first artificial poultry hatching plant of the Tiszántúl was built by László Bárány’s grandfather and grandmother in the Széchenyi manor in Békéscsaba in 1928. The grandfather did not attain when the plant was nationalized after the war and closed in 1952. After three years’ work camp in Siberia, his son returned home with two others from thousand people. Here he did not receive any job for two years then worked for various hatching plants in the Plain. Recognising his professional skills, he managed the hatching plant from 1958 to 1977 his death.
The grandson bearing also the name László also gained experience in the state sector before launching an enterprise in 1988. He graduated from the university in Debrecen in 1977 as general agrarian engineer then the way was straight to the plant of Hunnia-Coop which was founded by several local cooperatives. When he felt the regress of the state sector he launched a private enterprise from his money spared. From the initial poultry farm of several thousand, it became one of the greatest poultry integration of the region in several years.
Self-supply
Secrets of success are mainly in luck and good timing. As a matter of fact, the machines and the sites could be purchased at low prices from the dying cooperatives. The Baromfi Coop Ltd founded by László Bárány is still operating in the earlier sites of the cooperatives. It was part of the conscious establishment that they tried to solve each activity connecting to the breeding within the company and thus all operations from the fodder production and mixing through the hatching to the breeding and processing of poultry for slaughter remained in one single hand. In this way they ensured work for the farmers of the nearby settlements who are supported by the company with machines, advices and money as well.
The company manager said that the following years promise to be difficult since after joining the EU the domestic producers will not have too much chance against the liquid large companies. Therefore he tried to focus on such product by which he can be competitive in the Union as well. The great idea was found out two years ago when László Bárány decided to launch the free-range breeding of farmhouse chicken. His older son whose name is also László already supports him in it since he also gained the agrarian engineer’s diploma at the University of Debrecen.
It was never a question for László Bárány junior whether to join the family enterprise; now he is the managing director of Master Good Ltd founded for the eco poultry breeding. The company started a 1.5 milliard HUF project in Petneháza where the chickens bred in the eastern Hungarian region will be processed, packaged and from 2005 sold even in the form of semi-finished or ready-cooked food. In the processing plant which will partially work already from this year and employ some 200 employers in total, organic poultry baby foods will also be produced for children suffering from immune deficiency disorders or allergy. These animals never receive growth supporting substances or antibiotics. Oppositely to the organic chicken, the eco chicken is allowed to get such fodder which was grown in lands treated with artificial fertilizer, but is not allowed to receive such fodder which contains any chemical.
There is already solvent demand for the clean poultry meat free of harmful agents also in Hungary in spite of the fact that the price of these products may be even the double of the price of broiler. After conducting a market research, the managers decided that in addition to the processed fresh and semi-finished products they will manufacture baby foods and meat products for persons suffering from allergy after the completion of the industrial plant. „First we thought that only rich persons and those having high education will buy it. However, during the market research and the communication with the supermarkets it was revealed that there are people for whom health is important and who are willing to devote money on it as well as young mothers who also watch what to feed with their children. We were very much surprised when detected that our customers include also those who buy the chicken just for its taste because they are tired of the plastic taste of the industrial chicken” – said László Bárány junior.
They addressed consumers in the supermarkets, shops with various inviting boards and the tasting was also an important part of the strategy. The product was unknown also to the managers of the supermarkets and they hardly believed that there is demand for it on the part of the Hungarian consumers. After the initial 200-300 eco chickens a week, now we have orders for already 5-6 thousand a week and this number continues to grow. Master Good Ltd’s products can be bought in majority of the large supermarkets. Now eco poultry amounts to 0.1-0.2 percent of Hungarian consumption, however, market researches show that it may grow even to 2-3 percent during the next years which is significant quantity if we consider the total annualproduction of 140-150 million pieces.
The introduction of the new product is still in progress and father and son take part in the decisions together; however, the older László Bárány would like if his son soon managed the company himself while he would be engaged in the management of the Baromfi Coop which has significant ownership share in the Master Good. This company has been consciously preparing for the EU joining for 4-5 years. They think that they will not be able to compete with the enterprises working in the Union in the quantity competition and the pressing of the cost levels in the future, either. However, they can be competitive through the production of quality products. Their technology meets the standard of any western European company. They buy only the most state-of-the-art equipment and they wish to specialize in the production of products of high-quality finish in the future which is expensive in the EU as well. László Bárány junior already received free hand in marketing matters, while the decisions significant in the life of the company will be taken over later by the younger son, Peter who is also a student in agrarian and economic science at the University of Debrecen and will soon be “thrown in the deep water”.
Not wizardry
The sons work heartily and willingly, László Bárány thinks it is just natural that they will manage the company one day. They did not begin to prepare for it during the university since László Bárány junior frequently visited his father’s poultry farm already as a child and later accompanied his father during his study tours, travelling around the whole of Europe. The idea of the free-range chicken breeding also originates from a study tour in France where he also worked at a similar company for two weeks.
Well, chicken breeding is just the same as the old rural poultry breeding with the difference that they do it in large scales. According to the rules, there shall not be more than 4.5 thousand animals in the same place, and minimum 1 hectare outlet shall be guaranteed for them. It was easy to implement it in this region since many farmers received back lands from the cooperatives but they could do nothing with them because of the lack of capital. The poultry is placed out in these locations, ensuring fair existence to the owners of the lands which are sometimes good-for-nothing from agricultural aspect.
In one cycle
The diet and conditions of breeding of eco poultry are regulated to the smallest details.
Higinfo Newsletter, Volume 2, Issue 1 / March 2004