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

♦ food-borne microbial pathogens in food cause millions of cases of human

illness and thousands deaths world-wide every year;
♦ globalisation of trade increases food-borne risks;
♦ liberalisation of the world trade increases the public concern on safety of
imported products;
♦ 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;
♦ 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:
♦ to create and operate an economically and ecologically viable / sustainable
farm,
♦ to demonstrate a family-type farm,
♦ to collect all possible economical and ecological information,
♦ to use management information systems and decision support systems,
♦ to provide information for teaching, research and extension, and
♦ 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
♦ cow barn for 100 dairy cows
♦ barn for 100 calves and heifers
♦ complex building where offices and machine hall are
♦ farmer's house
♦ barns for hay storage
Machinery
♦ tractors (70, 85, 90, 110, 180 HP)
♦ CLAAS Classic combine harvester
♦ milking parlour (DeLaval) 5x2
♦ DeLaval feeding system
♦ ALPRO information system for milk production
♦ OPTIMIX fodder mix wagon
♦ liquid manure system
♦ trailers
♦ field machines (ploughs, seeding machines, fertiliser, sprayer, hay harvesting
machines etc.)
♦ pick up car (1,2 t)
♦ other devices (2 personal computers, 3 telephones, fax, 1 mobile
meteorological station)
Figure 1: Map of Józsefmajor Experimental and Demonstration Farm
 Jelmagyarázat

Major belterület
É
Épület

Liget

Erdő

Út

Fénymag

Őszi búza

Legel ő

Silókukorica

Kukorica

Lucerna

SZIE - KGI
Térinformatikai Stúdió
2000.

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:
♦ Starting of production
♦ Formation of cow groups (cows at the same production level)
♦ Examination of milk
♦ Filtration of milk
♦ 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

R e c e p t io n o f fo d d e r R e c e p t io n o f a n im a l
R e c e p t io n o f fo d d e r R e c e p tio n o f w a te r
s u p p le m e n ts h e a lt h p r o d u c ts

S to ra g e o f fo d d e r S to r a g e o f a n im a l
S to ra g e o f fo d d e r
s u p p le m e n ts h e a lt h p r o d u c ts

C r it ic a l p o in t s :
1 0 . P r e p a r in g fo r
1 . C a lv in g
m ilk in g
P : p h y s ic a l
C : c h e m ic a l
B : b io lo g ic a l

2 . S t a r t in g o f
C
1 1 . M ilk in g
p r o d u c t io n

s e p a ra tio n o f
ill c o w s
3 . F o r m a t io n o f 1 2 . L e a d in g o ff 1 1 .1 . T a k in g o ff
c o w g ro u p s (d e - m ilk m ilk in g c u p s
p e n d in g o n p r o -
d u c t io n le v e l, c o n -
d it io n , p r g n a n c y ) B
1 1 .2 . U d d e r
1 3 . M ilk s e p a r a t o r
tre a tm e n ts
4 . D r iv in g in t o
m ilk in g p a r lo r

1 4 . F ilt e r in g o f P 1 1 .3 . D r iv in g o u t o f
m ilk m ilk in g p a r lo u r
5 . W a it in g in
lo u n g e

1 5 . L e a d in g o ff 1 1 .4 . D r iv in g
m ilk t h r o u g h s c a le s
6 . S t a n d in g in t o
m ilk in g p a r lo r b o x

1 6 . C o lle c t in g in
m ilk c o n t a in e r , B 1 1 .5 . D r iv in g
t r o u g h e x a m i-
c h illin g n a t io n lo u n g e
7 . P r e p a r in g u d d e r
fo r m ilk in g

1 1 .5 .1 . 1 1 .5 .2 .
1 7 . S t o r in f b e lo w
S e p a r a t io n o f ill S e p a ra tio n fo r
5 oC
a n im a ls in s e m in a t io n
8 . M ilk in f fir s t m ilk B
je t s in t o c u p s

1 8 . E x a m in a t io n ,
1 1 .6 . P r o d u c t io n
s a m p lin g
9 . E x a m in a t io n o f
m ilk
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 Quantity of Quantity of Support of Total
Extra Milk First Class Second Extra Milk Receipts
Milk Class Milk in Total [Ft]
[l] [l] [l] [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:
♦ Price of Extra Milk: 72 Ft/litre (0,27 EUR)
♦ Price of First Class Milk: 68 Ft/litre (0,26 EUR)
♦ Price of Second Class Milk: 50 Ft/litre (0,19 EUR)
♦ 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 Support of Extra Total Receipts
Milk Milk in Total [Ft]
[l] [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 +250.000
Development (50 % of advisory fee) [Ft]
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 ANIMAL MACHINERY STORAGE, MARKETING RESOURCE

PRODUCTION BREEDING SERVICES PROCESSING 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
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