Economic Viability of the Specialized Agricultural Micro-enterprises in the Altai Krai

Abstract

Recently, there was a decline in the specific production of agricultural enterprises, which creates certain production and financial risks. This study examines the degree of financial dependency of micro-enterprises of the Altai Krai, taking into account the differences existing in the extent of their specialization and the proportion of various branches of production. The authors analyzed the financial status of agricultural holdings located in the Altai Krai. They were arranged into 30 production categories. The findings demonstrated that horticultural enterprises specializing in sugar beet, sunflower, and grain farming were the most resilient to market fluctuations. However, such specialization led to overproduction and high price volatility. Moreover, monoculture farming showed a violation of the crop rotation system and deterioration of the soil condition, which hinders economic growth. The authors rely on the economic statistical method. Enterprises were categorized based on the statistical analysis conducted by the authors, considering the degree of specialization and the combination of industries, which allowed to identify the main tendencies in the discussed field.