Abstract
To improve the efficiency of organic farming, it is important to improve the management of agricultural enterprises (agrarian management). The research was based on the hypothesis that adequate provision with and the use of fixed assets, as well as the concentration of production, play a decisive role in improving the efficiency of organic farming. This makes it possible to minimize the cost of conducting environmentally safe agro-technical and biocenotic measures, as well as reducing specific production costs. To identify the reasons that hinder the development of organic farming in Ukraine we conducted a survey of managers of 80 agrarian enterprises from different regions specializing in the growing and export of grain (including organic). 65% of the surveyed managers indicated that the reason for non-implementation of organic production was an expected increase in production costs and a decrease in profitability compared to the traditional production methods. The respondents mentioned the lack of logistics infrastructure as the second obstacle according to the intensity of its impact – 25.9% of responses. It has been established that in Ukraine, in comparison with other countries, there is a negative tendency for companies to save money on expanded reproduction and improvement of production technologies. The analysis shows that in most countries organic farming is conducted mainly by small farms, while in Ukraine big farms are certified. In the conditions of the shortage of credit resources necessary for updating the material and technical base, monopolization of the market of organic seeds and systematic growth of prices on resources, big farms are the ones to increase the concentration of organic farming and the means to achieve the necessary efficiency of production.
Highlights
A promising area for strategic development of the agrarian sector is an introduction of effective methods of organic farming
A significant date, scientists have investigated a wide range of growth in the capacity of the global and national problems, from methodological approaches to markets for organic products as well as the profitidentifying risks of organic farming taking into ability ensured by preferential prices, contribute to account the natural, economic and social condi- the intensification of investments of agricultural tions of agro-production to the peculiarities of the producers from different countries intoenvironpractical use of traditional management methods mentalization and certification of agricultural (Hanson, 2007; (Ulanchuk, 2017)
Tional ones there is a significant growth of such items as “Costs of energy resources, fuel and Ukraine is significantly different from other counequipment”. This is caused by an increase in the tries according to the square of agricultural land number and duration of technological process- occupied by organic farming per 1 certified enteres in organic farming
Summary
A promising area for strategic development of the agrarian sector is an introduction of effective methods of organic farming. In spite of the favorable market conditions, the rate of development of the Ukrainian organic farming sector is much lower than potential opportunities This can be explained by imperfect operational management, which is based on traditional agricultural production and somewhat outdated tools and information provision. Of significant importance is the formation of an information base regarding organizational, technological, economic and managerial factors that have a significant impact on the efficiency of organic agriculture The use of such databases will reveal unused reserves to reduce the costs and improve financial results of production, to timely and fully realize the basic functions of management, in particular, planning (especially strategic), organization, analysis and control. That is why the goal of the study is to develop proposals for improving the efficiency of organic farming in Ukraine on the basis of the improved agrarian management
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