Management of grain production in modern conditions

Irina Avdonina,Tatyana Dozorova,Elena Tarasova,Julia Kholopova,D Fayzrakhmanov,R Shaydullin,F Nezhmetdinova,B Ziganshin

doi:10.1051/bioconf/20201700112

Irina Avdonina, Tatyana Dozorova + Show 6 more

Open Access

https://doi.org/10.1051/bioconf/20201700112

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Abstract

The paper outlines the role of grain-producing companies in the agrarian sector of Ulyanovsk Oblast. It determines basic competitiveness factors of grain-producing companies in the region. An agricultural enterprise devoted to crop production of the region was assessed to provide an overview of its internal and external environment in modern conditions. The SWOT and PEST analysis tools were used therewith. The overview evaluated the efficiency of grain production at the enterprise, determined a break-even point and margin of financial stability. This allowed the enterprise to be classified as financially unstable with a moderate bankruptcy risk. The paper also discusses the role of innovations (through the introduction of new promising and region-bound grain varieties and the use of highly-efficient liquid fertilizers) and their contribution to the development of grain production and increase in financial stability of the enterprise.

Highlights

Ulyanovsk Oblast is one of the important agrarian regions in Russia
The overview evaluated the efficiency of grain production at the enterprise, determined a breakeven point and margin of financial stability
One of the important factors contributing to the sustainability of grain production is the implementation of innovative projects, in particular, the introduction of new promising and released varieties of highly productive cereals

Summary

Introduction

Ulyanovsk Oblast is one of the important agrarian regions in Russia. The competitive capacity of grain-producing companies in Ulyanovsk Oblast is largely determined by the following: 1) fluctuations on the national grain market; 2) dynamics of regional demand for grains, which is constrained by slow animal husbandry and shrinking household demand due to higher incomes and changed food preferences; 3) price fluctuations in the energy market as expenses for fuels and lubricants account for a significant share in the cost of grain; 4) integration and concentration of capital as the profitability of vertically integrated grain producing companies is 15–20 % higher than the industry average; 5) the state of regional market infrastructure (facilities for refinement, storage, transportation of grain, marketing, lending, management and marketing consulting); 6) development of risk leveling system for business entities to provide fully insurance and risk hedging; 7) participation of local, regional and federal authorities regulating production volumes, directions of grain flows, prices, export and import of grain in the regional market

Materials and methods

Results and discussion

Conclusion