Performance Of Agricultural Enterprises Research Articles

РОЛЬ БДЖІЛЬНИЦТВА В ДОСЯГНЕННІ СТАЛОГО РОЗВИТКУ АГРАРНИХ ПІДПРИЄМСТВ ТА СІЛЬСЬКИХ ТЕРИТОРІЙ

The improvement of the economic performance of agricultural enterprises should not be accompanied by the deterioration of the quality of the environment and cause social tension among the employees of the enterprise and the population living in the surrounding area. Therefore, the problem arose of finding such directions of development of agricultural enterprises that would simultaneously contribute to the improvement of financial and economic indicators of their activity, as well as ensure the sustainable development of both the enterprises themselves and the sustainable development of the surrounding rural areas. The article examines the positive value of the agricultural sector, in particular: production of products, creation of jobs, provision of foreign exchange revenues to the state budget, the possibility of providing services of unity with nature. However, it was noted that the agricultural industry has negative consequences of its activity, in particular: the deterioration of the quality of the soil, the increase in the level of plowing, the excessive use of chemical plant protection agents leads to an increase in the level of soil pollution, the death of representatives of the fauna, as well as an increase in the level of human illness. It is proposed to restore and develop the beekeeping industry in order to reorient the activities of the agrarian industry on the principles of sustainable development. Both existing agricultural enterprises and small peasant farms can be engaged in bee breeding. For agricultural enterprises, beekeeping is a direction of diversification that can bring additional income. For rural residents, beekeeping is a way to provide themselves with a workplace and to earn from the sale of beekeeping products and the provision of pollination services to agricultural enterprises, which will be able to sell their products as organic at higher prices. However, starting a beekeeping business requires significant investments, which are not at the disposal of small peasant farms. Therefore, they are suggested to join cooperatives. This will make it possible to carry out laboratory analysis, form large batches of honey and sell it at a higher price. The cooperative can also pack and process honey with possible independent export. In general, the development of the beekeeping industry will contribute to increasing the level of employment in rural areas and improving the ecological situation, which corresponds to the principles of sustainable development.

Digitalization of the agricultural sector: the impact of ICT on the development of enterprises in Ukraine

Purpose. The purpose of the research paper is determining the effect of information and communication technologies (ICTs) on the agricultural enterprises performance in Ukraine by studying the dependence of the performance of agricultural enterprises on the activity of their digital solutions implementation.
 Methodology / approach. The effect of ICTs on the performance of agricultural enterprises is studied using the methods of average and relative values, dynamic analysis – in determining the trends in the development of enterprises of the ICT segment and the activity of implementation of digital solutions by agricultural enterprises in their practice; correlation analysis – in studying the dependence of the performance of agricultural enterprises on the activity of digital solutions implementation.
 Results. The dependence of the performance of agricultural enterprises on the activity of their implementation of digital solutions is determined. A direct link between the volume of activities of enterprises operating in the ICT segment and the investments of agricultural enterprises in software is established. It has been determined that the activity of agricultural enterprises in terms of investments in software has a positive effect on their activities results, causing an increase in the volume of sold products, added value and labour productivity. A direct but weak effect of software investments on the cost efficiency of current and environmental activities has been diagnosed. A feedback relationship has been established between the investments made by agricultural enterprises in the acquisition of software and the profitability of their operating activities, which is increasing with taking into account the time lag. 
 Originality / scientific novelty. The article provides empirical evidence of the dependence of agricultural enterprises activity indices on ICT segment enterprises development. The dependence of the results of agricultural enterprises activity on the activity of their digital solutions implementation was investigated with and without taking into account the time lag. The scientific and methodological foundations for assessing the impact of ICT on the performance of enterprises have been improved, in particular by allocating indicators for this assessment by stages of research.
 Practical value / significance. The results of the study can be used in the decision-making process regarding the digital transformation of agricultural enterprises through the implementation of ICT.

Innovativeness and Entrepreneurial Success in Agricultural Sector: An Overview of the Literature in Developing Countries

Business success is often attributed to the profile of the entrepreneur, the characteristics of the business and its environment. In most of developing countries, interventions to promote entrepreneurship are typically limited to the provision of finance and coaching to build business capital and management skills. These interventions have shown mixed results as only few young enterprises last more than five years, suggesting the need to explore other drivers of entrepreneurial success. This review adds a contribution on the role of innovation in the performance of agricultural enterprises through a synthesis of the existing literature on the importance of innovation in entrepreneurial success. Our results highlight that young agricultural entrepreneurs face several challenges, including the perception from their pairs/community, limited access to production resources, climate change, poor access to technologies and market, lack of management skills, and lack of appropriate policy support. Their innovativeness depends on their ability to mobilize livelihoods assets such as financial capital, social, human and symbolic capitals. Ultimately, innovativeness allows young entrepreneur to tap into livelihoods assets-related opportunities to ensure the competitiveness and further the success of their business. We also elaborated a framework to analyze entrepreneurial performance in the agricultural sector.

Network attention and carbon dioxide emission performance of agricultural enterprises: Empirical evidence from China’s baidu search index

Based on the network attention data of China’s agricultural listed companies from 2012 to 2020, this paper uses the IV model to measure and investigate the impact of network attention on the carbon dioxide emission performance of China’s agricultural listed companies and its mechanism. The findings are as follows: 1) The carbon dioxide emission intensity of listed agricultural companies in China is generally decreasing year by year and the carbon dioxide emission performance is improving; 2) The increasing network attention has significantly reduced the carbon dioxide emission intensity of agricultural listed companies and brought about better carbon dioxide emission performance; 3) The relationship between network attention and carbon dioxide emission performance of agricultural listed companies has network, regional and property heterogeneity; 4) The investment in environmental protection has strengthened the inhibition effect of network attention on the unit carbon dioxide emissions of agricultural listed companies. The research conclusion enriches the literature on “network concern - environmental governance”, and also provides ideas for developing countries to exert the environmental governance effect of network concern in the process of carbon neutrality.

Determinants of agricultural companies’ financial performance: The experience of Poland, Slovakia and Ukraine

The purpose of the study is to conduct a comparative analysis of the determinants affecting the financial performance of agricultural enterprises in Poland, Slovakia and Ukraine. As the main research method, panel data regression analysis was used to analyze data from 34 Polish, 123 Slovak, and 305 Ukrainian agricultural companies for the period 2017–2020. To analyze the links between financial performance measures and its determinants, nine models were developed based on three selected dependent variables (Return on Assets, Return on Equity, Return on Sales) in each of the countries studied. Seven independent variables were used, such as Leverage, Long-Term Debt to Assets, Short-Term Debt to Assets, Debt to Equity, Current Ratio, Asset Tangibility, Capital Intensity, and two control variables such as Size and Dummy variable for legal form. The most significant impact on the financial performance of agricultural enterprises has: for Polish enterprises – Return on Assets – Leverage and Asset Tangibility, Return on Equity – Debt to Equity and Dummy variable for legal form, Return on Sales – Current Ratio, Capital Intensity, and Size; for Slovak enterprises – Return on Assets – Current Ratio, Return on Equity – Debt to Equity, Return on Sales – Current Ratio, and Capital Intensity; for Ukrainian enterprises – Return on Assets – Leverage and Size, Return on Equity – Debt to Equity, and Current Ratio, Return on Sales – Capital Intensity.

Cluster analysis as a tool for improving the performance of agricultural enterprises in the agro-industrial sector

Cluster analysis as a tool for improving the performance of agricultural enterprises in the agro-industrial sector

ФІНАНСОВА СТІЙКІСТЬ АГРАРНОГО СЕКТОРУ ЕКОНОМІКИ УКРАЇНИ В УМОВАХ ВОЕННОГО СТАНУ

The article focuses on the military aggression's impacts on the financial sustainability of the agricultural sector in Ukraine as well as the priority measures required to ensure the food and economic security of Ukraine under martial law. Ukraine has to solve problems of unprecedented complexity: ensuring food security on the domestic market and selling agricultural products on the world market under the difficult conditions of war. The performance of agricultural enterprises is analyzed as the stability of their functioning is strategically important not only for the domestic economy, but also for the overall world food market. At the same time, the authors emphasize factors and processes which contribute to the higher financial sustainability of agricultural production, as well as those, which inhibit the development of agrarian business in Ukraine. The authors define the financial sustainability of the Ukrainian agricultural sector under martial law as the ability to provide sufficient financial resources for the process of expanded reproduction of agricultural production, considering the range of financial measures and tools (preferential taxation, loans, donor aid) as well as and non-financial ones (military, diplomatic, logistic). The agricultural sector of Ukraine remains one of the key sectors of both domestic and global economies, as it carries out a highly important mission of providing food to the citizens of our state, as well as to about 100 million citizens outside the country, and its role will be growing further. Based on this issue, the authors consider Ukraine's victory as a vital task not only for the citizens of Ukraine but also for all developed and developing countries. Key features of the state policy aimed at supporting exporters of agricultural products to ensure the financial sustainability of the agricultural sector of Ukraine are defined.

Управління фінансовими потоками господарської діяльності: інструменти та стабілізатори фінансової безпеки розвитку суб’єктів сільського господарства

Abstract. Introduction. Management of financial flows is of great importance for the effective functioning of agricultural entities. An important condition for the effective functioning of agricultural entities is the provision of even and balanced movement of financial flows, which is not always possible both from a technological and financial point of view. Purpose. The strategy of strengthening the financial security of agricultural development is considered, which involves a correlational combination of the strategy of optimizing financial flows, the strategy of managing the capital structure, the strategy of minimizing financial risks, and the anti-crisis financial strategy. It was determined that the target orientation of financial flow management is the economic regulation of the duration of the enterprise's operating cycle. Results. The main features of the financial security of the development of agricultural entities have been formed. The basic fundamental indicators on which the financial security of enterprises should be based are considered. It was determined that strengthening the financial security of agricultural development is facilitated by the effective use of financial flows of economic activity and the creation of a rational and optimal financing structure. It is necessary to take into account the sources of the formation of financial flows and the minimization of financial risks to ensure the financial security of the development of agriculture. It was determined that the cyclic nature of financial flows in terms of production directions of agricultural enterprises is manifested through indicators of the speed of turnover of receivables and payables and characterizes the efficiency of the enterprises. Conclusions The rational management of financial flows of agricultural enterprises is a necessary condition for increasing the efficiency of the mechanism of the use of financial resources and sources of their formation. The economic performance of agricultural enterprises should be determined by indicators of financial stability, solvency, profitability with a reduction in the risk of unforeseen financial losses.

Performance Evaluation Model of Agricultural Enterprise Technology Innovation Based on GA-BP Neural Network.

With the continuous development of my country's economy and society, how to effectively evaluate the technical innovation performance of agricultural enterprises has become the focus of research. This paper firstly processes and analyzes the technical innovation performance data of agricultural enterprises, and then processes and converts the technical innovation performance data of agricultural enterprises; then, through the analysis of the technical innovation performance data of agricultural enterprises, the key characteristics of the technical innovation performance of agricultural enterprises are excavated. Finally, a performance evaluation model based on agricultural enterprise technology innovation is proposed, and the validity of the model is verified with examples.

Research on the Impact of Merges and Acquisition Type on the Performance of Listed Agricultural Enterprises—An Analysis of Mediator Effect Based on R&D Input

With the development of global economic integration, merges and acquisition has (M&A) increasingly become the main way to enhance the competitiveness of enterprises. Technological innovation plays an important role as an influential factor in the success of merges and acquisition. This research takes 120 merges and acquisition Enterprises of Chinese listed agricultural enterprises from 2009 to 2019 as the research sample, constructs the comprehensive performance evaluation model based on the factor analysis. And on the basis of the baseline regression model, R&D Input is introduced as an intermediate variable, PSM is used to control the endogenous problem. Through a series of robustness checks, we conclude that, different merges and acquisition types have various effects on the performance of listed agricultural enterprises. Horizontal M&A and vertical M&A have significantly positive effects on enterprise performance, while mixed M&A is negative. R&D Input plays a mediating role between merges and acquisition type and its impact on enterprise performance. Vertical M&A is clearer than horizontal M&A. At the same time, less R&D Input after mixed M&A gives rise to worse performance of agricultural enterprises.

ВПЛИВ ВІЙНИ НА РЕЗУЛЬТАТИ ДІЯЛЬНОСТІ АГРАРНИХ ПІДПРИЄМСТВ УКРАЇНИ

The article describes the effect of war on the performance of agricultural enterprises in Ukraine and the consequences that will follow. The study states that during the war the most important factor that influences the decisions of agriculture enterprises is the military situation. According to the study, the most affected by the war will be such crops as wheat, barley, and sunflower, sown area of which are situated in eastern Ukraine and in the zones with ongoing war or are/were temporarily occupied. Less affected will be such crops as soybeans and corn with the majority of their sown areas situated outside the areas of the ongoing fighting. The effect of war on the agricultural enterprises which are situated in the areas with ongoing fighting or close to it may include physical destruction of machinery, building facilities, and crops which may negatively affect enterprises` ability to perform all the required work and plant next year. Some enterprises may choose not to plant such crops as winter wheat and winter barley this year and make their decisions about which crops to sow next year based on the situation. Sea blockade combined with the increased risk of physical destruction of the yield caused a surplus of the proposition of agriculture products in Ukraine which in turn lowered the prices. Because of this the revenue generated per hectare of the sown area will be much lower. Another effect the war is having on agricultural enterprises is increasing the cost of resources. The prices have greatly increased for such resources as inorganic fertilizers, petrol, etc. This may force enterprises to concentrate on crops that require lower expenses or find ways to lower them. The increased cost or resources combined with lower revenue will result in much lower net profits. The other issue that may have a negative effect on the agriculture enterprises in Ukraine may be a shortage of storage facilities which is caused by the destruction of some of them and the disruptions of export which prevented enterprises from exporting their products. It may force enterprises to sell for much lower prices or look for alternative ways of storage which in turn may increase their costs.

A novel method to determine the growth potential of agricultural enterprises in various business plans

This article presents different models useful in identifying the potential for enhancing the performance of agricultural enterprises of various business forms and scales. A clustering method developed by the authors was used to calculate an integral indicator of the development potential of agricultural enterprises within larger organizational and legal units. The model allows enterprises of all structures/scales to emphasize different performance indicators of interest. Moreover, distinctive characteristics of the performance growth potential of various business forms were revealed.

The role of innovative work behaviour and knowledge-based dynamic capabilities in increasing the innovative performance of agricultural enterprises

The purpose of this study is to examine the interrelationships among the variables of the entrepreneurial orientation (EO) of agrarian management, innovative work behaviour (IWB) of employees, knowledge-based dynamic capabilities (KBDC) and innovative performance (IP) of agrarian enterprises. We analysed not only direct effects but also the possibilities of mediating these effects to increase the overall effect on IP. A questionnaire survey was used to collect data from managers of agribusinesses in Slovakia (175 respondents). We used the partial least squares structural equation modelling method and the appropriate software to test the theoretical research model and the proposed hypotheses to examine the relationships among the individual selected constructs in more depth. The findings point to the existence of a statistically significant relationship between EO and IP, which, however, is weaker than the overall effect of the involvement of mediation variables. Each mediation variable (IWB and KBDC) increases the overall effect separately, but their joint mediation action is of the greatest importance, when full mediation takes place. The strength of the relationship between the two main variables is also influenced by the size of the agrarian enterprise such that being larger has a negative moderation effect. Significant differences were also identified in the legal forms of business in favour of companies over agricultural co-operatives (ACs).

Research on the impact of China’s fiscal and tax policies on the performance of agricultural enterprises in straw power generation industry chain

ABSTRACT This paper empirically analyses the promotional effect of preferential fiscal and tax policies on the performance of agricultural enterprises in the straw power generation industry chain through the small- and medium-sized enterprises in the straw gasification cogeneration project industry chain. It has a positive effect. This paper discusses the implementation of agricultural enterprises straw power generation project industry chain, the situation of pollution reduction and efficiency improvement of agricultural enterprises, and the positive effects of fiscal and tax preferential policies on promoting agricultural enterprises straw power generation project industry chain. It points out that it is highly important to promote agricultural enterprises straw power generation project industry chain in China and implement fiscal and tax preferential policies for corresponding projects.

Information Model For Improving Accounting And Analytical Support For Economic Potential Management

The relevance of the study is conditioned by the need to strengthen the management function of an agricultural enterprise that focuses on the principles of sustainable development and aims to modernise accounting and analytical support for managing economic potential. The purpose of the study is to form a strategy for the desired improvement of accounting and analytical support of the enterprise with an emphasis on: reporting on sustainable development; expansion of the analytical complex of indicators of economic potential, capacity and performance of an agricultural enterprise; improvement of accounting and analytical support of enterprises using this information model through updating the documentation of control and audit. The theoretical and methodological basis was formed by scientific methods based on the dialectic of knowledge and objective laws of the development of the economy, nature, and society. Economic and mathematical modelling, systematisation and synthesis helped to develop a strategy to improve accounting and analytical support for managing the economic potential of agricultural enterprises, taking into account the principles of sustainable development. This type of modelling can help to effectively modernise accounting and analytical support for managing the economic potential for agricultural enterprises. The developed information model of selective adaptation helps managers of various levels to monitor the implementation of business processes for improving accounting and analytical support for economic potential management, assess the degree of achievement of priority goals and compliance with the principles of sustainable development. One of the steps of long-term modernisation of accounting and analytical support for agricultural enterprises through the introduction of sustainable development reporting is proposed, which should include indicators and documents on managing the economic potential, economic capacity, and performance of agricultural enterprises. The advantage of this information model is the ability to calculate the complexity index of transformation of accounting and analytical support for economic potential management using the principles of sustainable development, which shows the level of complexity of future modernisation of these aspects

ECONOMICS AND RISK MANAGEMENT OF BIOFUEL PRODUCTION IN AGRICULTURE

Abstract. The development of the biofuel market in the world has a positive dynamic for growth. The substantiation of the directions of further improvement of the methodology of production management of alternative fuels is taking into account the policy of climate change and the possibility of reducing dependence on external suppliers of traditional fuels. Ukraine has favorable natural and climatic conditions for the development of production of non-traditional fuels. The most common crops that can be grown in Ukraine for biofuels are rapeseed and corn. Based on the material and technical base and production conditions, rapeseed is the best crop for cultivation. Therefore, the object that we have chosen for this study is the production of biodiesel, which does not require significant capital expenditures by agricultural enterprises. For the purposes of the study, the risks were grouped according to various classification criteria (operational and production; marketing; financial; legal and infrastructural; weather; environmental) and the weights of their impact on the performance of agricultural enterprises. The structural scheme of the algorithm of the automated estimation of influence of risk factors for development of bases of the analysis and management of risks of production of biodiesel is constructed. The author's method of calculating the impact of the risk complex takes into account the limit values of the intervals of fuzzy quantities. To preserve soil fertility and reduce the corresponding risks, the proportion of rapeseed in growing areas should be at the limit of 17—18% (when also growing sunflower the upper limit is 12%), then all three analyzed farms can not only use their own land for rapeseed crops, but also, if necessary, rent the necessary plot, or, according to the results of the relevant analysis, its part. In some cases, farms even purchase some of the seeds needed to load the equipment. The results of calculations of the cost of production of biofuels showed that the increase in the cost for small and medium producers is not significant compared to large producers. Keywords: biofuels, biodiesel, risk management, agricultural enterprises, risk management, efficiency. JEL Classification O13, Q42 Formulas: 6; fig.: 1; tabl.: 5; bibl.: 19.

Pôsobenie poľnohospodárskych podnikov v SR v krátkych dodávateľských reťazcoch - zhodnotenie ekonomických aspektov

Increasing the competitiveness of primary producers and supporting the local development in rural areas were one of the main objectives of the Slovak government within the 2014-2020 program period. Supporting local producers and applying short food supply chains were the main tools for fulfilling these objectives. Short food supply chains are a relatively new concept in Slovakia, associated primarily with the sale of the quality agricultural products directly from the farm. The paper focuses on the evaluation of the performance of agricultural enterprises in Slovakia in the short food supply chains by comparing the economic indicators of enterprises in and outside the short food supply chains over a period of 10 years. This time period captures a relatively stable development of the economic results of enterprises, with a slight increase in 2017, when the enterprises concluded contracts with the Agricultural Paying Agency. This year is considered to be the start of the enterprises in the short food supply chains, providing the results in terms of the observed economic indicators significantly different from the enterprises outside the short food supply chains due to their size and economic power. In connection with the above facts, we have identified the following research questions: 1) Is the size of the agricultural enterprise a factor that influences the success of companies in short food supply chains? 2) Are micro and small agricultural enterprises operating in short food supply chains able to improve their economic results despite their disadvantages compared to large enterprises?

УПРАВЛІННЯ МЕТОДИЧНИМИ ПІДХОДАМИ ЩОДО АНАЛІЗУ ПОКАЗНИКІВ ІНВЕСТИЦІЙНОЇ ПРИВАБЛИВОСТІ СІЛЬСЬКОГОСПОДАРСЬКИХ ПІДПРИЄМСТВ

The purpose of this study is to assess the current methodological support for the analysis of indicators of investment attractiveness of enterprises and agribusiness projects, identify shortcomings and justify proposals in order to make effective management decisions on the feasibility of investing. Methods of analysis of indicators of investment attractiveness of enterprises, approved at the legislative level, are investigated, their shortcomings are defined. Indicators of investment attractiveness are indicators on the basis of which investors determine the feasibility of investing. In most cases, in order to make effective management decisions, it is customary to conduct a comprehensive analysis. One of the methods of independent inspection of an enterprise or object for investment, based on an integrated approach, is the Due Diligence method. To date, there is no single comprehensive method of Due Diligence. Such verification is carried out by enterprises with the use of foreign practices, with the adaptation of the methodology to the peculiarities of the national business and economic environment, as well as with the use of national methods of analysis and evaluation of enterprises. Having analyzed the methodological support for the analysis of enterprises in Ukraine, we can state that the main criteria for assessing the financial stability of the enterprise are: financial stability, profitability, solvency, creditworthiness, liquidity and business activity. According to the functional purpose, the assessment of agribusiness enterprises has the same methodology as the assessment of enterprises of other sectors of the economy. However, when analyzing the performance of agricultural enterprises, it is necessary to take into account specific objects – biological assets of plant and animal origin, seasonality, climatic conditions, land relations, heterogeneity of equipment and means of production over time. As a result of the study, the method of analysis of investment attractiveness of agricultural enterprises taking into account sectoral characteristics was further developed, including the following indicators: environmental and economic effect, budget effect, social efficiency of the project, efficiency of modernization, efficiency of innovation. The use of these indicators will increase the efficiency of managing indicators of investment attractiveness of investments.

Convergence of agro-business structures in the new model of globalization economy

Purpose. The aim of the article is analysis and substantiation of possibilities of adaptation of agro-business structures to effective integration, intertwining of economic activity, convergence and unification (convergence) of their potentials that will promote overcoming of social and economic negative consequences of functioning of vertically integrated structures of holding type and strengthening of advantages of various organizational forms of enterprises small and medium agrarian business. Methodology of research. The methodological and theoretical basis of the study is theories and views presented in the works of foreign and domestic scientists. The results of the study are obtained using both general and special (economic) methods of scientific knowledge. The general historical context of convergence is considered on the basis of the historical and dialectical method; the method of analysis and synthesis is used in identifying global problems against the background of the economic crisis. Argumentation of theoretical provisions that characterize the patterns of convergence and the relationship of organizational forms of management in the agricultural sector, formed on a systematic analysis, the laws of logic, the method of scientific abstraction. Statistical, tabular and graphical methods are used for comparative analysis of economic performance of agricultural enterprises. Findings. The advantages and disadvantages of the existing agro-business structures in the conditions of new requirements of globalization, anticipated consequences of the economic crisis and orientation on the goals of sustainable development, on the basis of which objective conditions for the convergence process are formed, are revealed. Originality. It is substantiated that under the condition of convergence of different categories of enterprises the minimization of social and economic differences between them is ensured and inequalities in entering the domestic and foreign markets are levelled. Contrary to the existing radical views on the exceptional damage from the activities of agricultural holdings, a methodological approach is proposed, according to which transformational changes based on convergence will anticipate and minimize risks, especially in small and medium agribusiness, which will occur during pandemics and economic crisis. This approach will promote the cohesion of forms of management in the agricultural business, which reflects the experience of best management practices of developed countries. Practical value. The proposed scientific ideas and views on convergence, as a process of convergence and integration of potentials and resources of existing forms of management, can be used at the enterprise level, which will ensure a synergistic effect of their scale and compliance with sustainable development goals in a favourable institutional environment. Key words: agrarian business, agro-holdings, globalization, innovations, convergence, sustainable development, forms of management of agrarian enterprises.

Management analysis of cost effectiveness of beef cattle breeding and its determinants

Subject. This article analyzes the meat production of the Republic of Tatarstan and the respective enterprises' competitiveness. The article discusses principles and measures to enhance the effectiveness of beef cattle breeding, and identifies its determinants. Objectives. The study aims to determine key directions for enhancing the effectiveness of the beef cattle breeding sector and its development. Methods. The study is based on comparison, systematization and generalization of data, and the methods of economic and statistical analysis. Results. To evaluate to what extent the meat productivity of cattle depends on its determinants and how they correlate, we performed a correlation and regression analysis by addressing the multiple correlation. We built a multiple-factor correlation and regression model of business activity of agricultural enterprises in the Predvolzhskaya Natural and Economic Zone for 2019. We figured out that 500 young growing cattle and livestock constitute the optimal size of cattle breeding enterprises in the Predvolzhskaya Natural and Economic Zone in the sampled population. Conclusions. The cost effectiveness of the overall agricultural production and certain types of products mostly depends on the scale of key sectors presented in agricultural enterprises and the extent of production concentration. In the market economy, the stable and effective performance of agricultural enterprises mainly depends on the relationship between the production and reprocessing of products. The findings can be used to outline methodological principles of the agricultural production economics, effectiveness, attain and increase the appropriate competitiveness of beef cattle breeding enterprises.