Performance Of Agricultural Enterprises Research Articles

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.

Аналіз чинників, які впливають на фінансові результати сільськогосподарських підприємств

The article is devoted to the analysis of factors of influence on the increase in financial performance of agricultural enterprises. The approaches of scientists to determine the essence of the concept of profit are analyzed, their own definition of the concept is formed. The system of proof that the company's task is to make a profit, which is the main stimulus of economic activity is provided. Profit ensures the economic stability of the company, guarantees its financial independence. In order to improve financial results, the company is interested in looking for untapped opportunities and reserves, more efficient ways of using resources, producing products for which there is demand, applying organizational and technical innovations that ensure the efficiency of production, etc. Therefore, the study of factors that affect the level of profitability of the company is a very topical topic that requires further research. It has been established that profit is the main financial result and an incentive for the economic activity of enterprises, the main source of its functioning and development. In today's environment, improving financial results is a complex problem. For their continued growth, the company is interested in updating methods of mobilizing hidden opportunities and reserves, preserving existing and attracting additional resources, upgrading production facilities, focusing on the production of goods of constant and high demand, introducing organizational and technical innovations, and constantly improving the efficiency of production. The need for continuous creative analysis of factors that affect the size of the profit is emphasized. Ways to ensure the growth of financial results of agricultural enterprises by reducing the cost of production, adjusting the prices of products, increasing the technological level of production, changing the structure and volume of products, increasing soil fertility, the level of productivity, the most rational use of labor, material and financial potential are explored. All this, combined with the effect, is able to provide the company with a high level of profitability of operation, increase its level of competitiveness, increase the demand for products, develop export potential, attract new investors, update the fixed capital, improve the fertility of the soil, eventually improve the environment.

Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic

Sustainability is a particularly crucial factor in policy formulation and analysis, including in the EU’s common agricultural policy. The common agricultural policy, through a subsidy policy, has caused a significant proportion of public funding to flow to agricultural subsidies, so it is appropriate to focus on the effect of these subsidies in the context of the sustainable development of EU agriculture. The impact of agricultural subsidies on business performance is of interest to policy makers. In agrarian practice, insufficient attention is paid to the legal form of agricultural performance, so our economic analysis focused on this area of research. The aim of the paper was to evaluate the effect of financial support in the form of subsidies resulting from the EU’s common agricultural policy and to verify its connection with the performance of agricultural enterprises in terms of the legal form in the context of sustainable development of the agricultural sector in Slovakia. No statistically significant linear correlation was found between farms’ performance results and the volume of subsidies per hectare of agricultural land for each legal form throughout the reporting period. In each analyzed year, business companies achieved a better overall assessment than agricultural cooperatives based on monitored parameters.

Стpуктуpa екoнoмiчнoгo пoтенцiaлу пiдпpиємствa в iмплементaцiї інноваційно-iнвестицiйнoї мoделi poзвитку

У статті розкрито сутність економічного потенціалу підприємства, надано його характеристики як системи, визначено ключові властивості з позиції ресурсної, функціональної та pесуpснo-цiльoвої концепцій. Ідентифіковано основні компоненти економічного потенціалу та розкрито їх роль у розвитку суб’єктів аграрного бізнесу в сучасних економічних умовах. Обгрунтовано доцільність використання функцioнaльних та екoнoмiкo-мaтемaтичних моделей для дoслiдження екoнoмiчнoгo пoтенцiaлу підприємств. Окреслено основні підходи до формування економічного потенціалу, які враховують opгaнiзaцiю систем викopистaння ресурсів та направлені на досягнення стратегічних цілей підприємства.Наведено основні характеристики та структурні особливості економічного потенціалу підприємства.

Disparities in the financial performance of agricultural entities according to the legal form: the case of Slovakia

ABSTRACTFinancial management in agricultural enterprises is affected by a range of factors that are not present in other sectors. One of the factors that affect the performance of enterprises is the legal or organizational form of the business. In Slovakia, the specific structure of farms is different from that of almost any other member state of the European Union. The aim of this paper is to evaluate the disparities in the financial performance of agricultural enterprises according to the legal form. We analysed and compared two groups of agricultural entities, agricultural cooperatives and business companies, for the period from 2005 to 2014. Based on an analysis of the differences using mathematical and statistical methods, we can conclude that the legal forms are distinguished in all monitored parameters and our hypothesis on the differences in economic performance of agricultural entities according to legal form was confirmed.

ВПЛИВ СИСТЕМИ ОПОДАТКУВАННЯ НА ФІНАНСОВИЙ РЕЗУЛЬТАТ ДІЯЛЬНОСТІ СІЛЬСЬКОГОСПОДАРСЬКИХ ПІДПРИЄМСТВ

ВПЛИВ СИСТЕМИ ОПОДАТКУВАННЯ НА ФІНАНСОВИЙ РЕЗУЛЬТАТ ДІЯЛЬНОСТІ СІЛЬСЬКОГОСПОДАРСЬКИХ ПІДПРИЄМСТВ

Classification of Costs and Their Impact on the Performance of Agricultural Enterprises

The article is focused on the analysis of costs involved in agricultural production, by case of agricultural enterprises located in Zhytomyr region (Ukraine). This objective is justified by the essential impact of costs on the enterprise performance, being a factor of output and pricing, financial condition, competitiveness of product groups and the whole enterprise, profit etc. 
 Specifics of the agricultural production and their implications for production costs in this sector are highlighted. The statistical analysis on agricultural enterprises of Zhytomyr region in 2015 and 2016 includes the official data on the overall agricultural performance; distribution of the operation results by agricultural products and agricultural services; distribution of operation results by plant growing and animal husbandry. The data are collected on the basis of annual statistical observation, by filling the form “Main economic indicators of the operation of agricultural enterprises”. 
 The analysis shows that more than 97% of the total income in 2015–2016 was generated by agricultural products, with only 3% of the income earned by rendering agricultural services. The year of 2016 marked the upward tendency in both production and total costs (6.7% and 8%, respectively), in parallel with 7 percent decrease in the net income, which, in effect, reduced the profitability rate by 0.4%. According to the statistical observation data, in 2015 and 2016 a lion share of income from agricultural business was earned by the surveyed agricultural enterprises of Zhytomyr region from plant-growing: 97.8% in 2015 and 99.4% in 2016. These data show a marginal role of animal husbandry in the agricultural business and its imbalanced operation in the region under study. The profitability rate in plant-growing increased in 2015– 2016 (40% and 41.3%, respectively), but it fell in animal husbandry from 5.2% to 1.1%, which was approaching to the zero net revenue.

Efficiency Analysis of Agricultural Cooperation in Russia

This paper is devoted to a new approach in the research of the efficiency of cooperative forms of agricultural production organization in Russia. Based on the methodology of the cooperation efficiency evaluation developed by the author, the comparative efficiency analysis of the performance of agricultural enterprises in Russia was carried out. A comparison is made between two forms of agricultural production: cooperative (represented by agricultural production cooperatives) and non-cooperative (represented by peasant (farm) households). The calculation and the resulting analysis of efficiency indicators allowed characterizing the position of each form and drawing conclusions regarding the choice of strategy for the development of small-scale production in agriculture. The results of the analysis demonstrate a relatively higher efficiency of non-cooperative forms in agriculture in Russia now. This partly explains the unsuccessful attempts of the state to develop agricultural cooperation during the period from 2005 to 2016.

Alternative za izlazak iz zone gubitka srednjih poljoprivrednih preduzeća u Republici Srbiji

The research objective is to identify causes and alternatives for exiting the loss zone for agricultural enterprises in Serbia. The subject of the research is financial performance of agricultural enterprises in 2010-2014. Economic and financial power of all mediumsized agricultural enterprises was determined by applying financial analysis. Based on the sample of least successful entities, the causes and alternatives for exiting the loss zone were identified. The results show that loss appears due to a reduction in operating income or in contribution margin, or due to an increase in financial expenses. The first suggested alternative refers to increasing the volume of production and sales at current global price parity, while the second assumes shifting global price parity in favour of sales prices at current real capacity utilization rate. The effects of proposed alternatives are evaluated by two measures of profitability - return on assets and return on equity.

Fadama Iii Project And Output Performance Of Agricultural Enterprises: An Empirical Evaluation

This paper evaluates the impact of the Fadama III Project on output performance of agricultural enterprises of the beneficiaries in Akwa Ibom State, Nigeria. The study employed the Survey method wherein Questionnaire was administered and interview held. Data collected were analysed using Tables, Percentages and Chi-Square (X2) statistical method. Findings revealed that Fadama III project impacted positively on the beneficiaries in Akwa Ibom State as it contributed to the increase in the output performance of beneficiaries. This further contributed immensely to increased access to finances and a remarkable increase in the income of the beneficiaries. The study recommends among others, that government, relevant agencies and stakeholders should sustain the Fadama III project to ensure food security in the society and also for the benefit of the rural poor who are mostly engaged in agricultural activities in order to increase their ouput and improve their incomes.

МЕТОДИЧНІ ПІДХОДИ ДО ФОРМУВАННЯ Й ОЦІНКИ ФІНАНСОВОГО МЕХАНІЗМУ АГРАРНИХ ПІДПРИЄМСТВ

The article describes the main forms of implementation of the financial mechanism of agricultural enterprises and methods of evaluation of the financial mechanism of enterprises. Options for best performance of agricultural enterprises through effective financial mechanism are highlighted. Methods of assessing the financial mechanism of agricultural enterprises needed to ensure the efficient use of financial resources in the enterprise is investigated. The article characterizes basic forms of realization of the financial mechanism of agricultural enterprises and its components self-financing, lending, public funding. Methodical approaches to formation of the financial mechanism inherent to agricultural enterprises and the key role of each methodical approach to the process of formation is considered.

The specifics of internationalisation process of Czech agricultural small and medium-sized enterprises

The situation and performance of agricultural enterprises is an often discussed topic in the Czech Republic. Internationalisation, in other words the process of increasing involvement in international activities, is considered as one way enterprises can achieve growth and maintain their competitiveness. In this connection, the paper aims to explore the answer to the research question: What are the specifics of internationalisation of Czech agricultural SMEs? The attention is especially paid to the motives, barriers and risk factors of internationalisation of these enterprises. The paper deals with both agricultural SMEs that already expanded in foreign markets as well as with those that do not operate in foreign markets with stress on the reasons why they do not take part in internationalisation. The paper is based on primary data that were collected via questionnaire survey and personal interviews with Czech agricultural enterprises during 2014.

Quantification of the Effect of Subsidies on the Production Performance of the Slovak Agriculture

Abstract Almost every country was heading a large portion of their income on agricultural subsidies. The agricultural subsidies are an essential aspect of agriculture and play an important role in international trade. A policy to support farming incomes in the European Union is called the Common Agricultural Policy. It is the complicated policy that includes many tools. An impact of policy of EU agricultural support on the economic performance of agricultural enterprises is therefore an interesting question, especially for policy makers. The agriculture in Slovakia has undergone significant changes, not only in terms of its position in the national economy, but also in terms of its importance at the regional level. There are still persistent differences between better and worse natural conditions as well as economic and social differences with a possible impact on the level of gross agricultural production in different regions of Slovakia. The aim of this paper is to quantify the dependence of agricultural production from the subsidies granted in the context of regions under the NUTS III classification. For the calculation, we used Pearson correlation coefficient that determines the direction and rate of statistical dependence force of two numeric variables. The analysis confirmed our assumption, the result of which is that between amount of gross agricultural production and the volume of subsidies granted is a strong correlation.

Efficiency of Production Factors and Financial Performance of Agricultural Enterprises

Efficiency of Production Factors and Financial Performance of Agricultural Enterprises

Performance of Agricultural Enterprises With Specialization Livestock Production After Year 2013 in the Context of CAP Development Scenarios

Joining the EU, among others meant that Czech Republic has gained opportunity to draw financial funds of the EU. In the context of profitability and overall economic performance of agricultural enterprises, the most serious threat is currently reduction or even elimination of agricultural subsidies as came out from discussions about future development of the EU Common Agricultural Policy (CAP) already in 2011. In 2011, the CAP was a point of interest especially because of approaching the end of programme period of 2007–2013. During the last decade, the CAP has been reformed substantially while these reforms and changes reflect requirements of society connected to environment, to food quality and safety, and to developing needs of the EU´s economy. Based on these discussions across all the EU countries, three principal scenarios have been formulated in order to solve the main political objectives of future CAP. In each scenario, different stress is put on single objectives of the CAP. These three scenarios are the adjustment scenario, the integration scenario and the re-focus scenario. Changes of CAP, which were covered by single scenarios have been focused on market interventions, direct payment and on policy of rural areas development.

Components of the financial performance of agricultural enterprises

Financial performance of agricultural enterprises is discussed mainly in relation to agricultural subsidies policy of the Government. Agriculture is undoubtedly a specific sector of the national economy because the market conditions do not ensure a settlement of production costs of agricultural commodities. Than the most of agricultural enterprises have negative financial performance measured with the Economic Value Added (EVA).The aim of this paper is to identify and determine the main factors influencing the value of the EVA indicator in agricultural enterprises while the analysis is focused especially on four variables directly entering the calculation of economic value added. But the fact that these four variables are functions of other variables has to be also taken into account. Constructed multi-dimensional regression model corresponds with the fundamental logic of the calculation of economic value added. It has been observed that the strongest influence on the value of EVA stands on the side of operating profit. But in agricultural enterprises, the important part of this profit consists just in the agricultural production subsidies. This way, these subsidies become the substantial part of the performance of agricultural enterprises.