Open AccessPrice disparity in the net cost and profitability of vegetable products
Author(s) -
A.F. Razin,
R A Mescheryakova,
Т. Н. Сурихина,
М. В. Шатилов
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/650/1/012060
Subject(s) - profitability index , revenue , production (economics) , profit (economics) , business , incentive , payment , purchasing , net profit , work (physics) , market price , agricultural economics , economics , commerce , industrial organization , microeconomics , finance , marketing , mechanical engineering , engineering
The prevailing price relations in the industry and the trend of increasing costs for the production of vegetable products lead to an unjustified loss of profit by vegetable producers in market conditions. This occurs as a result of price disparity, which allows increasing the cost of purchasing industrial goods (machinery, fertilizers, protective equipment, etc.) and services (payment for work and services of third-party organizations) to withdraw part of the industry’s revenue. This leads to a decrease in production efficiency and a lack of funds for its extended reproduction. The spread of indicators of profitability of vegetable products by year and type of vegetables indicates that there are significant opportunities to improve the performance of vegetable growing. This will be possible when resolving the issue of price disparity by introducing a permanent system of purchases at announced guarantee prices beforehand. Lower market prices will increase the average selling price of vegetables and the profitability of production, which will be an incentive to increase production. It is necessary to minimize costs aimed at improving the use of productive potential – land, material and labor resources.