Open AccessEFFICIENCY OF THE LARGE-SCALE AGRI-INDUSTRIAL ENTITIES IN UKRAINE
Author(s) -
Serhii Demianenko,
Mykhailo Sahaidak,
О О Сас,
Татьяна Юрьевна Авраменко,
Ye. Levkivskyi
Publication year - 2021
Publication title -
fìnansovo-kreditna dìâlʹnìstʹ: problemi teorìì̈ ta praktiki
Language(s) - English
Resource type - Journals
eISSN - 2310-8770
pISSN - 2306-4994
DOI - 10.18371/fcaptp.v1i36.227739
Subject(s) - business , agriculture , productivity , production (economics) , scale (ratio) , industrial organization , capital (architecture) , agricultural economics , commerce , economics , economic growth , archaeology , macroeconomics , history , ecology , physics , quantum mechanics , biology
. The analysis of activities of large-scale agri-industrial entities (LAEs) or so called «agriholdings» in Ukraine has shown their advantages in comparison with other types of farming. Their main advantage is a real agri-industrial integration including farming, processing, trading of foods, often with own trade mark, and export activity. Also, LAEs have possibilities to attract cheap financial resources from affiliated or own banks in Ukraine and abroad. As a result, they implement modern technologies in farming and processing, produce high quality foods and have good competitive positions on agricultural and food markets in Ukraine and abroad. In the LAE exist a transfer pricing that minimize the external intermediaries, taxes and increases income. It is why the most LAE pay a higher rent for the land, salary to the workers and have higher efficiency in comparison with other form of agricultural enterprises. Real agri-industrial integration in LAE is significantly different from such integration in other agricultural entities that have small processing plants without deep reworking of agricultural row materials. LAEs provides large-scale of agricultural and processing production and have possibilities to use its advantages in form of receiving of effect of scale. The large-scale production allow them to use high productive machinery and modern technologies and thanks to this significantly increase productivity of resources, decrease costs per unit of products and, as a result, increase the efficiency of production. The narrow segment of LAEs activity is qualified personal in framework of modern agricultural and processing technologies. Existing human capital in the rural area does not meet necessary requirements because the part of active population is sharply decreasing, there are no enough qualified specialists. It should be mentioned, that problem with hiring of top managers, due to large scale and complex tasks, is one of the most actual. It is why LAE forced them self to prepare such specialists. The efficiency of eight LAEs has been evaluated. To carry out the analysis of the LAEs efficiency depending on their scale, a simulation model was developed based on the calculated correlation-regression model according to the actual data. It was determined that the dependence between the efficiency and scale of the LAEs exist at a low level. Noted that the highest level of the efficiency of functioning of the «large» LAEs is a result of the more compact layout of the production facilities and better management.Keywords: large-scale agri-industrial entities, agriholdings, land bank, cultivated land, agri-industrial integration, technologies, efficiency.Formulas: 3; fig.: 5; tabl.: 3; bibl.: 24.