Economic Situation of Agricultural Production Cooperatives
Nina Koteva, Mimoza Mladenova
Abstract: Research in the field of economic situation and competitive options of different types of farms is especially relevant in the scope of application of CAP of the EU. In this respect, the objective of the article is to evaluate the economic effectiveness and financial situation of agricultural production cooperatives on the basis of comparative analysis. The comparative analysis was carried out by cooperatives’ specialization, based on the average parameters of agricultural farms in the country. The study is based on data from the 1916 observed farms, of which 285 agricultural production cooperatives part of the Farm Accountancy Data Network (FADN).
The analysis of the economic effectiveness covers the following indicators – labour productivity, income per utilized of land and livestock, land and livestock productivity and profitability of farm, and the financial analysis was carried out on the basis of the following indicators – profitability of own capital, liquidity and financial autonomy. The following conclusions were made on the basis of the analysis: ● The subsidies received per area have a positive impact on the final economic results in all cooperatives, due to their good provisions of land resources. ● Competitive benefits of cooperatives are implemented in the achievement of higher productivity and income than the average for the country. ● Cooperatives have lower productivity and income in 1-st production factor, which determines the lower profitability than average for the observed farms in the country. As a result, the size of farms is not a healing factor (i.e. it’s not the only factor for effective production). It is highly important to consider other production factors, as well, it’s necessary to optimize costs, in order to create conditions for effective and profitable production. ● Financial situation of cooperatives is not good, and those with worst situation are the ones with permanent crops, pigs and poultry.
The analysis of the economic effectiveness covers the following indicators – labour productivity, income per utilized of land and livestock, land and livestock productivity and profitability of farm, and the financial analysis was carried out on the basis of the following indicators – profitability of own capital, liquidity and financial autonomy. The following conclusions were made on the basis of the analysis: ● The subsidies received per area have a positive impact on the final economic results in all cooperatives, due to their good provisions of land resources. ● Competitive benefits of cooperatives are implemented in the achievement of higher productivity and income than the average for the country. ● Cooperatives have lower productivity and income in 1-st production factor, which determines the lower profitability than average for the observed farms in the country. As a result, the size of farms is not a healing factor (i.e. it’s not the only factor for effective production). It is highly important to consider other production factors, as well, it’s necessary to optimize costs, in order to create conditions for effective and profitable production. ● Financial situation of cooperatives is not good, and those with worst situation are the ones with permanent crops, pigs and poultry.
Keywords: agricultural production cooperatives; CAP of EU; competitiveness; economic effectiveness; financial situation; income per utilized of land and livestock; labour productivity; profitability
Date published: 2018-01-29
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