Improvement of the effectiveness of organic farming in Ukraine
-
Author(s)Viktor BazylevychLink to ORCID Index: https://orcid.org/0000-0001-8030-8651
,
Galyna Kupalova
,
Nataliya Goncharenko
,
Tetiana Murovana
,
Yulia Grynchuk
-
DOIhttp://dx.doi.org/10.21511/ppm.15(3).2017.06
-
Article InfoVolume 15 2017, Issue #3, pp. 64-75
- Cited by
- 1394 Views
-
316 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
To improve the efficiency of organic farming, it is important to improve the management of agricultural enterprises (agrarian management). The research was based on the hypothesis that adequate provision with and the use of fixed assets, as well as the concentration of production, play a decisive role in improving the efficiency of organic farming. This makes it possible to minimize the cost of conducting environmentally safe agro-technical and biocenotic measures, as well as reducing specific production costs.
To identify the reasons that hinder the development of organic farming in Ukraine we conducted a survey of managers of 80 agrarian enterprises from different regions specializing in the growing and export of grain (including organic). 65% of the surveyed managers indicated that the reason for non-implementation of organic production was an expected increase in production costs and a decrease in profitability compared to the traditional production methods. The respondents mentioned the lack of logistics infrastructure as the second obstacle according to the intensity of its impact – 25.9% of responses.
It has been established that in Ukraine, in comparison with other countries, there is a negative tendency for companies to save money on expanded reproduction and improvement of production technologies. The analysis shows that in most countries organic farming is conducted mainly by small farms, while in Ukraine big farms are certified. In the conditions of the shortage of credit resources necessary for updating the material and technical base, monopolization of the market of organic seeds and systematic growth of prices on resources, big farms are the ones to increase the concentration of organic farming and the means to achieve the necessary efficiency of production.
- Keywords
-
JEL Classification (Paper profile tab)Q16, Q18
-
References31
-
Tables6
-
Figures2
-
- Figure 1. Restraints to the development of organic farming in Ukraine
- Figure 2. Dynamics of the area of agriculturall and occupied by organic farming calculated peroneenterprise in Ukraine, 2000–2015
-
- Table 1. The dynamics of the area of agricultural land, the number of producers and the volume of retail trade in organic products in Ukraine and in the countries of the world
- Table 2. Results of the survey of heads of agrarian enterprises in Ukraine regarding the main obstaclest of the realization of the principles of organic farming, 2017
- Table 3. The costs of growing 1 ton of winter wheat in organic and traditional agriculture in the US, Poland and Ukraine in 2015, US dollars
- Table 4. The area of agricultural land occupied by organic agriculture, calculated for one certificated enterprise in the world, 2015, ha
- Table 5. Dynamics of certified agriculturall and sand farms growing organic products in Ukraine, 2002–2015
- Table 6. Dependence of the profitability of growing of organic wheat on the efficiency of use of the main production factors, 2010–2015, US dollars
-
- Amelina, J. (2014). Risk management in the production of organic vegetable and berry products of closed soil, Economy. Management. Innovations, 1, 16-33.
- Antonets, S., Lukyanenko, G., Pisarenko, V., Pisarenko, P. (2017). System of organic farming in Ukraine. Agro technologies.
- Bertramsen, S. K., & Dobbs, T. L. (2002). An Update on Prices of Organic Crops in Comparison to Conventional Crops. Brookings: Economics Department, South Dakota State University. Economics Commentator no. 426.
- Boulay, A. (2010). Organic Farming: a Solution to Agriculture Crisis or a “New” Trend to Healthy Eating? Journal for Geography, 5(1), 125-134.
- Commodity Costs and Returns. United States Department of Agriculture.
- Dobrohodov, S., Anisimov, A. (2014). Efficiency of organic farming. Agricultural news, 1.
- Flaten, O., Lien, G., Koesling, M., Valle, P., Ebbesvik, M. (2005). Comparing Rsk Perceptions and Risk Management in Organic and Conventional Dairy Farming: Empirical Results from Norway. Livestock Production Science, 95, 11-25.
- Global organic farming statistics and news. FiBL.
- Gomiero, T., Pimentel, D., Paoletti, M. (2011). Environmental Impact of Different Agricultural Management Practices: Conventional vs. Organic Agriculture. Critical Reviews in Plant Sciences, 30.
- Hanson, J., Dismukes, R., Chambers, W., & Greene, C. (2007). Risk and Risk Management in Organic Agriculture: Views of Organic Farmers. Renewable Agriculture and Food System, 218-227.
- Karpenko, O. (2017). Organic Farming. Priorities 2017. Agro online.
- Kristiansen (2006), Organic Agriculture: A Global Perspective, in A. Taji, J. Reganold (ed.) CSIRO PUBLISHING, 482 p.
- Lansink, A. (2002). Efficiency and Productivity of Conventional and Organic Farming in Finland 1994–1997, Lansink A., Pietola K., Backman S. Social Science.
- Liebman, D. (2000). Crop and Weed Management in Low-external-input Farming Systems. Weed Research, 40, 24-47.
- Linker, H., Orr, D., & Barbercheck, M. (2009). Insect Management on Organic Farms.
- Lockeretz, W. (1981). Organic Farming in the Corn Belt, Lockeretz W., Sherer Georgia, Kohl D. American Association for the Advancement of Science, 211.
- Michelsen, J. (2002). Organic farming development in Europe – impacts of regulation and institutional diversity, in Darwin C. Hall, L. Joe Moffitt (ed.) Economics of Pesticides, Sustainable Food Production, and Organic Food Markets. Advances in the Economics of Environmental Resources, 4, Emerald Group Publishing Limited, 101-138.
- Mladenovic, J. (2016). Analtsis and Forecasting of Profit by Using Simulation Models for Growing Pea in Conventional and Organic Plant Production in Serbia, in N. Pavlovic, V. Ugrinovic, R. Pavlovic, J. Zdravkovic (ed.). Economics of Agricultures, 3, Emerald Group Publishing Limited, 985-995.
- Moudry, J. (2008). Major Problems of Organic Farming – Experience Transmission, in W. Hartl, E. Culdinova, J. Moudry, P., Konvalina, J. Sramek (ed.).
- Moudry, J. (2012). Major Problems of Organic Farming – Experience Transmission, in Hartl W., Culdunova E, Konvalina P, Sramek.
- Nemes, N. (2009). Comparative Analysis of Organic and Non-Organic Farming System: a Critical Assessment of farm Profitability Natural Resources Management and Environmental Department Food and Agriculture of the United Nations, 39 p.
- Offermann, F. H. Nieberg Profitability of organic farming in Europe. Institute of Farm Economics and Rural Studies. OTA. State of the Industry (2016).
- Philpott, T. (2015). Organic Farming is More Profitable Than Conventional.
- Piemental, D., Hepperly, P., Hansom, J., Douds, D., & Siedel, R. Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems. Bio Science, 55(7), 573-582.
- Requirements for certification of organic crop production. Organic Standard.
- Sanders, J. (2007). Economic Impact of Agricultural Liberalisation Policies on Organic Farming in Switzerland. PhD Thesis.Research Institute of Organic Agriculture. Forschungs institutfurbiologischen Landbau (FiBL), Frick, Switzerland.
- Sapogova, G., Kovalskiy, R., Popova, N. (2014). Management of the development of organic agriculture. Agrarian Scientific Journal, 9, 92-96.
- Shanker, D. (2015). Organic farming can Actually be more Profitable than Using Fertilizer and Pesticides.
- Slyva, J. (2016). How to switch to organic farming. Agribusiness today, 5 (324).
- Ulanchuk, V., Zharun, O., Sokolyuk, S., & Tkachuk, S. (2017). Investment needs assessment of Ukrainian agricultural enterprises. Investment Management and Financial Innovations, 14(1-1), 181-190.
- Watson, C., Atkinson, D., Gosling P., Jackson L., Rayns, F. Managing Soil Fertility in Organic Farming Systems. Soil Use and Management. 18, 239-247.
-
The moderating role of firm size and interest rate in capital structure of the firms: selected sample from sugar sector of Pakistan
Sarfraz Hussain ,
Abdul Quddus ,
Pham Phat Tien ,
Muhammad Rafiq ,
Drahomíra Pavelková
doi: http://dx.doi.org/10.21511/imfi.17(4).2020.29
Investment Management and Financial Innovations Volume 17, 2020 Issue #4 pp. 341-355 Views: 3448 Downloads: 371 TO CITE АНОТАЦІЯThe selection of financing is a top priority for businesses, particularly in short- and long-term investment decisions. Mixing debt and equity leads to decisions on the financial structure for businesses. This research analyzes the moderate position of company size and the interest rate in the capital structure over six years (2013–2018) for 29 listed Pakistani enterprises operating in the sugar market. This research employed static panel analysis and dynamic panel analysis on linear and nonlinear regression methods. The capital structure included debt to capital ratio, non-current liabilities, plus current liabilities to capital as a dependent variable. Independent variables were profitability, firm size, tangibility, Non-Debt Tax Shield, liquidity, and macroeconomic variables were exchange rates and interest rates. The investigation reported that profitability, firm size, and Non-Debt Tax Shield were significant and negative, while tangibility and interest rates significantly and positively affected debt to capital ratio. This means the sugar sector has greater financial leverage to manage the funding obligations for the better performance of firms. Therefore, the outcomes revealed that the moderators have an important influence on capital structure.
-
Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Anis Ali ,
Mohammad Rumzi Tausif
doi: http://dx.doi.org/10.21511/imfi.15(2).2018.21
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 3442 Downloads: 574 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
-
The effect of working capital management on profitability: a case of listed manufacturing firms in South Africa
Investment Management and Financial Innovations Volume 14, 2017 Issue #2 (cont. 2) pp. 336-346 Views: 3201 Downloads: 2651 TO CITE АНОТАЦІЯWorking capital management plays a pivotal role in enhancing the operational efficiency of firms and their ultimate profitability. Therefore, the purpose of this study was to examine the trends in working capital management and its impact on the financial performance of listed manufacturing firms on the Johannesburg Securities Exchange (JSE). A panel data methodology was used with different regression estimators to analyze this relationship based on an unbalanced panel of 69 manufacturing firms listed during the period 2007–2016.
The findings revealed that the average collection period and the average payment period are negative and statistically significant for profitability, implying that firms which efficiently manage their accounts receivable and those that pay their creditors on time perform better than those that do not. Additionally, a positive statistically significant relationship between the number of days in inventory and profitability was supported suggesting that firms which stock-up and maintain their inventory levels suffer less from stock-outs and avoid challenges of securing financing when needed. This increases their operational efficiency and ensures profitability in the long run. It could not be ascertained whether a shorter or longer cash conversion cycle enhances firm profitability, since findings to support this premise were weak. However, it was observed that manufacturing firms are on average, carrying lot of debt in their capital structures.
The present study contributes to existing literature by presenting one of the very recent findings on this topic while simultaneously testing the validity of recent local and international methodologies, in order to inform policy change.
