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Agricultural enterprizes' production and supply activity relatively to soybean production

Author(s) Kharenko A.A., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bobko V. V., , , Uman National University of Horticulture
Category Economics
year 2014 issue Issue #86
pages 48-57 index UDK 338.43:631.11:633.34
Abstract The article considers the dynamics of crop area, yield and gross harvests of soy in the Cherkasy region agricultural enterprizes and factors under which they are swinging. In particular, during the research period, Cherkasy region agricultural enterprizes has increased the soybeans production in more than three times. Meanwhile, the share of this culture in an area under this crop has increased to 10% in the farms. Production costs has increased in 2.2 times, but economic activity on soybean production was quite effective, as evidenced by the resulting level of profitability. The experience of developed countries and some agricultural enterprises in Ukraine shows that the efficiency of soybean production may be supported only by providing the sufficient technical, technological and organizational level. The basis for this is the transfer of the industry on an innovative development model, that is characterized by rational sown area and productivity enlargement at the expence of the optimum material resources providing, also organizational and technical re-equipment and the introduction into the production of new developments. It is analyzed the economic efficiency of the sobean's production in the region and the influence of the concentration on its performance. It is proved in particular that indices of the products' production are under an significant impact of the level of concentration, that means, that with the growth of soybean growing area, its share in the farm acreage and yields are growing, while the production cost decreases. During the research period there was a tendency to reduce the proportion of realization to such soybean market subjects as processoring enterprizes, and the corresponding increase of it to the commercial organizations. The main oil crops market is occupied by 9 largest companies («Kernel Group», «Cargill», «Optimus", "Mironovsky bakery", industrial group «ViOil», «Bunge», industrial group "Creative" and «Glencore»), which in 2012 accounted for 84.1% of the total production of vegetable oil in Ukraine. The main factors of the industry’s efficiency enlargement should be: the investment attraction, the expansion of processing enterprizes, the development of trade, the improvement of the informational and consultative guidance of producers.
Key words agricultural enterprizes, soybeans, production, marketing, concentration, efficiency, sales channels
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