Analysis of costs and their effectiveness in the EU agrarian sector

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F20%3A43901685" target="_blank" >RIV/60076658:12510/20:43901685 - isvavai.cz</a>

Výsledek na webu

<a href="http://www.custoseagronegocioonline.com.br/numero1v16/OK%207%20EU.pdf" target="_blank" >http://www.custoseagronegocioonline.com.br/numero1v16/OK%207%20EU.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Analysis of costs and their effectiveness in the EU agrarian sector

Popis výsledku v původním jazyce

This paper deals with the assessment of costs in the EU in the agricultural sector. Cost monitoring and analysis are one of the basic prerequisites for good financial management of every company. An international comparison for the EU was made in 2004-2017 and it was based on the Farm Accountancy Data Network (FADN). The absolute amount of costs reached 67 thousand EUR in 2017 while the total average cost per hectare in the EU was EUR 1,748 at a cost growth rate of 1.8 % per year. In terms of cost structure, specific costs amount to about 42 %; overheads amount to 26 %; depreciation amounts to 15 %; wages amount to 10 %; rent amounts to 5 % and interest amounts to 2 %. A cluster analysis has also made it possible to classify countries that are characterized by common features. In terms of the total cost ratio, where costs are measured in relation to production, only 17 out of the 28 EU countries (EU28) achieve a value that is lower than 1 (i.e. firms are profitable). In this case, it is gross profitability (excluding the balance of operating subsidies and taxes). In assessing the total cost ratio, a relation is necessary in terms of specifics of the countries concerned in particular in terms of their climatic conditions and production structure. In the next phase of this paper, it was assessed whether increasing production volume is economically effective. In all the states without exception, production volume increased in the period under review. Increasing cost-effectiveness was achieved in 15 EU countries. An average farm in the EU achieved increasing cost-effectiveness with profit gains. During the period under review, there was a relative cost saving of EUR 48 due to a decrease in the total cost ratio and an increase in profit by EUR 1,919 due to an increase in production.

Název v anglickém jazyce

Analysis of costs and their effectiveness in the EU agrarian sector

Popis výsledku anglicky

This paper deals with the assessment of costs in the EU in the agricultural sector. Cost monitoring and analysis are one of the basic prerequisites for good financial management of every company. An international comparison for the EU was made in 2004-2017 and it was based on the Farm Accountancy Data Network (FADN). The absolute amount of costs reached 67 thousand EUR in 2017 while the total average cost per hectare in the EU was EUR 1,748 at a cost growth rate of 1.8 % per year. In terms of cost structure, specific costs amount to about 42 %; overheads amount to 26 %; depreciation amounts to 15 %; wages amount to 10 %; rent amounts to 5 % and interest amounts to 2 %. A cluster analysis has also made it possible to classify countries that are characterized by common features. In terms of the total cost ratio, where costs are measured in relation to production, only 17 out of the 28 EU countries (EU28) achieve a value that is lower than 1 (i.e. firms are profitable). In this case, it is gross profitability (excluding the balance of operating subsidies and taxes). In assessing the total cost ratio, a relation is necessary in terms of specifics of the countries concerned in particular in terms of their climatic conditions and production structure. In the next phase of this paper, it was assessed whether increasing production volume is economically effective. In all the states without exception, production volume increased in the period under review. Increasing cost-effectiveness was achieved in 15 EU countries. An average farm in the EU achieved increasing cost-effectiveness with profit gains. During the period under review, there was a relative cost saving of EUR 48 due to a decrease in the total cost ratio and an increase in profit by EUR 1,919 due to an increase in production.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Custos e Agronegocio

ISSN

1808-2882

e-ISSN

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Svazek periodika

16

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

BR - Brazilská federativní republika

Počet stran výsledku

23

Strana od-do

151-173

Kód UT WoS článku

000528214100008

EID výsledku v databázi Scopus

2-s2.0-85084838269