ECONOMIC ANALYSIS OF WHEAT PRODUCTION AND APPLIED MARKETING MANAGEMENT

Increased demand for food production, influenced by the constant growth of population, resulted in the agricultural production systems that are more energy and economy intensive. The aim of this study was to evaluate the energetic and economic efficiency of sugar beet and wheat production. Attention was given to the fertilizer usage and its share in energy consumption since it can amount to 50%. Data show that energy input in wheat production was 5.84 MJ·kg−1 and in sugar beet it was 0.93 MJ·kg−1. The highest share of energy input both in wheat and sugar beet was observed for fertilizers, 52.45% and 46.70%, respectively. Economic analysis has shown that wheat production is a low profitable production with a net return of only 20.69 USD·ha−1, in comparison with sugar beet production with a net return of 513.53 USD·ha−1. Costs related to the fertilizer use prevailed in total variable and total production costs. Economic analysis has also shown that the benefit-to-cost ratio was higher in sugar beet production (1.33) compared to wheat production (1.03). Furthermore, it was determined that these economic indicators were less sensitive in sugar beet production than in wheat production regarding the variation of fertilizer.

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Economic analysis of wheat production on family farms

Journal of Agricultural Sciences Belgrade ◽

10.2298/jas1001079t ◽

2010 ◽

Vol 55 (1) ◽

pp. 79-87 ◽

Cited By ~ 1

Author(s):

Sasa Todorovic ◽

Nikola Filipovic

Keyword(s):

Economic Analysis ◽

Economic Status ◽

Monitoring And Evaluation ◽

Selling Price ◽

Family Farms ◽

Agricultural Producers ◽

Wheat Production ◽

Production Factors ◽

The Republic

Serbian agricultural producers are currently facing a large number of challenges which have a significant influence on their business activities. Continuous monitoring and evaluation of existing family farms business activities is the only way to improve their profitability and enhance competitiveness in such conditions. Bearing this in mind, the objective of this research is to emphasize an importance of the economic analysis of wheat production on family farms and to contribute successfully to the formulation of the answers to questions if and under which conditions the wheat production is profitable. In order to have a complete insight into investigated problem subject, investigations were carried out on selected family farms. Collected data were processed using calculation procedure for the purpose of determination of main economical indicators of the success of wheat production. Based on realized financial results it can be concluded that with the selling price of 10,000.00 diners per ton, only family farms which have achieved yield of over 7.5 t/ha with adequate level of investments are profitable. Since realized average yield of wheat on family farms in the Republic of Serbia in 2009 was 3.58 t/ha and level of investment necessary for realization of this yield, it is clear that the majority of family farms had loss in wheat production. The results of this study suggest that the economic status of the wheat production depends on the yield and achieved sales price, as well as on the amount of applied production factors and price level for their purchasing.

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