THE SCALE OF AGRICULTURAL PRODUCTION ACTVITIES AND THEIR PROFITABILITY

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Aldona Skarżyńska


Keywords : scale of production, unit cost, marginal cost, profitability of production, profitability index
Abstract
The paper aims to analyse the diversity of the profitability of production (understood as the ratio of production value to the cost of production) and level of income from activity without subsidies for the ten production activities, namely: winter wheat, spring wheat, winter rye, spring barley, winter triticale, winter rape, sugar beets, dairy cows, pigs and beef for slaughter, depending on the scale of their production on a farm. Surveys were conducted between the years 2005 and 2009. It should be emphasized, that obtained results presented do not depict the situation of all such holdings in Poland, but only of those which provided farm accountancy data. Nonetheless this data allows for describing certain relations and in this context are giving the ground for formulating conclusions referring not only to the examined sample. Empirical data were collected and processed according to the rules of the AGROKOSZTY system. There were separated three bands of scale - small, medium and large. The size scale is directly linked with the efficiency of production, but the choice of the optimum size and intensity of production is a complex issue. A level of intensity of the production was recognized and examined. The paper argues that further action in the direction of increasing the volume through the growth of the expenditure will be rational action.

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How to Cite
Skarżyńska, A. (2011). THE SCALE OF AGRICULTURAL PRODUCTION ACTVITIES AND THEIR PROFITABILITY. Annals of Agricultural Economics and Rural Development, 98(1), 7–21. https://doi.org/10.22630/RNR.2011.98.1.1
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