Maximizing profitability in crop producing farms through efficient planning and control management

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Maximizing profitability in crop producing farms through efficient planning and control management

Journal Title: Вчені записки Університету "КРОК" - Year 2018, Vol 0, Issue 0

Abstract

This article talks about the agricultural potential of Ukraine in the crop sector. Namely, that the Ukrainian agricultural business is currently represented by three main groups of producers: farms (up to 1000 hectares) of medium-sized agricultural companies (from 1,000 to 10,000 hectares) agricultural holdings. Comparing the profitability of large agricultural holdings and small enterprises, it should be noted that small businesses can be even more profitable than large holdings and this is confirmed by the recommendations of experienced agro-consultants on the ideal size of a profit unit, which is about 3,500 - 5,000 hectares. As a result, the emphasis on the development of small farms from a macroeconomic point of view is reasonable and tailored. Moreover, as the number of farms grows, competition will also grow, causing the need for well-trained specialists in the agricultural sector, and this will stimulate the development of relevant educational institutions, which, in turn, will also be an advantageous phenomenon for the Ukrainian economy. The author says that today the gross yield of crop production is strictly dependent on the organization and management of internal processes. Consequently, in such conditions it is difficult to overestimate the role of experienced high-quality managers; they must put all efforts into making the value chain profitable. Managers urgently need a new vision of agricultural production, the introduction of optimization of all available resources and control of key processes. It is very important to understand whether this or that management model is working correctly and whether or not the goals are achieved in the end. The author of the article focuses on in-depth study of the subject and an integrated approach to problems in the agricultural sector, and also gives recommendations and tips for improving the state of this industry. Also, attention is paid to the effective management of resources, reducing costs, improving the professional level of managers. For this study, in order to understand how the processes in the Ukrainian environment work, four Ukrainian grain producers were selected as target companies for a detailed analysis of management decisions, planning and monitoring the financial results of companies. In this article you will find a brief summary and conclusions of a detailed study.

Authors and Affiliations

N. Shevchenko

Keywords

EP ID EP521152
DOI 10.31732/2663-2209-2018-50-60-77
Views 106
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