Challenges of Agricultural Enterprises in the

Transcript:Challenges of Agricultural Enterprises in the:
Challenges of Agricultural Enterprises in the Czech Republic Hana Urbancová Development of agricultural enterprises in the knowledge-based economy Introduction Agriculture is the traditional sector of the national economy. The competitiveness of agriculture is given by both technical and technological levels of the processing industry. Agriculture is influenced by internal and external factors. Staff number reduction in the Czech and Slovak Republic Internal and external factors Internal Level and development of national economy Market structure of the agricultural and food sector Increasing sales potential/sales strategy Formation of the economic environment of agriculture by instruments of agricultural policy Partnerships and cooperation External Factors determining a technical and economic level of agriculture Human resources issues Risk management issues Technical side of the production quality Adaptability to market conditions Competitiveness Theoretical background Agricultural enterprises in the Czech Republic: are increasingly determined by the environment; are highly dependent on natural conditions; there is time discrepancy between production and the running of a working process, long production cycle and demands for big stocks of own production; there is seasonal work; prices of agricultural producers are characterized by high fluctuation rates. → key factor in the economic backwardness of the Czech Republic is low productivity. Staff number reduction in the Czech and Slovak Republic Theoretical background Agriculture in the Czech Republic is characterized by: over 48,000 subjects; enterprises of natural persons account for 91.7% and manage 30.4% acreage of utilized agricultural land; enterprises of legal entities are represented by 8.3% business entities which manage 69.6% utilized agricultural land; in 2013, the agricultural sector recorded a slight increase in the value of the total agricultural production (2.3%) and the growth was mainly influenced by a higher value of livestock products. Staff number reduction in the Czech and Slovak Republic Profitability Main factors influencing profitability: gross value added (GVA) is a primary indicator of an economic result which expresses the value of total agricultural production after the deduction of production consumption and taxes; in 2012 the gross value added grew to 17,993 CZK per ha, i.e. by 5.7%; EVA growth was recorded for both legal entities businesses (2.7%) and physical entities businesses (12.5%). Staff number reduction in the Czech and Slovak Republic Profitability Planning and forecasting profitability: Baun (2009) points at the fact that the situation of Czech farmers is often worse due to administrative measures of the government which are more strict and demanding than EU requirements; according