Competitiveness of agricultural farms of different juridical types, sizes, specialization, and locations in Bulgaria

Hrabrin BACHEV

Abstract


Abstract. The competitiveness of farms is usually assessed through traditional indicators of technical and accountancy efficiency, the productivity of factors of production, the profitability of activity, farms’ market position and shares, etc. A systematic approach for defining competitiveness and formulating its pillars, principles, criteria, and indicators has been rarely implemented, end the critical governance aspects have been largely ignored. The article incorporates a holistic multipillars framework, and assesses the levels of and correlations between the competitiveness of Bulgarian farms of different juridical types, economic sizes, product specialization, and ecological and geographical locations. Farm competitiveness is defined as capability (governance and production potential) of an agricultural holding to maintain sustainable competitive positions on (certain) market(s), leading to high economic performance through continuous improvement and adaptation to changing market, natural and institutional environment. Accordingly, the main “pillars" of farm competitiveness are identified as Economic efficiency (Production Pillar), Financial endowment (Financial Pillar), Adaptability and Sustainability (Governance Pillar). For assessing the level of competitiveness of Bulgarian farms, a system of 4 criteria for each Pillar and 17 particular and 5 integral indicators are used. The study has found out that the level of competitiveness of agricultural holdings in the country is at a good level, but there is significant differentiation in the level and factors of competitiveness of holdings with different juridical types, sizes, product specialization, ecological and geographical location. The low adaptive potential and economic efficiency to the greatest extent contribute to lowering the competitiveness of Bulgarian agricultural producers. Especially critical for maintaining the competitive positions of farms are the low productivity, income, financial security and adaptability to changes in the natural environment, in which directions the public support of farms and their management strategies for development should be directed. A large share of farms of different types have a low level of competitiveness, and if measures are not taken in a due time to increase competitiveness by improving the management and restructuring of farms, adequate state support, etc., a large part of Bulgarian farms will cease to exist in the near future. The suggested approach for assessing the competitiveness of farms should be improved and applied more widely and periodically. The precision and representativeness of the information used should also be increased by increasing the number of farms surveyed, which requires close cooperation with other interested parties, and improving the system for collecting agro-statistical information in the country and the EU.

Keywords. Competitiveness; Production; Financial, and governance pillars; Farms.

JEL. Q10; O31; O33; Q01; Q16; Q18.

Keywords


Competitiveness; Production; Financial, and governance pillars; Farms.

Full Text:


References


Alam, S., M. Munizu, A.R. Munir, M. Pono, A.R.O. Kadir, (2020). Development Model of Competitiveness of Chicken Farm SMEs in Sidrap Regency, South Sulawesi, Indonesia. ESPACIOS, 41(10), 23-42.

Andrew, D., M. Semanik, M. Torsekar (2018). Framework for Analyzing the Competitiveness

of Advanced Technology Manufacturing Firms, Office of Industries Working Paper ID:057, September 2018

Atristain Suarez, C. (2013). Organizational Performance and Competitiveness: Analysis of Small Firms, Nova science Publisher.

Bachev, H. (2008). Agricultural policies in Bulgaria in post Second World War years, EconPapers. [Retrieved from].

Bachev, H. (2010). Management of Farm Contracts and Competitiveness, VDM Verlag Dr. Muller, Germany.

Bachev, H. (2011). Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture, Review of Economics & Finance, 1, 89-103.

Bachev H., B. Ivanov, A. Sarov (2020). Unpacking Governance Sustainability of Bulgarian Agriculture, Economic Studies, 6, 106-137.

Bachev H. (2022). Unpacking the Governance Efficiency of Agricultural Farms in Bulgaria, Agricultural Research Updates. Volume 41, P.Gorawala and S. Mandhatri (Editors), Nova Science Publisher, New York, 97-126.

Bachev H. (2022). An Approach to Assess the Governance Efficiency of Bulgarian Farms, Economic-Alternatives, 4, 769-787.

Bachev H. & M.Tsuji (2001). Structures for organisation of transactions in Bulgarian agriculture, Journal of the Faculty of Agriculture of Kyushu University 46, 123-151.

Bachev H., B. Ivanov, A. Sarov (2020). Unpacking Governance Sustainability of Bulgarian Agriculture, Economic Studies, 6, 106-137.

Bachev H., B.Ivanov & A.Sarov (2021). Assessing Governance Aspect of Agrarian Sustainability in Bulgaria, Bulgarian Journal of Agricultural Sciences, 27(3), 429–440.

Bachev H. & N.Koteva (2021). Reexamining Competitiveness of Bulgarian Farms, in Miguel Fischer (Editor) Environmental Management: Ecosystems, Competitiveness and Waste Management, Nova Science, New York, 59-90.

Bachev H., & N.Koteva (2021). The Competitiveness of Agricultural Holdings in Bulgaria, Economic Thought, 4, 27-48.

Benson, G. (2007). Competitiveness of NC Dairy Farms, North Carolina State University, [Retrieved from].

Chursin, A. & Y. Makarov (eds.). (2015). Management of Competitiveness: Theory аnd Practice. London: Springer.

Csaba, J., & X. Irz (2015). Competitiveness of Dairy Farms in Northern Europe: A Cross-Country analysis, Agricultural and Food Science, 24, 3, 206-218. doi. 10.23986/afsci.50881

Dresch, A, D.C. Collatto, & D.P. Lacerda (2018). Theoretical understanding between competitiveness and productivity: firm level, Ingeniería y competitividad, 20(2), doi. 10.25100/iyc.v20i1.5897

EC (2018). Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulation (EU) No 1305/2013 of the European Parliament and of the Council and Regulation (EU) No 1307/2013 of the European Parliament and of the Council, European Commission, Brussels.

FAO (2010). International Competitiveness of 'Typical' Dairy Farms, FAO.

Falciola, J., M. Jansen, & V. Rollo (2020). Defining firm competitiveness: A multidimensional framework, World Development, 129, 104857. doi. 10.1016/j.worlddev.2019.104857

Giaime, B. & C. Mulligan (2016). Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems, Sustainability, 8, 616. doi. 10.3390/su8070616

Kleinhanss, W. (2020). Competitiveness of the Main Farming Types in Germany, 20th International Farm Management Congress Vol.1, IFMA.

Krisciukaitiene, I., R. Melnikiene, & A. Galnaityte (2020): Competitiveness of Lithuanian farms and their agriculture production from present to medium - term perspectives, Lithuanian IAE.

Latruffe, L. (2010). Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors. OECD Food, Agriculture and Fisheries Papers, No.30, OECD Publishing.

Latruffe, L. (2013). Competitiveness in the agricultural sector: measures and determinants. Farm Policy Journal, 11(3), 9-17.

Lundy, M., M. V. Gottret, W. Cifuentes, C. F. Ostertag, R. Best, D. Peters and Sh. Ferris (2010). Increasing the Competitiveness of Market chains for Smallholder producers, CIAT.

Marques, P. R. et al. (2015). Competitiveness levels in cattle herd farms. Cienc. Rural. 45(3), 480-484. doi. 10.1590/0103-8478cr20140401

Marques, P. R., J.O.J. Barcellos, C. McManus , R.P. Oaigen , F.C. Collares , M.E.A. Canozzi V.N. Lampert (2011). Competitiveness of beef farming in Rio Grande do Sul State, Brazil, Agricultural Systems, 104(9), 689-693. doi. 10.1016/j.agsy.2011.08.002

Mmari, D. (2015). Institutional Innovations and Competitiveness Of Smallholders In Tanzania, Thesis to obtain the degree of Doctor from the Erasmus University Rotterdam.

Ngenoh, E., B. K. Kurgat, H. Bett, S. W. Kebede and W. Bokelmann (2019). Determinants of the competitiveness of smallholder African indigenous vegetable farmers in high-value gro-food chains in Kenya: A multivariate probit regression analysis, Agricultural and Food Economics, 7, 2-17. doi. 10.1186/s40100-019-0122-z

Nivievskyi, O., Stephan von Cramon-Taubadel (2010). The Determinants of Dairy Farming Competitiveness in Ukraine, Policy Paper Series [AgPP No 23], Institute for Economic Research and Policy Consulting.

Nowak A. (2016). Regional Differences in the Competitiveness of Farms in Poland, Journal of Agribusiness and Rural Development, 41(3), 345-354. doi. 10.17306/JARD.2016.62

Nowak, A. Krukowski (2019). Competitiveness of farms in new European Union member states, Agronomy Science, 2, 73-80. doi. 10.24326/as.2019.2.7

OECD (2011). Fostering Productivity and Competitivenessin Agriculture, OECD.

Orłowska, M. (2019). Competitiveness of PolIish Organic Farms with Different Economic Size in Light of Fadn Data, Annals PAAAE 2019, 21(2), 217-224. doi.

Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. The Free Press, Macmillan.

Westeren, K. I., H. Cader, M. F. Sales, J. O. Similä, J. Staduto (2020). Competitiveness and Knowledge, An International Comparison of Traditional Firms, Routledge.

Wisenthige, K., & C. Guoping, (2016). Firm level competitiveness of small and medium enterprises (SMEs): analytical framework based on pillars of competitiveness model. International Research Journal of Management, IT and Social Sciences, 3(9), 61-67. doi. 10.21744/irjmis.v3i9.172

Williamson, O. (1996). The Mechanisms of Governance. New York: Oxford University Press.

Ziętara W., M. Adamski (2018). Competitiveness of the Polish dairy farms at the background of farms from selected European Union countries, Problems of Agricultural Economics, 1(354), 56-78.

Алексиев, А. (2012). Конкурентни възможности на зърнения сектор. Монография. Пловдив, Академично издателство на Аграрния университет

Андонов, С. (2013): Ролята на европейските субсидии за повишаване на конкурентоспособността на земеделието в България, Дисертация за придобиване на онс „Доктор”, Софийски университет.

Башев Х. (2010): Оценка на конкурентоспособността на българските ферми, Икономика и управление на селското стопанство No 6, 11-26.

Башев Х. (2011): Оценка на конкурентоспособността на земеделските кооперации, Икономика и управление на селското стопанство No 1, 22-30

Башев Х. (2011): Конкурентоспособностт на земеделските стопанства на физически лица, Икономика и управление на селското стопанство No 5, 55-65.

Башев Х. и Н. Котева (2021): Конкурентоспособността на земеделските стопанства в България, Икономическа мисъл, бр.4, 1-26.

Башев Х. и колектив. (2022): РАЗБИРАНЕ, ОЦЕНЯВАНЕ И ПОВИШАВАНЕ НА КОНКУРЕНТОСПОСОБНОСТТА НА БЪЛГАРСКИТЕ ФЕРМИ, Институт по аграрна икономика, София.

Иванов, Б., Р. Попов, Х. Башев, Н. Котева, Н. Маламова, М. Чопева, К. Тодорова, И. Начева, Д. Митова (2020): Анализ на състоянието на селското стопанство и ХВП, ИАИ.

Котева Н., М. Анастасова-Чопева, Х. Башев (2021): Подход за оценка на конкурентоспособността на земеделските стопанства в България, Икономика и управление на селското стопанство, 66, 2, 3-20.

Котева Н. и Х. Башев (2011): Изследване на конкурентоспособността на земеделските стопанства в България, Икономическа мисъл, 5, 34-63.

Котева, Н. (2016). Развитие и конкурентоспособност на земеделските стопанства в България в условията на ОСП на ЕС. Авангард Прима, София.

Котева Н. и др. (2021). Конкурентоспособност на земеделските стопанства в България и модели за нейното повишаване, ИАИ, София.

МЗХ (2021): Преброявате на земеделските стопанства в страната, 2020г., МЗХ.

Славова, Я. и кол. (2011). Конкурентни възможности на аграрния сектор. ССА, ИАИ, С.




DOI: http://dx.doi.org/10.1453/jel.v10i1-2.2440

Refbacks

  • There are currently no refbacks.


.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics Library - J. Econ. Lib. - JEL - www.kspjournals.org

ISSN: 2149-2379

Editor: [email protected] Secretarial: [email protected]   Istanbul - Turkey.

Copyright © KSP Library