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Development of proposals for improving the functioning of a family farm in a heterogeneous business environment

Author

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  • Termosa Iryna

    (Oleksandr Dovzhenko Hlukhiv National Pedagogical University)

Abstract

The research object is the process of creating a family milk farm and its activity efficiency. One of most important requirements as to family milk farm functioning is a possibility to provide high-quality milk production that its functioning efficiency and recoupment of investments for its creation depend on. A place of family farms as small economic subjects is determined on an example of the total entrepreneurial environment of Ukraine. The scheme of the organizational-economic functioning of family farms, created on the base of rural house economies, is proposed. The dynamics of milk and milk products production and also the dynamics of prices for milk of different sort are determined. Based on conducted studies, the expedience for creating additional production capacities in the field of milk production for industrial processing is substantiated. Actual requirements as to milk quality regulation are studied. At the research there are used means of system modeling for calculating the efficiency of family milk farm functioning. There are determined Quality parameters, influencing the economic efficiency of milk production at a family farm. They include: real fat share and real protein share in milk. For realizing the calculation of the parameters for the effective milk-good production by a family milk farm, there is proposed an economic-mathematical model of its creation by two variants: minimal and optimal. Due to this model, it is possible to calculate a minimal and maximal sum of investments, and also a period of their recoupment. Comparing with analogous well-known methods, the proposed approaches allow to determine production parameters of a family farm, to determine a sum of investments, to calculate a period of their recoupment.

Suggested Citation

  • Termosa Iryna, 2020. "Development of proposals for improving the functioning of a family farm in a heterogeneous business environment," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 5(4(55)), pages 38-43.
    • Handle: RePEc:nos:ddldem:53
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    References listed on IDEAS

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    1. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
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    More about this item

    Keywords

    entrepreneurial environment; family farm; family milk farm; agricultural production; agrarian economic sector;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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