Profitability of Pig Farms in Poland After Integration to the Eu (original) (raw)

Determinants of Profitability of Enterprises of Meat Industry in Poland

Acta Scientiarum Polonorum - Oeconomia

The aim of the study was to determine the strength and direction of influence of individual factors on the return on equity of the enterprises of the meat industry in Poland in 2008–2012. A detailed analysis covered 86 enterprises engaged in slaughtering and processing of pork and published financial reports in the analysed period. The profitability rate of the studied enterprises are identified based on the return on equity ratio. Du Pont analysis was used in order to determine the reasons for the change in structural system use. The research showed that the meat sector is characterized by relatively low profitability. This is primarily due to high production costs and low selling prices. The economic situation of the enterprises is affected by the high fragmentation of the industry and limited specialization. An additional difficulty are the emerging market affairs that reduce consumer confidence in meat products. Effective management of the enterprise of meat industry requires, t...

Analysis of the asset position of the Hungarian pig farming sector based on the data of the Farm Accountancy Data Network (FADN)

Journal of Central European Agriculture, 2017

The goal of the study was the examination of the Hungarian pig sector with particular attention paid to the available assets, to the composition of the non-current assets, to the depreciation value, to the value of gross and net investments and to the value of various supports. It was found that the position of individual farms was more unfavorable; only from 2012 exceeded the value of their investments the value of depreciation, consequently these investments did not result in farm development. Corporate farms on the other hand were able to increase their investments-partly because they were more successful in utilizing the various support measures. Although individual farms had an increased value of investment in the last examined year, the statement above is still valid. Companies characteristically invested in highvalue fixed assets, particularly in real estate property, while individual farms preferred intermediate assets, particularly machinery and breeding stock. The results of the study also show that farms keeping fewer pigs (below 50 livestock units) chose to increase the size of their breeding stock while reducing their real estate and machinery investment. In the case of medium size pig farms (livestock units 50-150) the situation were more diverse. In 2010 the biggest investment activity occurred in increasing the size of the breeding stock, in 2011 in real estate investment and from 2012 machinery investment had the biggest value. Farms having more than 150 livestock units purchased mainly breeding stock in the first two years, and invested in real estate property from 2012. The small and medium size pig farms realized negative net investment indicating a decreasing productive capacity and falling behind in terms of development. These farms were not able to replace their depreciated assets. In terms of developments only the big pig farms were successful having sufficient resources and successful partaking in the various support schemes. It is evident that farms with lower LSU hardly were able to invest in fixed assets.

Quantitative Research on Profitability Measures in the Polish Meat and Poultry Industries

Agronomy

Business entities strive for continuous adaptation to changing situations and needs. The decisions of business entities entangled in multifaceted processes of economic, social, and environmental progress must be taken on the basis of reliable knowledge, developed know-how, scrupulous recognition of the initial state, and foresight of the multiple consequences of business actions over a long horizon. In such a situation, the measurement of financial efficiency in terms of the profitability of enterprises in meat and poultry industries is extremely desired and provides valuable information on the necessary modifications to reduce the potential risks of business operation. The Polish meat and poultry industries should take into account current and future market requirements, competition, and consumer response. The dynamic progress of technology is forced to take appropriate steps to improve and modernize products, services, and methods of solving profit losses. The aim of the paper is ...

The Assessment of Financial Performance of the Lithuanian Dairy Sector’s Listed Companies

Management of Organizations: Systematic Research, 2020

The article analyses the Lithuanian dairy sector companies’ financial performance and its determinants. Economic value added (EVA) is employed in the paper as a measure of financial performance and labour productivity, revenue from exporting, gross profit margin and cost of debt are used as independent variables to identify determinants influencing performance. The results of the analysis show that EVA (as financial performance measure) fluctuates during the periods and has an opposite trend direction in some periods for some companies. The revenue from exporting and gross margin are found to have a significant positive impact on EVA (financial performance measure).

Financial Ratio Analysis as an Advisory Tool for Sustainable Pig Farm Management in Greece

Sustainability

This paper aims to provide pig farmers with the necessary information to guide strategic decisions through the development of a tool that allows them to calculate and control their production costs. A financial ratio analysis can be used as a starting point when assessing and improving a farm’s economic sustainability. The objective of the present article is to (1) provide insight into the financial ratios commonly used for pig farm assessments and (2) how they may be applied through an advisory tool to assess farm economic sustainability. Moreover, in this study, different financial ratios were examined to uncover trade-offs and synergies between them. Using the Farm Accountancy Data Network (FADN), we analyzed Spearman correlations between financial ratios. The correlation between these sets of indicators suggested that they could be used to estimate dairy farm economic sustainability. Our results showed that pig farms face a financial situation that can be improved. Pig farmers c...

Analysis on key financial data of Hungarian dairy product manufacturing enterprises

Journal of Agricultural Informatics, 2019

After several years of decline, dairy herd and milk production have started to rise from 2011. Considering the first growth phase, in current article we analysed the enterprises operating in the dairy product manufacturing sector in the period of 2012-2016. Among the principal financial indicators, we have chosen ROA and ROE to determine the general financial situation of the enterprises and analyse the changes in the five-year period. Based on the literature review we made our analysis by dimensions of enterprise size categories and regions. Income statement and balance sheet needed for calculating financial indicators of enterprises have been downloaded from EMIS. Enterprises involved in our analysis belonging to small, medium and large size category and mean representative sample as this sample covers 30% of the total population. Share of sample enterprises from key performance indicators is similar to the total population so we can consider our sample representative also in this...

Analysis of Selected Profitability Ratios in the Agricultural Sector

Agris on-line Papers in Economics and Informatics, 2019

The paper deals with the analysis of selected profitability indicators of Czech agricultural businesses of legal entities and their subcomponents, based on DuPont analysis. The effect of asset turnover ratio, net profit margin ratio and equity multiplier on the value of return on equity (ROE) and return on assets (ROA) is studied in relation to the legal form and size group. The analysis of the effect of sub-indicators is performed by way of a correlation analysis. Furthermore, the assumption about the influence of sub-components indicators on synthetic profitability ratios is verified. The panel data set we used was obtained from the Amadeus database. The analytical section is based upon accounting statements of agricultural businesses of legal entities in the Czech Republic within the period of 2011-2015. The analysis is based on the calculated values of ROA and ROE, including partial values of the sub-components indicator, by using DuPont analysis. The differences between the groups of businesses are tested through correlation analysis and subsequently evaluated with respect to the specifics of each group. The object of examination was more than 3000 companies annually, on average. The evaluated companies were divided, in terms of legal form, into joint-stock companies, cooperatives and limited liability companies, and in terms of size structure into small, medium and large businesses.

Profitability Development of Dairy Farms in Slovenia

Journal of Agricultural Science

The importance of the dairy industry for the regional and national economy is essential. This paper highlights the financial performance and profitable development of dairy farms in Slovenia by examining milk production. In this study, the correlation of variables representing the number of cows, forage area and milk production were found to be very strong with values of R = 0.85; R – 0.95; R = 0.79. The farm size has an impact on cost ratios, liquidity, return on assets, and debt. The interactions of these significant factors are evaluated as return on investments.

Decomposing Dynamics in the Farm Profitability: An Application of Index Decomposition Analysis to Lithuanian FADN Sample

Sustainability, 2019

The changes in farm structure have been observed in Lithuania as well as in other Central and Eastern European countries. These changes, to a high extent, have been driven by decreasing profitability of the small farms. In this paper, we look into the changes in the profitability of Lithuanian family farms across different farm size groups. Farm size is measured in terms of the standard output. The period covered is 2005-2016. The index decomposition analysis model and Shapley value are adapted for the analysis. The proposed framework ensures complete decomposition among other desirable properties. The decomposition of the changes in profitability was carried out following the DuPont identity. The results suggest that for small (respectively large) farms the asset turnover (respectively profit margin) component appear more important, whereas the leverage effect remained minimal irrespectively of the farm size group.

Liquidity and Profitability of Meat Processing Enterprises in Poland

Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics, 2021

The research aimed to identify changes in the level of liquidity and profitability of meat industry enterprises and determine the relationship between liquidity and profitability in this industry. The authors made a hypothesis that there is a positive relationship between the liquidity and profitability of meat enterprises, which means that along with the increase in financial liquidity the profitability of enterprises increased. The research used information from meat processing and preservation companies, except poultry, employing more than nine persons. The analysis covered companies that were obliged to submit financial statements to the National Court Register. In 2007, there were 467 such enterprises in Poland and 316 in 2018. The descriptive statistics, Pearson correlation coefficient, and linear regression analysis were used in the data analysis. The analyses show that the number of meat businesses in Poland is decreasing as a result of their consolidation and winding-up due to the difficult financial situation. The average current liquidity ratio of the enterprises analyzed between 2007 and 2018 remained at a satisfactory level from 1.054 to 1.49. The research shows a significant correlation between current and quick liquidity ratios and returns on assets and equity. The highest level of correlation occurred between the quick liquidity ratio and the asset profitability ratio. The profitability of meat enterprises in the long term is associated with maintaining financial liquidity. In turn, maintaining the ability to meet current obligations requires a rational management of profit and working capital.