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

The research study aimed at determining force and directions of impact of the selected factors on the return on equity of pig farms in Poland between 2005 and 2010. Nine hundred and fifty one farms, specialised in the production of pigs for slaughter, which had gathered data within Polish FADN, were subjected to a detailed analysis. The research showed that the pig market is characterised by price volatility determining profitability of pig production and influencing a generated level of income and profitability of pig farms. The decomposition of return on equity with the use of Du Pont pyramid showed that within the first years following Poland's accession to the EU, the changes in ROE were the most influenced by return on sales, and in 2010, it was the asset turnover ratio. The direction of the return on sales ratio's influence on ROE was positive, and that of asset turnover ratio was changing within the subsequent years. The capital structure ratio had the lowest influenc...