The impact of structural changes on the profitability of agricultural organizations in the region

Abstract

Abstract Studies were conducted to determine the influence of structural factors on the profitability of agricultural production. The main hypothesis: the structural shifts of the sectoral structure are associated with changes in conditions in the market for agricultural products, raw materials and food, the system of state regulation of agricultural production, as well as relations between partners in the agro-industrial complex. It was revealed that the largest amplitude of structural fluctuations per unit specific weight of products was observed for sheep, beet, beekeeping, and pig breeding products. The decline in production in sheep breeding is associated with the elimination of unprofitable activities in the pig industry, mainly with the bankruptcy of the loaned pig farms. The influence of structural and quality indicators on the profitability of agricultural enterprises in the region as a whole and its natural-economic zones is shown. Given the number of industries, the standardized weighted profitability ratio is higher in municipalities with a high concentration of crops of grain crops, sunflower, sugar beet, and it is below with a concentration of milk production. The directions of the formation of the mechanism of balanced (proportional) development of agriculture are generalized, connected with the need to improve state regulation of the development of agriculture and the mechanism of producers’ adaptation to changes in external conditions.