Holistic assessment of competitiveness of Bulgarian farming enterprises

The problem of determining the level of competitiveness of various economic organizations is among the most topical academic and practical issues. However, there is no widely accepted and comprehensive framework for understanding and assessing the competitiveness of farming enterprises in different market, economic, institutional and natural environments. This presentation suggests and applies a holistic approach for assessing the competitiveness of Bulgarian farms as a whole and different specializations. This novel framework includes appropriate criteria, indicators and reference values for the four pillars of farm competitiveness – Economics efficiency, Financial endowment, Adaptability and Sustainability. The multi-criteria assessment of farm competitiveness in Bulgaria has found that the level of competitiveness of farms is at a good level, with low adaptive potential and economic efficiency, to the greatest extent contributing to lower competitiveness. More than a third of all farms in the country has a low level of competitiveness. The most competitive are the farms in the beekeeping, followed by field crops, mixed livestock and crop productions, and the lowest in grazing livestock. The proposed approach should be improved and applied more widely and periodically, increasing accuracy and representativeness

METHODOLOGICAL AND METHODICAL ISSUES OF THE ECONOMIC SUSTAINABILITY OF AGRICULTURE AND AGRICULTURAL FARMS

Based on a critical review of scientific literature, the category ‘economic sustainability’ is defined as the dynamic development of agrarian systems over a long period of time in line with the changes in the external and internal environment which ensures efficient performance, good financial condition and competitiveness. We observe the hierarchical levels of the system for assessing economic sustainability to first select the principles, and then the criteria and indicators to be employed in the assessment, so as to reveal the characteristics and the underlying and significant aspects of the performance of the agricultural sector and agricultural farms

Равнище на конкурентоспособност на българските ферми през 2020г.

Despite its importance and continouing debates, there is still no consensus on what is the competitiveness of farms, how to measure the competitiveness of different organizations in agriculture, what is the absolute and comparative competitiveness of different types of farms, which are the critical factors for increasing the competitiveness at the current stage of development, etc. The article tries to fill the existing gap by applying a holistic approach and assessing the competitiveness of farms as a whole and with different specializations in the country. The multi-criteria assessment found that the level of competitiveness of Bulgarian farms is at a good level, with low adaptive potential and economic efficiency to the greatest extent contributing to lower competitiveness. More than a third of all farms in the country have a low level of competitiveness. The most competitive are the farms in the bee sector, followed by field crops, mixed animal husbandry and mixed crop production, and the lowest for farms specializing in grazing livestock. The proposed approach should be improved and applied more widely and periodically, increasing accuracy and representativeness. The latter requires close cooperation with producer organizations, advisory service and other stakeholders, and improvement of the agricultural information collection system in the country

Оценка на устойчивостта на българското селско стопанство

This paper assesses the integral, governance, economic, social and environmental sustainability of Bulgarian agriculture. On the base official aggravate (statistical, etc.) and survey data approbation is made of elaborated holistic framework and evaluated sustainability level at different levels - national, sub sector, region, (agro)ecosystems, and farm. Website of the project: https://zem.alle.b

Въпроси на конкурентоспособността на земеделските стопанства на България

A holistic approach for understanding, evaluating and improving the competitiveness of agricultural holdings in Bulgaria has been refined and applied. A multi-criteria assessment of the competitiveness of farms of different types is made by using survey information. A multi-criteria assessment of the level of competitiveness of agricultural holdings as a whole and with different types of product specialization was also made by using statistical data and applying the method of principal components. A comparative analysis of the level and dynamics of competitiveness of Bulgarian farms in general and with different specializations for the period 2010-2020 was also carried out. A comparative analysis of the results of the assessment of competitiveness based on survey and statistical data was made and the advantages and disadvantages of the various approaches. An assessment was made of the level and factors of competitiveness of agricultural holdings with organic production, the relationships with the main characteristics of the farmer (gender, age, etc.) were established, the most significant factors and political instruments affecting competitiveness were highlighted and the intentions were identified of organic farms in the near future. A model of CPR factor analysis and an index method for measuring competitiveness in the sheep meat sector were applied. The restructuring and diversification of agricultural cooperatives for the period after the country's integration into the EU was analyzed and a comparative assessment was made with other forms of business organizations in agriculture. The multi-criteria evaluation of alternative business models and strategies for managing the agricultural enterprise and risk was carried out, and the factors of the competitiveness of Bulgarian farms were identified. A theoretical analysis of the meso-economic level of management was made, the attitudes of alternative farmers in our country for the use of meso-institutions were established, and the relationship with agrarian competitiveness at the current stage of development of the industry was rethought. The development of agricultural holdings for the period 2007–2020 in the country was analyzed and the development of rural areas and the agrarian sector in the South Central region was compared with the general situation, by means of the Localization Index. The new trends in agricultural marketing (digitalization, intelligent marketing, etc.) are revealed, the impact on the relationship between agricultural producers and end users and the effect on the competitiveness of farms are assessed. An algorithm for the development and implementation of new models for innovative activity of small and medium-sized enterprises in agriculture is proposed, which allows effective management decisions at different levels, quantification of the index for innovative activity and easy adaptation when developing an automated system. General conclusions have been drawn up about the level, trends and factors of competitiveness of Bulgarian farms of different types and recommendations have been made for improving the scientific and evaluation methods, the system for gathering agro-information, public policies, programs and forms of intervention, and of farming strategies to improve competitiveness

Устойчивост на селското стопанство в България

This paper gives answer to topical and debated research and practical questions at the current stage of development of Bulgarian agriculture - „what is sustainability of agriculture", „how to assess sustainability of agricultural in the conditions of EU CAP implementation in the country“, and „which are critical factors for improvement of socio-economic and environmental sustainability in the sector“. Evolution of the „concept“ of agrarian sustainability and the major approached for its assessment are discussed More precise definition of sustainability of Bulgarian agriculture is suggested and the requirements for the system of its assessment are characterised. For the first time a new „governance“ pillar of agrarian sustainability is included along with the universally accepted economic, social and environmental pillars (aspects). Practically applicable for the specific conditions of Bulgarian agriculture holistic framework for assessing sustainability level of agrarian systems of different types (sector, sub-sector, region, ecosystem, agricultural farm) is suggested. The later included 25 principles, 66 criteria, and 163 indicators and reference values for assessing integral, governance, economic, social and environmental sustainability as well as approach for their calculation, integration and interpretation. Approbation of the elaborated framework in assessment of agrarian sustainability at various levels (national, sub-sector, region, (agro)ecosystem, and farm) is made on the base of official statistical, etc, information and original farm surveys. Critical factors for improving sustainability of Bulgarian agriculture are identified, and recommendation made for amelioration of research and assessment practices, public policies and farming strategies for sustainable development. Website of the project: https://zem.alle.b

Устойчивост на селското стопанство в България

This paper gives answer to topical and debated research and practical questions at the current stage of development of Bulgarian agriculture - „what is sustainability of agriculture", „how to assess sustainability of agricultural in the conditions of EU CAP implementation in the country“, and „which are critical factors for improvement of socio-economic and environmental sustainability in the sector“. Evolution of the „concept“ of agrarian sustainability and the major approached for its assessment are discussed More precise definition of sustainability of Bulgarian agriculture is suggested and the requirements for the system of its assessment are characterised. For the first time a new „governance“ pillar of agrarian sustainability is included along with the universally accepted economic, social and environmental pillars (aspects). Practically applicable for the specific conditions of Bulgarian agriculture holistic framework for assessing sustainability level of agrarian systems of different types (sector, sub-sector, region, ecosystem, agricultural farm) is suggested. The later included 25 principles, 66 criteria, and 163 indicators and reference values for assessing integral, governance, economic, social and environmental sustainability as well as approach for their calculation, integration and interpretation. Approbation of the elaborated framework in assessment of agrarian sustainability at various levels (national, sub-sector, region, (agro)ecosystem, and farm) is made on the base of official statistical, etc, information and original farm surveys. Critical factors for improving sustainability of Bulgarian agriculture are identified, and recommendation made for amelioration of research and assessment practices, public policies and farming strategies for sustainable development. Website of the project: https://zem.alle.b

Холистичен подход за дефиниране, оценяване и подобряване на конкурентоспособността на земеделските стопанства в България

The report presents the results of the first stage of the research project "Competitiveness of agricultural farms in Bulgaria" funded by the Agricultural Academy and implemented by a team from the Institute of Agrarian Economics, UNWE, NBU and IPAZR "N. Pushkarov ”in Sofia. A holistic framework for understanding, evaluating, and improving the competitiveness of agricultural holdings in Bulgaria has been elaborated. The achievements of the interdisciplinary New Institutional Economics, Theory of Economic Organizations, Theory of Competitiveness and other scientific methods such as: study of literature and experience, summary, synthesis, design, comparative and institutional analysis, multicriteria analysis, groupings, discrete structural analysis, value -measuring, qualitative analysis, expert evaluation, survey, Shift-share Analysis, VTOPSIS and statistical analysis, localization analysis, etc. Numerous publications and experience in the country and the world for understanding and assessing the competitiveness of agricultural holdings have been studied. On this basis, a (more) adequate definition of the competitiveness of the farm is given, it is justified that it has four equally important pillars (economic efficiency, financial capability, adaptability and sustainability), and a hierarchical system is developed to assess its level consisting of adequate criteria, indicators and reference values, and an approach to integration and interpretation. The new evaluation system is being experimented with, using survey information from managers of "typical" farms of different types, production specializations and geographical locations. The theoretical bases of business models are summarized and an innovative model of competitiveness of agricultural holdings is developed. An approach to assessing market and factor competitiveness has been adapted and tested in the dairy sector. The regional differences in the competitiveness of agriculture in the EU countries have been identified. The competitive positions and forms of management of alternative farms in the conditions of the Kovid pandemic are assessed. The peculiarities in determining the competitiveness of organic farms are highlighted. The advantages of strategic partnerships and network structures as a tool for increasing the competitiveness of small and medium farms were assessed. The possibilities of the "new" forms of marketing (green, niche, sustainable, etc.) and digitalization to increase the competitiveness of farms are assessed. A regional analysis of agricultural holdings and employees in the South Central region was made. Alternative forms of financing agriculture from banks and leasing companies to improve the competitiveness of farms have been assessed. Conclusions and recommendations for improving public policies and farming strategies have been prepared. The performed activity and the achieved results in terms of volume and quality fully correspond (and exceed) the planned for all tasks. More information can be obtained from the project website https://cfb.alle.bg

Trends of farms restructuring in Bulgaria

The question for the restructuring is extremely comprehensive, as an important part of it is the organization-economic restructuring of agriculture. The outgoing farm changes are very significant. The implementation of European policy, destined for higher economic, technologic and market level of agriculture than ours, generates some positive trends, but also a lot of problems. Without answer remains the question about the reflection of structural changes on farms’ economic state

Production Services in Agriculture - State and Directions for Development in the Process of European Integration

The main challenges in the process of European integration concern increase of the competitiveness of the economic entities. This imposes the necessity of creating a developed market of capitals, land, goods and services in the agriculture. The system of production service is a separate, integral part of the common system of the agricultural production. In theoretical aspect the paper outlines the range of the production service, types of service. Mentioned are the main factors, determining the development of the system. The change in organization and management of the production service is determined by the organization-economic restructuring in agriculture regarding our accession to EU, the opportunities for adapting to the changes of production-economic conditions, the adequate counteraction to the threats and the use of the favorable opportunities the business environment provides. The paper studies different organization forms of service area, seeking for an answer to the question to what extent the business opportunities of each of them meet the requirements for successful actions on the target market. On this base the main direction for development of the service area - improving the technical level and organization-economic restructuring are drawn.