Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

On flexibility of agri-businesses: Are small- or large-scale farms more flexible?

17.10.2014

IAMO Policy Brief 19 presents latest findings on flexibility of Polish agrarian enterprises

Farming operations facing substantial pressures to adapt in response to changed economic and socio-political framework conditions in recent years. Increasing price fluctuations, significant adjustments of nutritional habits in populous economies, progressing climate change and agricultural policy reform efforts make entrepreneurial flexibility a key prerequisite of market competitiveness of agri-businesses.

IAMO director Thomas Glauben and researchers Swetlana Renner and Heinrich Hockmann applied newly developed metric methods and a comprehensive dataset to analyze the extent and determinants of flexibility using the example of Polish agricultural businesses.

Albeit that numerous popular scientific and practice-oriented papers emphasize the necessity of flexible corporate concepts and production technologies, it was largely unexplored to date what exactly entrepreneurial flexibility is, how it can be measured and what its determinants are.

Based on the findings of a study conducted by IAMO, flexibility – in economic terms – can be defined as the capability to adapt production to a new situation without substantial extra cost. Flexible production technologies entail high scope advantages, low marginal cost increases and high scale advantages.

The agricultural economists established in their analysis that the flexibility of production technologies is closely related to farm specialization. Mixed farms, in comparison to dairy cattle and processing farms, have more flexible technologies and are capable of adapting their production outputs at relatively lower cost. Out of the four reviewed farm types, Polish cropping enterprises has the lowest flexibility in their production methods.

It also became apparent that, irrespective of all analyzed farm types, small-scale operations have more flexible production systems than large enterprises. ‘It can be assumed that smaller full-time farms opt for flexible production strategies in order to hold their own on the market against larger, often ‚more vigorous‘ operational structures. This may also be an explanation for the occurrence of small-scale or dual agricultural structures in various transition countries, such as Poland’, says IAMO director Thomas Glauben.

The IAMO Policy Brief 19 titled ‘On flexibility of agri-businesses: Are small- or large-scale farms more flexible?’ is available for free of charge download on the IAMO webpage: www.iamo.de/publikation/en/policybrief-19

IAMO Policy Briefs

The publication series IAMO Policy Brief is published at irregular intervals and provides a platform for research findings and outcomes of the Institute of Agricultural Development in Central and Eastern Europe (IAMO) with social relevance to be communicated accessibly and entertainingly to a broad audience. Key target groups include political decision-makers, mass media representatives and the general public.

About IAMO

The Leibniz Institute of Agricultural Development in Transition Economies (IAMO) analyzes economic, social and political processes of change in the agricultural and food sector, and in rural areas. The geographic focus covers the enlarging EU, transition regions of Central, Eastern and South Eastern Europe, as well as Central and Eastern Asia. IAMO works to enhance the understanding of institutional, structural and technological changes. Moreover, IAMO studies the resulting impacts on the agricultural and food sector as well as the living conditions of rural populations. The outcomes of our work are used to derive and analyze strategies and options for enterprises, agricultural markets and politics. Since its founding in 1994, IAMO has been part of the Leibniz Association, a German community of independent research institutes.

Media contact

Daniela Schimming
Public Relations
Tel.: +49 345 2928-330
Fax: +49 345 2928-499
presse@iamo.de
www.iamo.de

Daniela Schimming | idw - Informationsdienst Wissenschaft

More articles from Agricultural and Forestry Science:

nachricht How much drought can a forest take?
20.01.2017 | University of California - Davis

nachricht Plasma-zapping process could yield trans fat-free soybean oil product
02.12.2016 | Purdue University

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Quantum optical sensor for the first time tested in space – with a laser system from Berlin

For the first time ever, a cloud of ultra-cold atoms has been successfully created in space on board of a sounding rocket. The MAIUS mission demonstrates that quantum optical sensors can be operated even in harsh environments like space – a prerequi-site for finding answers to the most challenging questions of fundamental physics and an important innovation driver for everyday applications.

According to Albert Einstein's Equivalence Principle, all bodies are accelerated at the same rate by the Earth's gravity, regardless of their properties. This...

Im Focus: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

New technology for mass-production of complex molded composite components

23.01.2017 | Process Engineering

Quantum optical sensor for the first time tested in space – with a laser system from Berlin

23.01.2017 | Physics and Astronomy

The interactome of infected neural cells reveals new therapeutic targets for Zika

23.01.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>