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ECONOMIC POTENTIAL OF AGRARIAN ENTERPRISES AS AN IMPORTANT DEVELOPMENT FACTOR

Published in AgroLife Scientific Journal, Volume 9, Number 1
Written by Vasyl SAVCHUK, Tetiana DZIUBA

The paper aimed to present the evaluation process of the economic potential of agrarian enterprises and its links to the financial results of such enterprises in Ukraine. The study used the data of financial statements of different types of agrarian enterprises of Ukraine and the statistical data provided by the Ministry of Agriculture. The authors proposed updated definitions of "economic potential of the enterprise" and "economic potential of the agricultural enterprise". During the analyzed period, the agricultural holdings had a relatively lower rate of economic potential, than farms. The production of cereals and leguminous has decreased by 1.8%. The meat production’s trend line predicted its gradual increase and milk production in 2020-2021 would decline up to 10 million tons if market conditions will stay the same. As a conclusion, the management of the economic potential of agricultural holdings and limited liability companies was more effective, than the one at farms, as bigger producers effectively restored and consistently kept their profitability after crisis reductions.

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