The limit of economic efficiency of agricultural organizations: assessment of their individual management level

Issue № 12, 2025, article № 3, pages 17-24

Section: Economic mechanism of managing

Language: Russian

Original language title: ПРЕДЕЛ ЭКОНОМИЧЕСКОЙ ЭФФЕКТИВНОСТИ ОРГАНИЗАЦИЙ АПК: КОНЦЕПТ ОЦЕНКИ ИХ ИНДИВИДУАЛЬНОГО УРОВНЯ МЕНЕДЖМЕНТА

Keywords: ECONOMIC EFFICIENCY, AGRO-INDUSTRIAL COMPLEX ORGANIZATIONS, AGROHOLDINGS, BANK LOANS, RETURN ON ASSETS, RETURN ON EQUITY, STATE MECHANISM FOR PROVIDING PREFERENTIAL LENDING, SAMPLE OBSERVATION METHOD, INDIVIDUAL MANAGEMENT LEVEL, SMART AGRICULTURE TECHNOLOGIES

Abstract: The relatively low level of economic efficiency of a significant number of entities in the agro-industrial complex makes it relevant to study the causes of this phenomenon with an emphasis on the objectivity or subjectivity of the conditions for achieving the corresponding efficiency. The purpose of the work is to clarify the issue of objectivity of the relatively low level of economic efficiency of domestic AIC organizations with an emphasis on assessing the individual level of their management. The work uses a method of comparing the average statistical indicators of a sample of AIC entities with individual representatives of the sector with the identification of the causes of deviations. The sample size was more than 110 entities included in the structures of the country's leading agricultural holdings. The key indicators for the analysis and comparison of the level of economic efficiency of AIC organizations were return on assets and equity. The average values of the studied indicators for the period 2009-2024 for the sample of AIC organizations were: return on equity - 18.65%, return on assets by profit before tax - 7.44%. For the agroholding Gelio-Pax, the average return on assets over the past 16 years is 32.47%, and return on equity is 49.55%. For the sample of agroholdings over the past 16 years, the average annual growth rate of assets was 14.57%, and equity capital was 16.48%. Over the same period, the average annual growth rate of Gelio-Pax assets was 12.62%, and equity capital was 13.40%. The results of the study added additional arguments and justifications for the subjectivity of judgments about the existence of a limit to the economic efficiency of domestic agro-industrial complex organizations. Such entities, as practice has shown, may well have a relatively high level of corresponding efficiency, which confirms the absence of objective limits to its growth. The studied entities objectively have the potential for economic efficiency growth from the levels of actual statistics. The low level of return on assets and equity capital is, to a certain extent, a subjective problem for a significant number of agro-industrial complex entities. Based on the example of individual agroholdings, it can be concluded that in the agro-industrial complex, the key to a high level of economic efficiency is: large-scale commodity production, the introduction of modern smart agriculture technologies, targeting the return on assets and equity by optimizing their structure in order to eliminate redundancy, and a high level of management. Having almost identical operating conditions, domestic agro-industrial complex organizations, where a high level of management can be stated according to indirect criteria, achieve the corresponding results of economic efficiency. We propose to translate such a qualitative phenomenon as a high level of management in a particular entity of the agro-industrial complex into a quantitative assessment, stating such under the condition that the return on assets in the corresponding organization exceeds 20%, and the return on equity exceeds 30%. Increasing the level of management in an organization is a factor in the growth of the economic efficiency of the domestic agro-industrial complex.

Authors: Morhachov Ilia Viktorovich, SHevchenko Mariia Nikolaevna, Listopadova IUliia Vladimirovna, CHugai Dmitrii IUrevich