Efficiency of digitalization in agriculture: Milk producers regional case.

Issue № 8, 2023, article № 5, pages 45-54

Section: Digitalization in agrarian and industrial complex

Language: Russian

Original language title: ЭФФЕКТИВНОСТЬ ЦИФРОВИЗАЦИИ СЕЛЬСКОГО ХОЗЯЙСТВА: РЕГИОНАЛЬНЫЙ КЕЙС ПРОИЗВОДИТЕЛЕЙ МОЛОКА

Keywords: DIGITALIZATION, PRODUCTION EFFICIENCY, ECONOMIC EFFICIENCY, MILK PRODUCTION, SUBSIDIES

Abstract: The article evaluates the relationship between digitalization level and efficiency indicators of dairy farming – production and economic. Farm profiles with different digitalization levels are based on data from dairy enterprises of the Leningrad region. Digitalization level is set by the number of digital technologies implemented to monitor and control the health and physiological condition of cows. The empirical data show that the economic performance of milk producers and the digitalization level have a positive relationship: profits and profitability consistently increased when moving from one group of farms different in digitalization level to another. The impact of the number of digital technologies implemented on efficiency indicators, especially on cow yield and labor productivity, is non-linear. That is, the effects of digitalization depended on the number of technologies implemented, but were most noticeable in the transition from "zero" to "first" level of digitalization. As the number of digital technologies continued to increase, economic efficiency grew, but at a markedly lower rate, while production efficiency remained virtually unchanged. It shows a weak correlation between the digitalization level of enterprises and the current subsidies level. This can be explained by the focus of state support mainly on the indicator of milk production growth, as well as, probably, by the current time lags of state support impact. The evolutionary nature of the process of technological modernization is defined, in which digitalization seems to be the next relevant stage. It shows the barriers to such development for farms with "zero" digitalization, associated, among other things, with the manifestation of negative economies of scale. The article discusses the existing support measures for digitalization at the level of agricultural producers and their possible adjustments to facilitate a more active implementation of digital technology. The results confirm the current focus of industry players on digitalization to improve the sustainability and profitability of milk production.

Authors: Nikulina IUliia Nikolaevna