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Factors for increasing the competitiveness of agricultural enterprises in the modern market

For students

2 min read

ECONOMICS E

The competitiveness of agricultural products in the modern market consists of several key elements: crop yield and livestock productivity, product quality, production and sales costs, as well as the level of scientific developments applied. All conditions are divided into external ones, which set the general framework for operation, and internal ones — those that the management and the enterprise's agronomic service control directly.

External factors — climate, geographical location, transport network, legislation, and government policy — do not depend on an individual producer. A farm cannot influence them, but it is obliged to take them into account in its work, adapting crop rotation structures and technologies to the conditions of the region.

Internal levers: tools for managing competitiveness

Internal factors are a direct resource for enterprise development. Attention to them allows for building a margin of safety and reducing the cost per unit of production. A key role is played by the intensification of production: competent increase in investment per 1 ha of arable land or per head of livestock provides a direct increase in the volume of marketable products.

To maintain stable positions, an agricultural enterprise needs to employ a complex of internal economic and technological measures:

  • clear organization of technological processes for sustainable growth in yield and productivity;
  • rapid adaptation to changing market demands and systematic study of demand;
  • rational use of resources to maximize their return;
  • specialization and diversification — the ability to concentrate on popular items and promptly change the structure of areas;
  • concentration of production through cooperation and internal integration.

The practical experience of nearly two decades of the agricultural sector in market conditions shows: the strongest positions are held by large farms. By generating high profit, they actively introduce innovations, update their machinery fleet, and master new technologies.

Enterprises united in concerns, industry unions, and associations possess facilities for the processing and storage of products. This allows them to ensure regulatory quality parameters, meet strict international requirements, and confidently enter foreign markets.

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