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Agricultural producers' groups in the Czech Republic: introductory review and discussion of the problem area economic performance measurement

Author

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  • Jan Vavřina

    (Ústav podnikové ekonomiky, Mendelova univerzita v Brně, Zemědělská 1, 613 00, Brno, Česká republika)

  • Kamila Růžičková

    (Ústav podnikové ekonomiky, Mendelova univerzita v Brně, Zemědělská 1, 613 00, Brno, Česká republika)

Abstract

Each company is surrounded by the micro- and macro-environment affecting also its economic performance. These factors are not only individual accounting entries, but also analytical inputs as the internal company processes, management of costs or short-term financial decisions and specifically in the case of agriculture within the EU also the public subsidy schemes implemented through the EU Common Agricultural Policy. Groups of agricultural producers are created as a response to current market dynamics and the opportunity for each agricultural enterprise regardless the size. In this paper, the basis for agricultural cooperation is provided, traditional economic performance measures are presented and their applicability on the sample of agricultural producers' groups and wholesale entities is empirically verified. Wholesale entities are analysed by its business activity and performance features to consider whether they are suitable peer group for comparing economic performance of examined agricultural producers' group. Since the economic performance of agricultural producers' groups directly affects the economic performance of all participating entities, and vice versa, their economic performance measurement may involve specific constraints. According to the structure and characteristics of agricultural producers' groups may be inferred that whilst the common performance measurement techniques are applicable on the majority of companies, agricultural producers' groups represent specific entities and therefore need adjusted performance measurement approach.

Suggested Citation

  • Jan Vavřina & Kamila Růžičková, 2012. "Agricultural producers' groups in the Czech Republic: introductory review and discussion of the problem area economic performance measurement," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 441-450.
  • Handle: RePEc:mup:actaun:actaun_2012060070441
    DOI: 10.11118/actaun201260070441
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    References listed on IDEAS

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