PROFITABILITY GAP IN THE MILK PRODUCTION CHAIN: EVIDENCE FROM SERBIA
DOI:
https://doi.org/10.5937/ekoPolj1602485ZKeywords:
proftability, milk production, dairies, ROA, ROE.Abstract
The main goal of this paper is to compare proftability of large dairies (processors) versus large milk producers, i.e. farms with 100 or more cows, organized as companies. Proftability is measured by following indicators: return on assets and return on equity. Proftability gap analyzis shows that milk processors achieved signifcantly higher proftability compared to cow breeders. Furthermore research results suggest that the existence of differences in the level of proftability among the participants in the milk production primarily affects capital turnover, and then the proft margin.
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References
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2. Bogdanov, N., Rodic, V. (2014): Agriculture and agricultural policy in Serbia, in Volk T, Erjavec E, Mortensen K., Agriculture policy and European integration in Southeastern Europe, Food and Agriculture Organization of United Nations, Budapest.
3. Business Registers Agency (2014): Register of Companies - Financial Statements of Company Belgrade. Available at: http://www.apr.gov.rs (accessed October 9, 2014)
4. Fairfeld, P., Lombardi Yohn, T. (2001): Using Asset Turnover and Proft Margin to Forecast Changes in Proftability. Review of Accounting Studies, Kluwer Academic Publisher, No. 6, pp. 371-385, Netherlands.
5. Field, A. (2009): Discovering Statistics Using SPSS, Sage Publication, London.
6. Government of the Republic of Serbia (2010): National Agricultural Programme of Serbia 2009-2011, Belgrade. Available at: http://www.tehnologijahrane.com/standardi/nacionalni-program-poljoprivrede-srbije-2009-2011-16#toc-vi-sektorska-analizamlekarstvo (accessed May 5,2012)
7. Horngren, C., Harrison, W., Oliver, S. (2012): Accounting. Prentice Hall, Upper Saddle River.
8. Kergler, B. (2012): Factors Affecting Farm Succession: the Case of Slovenia, Agricultural Economics (Zemědělská ekonomika), Czech Academy of Agricultural Sciences, vol. 58, no. 3, pp. 285-298, Praha.
9. Kimmel, P., Weygandt, J., Kieso, D., Trenholm, B. (2009): Financial Accounting, John Wiley & Sons, Ontario.
10. Mubin, M., Iqbal, A. and Hussain, A. (2014): Determinant of Return on Assets and Return on Equity and Its Industry Wise Effects: Evidence from KSE (Karachi Stock Exchange). Research Journal of Finance and Accounting, The International Institute for Science, Technology and Education, vol. 5, no. 5, pp. 148-158, USA.
11. Muminovic, S., Pavlovic, V. (2012): Proftability of Dairy Industry in Slovenia, Croatia and Serbia, Mljekarstvo, Hrvatska mljekarska udruga, vol. 62, no. 2, pp. 96-110, Zagreb.
12. Muminovic, S., Pavlovic, V., Joksimovic, D. (2012): Proftability and Business Excellence Analysis of Dairy Industry in Serbia, Mljekarstvo, Hrvatska mljekarska udruga, vol. 62, no. 3, pp. 207-218, Zagreb.
13. Nehring, R., Gillespie, J., Sandretto, C., Hallahan, C. (2009): Small U.S. dairy farms: Can they compete?, Agricultural Economics, (Zemědělská ekonomika), Czech Academy of Agricultural Sciences, vol. 40, no. 1, pp. 817-825, Praha.
14. Popovic, R. (2008): Dairy chain analysis – the case of Serbian market, Strategic management, Ekonomski fakultet u Subotici, vol. 13, no. 1, pp. 63-67, Subotica.
15. Soboh, R. A. M. E., Lansik, A. O., Van Dijk, G. (2011): Distinguishing dairy cooperatives from investor-owned frms in Europe using fnancial indicators.Agribusiness. John Wiley & Sons, Inc., no. 27, pp. 34–46. USA.
16. Statistical Offce of the Republic of Serbia (2014): Electronic Databases, Belgrade, Internet http://webrzs.stat.gov.rs (accessed June 4, 2014)
17. Qian, G., Zhang, Y., Wu, J., Pan, Y. (2013): Revenue Sharing in Dairy Industry Supply Chain - A Case Study of Hohhot, Journal of Integrative Agriculture, Chines Academy of Agricultural Sciences, vol. 12, no. 12, pp. 2300-2309, Peoples R China.
18. Volk, T., Rednak, M., Erjavec, E. (2014): Cross country analysis of agriculture and agricultural policy of Southeastern Europe countries in comparison with the European Union, in Volk T, Erjavec E, Mortensen K. Agriculture policy and European integration in Southeastern Europe. Food and Agriculture Organization of United Nations, Budapest.
19. Walsh, C. (2003): Key Management Ratios, Prentice Hall, London.
20. Wilson, P. (2011): Decomposing variation in dairy proftability: the impact of output, inputs, prices, labour and management, Journal of Agricultural Science, Cambridge University Press, vol. 149, no. 4, pp. 507 - 517, UK.
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Published
2016-04-30
How to Cite
Zekić, S., Mijić, K., Jakšić, D., & Milenković, I. (2016). PROFITABILITY GAP IN THE MILK PRODUCTION CHAIN: EVIDENCE FROM SERBIA. Ekonomika Poljoprivrede, 63(2), 485–499. https://doi.org/10.5937/ekoPolj1602485Z
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Original scientific papers
