Agrarian Economy 2019 Т. 12 № 3-4:77-84

Sales activity of farming enterprises

Yatsiv I., Doctor of Economics, Associate Professor
0000-0002-2370-6351
Yatsiv S., Ph.D., Associate Professor
0000-0002-5242-7845
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2019.03.077

ANNOTATION

The article presents results of investigation of sales activity of farming enterprises. That activity is considered as a complex of procedures on promoting of products at the market, and organization of settlements. Results of such activity serve as a base for estimates of financial results of business entity performance. Having studied statistical reports, the authors of the work define the tendencies of development of farming enterprises in Lviv region, and the principal results, obtained from sales of some products. It is determined that the share of farming enterprises in supply of agricultural products is still not sufficient (it does not exceed 10%), but it is characterized by the tendency to growth. The analysis demonstrates that expenditures for sales per a unit of sold products by farming enterprises is significantly lower than by medium-size and large agricultural enterprises. It makes a negative effect on conditions of products sales, particularly it is the reason for relatively low sale prices. Nevertheless, by some positions, farming enterprises have preferences over medium-size and large agricultural enterprises. The research concludes that financial results of sales create rather effective stimuli for growth of production of labor-intensive kinds of products (vegetables, fruit and berries, potato), and development of dairy breeding at the farming enterprises in Lviv region. High variation of sale prices of the most kinds of agricultural products confirms sustainability of their retailing at the target market. The article notes that the sales of products through sales cooperatives is an efficient tool to raise efficiency of sales activity of farming enterprises. Lviv region has the accumulated positive experience of development of agricultural servicing cooperation. On the area, at the start of 2019, there were 55 acting cooperatives, also performing the function of sales of agricultural products. The bodies of state power and local government, related to agrarian business structures, develop the mechanisms of support for cooperative move. The region experiences establishing of the institutional environment, favorable for development of farming cooperation.

KEY WORDS

farming enterprises, sales activity, agricultural products, prices, expenditures for sales, cooperation, sales cooperative

FULL TEXT

LINK

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Article received 15.10.2019.