Impact of production concentration, specialisation and intensification on labour productivity in agricultural enterprises
2007
Spogis, K.,Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Business Administration and Management | Radzele, A.,Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Business Administration and Management
Despite the fact that one tenth of the total number of employed population is employed in agriculture, it accounts only for 4% of gross domestic product. Production concentration, specialization and intensification in crop farming and in livestock and dairy-farming positively influence production quality and efficiency. The concentration of production ensures an absolute decrease of unpaid labour contribution with a rapid and consistent increase of the share of paid labour contribution. The coverage of one labour hour contributed in agriculture by the value of economic size considerably increases with the increase of production concentration. The mentioned coverage for large-scale enterprises is 5 times higher than in the group of subsistence and semi-subsistence farms. Production concentration, specialization and intensification is related to the intersectoral, inter-business and international labour division through the resources produced by other Professional enterprises; however, subsistence and semi-subsistence farms correspond to their names, as these farms use very little of the purchased resources. Production concentration in agricultural enterprises of Latvia positively correlates with the farm economic performance - multiple growth of the share of business profit against the farm income, triple growth of net value added per each agricultural work unit, double growth of gross coverage in crop farming per 1 ha of land used and in livestock farming per 1 work unit is observed. Production concentration in agricultural enterprises occurs also due to the change of specialization: crop farming sectors are absolute dominants in medium economic size enterprises, while poultry farming and pig-breeding are dominant sectors in the largest enterprises.
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