Concentration and dispersion of production as risk management method, opportunity or threat in agriculture
2009
Spogis, K., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Mazure, G., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Svedere, D., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics
Cereal sowings accounting for half of the group of cultivated plants concentrate in agricultural commercial industrial enterprises of Latvia; and such tendency continues. The process of production concentration is well related to technological and technical modernisation reducing production risk and essentially increasing productivity and efficiency. Cereal productivity has a direct positive correlation with a corn-field area in the group of farms. The sowings of wheat as the main cereal culture are concentrated in large commercial industrial agricultural enterprises with winter crops as the governing cereal culture there. The local (farm) use of cereals explains the almost equal location of barley sowings in small, medium and large farms. The concentration of production directly correlates with the use of plant protection products that considerably reduce the risks of crop losses and economic losses. Modernisation of production and professional quality promoted and affected by concentration relates to strategic risk management performed by managers of large agricultural enterprises.
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