Analysys of selected determinants of the agricultural market in Latvia and Poland
2017
Wasniewska, A, Gdynia Maritime Univ. (Poland) | Olszewska, K., The State Univ. of Applied Sciences in Elbląg (Poland)
OOn the agricultural market, many factors are determined by the current changes. As a result, there has been an increase in competitiveness and productivity in the agricultural sector in many countries of the European Union, which is inhabited by almost 7 % of the total population of the world, and comprises 2.1 % of the world's land surface. It is not a homogeneous region as regards the level of the agricultural market development, especially the milk market. Since 2004, when Latvia and Poland joined the European Union, the production of cow's milk has risen in spite of the decrease in the population of dairy cattle which has been accompanied by increased efficiency. The decline in consumption of cow's milk and its products, on the other hand, is an unfavourable phenomenon. The aim of the research was to identify the key determinants that influence the milk market in Latvia and Poland. In order to achieve the research objective, the authors have conducted an analysis of the Common Agricultural Policy documents associated particularly with the dairy market. The authors defined the set of agricultural market’s determinants in order to achieve the set goal. The research was based on Eurostat data generated for years 2005−2013. Twenty eight variables were used for analysis. A number of determinants were eliminated on the basis of coefficient of variation. The remaining variables were used for conducting examinations involving Hell wig’s method to determine the value of the integral capacity of information carriers. According to the analysis, the dairy market in Latvia is considerably influenced by the number of cattle, the age of farmers and agricultural holdings by economic size. The Polish dairy market is affected by the agricultural holdings with agricultural area of less than 5 ha and agricultural holdings with the economic size of the farm less than 4000 euro.
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