Articles

THE COMPETITIVENESS OF AGRICULTURAL HOLDINGS IN BULGARIA

Nina Koteva — Institute of Agrarian Economics
Hrabrin Bashev — Institute of Agrarian Economics
Published: 01.04.2021

Abstract

In an effort to fill the existing gap regarding the definition of the competitiveness of agricultural holdings and the ways to measure it, the present research applies a holistic approach in the assessment of the competitiveness of agricultural holdings in Bulgaria as a whole, as well as in terms of their different specialization. Despite its importance and the continuing debates on the topic, there is still no consensus on what the competitiveness of farms is; how to measure the competitiveness of different organizations in agriculture; what the absolute and comparative competitiveness of different types of farms is; which are the critical factors for increasing the competitiveness at the current stage of development, etc. The multi-criteria assessment found that although the level of competitiveness of Bulgarian farms is overall good, more than a third of all farms in the country show a low level of competitiveness. This can largely be attributed to their low adaptive potential and economic efficiency. The most competitive farms are those specializing in the beekeeping sector, followed by field crops, mixed livestock and mixed crop production, while farms specializing in grazing livestock are the least competitive. The proposed approach should be improved and applied more widely and periodically, increasing its accuracy and representativeness. The latter requires close cooperation with producer organizations, the National Agricultural Advisory Service (NAAS) and other stakeholders, as well as improvements to the agricultural information collection system in the country.

References

Alam, S., Munizu, M., Munir, A. R., Pono, M., Kadir, A. R. O. (2020). Development Model of Competitiveness of Chicken Farm SMEs in Sidrap Regency, South Sulawesi, Indonesia. ESPACIOS, Vol. 41 (Issue 10), 23.

Aleksiev, А. (2012). The competitive opportunities of the grain sector. Plovdiv: Academic PH of the Agricultural University (in Bulgarian).

Andonov, S. (2013). The role of European subsidies in indreasing the competitiveness of the agricultural sector in Bulgaria (a doctoral thesis). Sofia University “St. Kl. Ohridski” (in Bulgarian).

Andrew, D., Semanik, M., Torsekar, M. (2018). Framework for Analyzing the Competitiveness of Advanced Technology Manufacturing Firms. Office of Industries Working Paper ID-057, September.

Atristain Suarez, C. (2013). Organizational Performance and Competitiveness: Analysis of Small Firms. Nova science Publisher

Bachev, H. (2010). Management of Farm Contracts and Competitiveness. VDM Verlag Dr. Muller, Germany and USA.

Bachev, H. (2010а). Assessing Farm Competitiveness in Bulgaria. Agriculture Economics and Management, N 6, рр. 11-26 (in Bulgarian).

Bachev, H. (2011). Assessing the competitiveness of agricultural cooperatives. Agriculture Economics and Management, N 1, рр. 22-30 (in Bulgarian).

Bachev, H. (2011a). Competitiveness of the agricultural holdings of natural persons. Agriculture Economics and Management, N 5, рр. 55-65 (in Bulgarian).

Bachev, H. (2012). The Efficiency of Farms and Agrarian Organizations. Economic Thought Journal, N 4, рр. 46-77 (in Bulgarian).

Bachev, H. (2017). The sustainability of management structures in Bulgarian agriculture – level, factors, prospects. Economics 21, рр. 69-95 (in Bulgarian).

Benson, G. (2007). Competitiveness of NC Dairy Farms. North Carolina State University, http://www.ag-econ.ncsu.edu/faculty/benson/DFPPNatComp01.PDF

Chursin, A. & Makarov, Y. (eds.). (2015). Management of Competitiveness: Theory аnd Practice. London: Springer.

Csaba, J., Irz, X. (2015). Competitiveness of Dairy Farms in Northern Europe: A Cross-Country analysis. Agricultural and Food Science, 24, 3, рр. 206-218.

Dresch, A, Collatto, D. C., Lacerda. (2018). Theoretical understanding between competitiveness and productivity: firm level. Ingeniería y competitividad, Vol.20, N 2, рр. 69-86.

EC (2018). Proposal for a Regulation of the European Parliament and of the Council establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulation (EU) No. 1305/2013 of the European Parliament and of the Council and Regulation (EU) No. 1307/2013 of the European Parliament and of the Council, European Commission, Brussels.

FAO (2010). International Competitiveness of ‘Typical’ Dairy Farms.

Falciola, J., Jansen, M., Rollo, V. (2020). Defining firm competitiveness: A multidimensional framework. World Development, Elsevier, Vol. 129(C).

Giaime, B. & Mulligan, C. (2016). Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems. Sustainability, 8, 616.

Ivanov, B., Popov, R., Bachev, H., Koteva, N., Malamova, N., Chopeva, M., Todorova, К., Nacheva, I., Mitova, D. (2020). Analysis of the state of agriculture and the food industry. Sofia: Institute of Agricultural Economics (in Bulgarian).

Kleinhanss, W. (2020). Competitiveness of the Main Farming Types in Germany. In: 20th International Farm Management Congress, Vol.1. IFMA.

Koteva, N., Bachev, H. (2010). Approach for assessing the competitiveness of agricultural holdings. Agriculture Economics and Management, N 1, рр. 32-43 (in Bulgarian).

Koteva, N., Bachev, H. (2011). A study of the competitiveness of agricultural holdings in Bulgaria. Economic Thought Journal, N 5, рр. 34-63 (in Bulgarian).

Koteva, N. (2016). Development and competitiveness of agricultural holdings in Bulgaria in the conditions of the EU CAP. Sofia: Avangard Prima (in Bulgarian).

Koteva, N., Aleksiev, А., Beluhova-Uzunova, R., Roicheva, A., Hadzichoneva, J., Georgiev, A., Hadjiev, K. (2018). Theoretical and Methodological Aspects of the Competitiveness of Agricultural Holdings. Agriculture Economics and Management, 63, 4, рр. 3-14 (in Bulgarian).

Koteva, N., Bachev, H. (2021). The competitiveness of agricultural holdings in Bulgaria and models for its increase. Sofia: Institute of Agricultural Economics (in Bulgarian).

Krisciukaitiene, I., Melnikiene, R., Galnaityte, A. (2020). Competitiveness of Lithuanian farms and their agriculture production from present to medium – term perspectives. Lithuanian IAE.

Latruffe, L. (2010). Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors. OECD Food, Agriculture and Fisheries Papers, N 30. OECD Publishing.

Latruffe, L. (2013). Competitiveness in the agricultural sector: measures and determinants. Farm Policy Journal, 11(3), рр. 9-17.

Lundy, M., Gottret, M. V., Cifuentes, W., Ostertag, C. F., Best, R., Peters D., and Ferris, Sh. (2010). Increasing the Competitiveness of Market chains for Smallholder producers. CIAT.

Marques, P. R. et al. (2015): Competitiveness levels in cattle herd farms. Ciencia Rural, Vol.45, N.3, рр. 480-484.

Marques, P. R., Barcellos, J.O.J., McManus, C., Oaigen, R. P., Collares, F.C., Canozzi, M. E. A., Lampert, V. N. (2011). Competitiveness of beef farming in Rio Grande do Sul State, Brazil. Agricultural Systems, Vol. 104, Issue 9, рр. 689-693.

Mmari, D. (2015). Institutional Innovations and Competitiveness of Smallholders in Tanzania. Thesis to obtain the degree of Doctor from the Erasmus University Rotterdam.

Ngenoh, E., Kurgat, B. K., Bett, H., Kebede, S. W. and Bokelmann, W. (2019). Determinants of the competitiveness of smallholder African indigenous vegetable farmers in high-value agro-food chains in Kenya: A multivariate probit regression analysis. Agricultural and Food Economics, 7, рр. 2-17.

Nivievskyi, O., von Cramon-Taubadel, S. (2010). The Determinants of Dairy Farming Competitiveness in Ukraine. Policy Paper Series [AgPP No 23]. Institute for Economic Research and Policy Consulting.

Nowak A. (2016). Regional Differences in the Competitiveness of Farms in Poland. Journal of Agribusiness and Rural Development, 3, 41, рр. 345-354.

Nowak, A., Krukowski, A. (2019). Competitiveness of farms in new European Union member states. Agronomy Science, 2, рр. 73-80.

OECD (2011). Fostering Productivity and Competitivenessin Agriculture.

Oktariani, A., Daryanto, A., Fahmi, I. (2016): The competitiveness of dairy farmers based fresh milk marketing on agro-tourism. International Journal of Animal Health and Livestock Production Research, Vol.2, N 1, рр. 18-38.

Orłowska, M. (2019): Competitiveness of PolIish Organic Farms with Different Economic Size in Light of Fadn Data. Annals PAAAE 2019, XXI (2), рр. 217-224.

Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. The Free Press, Macmillan.

Slavova, Y. et al. (2011). Competitive opportunities of the agricultural sector. Sofia: Agricultural Academy, Institute of Agricultural Economics (in Bulgarian).

Westeren, K. I., Cader, H., Sales, M. F., Similä, J. O., Staduto, J. (2020). Competitiveness and Knowledge. An International Comparison of Traditional Firms. Routledge.

Wisenthige, K., & Guoping, C. (2016). Firm level competitiveness of small and medium enterprises (SMEs): analytical framework based on pillars of competitiveness model. International Research Journal of Management, IT and Social Sciences, 3(9), рр. 61-67.

Williamson, O. (1996). The Mechanisms of Governance. New York: Oxford University Press.

Ziętara W., Adamski, M. (2018). Competitiveness of the Polish dairy farms at the background of farms from selected European Union countries, Problems of Agricultural Economics, 1(354), рр. 56-78.