Optimization of branch structure and specialization of agrarian enterprises

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Visnyk LNAU: Economics of AIC 2019 №26: 134-136

Optimization of branch structure and specialization of agrarian enterprises

Ivanytskyi I., PhD
Smolinskyi V. PhD
Lviv National Agrarian University

https://doi.org/10.31734/economics2019.26.134

Annotation

Nowadays, economic-mathematical modeling is rapidly developing and has a wide practical application, especially in the research of economic systems. Creation of analogues of real systems and processes with the use of economic and mathematical models considerably facilitates the conduction of analysis and planned economic calculations.

It is known, that agriculture has a specific feature, i.e. the ability to produce different kinds of products on the same land and thus, to achieve different results. The problem is to justify what, where and how much to produce, to determine specialization and structure of a particular enterprise to get the largest total effect.

The issues of specialization and sectoral structure of agricultural production in agricultural enterprises are especially relevant, whereas it is necessary to increase the economic efficiency of production under competitive market conditions. It forces the necessity to determine the optimal structure and specialization of enterprise production.

The definition of optimal specialization suggests such structure of production and such combinations of industries, which best meet the natural and economic conditions of the manufacture, fit into the needs and interests of the state and thus, allow achieving the highest efficiency of production.

The approach to substantiation of the system of variables, conditions of the problem, their formalization, preparation of the input information depends on the time, provided for problem solution.

Information for task setting varies greatly, as it depends on the period, defined for the task.

While elaborating the economic-mathematical model of the given task, it is important to choose the optimality criterion, which should reflect the efficiency of agricultural production of the enterprise, as well as should meet the public interest.

Applying the results of modelling, it is possible to identify those priority areas of activity of agricultural enterprises, which should be developed taking into account the existing climatic conditions of the region and specificity of production activity.

Key words

agriculture, economic and mathematical modeling, specialization, branch structure

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Article received 26.05.2019.

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