Economy, finances, management: topical issues of science and practical activity

MAZUR  Anatoliy  –  Doctor of Economic Sciences, Professor of the Department 

of Agrarian Management, Vinnytsia National Agrarian University (21008, Vinnytsia, 3, 

Soniachna Str., e-mail: kaf.agr.men.@qmail.com).

SHEPEL Tetyana – Candidate of Economic Sciences, Associate Professor, Lviv 

Polytechnic National University (79000, Lviv, Stepan Bandera Str., 12, e-mail: 

tanya.vuda@qmail.com).

DMYTRYK Oleh  –  Lecturer of the Department of Agrarian Management, 

Vinnytsia National Agrarian University (21008, Vinnytsia, 3, Soniachna Str., e-mail: 

kaf.agr.men.@qmail.com).

The article deals  with the urgent issues of searching for new approaches to assessment 

of the efficiency of operation of private households (PH) as one of the organizational forms of 

agricultural production. The volumes of production and the range of PH food products are not 

subjected to statistical reporting and they are determined on the basis of selective restrictions, 

although such indicators are included in the total volume of marketable food products. In 

general, calculations of agricultural expenditures for private households in comparison with 

the received income ensure their high level of payback. At the same time, the profitability level 

within the limits of 50% allows to implement the extended economic reproduction of the 

industrial practice. Characteristics of labour means of PH show that they use mostly manual 

labour and achieve positive results due to its non-standardized use. As the practice shows, the 

increase in the land resources due to the joining of the individual land shares and land shares 

of relatives necessitates purchasing of the means for mechanization of production processes. 

Over the last three years, the number of mini-tractors and motor blocks has increased by 30% 

in the private households.

The results of groupings of availability of the agricultural machinery show the 

dependence of its purchasing on the concentration of rural population: a significant 

increase in small villages as compared to large settlements.

The structure of PH expenses also depends on the type of products that a household 

produces. In particular, services occupy an important share (about 50%) in the structure 

of expenses for crop production. The largest share in the structure of expenses, namely 

“Services”, is occupied by labour payment. At the same time, the analysis shows a decrease 

in the use of hired workers at the farms that use land area under 0.5 hectares and an 

increase in hiring workers at the farms with the land area of 1 hectare or more.

The largest share in the structure of expenses for livestock farming is occupied  by 

feeds (up to 62%), but there is some differentiation: feed costs per 1 centner of milk tend to 

decrease, while the cost of livestock maintenance tends to increase.

Positive dynamics of indicators of PH development does not mean that the 

production provided by them is more effective compared to other market participants. A 

questionnaire survey of 189 farms of Vinnytsia region has showed that the main problems 

of the PH operation were caused by several reasons of feed supply (for 49% of 

respondents); lack of production means, high cost of agricultural machinery, spare parts, 

fuel and lubricants (39%); weak material and technical base (16.7%).

In general, the production cost of the main types of agricultural products in the PH 

is rather high, which challenges the competitiveness of this form of management both in the 

domestic and foreign markets. However, it should be noted that the agricultural production 

in the households is consumer-oriented, i.e. its key objective is to meet the needs of its 

members under the low level of cash incomes of the rural population. At the same time, a 

private household should be considered as a kind of a barrier that restrains the overall 

agricultural production and maintains a certain level of food security in Ukraine.

In particular, the important direction of this study should be considered the gradual 

use by private farms of small means of mechanization detailed analysis of entrepreneurial

income in the production and sale of a range of crop production, the determination of the 

proportion of feed and services in the structure of the costs of crop production and livestock 

production and reserves of production growth in these branches of agribusiness. 

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