About governance, production, and territorial dimensions of farm competitiveness – the case of Bulgaria

Bachev, Hrabrin (2023): About governance, production, and territorial dimensions of farm competitiveness – the case of Bulgaria.

Abstract

The issues related to proper assessments of the competitiveness of farming enterprises in general and of different type and locations has been among the most topical for academicians, agro-business managers, interest groups, administrators, politicians, international organizations, and the public at large. Farm competitiveness has been usually assessed through traditional indicators of technical and accountancy efficiency, the productivity of factors of production, the profitability of activity, the farms’ market position, shares, etc. A systematic approach for defining competitiveness and formulating its pillars, principles, criteria, and indicators has been rarely implemented, and the critical governance aspects have been largely ignored. This paper incorporates a holistic multi-pillar framework and assesses the levels of and correlations between the competitiveness of Bulgarian farms of different juridical types, economic sizes, product specialization, and ecological and geographical locations. For assessing the level of competitiveness of farms, a system of 4 pillars (Economic efficiency, Financial endowment, Adaptability, and Sustainability), 4 criteria for each Pillar, and 17 particular and 5 integral indicators are used. The study has found out that the level of competitiveness of agricultural holdings in the country is at a good level, but there is significant differentiation in the level and factors of competitiveness of holdings with different juridical types, sizes, product specialization, ecological and geographical location. The low adaptive potential and economic efficiency to the greatest extent contribute to lowering the competitiveness of Bulgarian agricultural producers. A large share of farming enterprises has a low level of competitiveness, and if measures are not taken in due time to improve governance and public support, a large part of Bulgarian farms will cease to exist in the near future. The suggested approach for assessing the competitiveness of farms should be improved and applied more widely and periodically. The precision and representativeness of the information used should also be increased by increasing the number of farms surveyed, which requires close cooperation with other interested parties, and improving the system for collecting agro-statistical information in the country and the EU.

• Item Type: MPRA Paper
• Language: English
• Keywords: competitiveness, production, financial, and governance pillars, farms
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

References

Алексиев, А. (2012). Конкурентни възможности на зърнения сектор. Монография. Пловдив, Академично издателство на Аграрния университет.

Андонов, С. (2013): Ролята на европейските субсидии за повишаване на конкурентоспособността на земеделието в България, Дисертация за придобиване на онс „Доктор”, Софийски университет.

Башев Х. (2022). Подход за разбиране и оценяване на управленческата ефективност на земеделските стопанства, Народностопански архив, No 2, 22-41.

Башев Х. и колектив (2022). Разбиране, оценяване и повишаване на конкурентоспособността на българските ферми, Институт по аграрна икономика, София.

Башев Х. и Н. Котева (2021). Конкурентоспособността на земеделските стопанства в България, Икономическа мисъл, бр.4, 1-26.

Башев Х. и Н.Котева (2021). Оценка на равнището на конкурентоспособност на земеделските стопанства, В Конкурентоспособност на земеделските стопанства в България, ИАИ.

Башев Х. и Н.Котева (2021). Равнище на конкурентоспособност на българските ферми, Икономика и управление на селското стопанство, 66, 4, 3-25.

Башев, Х. (2010). „Оценка на конкурентоспособността на българските ферми”. Икономика и управление на селското стопанство, (6), 11-26.

Башев, Х. (2006). Оценка на устойчивостта на българските ферми, Икономика и управление на селското стопанство, 3, 18-28.

Башев, Х. (2014). Екоуправление в селското стопанство, Икономическа мисъл, 1, 29-55.

Башев, Х. (2020). ПОДХОД ЗА АНАЛИЗ И УСЪВЪРШЕНСТВАНЕ НА УПРАВЛЕНИЕТО НА УСЛУГИТЕ НА АГРО-ЕКОСИТЕМИТЕ, Икономика и управление на селското стопанство, бр 3, 27-48.

Башев, Х., Б Иванов, Д Митова, П Маринов, К Тодорова, А Митов (2020). ПОДХОД ЗА ОЦЕНКА НА УПРАВЛЕНИЕТО НА УСЛУГИТЕ НА АГРОЕКОСИСТЕМИТЕ В БЪЛГАРИЯ, ИАИ София.

Башев, Х., Б Иванов, Д Тотева (2019). Устойчивост на аграрните екосистеми в България, Икономика и управление на селското стопанство, 1, 39-55.

Башев, Х., М Михайлова (2019). Анализ на състоянието на системата за споделяне на знания и иновации в селското стопанство в България, EconPapers https://econpapers. repec. org/paper/pramprapa/94230. htm

Башев Х. (2010): Оценка на конкурентоспособността на българските ферми, Икономика и управление на селското стопанство No 6, 11-26. 7

Башев Х. (2011): Оценка на конкурентоспособността на земеделските кооперации, Икономика и управление на селското стопанство No 1, 22-30.

Башев Х. (2011): Конкурентоспособностт на земеделските стопанства на физически лица, Икономика и управление на селското стопанство No 5, 55-65.

Башев Х. (2022): Подход за разбиране и оценяване на управленческата ефективност на земеделските стопанства, Народностопански архив, No 2, 22-41.

Башев Х. и Н. Котева (2021): Конкурентоспособността на земеделските стопанства в България, Икономическа мисъл, бр.4, 1-26.

Башев Х. и колектив. (2022): РАЗБИРАНЕ, ОЦЕНЯВАНЕ И ПОВИШАВАНЕ НА КОНКУРЕНТОСПОСОБНОСТТА НА БЪЛГАРСКИТЕ ФЕРМИ, Институт по аграрна икономика, София.

Иванов, Б., Р. Попов, Х. Башев, Н. Котева, Н. Маламова, М. Чопева, К. Тодорова, И. Начева, Д. Митова (2020): Анализ на състоянието на селското стопанство и ХВП, ИАИ.

Котева Н., М. Анастасова-Чопева, Х. Башев (2021): Подход за оценка на конкурентоспособността на земеделските стопанства в България, Икономика и управление на селското стопанство, 66, 2, 3-20.

Котева Н. и Х. Башев (2011): Изследване на конкурентоспособността на земеделските стопанства в България, Икономическа мисъл, 5, 34-63.

Котева Н. и Х. Башев (2010). Подход за оценка на конкурентоспособността на земеделските стопанства, Икономика и управление на селското стопанство No 1, 32-43.

Котева, Н. & Башев, Х. (2022). „Равнище на конкурентоспособност на българските ферми”. Икономика и управление на селското стопанство, 66 (1), 3-25.

Котева, Н. (2016). Развитие и конкурентоспособност на земеделските стопанства в България в условията на ОСП на ЕС. Авангард Прима, София.

Котева Н. и др. (2021). Конкурентоспособност на земеделските стопанства в България и модели за нейното повишаване, ИАИ, София.

МЗХ (2021): Преброявате на земеделските стопанства в страната, 2020г., МЗХ.

Славова, Я. и кол. (2011). Конкурентни възможности на аграрния сектор. ИАИ, С.

Alam, S., M. Munizu, A.R. Munir, M. Pono, A.R.O. Kadir, (2020): Development Model of Competitiveness of Chicken Farm SMEs in Sidrap Regency, South Sulawesi, Indonesia. ESPACIOS, Vol. 41 (Issue 10), 23-42.

Andrew, D., M. Semanik, M. Torsekar (2018): Framework for Analyzing the Competitiveness of Advanced Technology Manufacturing Firms, Office of Industries Working Paper ID057, September 2018.

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.

Bachev, H. (2011): Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture, Review of Economics & Finance, vol. 1, 89-103.

Bachev H. (2022): Unpacking the Governance Efficiency of Agricultural Farms in Bulgaria, Agricultural Research Updates. Volume 41, P.Gorawala and S. Mandhatri (Editors), Nova Science Publisher, New York, 97-126.

Bachev H. (2022): An Approach to Assess the Governance Efficiency of Bulgarian Farms, Economic-Alternatives, 4, 769-787. Bachev H. (2023): Competitiveness of Farming Structures in Bulgaria, Икономически изследвания, Economic Studies, 32 (6), 108-131.

Bachev H., B. Ivanov, A. Sarov (2020): Unpacking Governance Sustainability of Bulgarian Agriculture, Economic Studies, 6, 106-137.

Bachev H., B.Ivanov and A.Sarov (2021): Assessing Governance Aspect of Agrarian Sustainability in Bulgaria, Bulgarian Journal of Agricultural Sciences, 27 (3), 429–440.

Bachev H. and M.Tsuji (2001): Structures for organisation of transactions in Bulgarian agriculture, Journal of the Faculty of Agriculture of Kyushu University 46, 123-151.

Bachev H. and N.Koteva (2021): Reexamining Competitiveness of Bulgarian Farms, in Miguel Fischer (Editor) Environmental Management: Ecosystems, Competitiveness and Waste Management, Nova Science, New York, 59-90.

Bachev H., N.Koteva (2021): The Competitiveness of Agricultural Holdings in Bulgaria, Economic Thought, 4, 27-48.

Bachev H. (2021). Unpacking competitiveness of agricultural farms in Bulgaria, Journal of Economics Bibliography, Volume 8, Issue 1,56-86.

Bachev H. (2022). About the Governance Efficiency of Agricultural Farms. The Case of Bulgaria, Journal of Applied Economic Sciences, 1(75), 5-20.

Bachev H. (2022). An Approach to Understanding and Assessing the Governance Efficiency of Agricultural Enterprises, Economic Archive, No 2, 21-38.

Bachev H. (2022). An assessment of the governance efficiency of agricultural farms, Technology transfer: innovative solutions in Social Sciences and Humanities, 2022: PROCEEDINGS OF THE 5TH ANNUAL CONFERENCE, 3-8.

Bachev H. (2022). Assessment of governance and overall efficiency of Bulgarian farms, Journal of Economics Bibliography, Vol 9, No 2, 48-72.

Bachev H. (2022). How to Assess the Governance Efficiency of Farming Enterprises?, IUP Journal of Supply Chain Management, Vol. 19, No 1, 45-59.

Bachev H. (2022). Measuring governance efficiency of agricultural farms, International Journal of Management and Economics, Volume 4, Issue 1, 56-69.

Bachev H. (2022). Unpacking the Governance Efficiency of Agricultural Farms in Bulgaria, Agricultural Research Updates. Volume 41, Prathamesh Gorawala and Srushti Mandhatri (Editors), Nova Science Publisher, New York, 97-126.

Bachev H. (2017). Socio-economic and environmental sustainability of Bulgarian farms, Agricultural and resource economics: international scientific e-journal 3 (2), 5-21.

Bachev H. (2000). Bulgarian Experience in Transformation of Farm Structures, Farm Management and Rural Planning, 181-196.

Bachev H. (2011). Water governance in Bulgarian agriculture, Climate Change and its Effects on Water Resources, 215-224.

Bachev H. (2009). Governing of Agro-ecosystem Services. Modes, Efficiency, Perspectives, VDM Verlag.

Bachev H. (2017). Sustainability of Bulgarian farming enterprises during European Union common agricultural policy implementation, Journal of Applied Economic Sciences (JAES) 12 (48), 422-425.

Bachev H. (2002). Study on land supply in Bulgarian farms, Farm Management and Rural Planning 3, 189-203.

Bachev H. (2014). Environmental management in agriculture, Икономическа мисъл, 1, 56-79.

Bachev H. and M Kagatsume (2002): Governing of Financial Supply in Bulgarian Farms, The Natural Resource Economics Review, 131-150.

Bachev H. (2014). Governing of Agro-Ecosystem Services in Bulgaria, Research Topics in Agricultural and Applied Economics 3, 94-129.

Bachev H. (2021). Modes of governance for ecosystem services in Bulgarian farms, Икономически изследвания, 8, 145-174.

Bachev H. (2020). Measuring the New Governance Pillar of Agrarian Sustainability at Farm, Sectoral and National Level in Bulgaria, Asian Business Research Journal 5, 28-38.

Bachev H. (2021). ASSESSING AND IMPROVING THE GOVERNANCE OF AGROECOSYSTEM SERVICES, Agricultural Research Updates. Volume 33, 53-92.

Bachev H. (2021). Agro-ecosystem services management of Bulgarian farms, Bulgarian Journal of Agricultural Science 27 (2021), 1023-1038.

Bachev H. (2020). Diagnosis of the System for Sharing Knowledge, Innovation and Digitalization in Agriculture (AKIS) in Bulgaria, Journal of Integrated Marketing Communications and Digital Marketing 1 (1), 1-17.

Bachev H. (2011). Efficiency and Sustainability of Economic Organizations in Agri-business, International Journal of Business Insights and Transformations 4 (1), 5-22.

Bachev H. (2010). Agricultural water management in Bulgaria, Available at SSRN 1662354

Bachev H., N. Koteva (2021). Decoding Competitiveness of Agricultural Farms in Bulgaria, editors T. Makharoblidze, Z. Sakhi, Proceedings, 3d INTERNATIONAL Conference On Innovative Studies of Contemporary Sciences, 306-318.

Bachev H., N. Koteva (2021). Farming Enterprises Competitiveness in Bulgaria, Journal of Economic Studies and Financial Research, Volume-2, Issue-1 (January-June, 2021), 13-38.

Bachev H., N. Koteva (2021). Holistic assessment of competitiveness of Bulgarian farming enterprises. Technology Transfer: Innovative Solutions in Social Sciences and Humanities, 4, 3–8.

Bachev H., N.Koteva (2021). The Competitiveness of Agricultural Holdings in Bulgaria, Economic Thought, 4, 27-48.

Bachev, H., B Ivanov, A Sarov (2020): UNPACKING GOVERNANCE SUSTAINABILITY OF BULGARIAN AGRICULTURE, Economic Studies 29 (6).

Bachev, H., M Tsuji (2001). Governing of Agrarian Transactions, Management and Rural Planning II, Kyushu University, Fukuoka, 185-202.

Bachev, H., F. Ito (2014): Implications of Fukushima Nuclear Disaster for Japanese Agri-food Chains, International Journal of Food and Agricultural Economics 2 (1), 95-120.

Bachev, H., M Kagatsume (2002): Governing of Financial Supply in Bulgarian Farms, The Natural Resource Economics Review, 131-150.

Bachev, H., M Kagatsume (2008): Risk Governance in Bulgarian Dairy Farming, paper presented at the 12th Congress of the European Association of Agricultural Economists “People, Food and Environments–Global and European Strategies”, 26-29 August 2008, Ghent.

BACHEV H., S. CHE, S. YANCHEVA (editors) (2018). Agrarian and Rural Revitalisation Issues in China and Bulgaria, KSP Books.

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

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

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

Csaki, C., C Forgács, D Milczarek, J Wilkin (2008). Regional Outcome: Central and Eastern Europe, Restructuring market relations in food and agriculture of Central and Eastern Europe - Impacts upon small farmers. Agroinform, Budapest.

Dresch, A, D. Collatto, D. Lacerda (2018): Theoretical understanding between competitiveness and productivity: firm level, Ingeniería y competitividad, vol.20 no.2 Cali July/Dec. 2018.

FAO (2010): International Competitiveness of 'Typical' Dairy Farms, FAO.

Falciola, J., M. Jansen, V. Rollo (2020): Defining firm competitiveness: A multidimensional framework, World Development Volume 129, May 2020, 104857

Giaime, B. & C. Mulligan (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.

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

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

KUSZ D. (2018). FARMS COMPETITIVENESS IN SELECTED COUNTRIES OF CENTRAL AND EASTERN EUROPE. Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 18 ISSUE 3.

Latruffe, L. (2010). Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors. OECD Food, Agriculture and Fisheries Papers, No.30, OECD Publishing.

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

Liberati, C., Cardillo, C., & Di Fonzo, A. (2021). Sustainability and competitiveness in farms: An evidence of Lazio region agriculture through FADN data analysis. Economia Agro-alimentare/Food Economy, 23(3).

Lundy, M., M. V. Gottret, W. Cifuentes, C. F. Ostertag, R. Best, D. Peters and Sh. 41.Ferris (2010): Increasing the Competitiveness of Market chains for Smallholder producers, CIAT.

Marques, P. R. et al. (2015): Competitiveness levels in cattle herd farms. Cienc. Rural. vol.45, n.3, 480-484.

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

Mykhailova, L., N. Stoyanets, A. Mykhailov, T Kharchenko, H. Bachev (2018): Sustainable development of the Ukrainian agrarian sector: perspectives and challenges, Problems and Perspectives in Management, 28-39.

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

Nivievskyi, O., Stephan von Cramon-Taubadel (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, 345-354.

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

Nowak A., M. Różańska-Boczula (2022): The Competitiveness of Agriculture in EU Member States According to Competitiveness Pyramid Model, Agriculture, 12(1) 28.

OECD (2011): Fostering Productivity and Competitivenessin Agriculture, OECD.

Oktariani, A., A. Daryanto, I. Fahmi (2016): THE COMPETITIVENESS OF DAIRY FARMERS BASED FRESH MILK MARKETING ON AGRO-TOURISM, International Journal of Animal Health and Livestock Production Research, Vol.2, No.1, 18-38.

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

Oktariani, A., A. Daryanto, I. Fahmi (2016): THE COMPETITIVENESS OF DAIRY FARMERS BASED FRESH MILK MARKETING ON AGRO-TOURISM, International Journal of Animal Health and Livestock Production Research, Vol.2, No.1, 18-38.

Osmani M., R.Kolaj, P. Borisov, E. Arabska (2021): Competitiveness between figures and metaphors; are farmers’ apple producers enough competitive? Bulgarian Journal of Agricultural Science, 27, Supl.1, 31-43.

Tanic, S., T. Lonc (2004). Farm Commercialisation and Income Diversification of the Road to EU Accession (Коммерциализация ферм и диверсификация доходов на пути к вступлению в ЕС), FAO.

Terziev, D. and H. Bachev (2021). Studying the Resilience of Farming Systems. Economic Theory Point of View. 178th EAAE Seminar. https://178eaaeseminar.org/wp-content/uploads/2021/05/20.05.2021-Terziev-D.pdf.

Vinichenko I., N.Trusova, S. Kalchenko, O.Pavlenko, S.Vasilev, R.Holovko (2021): Ensuring protection of the competitiveness of farms in the modified macro and micro environment of the multifactor risk, Special Issue: Innovative Development and Economic Growth in the CIS Countries, Vol. 39 No. 6.

Wisenthige, K., & C. Guoping, (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), 61-67.

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

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

Zia, B., M. Rafiq, S. Saqib, M. Atiq (2022): Agricultural Market Competitiveness in the Context of Climate Change: A Systematic Review, Sustainability,14, 3721.