RESEARCH PAPER
CHANGES IN PURCHASE PRICES AND EFFICIENCY VS. PRODUCTION PROFITABILITY IN AGRICULTURE: ANALYTICAL AND EMPIRICAL APPROACH
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Institute of Agricultural and Food Economics - National Research Institute
Submission date: 2022-05-31
Final review date: 2022-07-18
Acceptance date: 2022-08-26
Publication date: 2022-09-29
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2022;372(3):5-20
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ABSTRACT
The article discusses the issue of the impact of changes in purchase prices of an agricultural product
on production profitability in agriculture, and more precisely with respect to agricultural producers on
a given agricultural product market (in a given sector) in an analytical and model approach. The logic
of formal deductive reasoning is then illustrated and verified empirically. The authors’ own analytical
description of the relationship determining changes in the level of production profitability for agricultural
producers, with a particular emphasis on the change in the purchase price, is in fact the goal and
added value of the article. It enables the identification of dependencies resulting from market laws that
affect changes in production profitability. In particular, the authors present the influence of mutual relationships
between changes in the purchase price level and the purchase volume on revenue, and thus
production profitability. The article has a theoretical and cognitive and, to some extent, methodological
message. The reasoning in the article is carried out in terms and at the level of generality appropriate
for microeconomics and the theory of agricultural economics as well as a given product market for
agricultural producers.